3 ms·
No wonder. I would not pay (or advise anyone to pay) half a mil for a business with # of customers in the low hundreds, some of whom have anecdotally confessed
by ozataman 14y ago
No wonder. I would not pay (or advise anyone to pay) half a mil for a business with # of customers in the low hundreds, some of whom have anecdotally confessed to very low efficacy/value from it in previous HN threads.
Intuitively, 37signals was in a very rare position in the market to immediately funnel traffic to this service and it still did not take off into thousands of paying customers and $1M+ of annual revenue.
I don't believe the ask price is fair as much as it is high enough to maintain the 37signals brand and image. A couple hundred K lower, and it is too little for them to bother. I think it might have had takers in the $70k - $120k (basically salvage price) range.