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> [...] go look at the Sacramento startup Sircles. 7+ year old "startup" that has sub $100k revenue after several years but 9 million in debt. Going on a tange
by eru 1y ago
> [...] go look at the Sacramento startup Sircles. 7+ year old "startup" that has sub $100k revenue after several years but 9 million in debt.
Going on a tangent:
Depending on your industry, taking a while to see any revenue is common. Eg look into biotech or the people trying to make atomic fusion a reality.
Debt is just as valid a way to finance your company as equity is. See https://en.wikipedia.org/wiki/Modigliani%E2%80%93Miller_theorem https://en.wikipedia.org/wiki/Modigliani%E2%80%93Miller_theo... for the theory.
- hn_throwaway_99 1y ago> Depending on your industry, taking a while to see any revenue is common. That is true. But Sircles, which appears to be just another social recommendation app, is not in one of those industries.
- eru 1y agoOh, even without looking into it, I would assume that Sircles is probably pretty dodgy. I just meant that SacToHacker's original points against it aren't necessarily bad. But can be damning in the context of their industry, yes!
- vibrio 1y agoTrue. and a screwdriver is as just a valid tool as a hammer. Though their use isn’t always interchangeable .
- ejoso 1y agoThis is cool. Love little tangential info bombs like this. Thanks.
- koolala 1y agoCool but Sircles isn't a biotech company. It's a social network. They arn't "trying to make atomic fusion a reality" either.