[cpncrunch]

How does a company that has made $1.5M revenue and is growing 50% in the last 6 months go out of business? Raise too much money? Inaccurate business plan? Wishful thinking about future funding to provide economies of scale? Lack of due diligance by investors?

Not trying to be confrontational or rude, just genuinely curious.

[lalala12399]

unit economics

I would make 1.5m in rev so fast if I gave each of my customers $1 for $.90!

[cpncrunch]

That's always the risk with a business plan like this. Uber seems to have a similar business model, but the difference is that Uber is an easily scalable business that has become a household name. Investors are happy to keep throwing money at Uber until they have taken over the world, and then they can worry about profit. Not every business is going to be an Uber, so it's a big risk basing your business plan on requiring constant injections of cash until you become a billion dollar business.

[mchahn]

Just as Amazon does.