>> How do you find yourself as Board member or CEO of a company like this and not think to cut expenses a little sooner?
I've worked at several startups who never cut costs, meanwhile they're burning through cash faster than an incinerator at the local trash company. I had one company CEO who remodeled our entire offices, got sky boxes for all the local sports teams (there were four of those) and made a point to tell all the devs they're the highest paid startup devs in the city.
I found out later, our CEO also had a pissing contest with another startup CEO on the same floor of the building we were in. Both companies had over $200M in VC money, and both were trying to outdo each other with the lavish lifestyles they were living on the investors money.
The other company put on a massive "release" party to announce their internet software to the local tech new media. Apparently they blew close 10 $2M on it. Limo's for all the employees to the five star hotel ball room, a red carpet VIP entrance for all the employees like you see on those awards show, some 70's rock band played, and it was open bar all night and they reserved an entire floor of rooms in the hotel where the bash was thrown. Two of the devs told me afterwards, "Dude, totally not my scene, and none of our team were cool with this at all."
Less than two months later, both companies ran out of money, quietly shut their doors and closed down.
At a bar across the street, we had a group of devs from both companies sitting around lamenting what went wrong, where we were going to next, and reminisce about both companies.
We all reached the same conclusion:
>> According to the CEO's linkedin post, they were basically trying to keep up appearances
They're indoor VIP seatings the top of football stadiums with a panorama view of the entire field. It's usually where the sports commentators sit. Or rich people.
I've worked at several startups who never cut costs, meanwhile they're burning through cash faster than an incinerator at the local trash company. I had one company CEO who remodeled our entire offices, got sky boxes for all the local sports teams (there were four of those) and made a point to tell all the devs they're the highest paid startup devs in the city.
I found out later, our CEO also had a pissing contest with another startup CEO on the same floor of the building we were in. Both companies had over $200M in VC money, and both were trying to outdo each other with the lavish lifestyles they were living on the investors money.
The other company put on a massive "release" party to announce their internet software to the local tech new media. Apparently they blew close 10 $2M on it. Limo's for all the employees to the five star hotel ball room, a red carpet VIP entrance for all the employees like you see on those awards show, some 70's rock band played, and it was open bar all night and they reserved an entire floor of rooms in the hotel where the bash was thrown. Two of the devs told me afterwards, "Dude, totally not my scene, and none of our team were cool with this at all."
Less than two months later, both companies ran out of money, quietly shut their doors and closed down.
At a bar across the street, we had a group of devs from both companies sitting around lamenting what went wrong, where we were going to next, and reminisce about both companies.
We all reached the same conclusion:
>> According to the CEO's linkedin post, they were basically trying to keep up appearances