Just a reminder that 0% of fediverse admins took on debt to support their communities.
https://stefanbohacek.online/@stefan/112399842395585906
#fediverse #SocialMedia #sustainability #bluesky #VentureCapital
Ah, for context:
“Decentralized social app Bluesky announced on Thursday that it has raised a $15 million Series A round, following its $8 million seed raise last year.”
$23 million in debt. Wow.
https://techcrunch.com/2024/10/24/bluesky-raises-15m-series-a-plans-to-launch-subscriptions/
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@Pieisawesome@lemmy.world Yes, true, fair enough.
Still, looking from afar, as a non-entrepreneur, seeing startups raising funds only to enshittify and/or fold as they attempt to pay them back, with interests, I don’t know if the difference is meaningful enough.
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@Pieisawesome@lemmy.world Well, –
“Bluesky also raised $15 million in a funding round led by the crypto investor Blockchain Capital, but says it does not plan to use blockchains, crypotcurrency, or “hyperfinancialize the social experience” with tokens, crypto trading, or NFTs.”
https://www.theverge.com/2024/10/24/24278666/bluesky-working-on-premium-subscription
We’ll see!
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@stefan@stefanbohacek.online just a quibble, but venture funding is structurally a different financial vehicle than debt. they can sometimes function similarly, but it’s incorrect at a technical level to equate them. (One key reason that it matters: it’s generally illegal in most jurisdictions to have a debt that requires a return above ~1.3x, which would be abject failure for VC.)
@anildash@me.dm Fair enough. I’m definitely simplifying here to make a point (which I think still stands), but I appreciate the explanation!
I’m going to assume that folks who chose “selling user data” were joking, but do check on your server admins, just in case.
