I know this isn't the craziest startup shutdown story, but wow.
At $10MM of revenue they can afford to keep a staff of 50 at a fully loaded cost per employee of $200,000. Yet, according to Linkedin they peaked at nearly 200 employees.
On top of this, they appear to have raised $36 million three years ago - https://www.weave.works/press/releases/weaveworks-raises-36-...
In other words they somehow were running at a loss of about 1.5 million a month for three years until their runway "suddenly" ran out today.
According to the CEO's linkedin post, they were basically trying to keep up appearances of being a 200 person company until some greater fool bought them out, which appears to have failed.
How do you find yourself as Board member or CEO of a company like this and not think to cut expenses a little sooner? Far better to be a growing, profitable 50 person company than a cash-burning Potemkin unicorn.
At $10MM of revenue they can afford to keep a staff of 50 at a fully loaded cost per employee of $200,000. Yet, according to Linkedin they peaked at nearly 200 employees.
On top of this, they appear to have raised $36 million three years ago - https://www.weave.works/press/releases/weaveworks-raises-36-...
In other words they somehow were running at a loss of about 1.5 million a month for three years until their runway "suddenly" ran out today.
According to the CEO's linkedin post, they were basically trying to keep up appearances of being a 200 person company until some greater fool bought them out, which appears to have failed.
How do you find yourself as Board member or CEO of a company like this and not think to cut expenses a little sooner? Far better to be a growing, profitable 50 person company than a cash-burning Potemkin unicorn.