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Sergio Ermacora's avatar

Pretty brave move spending almost 20% of the amount raised just on the name/domain. Retrospectively, do you think a good domain is worth 3-4% of the company (I guess you gave up 15-25% for the $3 million i.e 2.5% to 4.2% for the $500k)?

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Waseem Daher's avatar

I think the terms of our first round were $3m with a $20m cap, so a bit less than that, but your math is in the right ballpark.

I think from an objective dollars-spent amount, it was a great deal. If you convert dollars-spent into equity, it's going to seem super-expensive; though the time to control that was when we were raising money, not when we bought the domain.

(Said another way, we raised the $3m before we knew that we were going to spend $400k of it on a domain.)

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Waseem Daher's avatar

I guess the other thought here is: if the startup went totally bust, presumably we could still sell pilot.com to someone else for a few hundred thousand dollars—it was unlikely to decrease in value in the near-term.

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Sergio Ermacora's avatar

Good point. I haven't thought about it - this might be a good incentive (and somewhat hedge) to buy a really premium domain

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Stephen's avatar

You got very lucky with this acquisition. Well undervalued. Good for you, bad for the seller.

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Waseem Daher's avatar

Thanks! :) :)

And I definitely agree that we got lucky with it.

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