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This sounds cruel, but Everpix was effectively operating as a Ponzi scheme. They offered services (photo storage) that they couldn't afford unless new money cam
by libovness 13y ago
This sounds cruel, but Everpix was effectively operating as a Ponzi scheme. They offered services (photo storage) that they couldn't afford unless new money came in. Then the money stopped.
- swisspol 13y agoActually, Everpix was making around $40K / month from subscription revenue covering the infrastructure costs for both free and paid users with some margin. The problem is (obviously) having enough to cover fixed costs as well i.e. mostly personnel costs.
- libovness 13y agoShouldn't that be factored into the cost structure? What does it matter that the margin on the storage costs was cash flow positive?
- awad 13y agoThe personnel costs of a 7 person startup really jumped out at me. Am I the only one that was surprised?
- 72deluxe 13y agoNo, I thought the personnel costs / salaries was bonkers too. EDIT: I read some of the comments on the Verge's page and it seems that the salaries were over a few years, and apparently that isn't bonkers money! I must be out of touch.