Comment by kelnos

False dichotomy. They should be plowing that money into more R&D, or, absent the current ability to do that, saving it for a rainy day.

As a paying customer, I want Kagi to succeed. I want Kagi's search offering to keep improving. Spending a couple hundred thousand of the company's money on t-shirts (one that I would receive, as I was a fairly early customer) sounds foolish to me, regardless of how much the founder is personally invested in the company, and regardless of whether or not he'll invest more of his own money to keep the company growing in the future, if needed.

I'm still bullish on Kagi's future, but things like this (and things mentioned in the linked article as a whole) make me a little worried.

> Would you be upset if they had just donated that excess to charity?

Probably! When I was at Twilio, we participated in GitHub's charity dodgeball tournament a few times (early last decade, I think). The cost of admission was $3000 per team, and would go to charity. After a couple years doing it, finance started getting uncomfortable with it. We were a private, unprofitable company (now Twilio is, of course, a public, unprofitable company), giving away money that our VCs had invested in us.

Initially I rolled my eyes, "just the bean-counters doing what they do best: whining about every bit of spend". But later, looking back, I realized they had a point. While $3000 wasn't a lot of money in the grand scheme of the company, what benefit was spending it actually providing the company? Ok, so 12 or so employees got to go and have a fun day at a rec center, boosting morale for them. We got our logo on the website for the tournament, which was maybe a little visibility/marketing. But was that really worth $3000 of our VC money? Maybe it was, but I don't think it's an obvious "yes".