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by tdees40 3337 days ago
It's a food company, and its product is fully baked. Why aren't they bootstrapping? Are they not profitable? If so, how do they have a business? If I sold ketchup at a loss, would I be able to close a $50M financing round?
3 comments

If you call it Ktchp.io, you pretend you're using a better recipe generated through machine learning, you create an AR solution to serve it better and more effectively, [insert easy quip about startup culture here], then maybe yes.
No, it should have a 400$ wifi-enabled ketchup squeezer with the force of a hundred 747s.
Or the company doesn't really sell ketchup but it offers a platform that lets you share ketchup with your neighbors for a small fee (initially subsidized by investors).
Even if -- some would say especially if -- you are profitable, you might take outside money to speed up the process. Not that unusual.

Speeding up is useful for many reasons. Just to name a few: you have a lead and want to maintain it; you suspect the window for product adoption is limited; you want to grow the business and sell it so you can move on.

They could grow slowly for the next 10 years, or throw lighter fluid on it and grow more aggressively, giving investors a cut along the way.

Rob says in the post that they will be using the funding for faster expansion:

> "This funding will enable us to expand our current product offerings, support our expansion efforts into traditional retail and international territories, and further our goal of bringing Soylent products to people around the world.”