I think you're not talking about GitHub. Because I see A company which started from zero, revolutionized SCS, socialized coding. Makes a lot of cash, not from advertisement, but from an actual useful product. A Product that people love to use. I think A16Z is a very clever firm that invested in a very solid product.
GitHub has 102 employees. Which means they're already paying around $10M wage in a year and they're profitable. I bet they're at least making $20M per year right now. They're going after the enterprise market which would make them much much more cash.
Do the math. Is it really hard to pay that money back in a company like this ? Is AirBnB, Dropbox, Evernote in trouble ?
$10M/year in wage? That would imply $100k per employee per annum. I understand that it was just a budgetary figure, and I understand the premium that employer-side payroll taxes and benefits add - it is very non-trivial. Still, do you suppose the median wage at GitHub is that high? For everyone? Salespeople, receptionists, accounts payable clerks? Are you sure? I should hope they are spending a good bit less on payroll, even gross and with overhead.
Yes. 100k for developers is definitely on the low end (not even including overhead), and for others it might be on the high end, so assuming most of their employees are developers, 10M is a pretty low estimate of their payroll.