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60 sats \ 4 replies \ @orangepillapp 11 Jan \ parent \ on: Orange Pill App: Stack Friends, Stack Equity! bitcoin
Hi Grayruby, Matteo here!
Thank you for your feedback and support—it’s greatly appreciated. For some context, we completed a pre-seed round last year at a $5M valuation, which was oversubscribed. Since then, we’ve more than doubled our metrics across the board, which is why we feel a $10M valuation is justified.
I’m curious, though—why do you believe event ticketing will compress margins?
Thanks again
I don't know your financial statements and what arrangements you have with conferences/events for ticketing so of course I am speaking in generalities and assuming some things. Happy to be corrected but generally sub revenue for a software product would be a pretty high margin item and fees from event ticketing would be pretty low margin so if the lower margin item becomes a large mix of your sales your blended margin decreases. Revenue grows and potentially bottom line increases but margins compress.
Again, I know nothing of your situation and was basing this off generalities. You might be getting a 50% kick back from events on ticket sales. I have no idea.
Anyways, I wish you guys the best. Not trying to be a hater. If people will give you a 10M valuation then more power to you.
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Thanks for your reply—you’ve made some great points.
We don’t currently have any arrangements with conferences. We plan to take a 6.15% commission on every ticket sold via the app, and since payments will be exclusively in Bitcoin and we run our own payment infra, this revenue is essentially all profit.
Perhaps we should make this clearer in our pitch deck!