VC wants DAUs
Businesses run on profit.
Hire more than need. Pump numbers with ads, cheap or free cost of product.
Jan 8th:
I’ve been reflecting on my energy over the break. The ratio of what I (we) put in vs. what I (we) get out. The usual equation of any business is put in effort ←→ get $$$ in return. It’s how ROI works.
Now what’s frustrating is that Coda’s model has existed in a limbo for quite awhile: we put in a bunch of effort, and get pretty low ARR, but are still paid a salary because of VC. Now VC is pulling back which totally changes the equation and we have to let people go because our business model could never afford them.
We’re at a moment where VC (and companies) are starting to care more about bottom line (aka basic business principles) which is super refreshing. So I’m both optimistic about a return to basics and angry that it took this massive correction to get here.
Other reading: