201–205 of 205 posts
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60% dilution at Series A? I don't think so. Typical is 20-30%, afaik.
its a guess. they received Series A in a very early stage, just out of the oven of YC's (may '08)
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Image how much more profitable you could be if you got a dedicated server or 10.
The trade-off isn't worth it. There's 2 of us full-time and we'd much rather pay the EngineYard and EC2 premiums if that means not having to spend any time dealing with hardware or even sys-admin activities. The extra time lets us focus on the business and have more stress-free lives.
I worked out a while back what it'd cost to run Mibbit on EC2 (Let alone any intermediary), and it was crazy money. But we use a fair bit of bandwidth and not too much CPU so it all depends.
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Yeah, I wouldn't be surprised if Dropbox became the first YC company to hit IPO.
I actually would be surprised if Dropbox exited via IPO. I think their offering fits in with a lot of large companies profiles. Dropbox could easily fit into a portfolio of Google, Microsoft, even Cisco . explaining Cisco - Cisco seems to be trying to break into the "Digital Home" market with things like FlipVideo and some other video services. Dropbox would make a great cloud storage play for media services.
I've honestly never understood why startups want to be acquired (besides the monetary gain for individual employees). Doesn't acquisition often destroy or dilute the very successes they've worked so hard to build? (I worked for an acquisitive company that worsened nearly every product/company it acquired.) Why not just focus on making your business better? Heroku will now be subject to all kinds of pressures and asin…
I've honestly never understood why startups want to be acquired (besides the monetary gain for individual employees). That's like saying one doesn't understand why people play the lottery (besides the monetary gain from winning).
Playing or winning the lottery involves nothing but money. An acquisition involves major changes to an organization's structure, its products or services, and the lives of all its employees.
EDIT: Removed snarkiness.
This is great news for Heroku and YC (congratulations folks!). That said, does anyone have any insights on why exactly SalesForce would buy Heroku? What is the business rationale? "This is Salesforce’s fifth acquisition this year. Earlier purchases include Activa Live, Sitemasher and Jigsaw. Salesforce.com also spent $170 million to fully acquire its Japanese subsidiary, Salesforce Japan." Anyone see a pattern? I don…
I think this is one of the reasons why Salesforce has agreed to let Heroku "run themselves" instead of taking over and ruining the party. It's also a good sign for Heroku customers since it's unlikely that Salesforce will make a ton of changes to Heroku's service until they can figure out how best to integrate the two services.