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Burning through $7m in 9 months? That's an impressive amount of avocado toast.
by RobotToaster 4mo ago
Burning through $7m in 9 months? That's an impressive amount of avocado toast.
- yett 4mo agoAnd AI tokens
- mmaunder 4mo agoAnd poached eggs.
- user_of_the_wek 4mo agoDon’t forget the candles
- RobotToaster 4mo ago[flagged]
- Noaidi 4mo agoPlease don't bring Reddit brain here...
- api 4mo agoThat would be a lot still. That’s a lot of money. I’d bet on extreme irresponsibility.
- raverbashing 4mo agoThose Claude tokens are not cheap you know /s
- rfgplk 4mo ago$7m actually isn't a whole lot, especially if they hired a (larger) engineering team. Assuming their cali based, that's easily 150-200k per engineer, a team of 20 easily eats through that. Idk the specifics, but I don't the organization was fradulent, it could also be that they're going commercial and no longer want to maintain their oss stack
- DiggyJohnson 4mo ago20 engineers would be incredibly aggressive growth for such a young company with that amount of capital, no?
- SR2Z 4mo agoThe real number is probably closer to ~13 engineers, because it costs a company the worker's salary _again_ for benefits, payroll taxes, etc., etc.
- GabrielBianconi 4mo agoOur team was much smaller. We didn't spend all the capital.
- vips7L 4mo agoI thought ai was writing all the code. What do they need engineers for?
- wtfleming 4mo ago150-200k is also just the employee’s salary, the actual cost to the company is significantly higher, you need to multiply that by something like 1.5 to get the fully loaded cost, people are expensive!
- whateveracct 4mo agoif you hire 20 engineers with your seed round you are either very confident you'll be able to use them to justify another raise soon or you're incompetent
- swiftcoder 4mo ago> very confident you'll be able to use them to justify another raise soon That is indeed how the VC funding game is played. If you don't raise another round, you are dead anyway, so you spend down your seed round to try and justify that following round...
- GabrielBianconi 4mo agoWe raised in 2024 and only burned through ~$3m of it, mostly on salaries to support a small team.