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"Tesla and Facebook had to" Tesla makes physical products. They manufacture. They have inventory. They have a factory. Money is required because they have sign
by jasonfried 17y ago
"Tesla and Facebook had to"
Tesla makes physical products. They manufacture. They have inventory. They have a factory. Money is required because they have significant initial capital expenses.
I take issue with "Facebook had to". Facebook chose to, they didn't have to. Software companies don't have to. They choose to.
- zackattack 17y agoFacebook had to take money because they have server costs; Facebook has server costs because they are the largest photo webapp. But sure, you make a point. Facebook should have instead stayed small. Charged its customers money. Had a popular internet blog. Facebook should've built something people love.
- tylerhwillis 17y agoI agree with your assertion that Facebook choose to. However, it seems like it was the right choice. There are plenty of times where the companies (and consumers, and founders) best interests are served by taking early money and focusing on growth rather than profitability, especially if their VCs are open to helping those founders take money off the table as they hit milestones). my .02