Revenue is no match for throwing massive bags of money at the marketing bonfire. Subsidizing open-source projects is ultimately a marketing spend - sounds like the marketing budget is getting cut.
Thats the whole game. The founders have already made shit tons of money. I see the CEO investing in a ton of other companies. All while building a loss making company. It really is the equivalent of selling 100 dollars for 99 while pocketing shit tons of money on the side.
Is next js good? Sure. But so was jquery back in the day and they didn't need the 250 million in cash to burn through.
They closed $250M in funding about a month ago. Feels more like new investors want a healthier balance sheet for possible IPO or just redirect cash flow - probably with the goal to dump more resources into AI (which they likely promised to do while fundraising).
I wonder if negotiating with Cara on their $98k bill which got some press caused them to need to recoup costs elsewhere. (Just a wild guess based on the timing.)
Basically. So many startups pivoted so hard to try and get some AI exposure it's absurd. An insurance startup is now an AI insurance startup, finance startup is now an AI finance startup, accounting startup is now an AI accounting startup, blockchain startups are now AI-blockchain startups.
Idk what you mean by the link, or the <s>, or what you don't know anymore, or what we can decide in this matter, or really what the matter at hand is, at all.
Focusing on the article:
Is there something I missed? Or did I get it right after reading 2x, and it really is just a random blog from 2 years ago advocating for bigcos to reduce headcount? If so, is that related in any way to Vercel cutting their sponsorship program for hosting for open source projects?
Basically you can read that above article as: Hey Mark, we've got a bunch of our money riding on your stock going up, so make your stock go up. I know in the past (2010-2022) we wanted you to grow like crazy and throw money around and grow some more, but like now with interest rates not 0 anymore and stuff, we need you to like start making money and you know, make the stock go up and up. K, thanks, bye.
I found it funny because these are the same VC who spent a decade throwing money at anything with first Cloud, then ML/Deep Learning, then Blockchain, then threw money like no tomorrow during Covid, and now are like, yeah, we want you to not do any of that stuff anymore, just like actually make money now.
The '/s' is an indicator of sarcasm in text, you'll see it in online comments from time to time. Hard to convey sarcasm online otherwise.
And yes, as the other guy said, oh you're an AI company!? Here's a few million. We'll see how long that hype lasts for these "AI" startups.
Wait, so Vercel is not profitable?
How tf? They're the most overpriced product I pay for (and I like it, no complains).
Revenue is no match for throwing massive bags of money at the marketing bonfire. Subsidizing open-source projects is ultimately a marketing spend - sounds like the marketing budget is getting cut.
Unlike other kinds of marketing, though, you can get a lot of bad press for cutting the budget for this one.
2 replies →
> Subsidizing open-source projects is ultimately a marketing spend
They say 2M in Vercel credits. How much is that in actual money?
2 replies →
Thats the whole game. The founders have already made shit tons of money. I see the CEO investing in a ton of other companies. All while building a loss making company. It really is the equivalent of selling 100 dollars for 99 while pocketing shit tons of money on the side.
Is next js good? Sure. But so was jquery back in the day and they didn't need the 250 million in cash to burn through.
They closed $250M in funding about a month ago. Feels more like new investors want a healthier balance sheet for possible IPO or just redirect cash flow - probably with the goal to dump more resources into AI (which they likely promised to do while fundraising).
source for vercel series E which AFAIK they have not announced https://x.com/ilyasu/status/1791182579837829199?s=46&t=90xQ8...
I wonder if negotiating with Cara on their $98k bill which got some press caused them to need to recoup costs elsewhere. (Just a wild guess based on the timing.)
https://www.infoq.com/news/2024/06/vercel-serverless-scale-e...
https://medium.com/@alt.cap/time-to-get-fit-an-open-letter-f... /s. Or no /s? idk anymore. You decide.
VC money hose is drying up I suppose
“VC Money Hose” has been redirected to anything with AI in the name. “Vercel, powered by AI” would receive plenty of funding. ;)
Basically. So many startups pivoted so hard to try and get some AI exposure it's absurd. An insurance startup is now an AI insurance startup, finance startup is now an AI finance startup, accounting startup is now an AI accounting startup, blockchain startups are now AI-blockchain startups.
This to shall pass.
Idk what you mean by the link, or the <s>, or what you don't know anymore, or what we can decide in this matter, or really what the matter at hand is, at all.
Focusing on the article:
Is there something I missed? Or did I get it right after reading 2x, and it really is just a random blog from 2 years ago advocating for bigcos to reduce headcount? If so, is that related in any way to Vercel cutting their sponsorship program for hosting for open source projects?
Basically you can read that above article as: Hey Mark, we've got a bunch of our money riding on your stock going up, so make your stock go up. I know in the past (2010-2022) we wanted you to grow like crazy and throw money around and grow some more, but like now with interest rates not 0 anymore and stuff, we need you to like start making money and you know, make the stock go up and up. K, thanks, bye.
I found it funny because these are the same VC who spent a decade throwing money at anything with first Cloud, then ML/Deep Learning, then Blockchain, then threw money like no tomorrow during Covid, and now are like, yeah, we want you to not do any of that stuff anymore, just like actually make money now.
The '/s' is an indicator of sarcasm in text, you'll see it in online comments from time to time. Hard to convey sarcasm online otherwise.
And yes, as the other guy said, oh you're an AI company!? Here's a few million. We'll see how long that hype lasts for these "AI" startups.