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You're ignoring the fact that the $35,000 they're trying to raise is listed as being for exactly that:

> Where the money will go... Hosting. We need some serious hosting space to deploy our storage-intensive services.

Yeah, its actually pretty dumb IMO that they say the money will go to hosting. With AWS etc you only use what you pay for and the costs should be pretty minimal for beta testing and then covered by subscription fees once they launch.

Money going towards mobile dev makes more sense although is much more risky to back given the short timeframe and limited budget even if they meet their goal.

I'm not ignoring that. If they only raise $35,000 then they'd fall into category A. The cost of hosting is ongoing as long as a service is being used, therefore they will need more than $35,000 if they plan to be around for any length of time, hence subscriptions.

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