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How do you spend $400M?
by superdisk 3y ago
How do you spend $400M?
- bsder 3y agoToo many salaries. VCs want you to go big or go home so they want you to hire. Hiring decreases your runway dramatically. $100 million lasts practically forever for 2 people. $100 million lasts through most problems for 10-15 people. $100 million doesn't last very long at all for 100 people.
- anon1199022 3y ago+ fancy office etc. Remember what twitter office was offering with no profit for the company? any extra was coming from companies potential profit
- ethanbond 3y agoIt’s a nice meme about Twitter being an atrocious business etc (and it wasn’t great/it was struggling for much of its existence), but Twitter made $1.2 and $1.4 billion in profit in 2018 and 2019 respectively.
- inemesitaffia 3y agoWasn't lifetime profitable
- ethanbond 3y agoLike most high-growth tech businesses throughout most of their lifetime. Fair critique of the industry at large IMO, but it’s very much “by design.”
- xnorswap 3y agoIt should be noted that outside of the US tech bubble, $100m lasts plenty long for 100 people, even with overheads.
- ctvo 3y ago> outside of the US tech bubble, $100m lasts plenty long for 100 people, even with overheads. Outside where? The EU? Plenty long... like 5 years? 150K per employee on average with overhead (additional benefits, tax contributions, health care -- whatever other expenses). 15,000,000 a year. Add in real estate, equipment, other capital expenses. Yeah, looks like ~5 years.
- bsder 3y agoIf you have $100m, the implication is that the VCs want to see a unicorn (>$1 billion). You will be engaging in a lot of sales, marketing and engineering activity to get there. Your activity is expensive. And nobody is getting $100 million anymore. Good raises are now in the $10 million range and that doesn't last long at all even if you only have a small number of employees.