alt Hacker News$7m actually isn't a whole lot, especially if they hired a (larger) engineering team. Assuming their cali based, that's easily 150-200k per engineer, a team of 20 easily eats through that. Idk the specifics, but I don't the organization was fradulent, it could also be that they're going commercial and no longer want to maintain their oss stack
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20 engineers would be incredibly aggressive growth for such a young company with that amount of capital, no?
Tokenmaxxing makes startups even leakier if they don't find token traction.
if you hire 20 engineers with your seed round you are either very confident you'll be able to use them to justify another raise soon
or you're incompetent
I thought ai was writing all the code. What do they need engineers for?
150-200k is also just the employee’s salary, the actual cost to the company is significantly higher, you need to multiply that by something like 1.5 to get the fully loaded cost, people are expensive!