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by BoorishBears 1241 days ago
I say the opposite, it should be done more often.

The problem is if you decide that you will need 1000 person org in 5 years, you will have 2000 person org in 5 years.

If you challenge yourself to have a 100 person org, you might end up with 1000 people anyways, but at least you're giving yourself a fair chance.

Way too often I see engineering for headcount rather than scale. Building out systems thinking "we'll hire X experts" instead of "we're Y experts, so let's use Y` that's inline with our in house skillset"

1 comments

But Whatsapp lost $140m and made only $10m in revenue in 2014.

It wasn't a sustainable business.

In the six months ending June 30, 2014, WhatsApp brought in $15.921 million in revenue, but had a net loss of $232.5 million. However, $206.5 million of that loss was for share-based compensation expenses and issuance of common stock below fair value. Its net cash used in operating expenses during the first half of 2014 was $13.5 million, which sounds much more reasonable.

Essentially, due to WhatsApp’s quickly rising valuation, it used share-based compensation to attract top talent. Eventually, the $22 billion acquisition by Facebook would largely make the “expenses” of issuing that stock moot. This wasn’t cash that WhatsApp was burning, but paper money it was doling out.

My 10 yo was curious why whatsapp is free. “Nice of them to do that”. I couldn’t explain it I suspect something something selling your data