Eric Siu breaks down a startup that raised $25M and spent $12M on the domain icon.com. He argues that blowing half your funding on a domain is wasteful when you could hire a team or build technology instead, though he notes the domain might convert well.
They raised $25 million and they spent $12 million on a domain. So what are our thoughts on this overall? They just wasted $12 million. They bought icon.com. I think this page probably converts well. So the site alone is fine. I think the $12 million, he should have held off on that a little bit. Correct. And use it to hire an amazing team or build out some type of amazing tech. I think spending half of your money that you raised like that— I hope he's a legend. I just, I don't think I'm good enough to do that.
