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I think one would also assume that some fraction of that $2000 would go into a fund to keep those servers up.

One thing SaaS has not learned from nonprofits with longevity: you do big fund raisers to get money so you can live on the interest payments. If you think of a new project that will increase your burn rate, you throw another fund raiser.

Figure out how many of those beds you expect to be junked for breakage or obsolescence each year and set your margins to keep the long tail running for 10-15 years.




> One thing SaaS has not learned from nonprofits with longevity...

I think SaaS has eschewed strategies for longevitiy because it's contrary to the market's "wisdom" that for-profit companies must have sustained high-rate growth.


So they can get more rounds of VC money or get bought out, yes.

Sometimes it’s clearly the founders who go extractive, but others it’s clearly the new owners or partial owners.


If they sell one a month for $2000 that would be enough to keep the lights on with a sensible backend setup.




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