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Unit Economics - Sam Altman

blog.samaltman.com · 570 words · saved by 2 readers

Commentators are looking hard for what’s wrong with startups in Silicon Valley.  First they talked about valuations being too high.  Then they talked about valuations not really meaning anything. ...

Commentators are looking hard for what’s wrong with startups in Silicon Valley. First they talked about valuations being too high. Then they talked about valuations not really meaning anything. Then they talked about companies staying private too long. Then they talked about burn rates. But something does feel off, though it’s been hard to precisely identify. I think the answer is unit economics. One of the jokes that came out of the 2000 bubble was “we lose a little money on every customer, but we make it up on volume”. This was then out of fashion for a long time as Google and Facebook…

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