Comments on: Financing Winners Like NewsGator

By: James Avery

James Avery — Wed, 07 Jan 2009 01:55:49 +0000

All the questions I want to ask but probably won't get an answer to:

What is the goal with this new round of financing? Is it to mainly keep the company afloat or to invest in developing a new product/technology? Is Newsgator profitable?

By: sameer3557

sameer3557 — Wed, 07 Jan 2009 01:55:49 +0000

Newsgator is in a very good position given whats on the horizon for enterprises. I've heard it from customers. All the best to them.

By: James Avery

James Avery — Wed, 07 Jan 2009 01:55:49 +0000

Awesome, I love to learn and hear what is going on. I wasn't trying to be rude by saying they wouldn't get answered, I just figured you couldn't release the information publicly.

By: bfeld

bfeld — Wed, 07 Jan 2009 01:55:49 +0000

Goal: Expand the sales and marketing team and fund the company through becoming cash flow positive and self-sustaining. We'll continue to aggressively develop new products and expand our existing products, although much of our incremental investment at this point is going into sales and marketing.

NewsGator – like many other three year old startups that are growing quickly – is not yet profitable. In our experience, a company growing at the rate that NewsGator is growing usually takes about $25m – $35m of invested capital to become cash flow positive. While you can do it for less, the tradeoff is rate of growth and market position. NewsGator is the market leader in enterprise RSS related products – we intend to use this financing to extend our dominant position while creating a profitable standalone company.

By: Matt Lambert

Matt Lambert — Wed, 07 Jan 2009 01:55:49 +0000

Congratulations.

You posted this on the 10th anniversary of the first use of the word weblog. Quite a thing.

I saw the demo about a year ago, awesome product even at that point

By: bfeld

bfeld — Wed, 07 Jan 2009 01:55:49 +0000

I've been practicing my writing skills.

By: curmudgeonly troll

curmudgeonly troll — Wed, 07 Jan 2009 01:55:49 +0000

dang, that's some impressive purple prose. I shall immediately commence rewriting my business plan in ths style.

yours sedulously eschewing obfuscatory prolixity,

By: Brad Feld

Brad Feld — Thu, 20 Dec 2007 09:08:29 +0000