90% of this money is going straight to AWS.
That said, there are quite a few places left for us to optimize. We're hoping to share more of the techniques and architecture we've used to get better performance in upcoming blog posts.
[1] https://segment.com/blog/the-million-dollar-eng-problem/ [2] https://segment.com/blog/spotting-a-million-dollars-in-your-...
doing the math... you have $50m in revenue so you can buy another $25m in recurring revenue with that. and then you need another $50m in capital from somewhere to add the other $25m in recurring revenue to get to $100m ARR total.
it also follows from the math above that the faster you grow revenue, the more capital you need. :) saas math is a bit funky.
As a counter example, many companies are using excess cash to buy back stock and not grow the biz.
As another example, what did Github did with their $100MM? I'd argue that the Github product and client base looks substantially similar to what it did before a16z gave them that chunk of change.