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And if they can tighten burn just a little bit, they don't go off the runway. I don't really understand this blog post.
by debacle 12y ago
And if they can tighten burn just a little bit, they don't go off the runway.
I don't really understand this blog post.
- pc86 12y agoI don’t think it (the blog post) is strictly about the revenue. As others have stated, if they can sustain 9% MOM (not trivial beyond the very short term) and keep that $90k cost constant, they will be profitable shortly after going off runway. Even with a 1-2% MOM cost growth they still reach net profitability by the end of the year. I think the blog post is particularly focused on Series A Silicon Valley VC firms. With as easy as it is to get Seed funding at the moment (in SV and with decent connections, anyway), they’ve got multiple companies with – to quote another poster here – 15-25% MOM growth at similar levels of revenue. They’re not looking for the thing that will be making $25k/mo in profit a year from now. They’re looking for the thing that will be sold for millions of dollars. I think this company would be a great investment for somebody who wants to put $100k+ into a long-term, strategic venture. It is probably a pretty bad deal for most VC firms, though.