Very cool! I wish I had checked out the blog earlier, but even following the more recent news with HubSpot and the future potential is exciting. It proves that a solid initial strategy must be in place for success, but the limit of success is unknown due to innovation. I can see this company booming very, very soon.
No, the premoney in each stage is too low to be credible.
Generally a venture round will be for between 33% and 20% of the company, trending lower as the company gets further along. 25% is a pretty typical number.
If you assume each of Heroku's two rounds were for 25% of the company, then 94% -> 70.5% after the A -> 52.9% after the B. (It seems counterintuitive to sell 25% of the company twice but end up with more than 50% of it, but this is because the Series B dilutes the Series A as well as the common.) The premoney valuations implied for the A & the B would be $9MM and $30MM respectively.
The reality would be lower, because this doesn't take into consideration things like option plans. If we assume they created a 10% option pool before the A and then used it all, the dilution looks more like this:
94% -> 84.6% (options) -> 63.4% (A) -> 47.5% (B)
Of course these things can still vary pretty widely. But no one's doing $10MM on $5MM premoney unless something has gone pretty wrong. In that case I'd expect the management team to get topped up with additional options to keep them motivated.
As an aside, the calculation of who made what also assumes that the investors have no pro-rata rights, which is wrong. When a company raises $10MM in a Series B, not all $10MM comes from the Series B investor.
There's tons of work. I've freelanced with Ruby on Rails for a good chunk of the last few years, and I know at least half a dozen other freelancers who do Ruby, PHP, and Objective-C work as well. The hardest part, I think, is finding the work. It is indeed out there, but the signal to I-just-need-a-quick-wordpress-template-thrown-up noise ratio is small. One of the best avenues I've found for freelancing is to network with web development and creative agencies, do a little subcontracting for them, and then subsequently absorb some of the smaller projects they're approached with but are too small to be worth it for them.
The feature I need most. From the IPhone app, I would like to be able to select a file and email the file to myself or someone else - not the link to the file.
Dropbox is blocked at work but sometimes I really need to get an important file from there.
I'm a paying susbcriber. Keep up the good work!
Agreed. I've lost track of how many times I've gone to a Quora answer, thought 'I must take a closer look at Quora', gone to the root domain, realised you need a Facebook login, then just navigated away.
I even have a Facebook account somewhere - just don't like logging into another site like this for some reason.
The inconvenience of finding/creating a Facebook account to use in joining Quora is, imo, completely worth the value offered by Quora. You have to choose your battles. At a certain point I would rather have access than have my way.
I never bothered to sign up at stackoverflow because of OpenID. Not necessarily because I have some philosophical issue with it, but because I already have a system to maintain this stuff and OpenID is just another hoop to jump through. Adding an optional user/password signup is hardly difficult.
Nothing is stopping me from setting my password to something different for every site I don't want to set a good password for, I'd just very very much rather just enter a URL and have everything work. OpenID is the most useful thing online in ages.
The difference with Stack Overflow is that you can, and may people do, use it without an OpenID. Just go ahead and post a question or answer, and you'll be assigned a cookie-based account. And if you put in an email address, you can download a new cookie for that account at any time.
Or maybe it makes sure that the only people who go the length to sign up are aware of the benefit of Quora, and therefore likely to be quality users contributing the the quality of Quora. In a sense, Quora uses Facebook as a filter to get great users.
"Skype-to-Skype calls will always be free but there are a few things that cost a little such as calling mobiles and ordinary phones when you want to get hold of your friends that havent started using Skype yet."
I definetly need to revisit pricing based on this feedback.
True re price sensitivity of the small business, but in a way, the target market is the fundamental USP. Nameley, take a tool that the bigger guys are using and make it available in a scalable fashion to small businesses.
Re thousands of subscriptions... If I could take 100 at that price I'd be happy with the outcome.
Plus I think there's a number of related areas I could move on to off the back of this.
Thanks for the comment - really useful. Also, if you have 5 minutes, feel free to include more info on your experience or link up with me be email twitter etc.
Even though his product isn't pitched at a HN-type demographic, the process of how he develops his ideas makes for an interesting read. It's a great way of generating free buzz - writing passionately about your startup with no BS. Something you may wish to consider also.