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Comment by downandout | Hacker News Reader

>http://i.imgur.com/jNXw5PZ.png

Here was the intended use of the $25M: "The funding will be used to implement two new features, a Facebook login and the ability to follow posts on a certain topic". This is what is wrong with Silicon Valley today. An afternoon project for a single developer gets $25M from investors. Please, someone give me just $10M....I've already implemented Facebook login for my apps.

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That's hilarious! In Web 1.0, people raised $7 million to buy a domain name. Needing $12.5 million to implement a Facebook login ($25/2 projects) is even more ridiculous.

Box paid 7 figures for the Box.com domain name, so I wouldn't say that raising money to buy domains is dead yet.

Box bought box.com roughly 6 years after they launched, they were already wildly successful (as box.net).

Has box had a profitable quarter yet?

It doesn't look like it.

https://www.google.com/finance?q=NYSE%3ABOX&fstype=ii&ei=IQp...

has Amazon?

Amazon's first profitable quarter was in 2001: http://news.cnet.com/2100-1017-819688.html

Huh. I implemented iOS and Android Facebook login for https://recent.io/ in a few days last month. (The login code itself wasn't that time-consuming but UX, debugging, etc. took longer.)

I am beyond certain that investors did not fork over $25M for the two features outlined. There's simply no way that's all they were spending the money for.

Yep. They probably had to buy several cases of coconut water, made some very expensive visits to the Apple store, and the founders maybe bought a Mercedes or two.

Oh yea? I'll do it for $9M.

I'm certain that if you can build a product that generates a huge buzz and gets millions of people to sign up that you will have absolutely no trouble raising that kind of money.

So go for it!

Ahh, but we're not talking about building the whole product and generating buzz, etc. We're talking about the stated purpose for raising $25M: "The funding will be used to implement two new features, a Facebook login and the ability to follow posts on a certain topic".

$25M.

For TWO features.

Hell, ignore my previous offer. I'd have given them a 92% discount and done that for a cool $2MM.

Pace yourself. Be a little less eager to drop your price when you bargain. Try $24.5M first, then $24M. It's still a discount compared to the competitors.

You're already asking for a price so low you might end up barely scraping $100,000 an hour.

That's not the actual purpose for the money.

The purpose of the money was to grow the company. For a business < 1 year old it's impossible to predict what they'll need, so they just fill in the blank with some random sentence that no one cares about.

Excellent business practice!

It is actually.

I am not familiar with Pitchbook. Where does that information come from?

or maybe the source is wrong, or it was a throwaway line about what's next, or...

it's very easy to believe the worst of others. but it's beneath you.

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