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Your math only makes sense if you’re assuming they got all their customers year one and have had no growth since. Who’s to say the donations last year weren’t $
by stanmancan 3y ago
Your math only makes sense if you’re assuming they got all their customers year one and have had no growth since. Who’s to say the donations last year weren’t $100,000 putting the estimated profits at $1.2m (assuming all months are roughly equal)?
- loeg 3y agoDoesn't that makes the calculus worse for the startup, not better, due to time value of money? The counterfactual FANG worker chugging along at 250k/year has had health insurance, deductible retirement contributions, and years of stock market growth to appreciate their nest egg.
- stanmancan 3y agoI don’t think so? $300,000/year for 14 years is $4.2m If you’re making $1m in profit after 14 years it doesn’t take long to catch up even if your first few years were slow. You also are sitting on a business you could likely sell for $5-10m on top of that.
- cperciva 3y agoWho’s to say the donations last year weren’t $100,000 putting the estimated profits at $1.2m To answer the rhetorical question: I can tell you that. I wish, though. ;-) Reality is somewhere between those two hypotheticals. The past few years, my now-2.5-year-old has been taking a lot of my attention and I haven't really been focused on Tarsnap's growth.