Comment by fragmede
2 months ago
It catered to the specific niche of screencasts and thus needed a lot of custom software written that doesn't already exist in Zoom/Teams. After development costs there's marketing/CAC costs to be considered. For those that don't "get it" upon seeing the product, you need to spend money on salespeople to convince them they do. After those expenses, their AWS bill surely wasn't cheap.
Finally though, you hope not to raise too many times, so that $200 million needs to last years. Let's say they planned for a round 10 years. that's 20 million a year. say half on developers, that's 10-40 software developers all-in (meaning after HR and health care for them and everything). 10-40 people isn't all that many, though clearly enough to build the product.
Since the author of the blog post walked away with $60 million, it's possible they could have developed the product for less, but it's hard to argue with the results he got. Spending less money would have been penny-wise, pound foolish.
> Finally though, you hope not to raise too many times, so that $200 million needs to last years. Let's say they planned for a round 10 years
You had me until this. Nobody is raising money to last ten years. You would be growing and want to raise in future years at higher valuations that incorporate all the growth.