lor3nzo
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09:47:56 am on May 10, 2011 | # |
HOWTO: Spend your investors’ money
http://stu.mp/2011/05/howto-spend-your-investors-money.html
’ve invested in two startups and advise, officially and unofficially, a dozen or so other startups. Recently, a company that I’m involved with, attachments.me, raised $500,000 from Foundry Group. Since their raise, the two cofounders, Ben and Jesse, have been on a tear adding features, solidifying the infrastructure, and ramping things up to a public beta.
Attachments.me is a unique consumer service in that a single user could have gigabytes of data to crawl across multiple accounts. As a result of this unique challenge, Ben has been spending a great deal of time working out how the underlying infrastructure is going to scale. This, of course, involves spinning up a decent amount of servers on AWS. In doing so, Ben was extremely worried about keeping costs down. I had to laugh as the numbers he was worrying about was less than 1% of the total amount raised or, as Chris Lea said, “Your investors didn’t give you the money so you could look at the large balance in your bank account.”
