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re: Silicon Valley Season 5 Discussion - Spoilers

Posted on 3/26/18 at 10:01 am to
Posted by YoungManOldMan
Member since Dec 2017
1882 posts
Posted on 3/26/18 at 10:01 am to
quote:

That was savage. The best part was the guys expression/reaction,


I did the math and it didn't add up. He had a total of 8M of VC funding.

He is losing $5 per order.

Richard ordered $19,000 worth of pizza. At $9 a pizza and 11% CA tax. You're looking at $16,910 worth of pizza. That's 1,878 pizzas.

1878 x (-$5) per order. That's a loss of $9,390 for Sliceline.

You're telling me a company with 50 engineers is put out of business by a $9K loss? The business model wasn't remotely sustainable but this is a little absurd.

So my idea is the guy saw a 9K loss and with Richard's threat, just folded the entire company? It's certainly TV.
Posted by Teddy Ruxpin
Member since Oct 2006
39608 posts
Posted on 3/26/18 at 1:01 pm to
quote:

So my idea is the guy saw a 9K loss and with Richard's threat, just folded the entire company? It's certainly TV.



I think it had more to do with the fact he knew Richard could keep going if he wanted to. Losing $9,000 was just a demonstration.

Why keep fighting and your company becoming less valuable?
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