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Too 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 fore
by bsder 3y ago
Too 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.