[swisspol]

It's a very interesting analysis, but you're applying brick-and-mortar / bootstrap business logic to a an early stage VC backed consumer business where 101 economics don't fully apply. Not a single investor, VC or advisor cared about that "marginal loss" (which is "easily" fixable through infrastructure). If that was the case, the vast majority of consumer startups wouldn't be around in the valley (let's not even talk about the ones having zero revenues resulting in an infinite marginal loss).

I provided some extra context and counter-points here: https://news.ycombinator.com/item?id=7053473.

[ivanplenty]

I really appreciate that you released the underlying data. It is one of the best gifts you could give to the community. I think you and I would greatly enjoy chatting at a bar about this crazy startup world.

We just have different opinions and philosophies about building businesses: For me it's important to sell products at a marginal profit generally. I don't think whether the business is VC-backed or bootstrapped makes one difference: I look at both of those are tools to finance fixed costs, not to subsidize ongoing variable operations. The underlying economic principles are the same to me. But, that's this man's humble opinion.

I'm not sure I buy that the "marginal loss" [was] "easily" fixable through infrastructure [changes]. If it were easy you would have done it that way from the beginning or sooner in 2013. I buy that the infrastructure changes required more investment or planning, but in general in software "easy" things are the things you've already done. Otherwise we'd be experts at planning and estimating :)

Best of luck in the next venture, and again thank you so much for releasing the data!