pewpew

Hey HN, i am totally clueless about vc money and funding, maybe you can enlighten me.

For example, TC reported that Kicksend got $1.8m funding. They are a some sort of a file sharing service. Even if they charge 10$/month, they would need 15,000 paying costumers that will subscribe for whole YEAR to just get the money back.

How does it make sense? How much revenue is expected from a company that raises $1M?

I see a lot of companies getting funded, where it would take years to just get their first 1M in revenue.

Thanks.