We didn't panic as much as we realized the revenue and fund raising opportunity had changed radically. Given that we cut our spending by 25-35% by moving from inhouse editors to community-based editing with a virtual currency. The truth is we were on our way to this model already as it is the most efficient in term of cost and motivation. In other words, the folks in the virtual economy get more done for less and they are enjoying themselves.
This user is on track to make $3,000 "Mahalo Dollars" over the next year (which translates to 75% that amount in USD).
We'll break even in the next year I think, and by making the cuts/getting more efficient we extended our runway by a year.
If the market wasn't so fracked up I would have spent more and raised more money.... however, I felt there was a significant chance that raising money would be very difficult for a year or three. It turns out I'm probably wrong and we'll be able to raise more money if we want/need to (we've started getting a lot of calls recently in fact... I guess VCs are looking to place bets again, which is a good thing).
This user is on track to make $3,000 "Mahalo Dollars" over the next year (which translates to 75% that amount in USD).
http://bit.ly/kXQTp
We'll break even in the next year I think, and by making the cuts/getting more efficient we extended our runway by a year.
If the market wasn't so fracked up I would have spent more and raised more money.... however, I felt there was a significant chance that raising money would be very difficult for a year or three. It turns out I'm probably wrong and we'll be able to raise more money if we want/need to (we've started getting a lot of calls recently in fact... I guess VCs are looking to place bets again, which is a good thing).
all the best,
Jason