The barrier to entry has toppled by an order of magnitude and the market is slow to adapt to such changes.
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Ask HN: What do these startups need so much money for?
31–40 of 52 posts
Re: Ask HN: What do these startups need so much money for?
#3210 people making 80k per year, that's a million dollars already. Now add taxes. If you think VCs are interested in companies that won't need 10 people to run their business, ever... you're thinking to small :) And not only there are your employees, but imagine hiring accountants, lawyers, cleaning staff... the list, only with actual human beings, is already huge! Now add costs like transportation, hotels, food, all t…
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Re: Ask HN: What do these startups need so much money for?
#33Earlier quoted context omitted.
http://news.ycombinator.com/item?id=430795
If you read the article in question, and think it isn't retarded, then you are probably some kind of Down's Syndrome sufferer and I don't respect your opinion anyway.
What do you have against people with Down's Syndrome?
Re: Ask HN: What do these startups need so much money for?
#34Earlier quoted context omitted.
If you read the article in question, and think it isn't retarded, then you are probably some kind of Down's Syndrome sufferer and I don't respect your opinion anyway.
What's your problem? You seem smart, but there's so much anger.
Maybe a mentally retarded person stole his girlfriend :D
Re: Ask HN: What do these startups need so much money for?
#35Earlier quoted context omitted.
Exactly... startups aren't aiming to maximize profits (where marginal cost is equal to marginal revenue). When marginal cost is greater than marginal revenue a startup can either a) find more vc funding to raise marginal revenue, or b) cut expenses to lower marginal cost. Startups will press a) until the button breaks leaving b) the only option.
I took an economics class at school and while I don't give much merit to theory vs practice, one lesson that was taught was that if MR Now when investing it's a different matter, but the point stands, and so the after b) the only real option is actually c) liquidation
The point is that MR and MC are not fixed. MR tends to go up with number of users (network effects), MC tends to go down (economies of scale).
Re: Ask HN: What do these startups need so much money for?
#36plentyoffish: top 10 site on 8 servers -- admined, designed, developed (in asp, no less) -- by one guy, and profitable
can yc/angel/vc backed startup be plentyoffish killer? i doubt money will help shrug
Re: Ask HN: What do these startups need so much money for?
#37Earlier quoted context omitted.
If you read the article in question, and think it isn't retarded, then you are probably some kind of Down's Syndrome sufferer and I don't respect your opinion anyway.
What do you have against people with Down's Syndrome?
Let me rephrase with less gusto:
If you read the article, and think it is correct and well done, then you are not intelligent enough for me to want to have discourse with.
Saying you suffer from Down's Syndrome was a way to call you retarded without saying 'retarded', therefore doubling down on the thing you complained about.
To answer your question, I have nothing against them. I wouldn't bother to debate a person with it though, it would be a silly thing to do since their impaired mental capacity would not lend itself to an ability to develop theories and then argue and provide support to those theories, which is where you come in.
Re: Ask HN: What do these startups need so much money for?
#38Re: Ask HN: What do these startups need so much money for?
#39Earlier quoted context omitted.
I took an economics class at school and while I don't give much merit to theory vs practice, one lesson that was taught was that if MR Now when investing it's a different matter, but the point stands, and so the after b) the only real option is actually c) liquidation
The point is that MR and MC are not fixed . MR tends to go up with number of users (network effects), MC tends to go down (economies of scale).
MR doesn't go up with number of users. "Marginal Revenue" by definition is the difference in revenue from selling one extra unit. In many cases it would be the price of the product being sold, and is fixed.
Economies of scale works on average cost, more specifically long run average cost, while it contributes to the MC going down, MC is more affected by fixed vs variable costs in the short term and more importantly it increases at a certain point when you reach the maximum capacity of your current infrastructure.
Re: Ask HN: What do these startups need so much money for?
#40plentyoffish: top 10 site on 8 servers -- admined, designed, developed (in asp, no less) -- by one guy, and profitable can yc/angel/vc backed startup be plentyoffish killer? i doubt money will help shrug
Top 10 site? Maybe in the free dating site category…