undefined | Better HN

0 pointsdathinab1y ago0 comments

through cash strapped startups can now use the "free" enterprise version until they reach 10M$ annual revenue

weather it's a good idea to commit to it if you might not want to afford it once your revenue went up is another matter

and 10M$ annually is not little but also no absurdly huge, I mean a ~80 person company probably will struggle to be profitable with that revenue (if it's 80 good paying jobs like software developer).

0 comments

brianwawok1y ago

For a US startup I would divide annual revenue by aprox 200k for reasonable bootstrapped employee max size. So maybe 50 max? This is assuming standard software startup with most cost being employees.

dathinabOP1y ago

It's not that much different in the EU. Through due to higher sales/revenue tax etc. a bit less employees. Also the additional cost above neto salary for epmploying someone is higher, but AFIK (especially as a startup) you can get away with a paying a bit less. Through in general it's less viable to scam your employees by doing stuff like goading them with non voting shares and then diluting them massively before selling. Like it's still possible but with much more limits. So this is comparison is limited to ethical company operation.

j / k navigate · click thread line to collapse