If a product is generating revenue then why switch it to a free model? To encourage buy-in for the upcoming product or something similar?
Just seems like a really odd business decision as I would have gladly paid for the app...
> we had a business that DHH would be proud of. Bootstrapped, lean and already providing (in a small way at least) for the needs of my family and that of my co-founder. Over the next 3 months, our initial desire to not raise a seed round was dismissed and we were thoroughly convinced that we had to continue on the VC rocket-ship in order to matter to anyone. [...] This is where we made the first in a series of many mistakes
from http://mystartuphas30daystolive.tumblr.com/post/53839497912/...
But we'll see. I wish Pixate good luck anyway! More innovation is needed in this space...
The investors are taking that risk to create a much larger scale company.
Now that they've made Pixate free they can't (really) go back to the paid model. Seems like a big punt for me.