6 ms·

So, this begs the question - why did Fansnap's investors feel that 10.5M (roughly 3 orders of magnitude more) was necessary to build their business?

unalone 18y ago
That's the question that astounds me. What do web sites do with that sort of money? After servers, maybe marketing, maybe a round of hiring a graphic designer, what's left?
- fallentimes 18y ago
  10 people at 100k per year plus benefits plus taxes/fees plus office space adds up really fast.
  - unalone 18y ago
    Huh! I'd have thought a start-up would work from an apartment or something to save costs. And forgive my ignorance, but isn't 10 people a lot for a start-up? Isn't 100k a year rather a lot? And when you get investments, is that what part of the money goes toward, your own salary?
    - fallentimes 18y ago
      I'm talking about them, not necessarily the typical startup: http://www.fansnap.com/leadership http://www.fansnap.com/leadership
    - aston 18y ago
      10 people is still a pretty small company, all things told. You can draw the line for "startup" wherever you like, but a million dollars goes pretty fast for most businesses.
      - moe 18y ago
        Yup, but we're talking 10 million dollars here. Imho the term startup becomes a bit misleading when you're going at it with that kind of money. "Corporate spinoff" or something might be the better term. I'll freely admit that I'm a bit jealous here (talking from the perspective of a self-funded startup), figures like that just make my head spin. You keep reading that VCs would rather fund 10 startups instead of one, because 8 of them fail either way. Then you read about A/B rounds in the millions...
- bd 18y ago
  Ask HN: What do these startups need so much money for? http://news.ycombinator.com/item?id=455687 http://news.ycombinator.com/item?id=455687
mzexfsw 18y ago
You believe there is a link between; how much it costs to build a site, how much to ask for and how much a VC will invest and of course - how much money it will make?
fallentimes 18y ago
The market is $4 billion. We think there's room for both of us to succeed.

unalone 18y ago

That's the question that astounds me. What do web sites do with that sort of money? After servers, maybe marketing, maybe a round of hiring a graphic designer, what's left?

fallentimes 18y ago
10 people at 100k per year plus benefits plus taxes/fees plus office space adds up really fast.
- unalone 18y ago
  Huh! I'd have thought a start-up would work from an apartment or something to save costs. And forgive my ignorance, but isn't 10 people a lot for a start-up? Isn't 100k a year rather a lot? And when you get investments, is that what part of the money goes toward, your own salary?
  - fallentimes 18y ago
    I'm talking about them, not necessarily the typical startup: http://www.fansnap.com/leadership http://www.fansnap.com/leadership
  - aston 18y ago
    10 people is still a pretty small company, all things told. You can draw the line for "startup" wherever you like, but a million dollars goes pretty fast for most businesses.
    - moe 18y ago
      Yup, but we're talking 10 million dollars here. Imho the term startup becomes a bit misleading when you're going at it with that kind of money. "Corporate spinoff" or something might be the better term. I'll freely admit that I'm a bit jealous here (talking from the perspective of a self-funded startup), figures like that just make my head spin. You keep reading that VCs would rather fund 10 startups instead of one, because 8 of them fail either way. Then you read about A/B rounds in the millions...
bd 18y ago
Ask HN: What do these startups need so much money for? http://news.ycombinator.com/item?id=455687 http://news.ycombinator.com/item?id=455687

mzexfsw 18y ago

You believe there is a link between; how much it costs to build a site, how much to ask for and how much a VC will invest and of course - how much money it will make?

fallentimes 18y ago

The market is $4 billion. We think there's room for both of us to succeed.