6 ms·

The reason is that $340k is not worth their time.

• dhoulb 13y ago
  Exactly! It's kinda sad that unless a company has crazy hockey stick growth, it's not worth it. Everyone: the founders, the early employees and the venture people, we're all in it to make tens of millions, so while it was a viable business in every other sense, no-body involved cared. But, why should they? All of those people are probably capable of making loads more money in other places. The early employees can get $100k at an established company, the venture people can invest in some other flash-in-the-pan venture with a better chance of an exit, and the founders believe their next idea can stand a better chance of making them millions. I don't really have a side here, I just think it's weird when a business with revenue shuts down and doesn't continue in any capacity. Surely one or two guys could've maintained it and made $150,000 each - a pretty good income! The founders could've had it running on autopilot for a few years to give them an income while they started their next project.
• rpedela 13y ago
  The assumption is that the business would continue to grow but slower than they would like. I don't think $340K was the ceiling.
• thatthatis 13y ago
  No. The reason is that 340 was revenue, and COGS was higher than 340. A 340k per year profit machine is easily worth a few million. Revenue != profit.
  • akbar501 13y ago
    I never stated whether I was referring to profit or revenue. However, from the article one can infer that the entire discussion is about revenue.