Why we changed our financial strategy
Sorry, it's been a while. A month ago I wrote that we're starting fundraising again. The goal was to raise an angel investment round in the lower 6 digits by end of this summer to help us develop our cross-platform strategy further and reach 100,000 daily active users.
The schedule was tight. We still have some runway, but we knew raising money for consumer products without revenue takes time these days. We've been in good talks with potential investors for some weeks, so we were confident.
Then some very unfortunate stuff happened: we got two big unexpected bills that significantly decreased our cash in bank (one being an "Abmahnung" because we used a photo someone stole and uploaded to Flickr, thanks for that).
This made us think: What happens if fundraising takes longer than expected (it most certainly will) and, when our money's running out, what if there are some more unexpected bills coming in?
We completely changed our financial planning. Our single most competitive advantage is that we can currently keep growing while not increasing our extremely low burn rate. This is why we decided to pause fundraising for a bit and focus on getting in some money with creative bootstrapping until we're making ad revenue off HashtagNow (not too far away). I will tell you more about how we're trying to bootstrap in one of the next newsletters (which hopefully will start coming in regularly again).