I espouse a belief that apps have two cycles, one of growth, another of exploitation. In the first, cash is burnt/used to give free goodies and provide good quality services. Rents are a byproduct and not a goal during this phase of the operation, the goal here is to build goodwill and market share through measures that the competition can't match. All in all, it is a good experience to use the service during this st…
I’ve been burned by this often enough that the more investment a new product takes on the less likely I am to use it. Take notion, 300 million in funding at a 10 billion valuation. At an average $10 a month they need a billion user months to make back that valuation. Let’s say they have a time horizon of ten years to do that, that means they need at least 10 million paying users, but that is ignoring operating costs,…
Your calculation is roughly correct but a p/e of 10 is kinda low so probably you can halve the numbers at least.