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Everpix failed to achieve basic unit economics: https://news.ycombinator.com/item?id=6678135 https://news.ycombinator.com/item?id=6678135 It's a nice story an
by thatthatis 13y ago
Everpix failed to achieve basic unit economics: https://news.ycombinator.com/item?id=6678135 https://news.ycombinator.com/item?id=6678135
It's a nice story and all to say that they failed even though they were successful. But that's not the truth. They failed as a business, and thus their business wasn't funded further.
When you can't cover your COGS as an Internet company, your business model is what sucks, not the funding environment.
- amirmc 13y ago> "When you can't cover your COGS as an Internet company, your business model is what sucks, not the funding environment." There are plenty of examples of SV companies with no revenue and no business model in sight who are still able to get huge amounts of funding. Typically, these companies have focused on (and achieved) huge growth rates.
- thatthatis 13y agoSure, there are plenty of examples of zero revenue, hundred million dollar valuation. Fb, pinterest, snapchat, instagram come immediately to mind. These businesses though are all building networks and social graphs. Everpix's business was reselling storage and bandwidth with value added software, but they resold at a marginal loss. There is no "if we get a billion users our value per user goes throug the roof" payoff like when you build a social graph. I don't know of any high valuation zero revenue companies that are essentially resellers.