4 ms·
500K isn't that much money if you're not supplementing it with revenues. 11 salaries burn cash fast if you're paying market rates, even if paying 5k per month
by mikeryan 13y ago
500K isn't that much money if you're not supplementing it with revenues. 11 salaries burn cash fast if you're paying market rates, even if paying 5k per month per employee then just on salary costs you only have 10 months of runway. Thats nothing. This team should have been leaner and product focused with that 500k and their goal should have been a product that they could spin into a second round of funding.
- oncletom 13y agoThe top salaries were roughly 3K€ per month. Officially and speaking for myself. Without the detailed accountancy we can only speculate about it. We built a working software using Node.js and Chrome Extensions in less than 3 months, to reach that second stage of funding. As our baseline was not clear, our market not proven and probably because of the investors suspicions, we never got an answer (well he had: "we'll see later"). I forgot to mention this product was based on scientific research about graph theories and user behaviours in an established society. From science to market, another challenge as one needs to distinguish the scientific interest of a feature vs. a sellable feature on a business market.
- PeterisP 13y agoRegardless of how much you have, you have to stretch that money for a longer runway than 6 months, especially in B2B. Even if you were selling stuff that turns everything it touches into gold, after 6 months you still wouldn't have gotten through all the sales processes to actual cash in bank, the B2B sales process simply doesn't work that fast.