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> raise capital or turn away customers

If you have to borrow $100MM to provide the same basic service that you’ve been providing for 8 years, then aren’t these “customers” less customers and more recipients of free services?

Perhaps, that’s the point, no? Buy the remaining VPS market with unsustainable pricing, and then raise the price...




Let's say a server costs $10000 and gives you $500 a month in profit.

Borrowing money to buy that server is definitely not giving away free stuff. Nor is that pricing unsustainable.

No matter how profitable a business is, there's a limit to how fast it can expand debt-free based on how fast the profits accrue.




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