DO THE MATH.. its gotta be like $20m or something. Have $20m to lend them? Maybe get some bitcoin bazillionaire could front it? [...] Even with huge funds like that its work and time to ramp up production pipeline. Minimum order time.
Up to here, is doesn't matter whether you are a pre-order company or not. This is just what needs to be done to get off the ground. However, its impossible to do any of this part if you don't have VC, those companies have to do pre-orders to raise the capital to do this part of the business process. Spondoolies didn't, they had enough VC not to do pre-orders. Now maybe they ran out of cash, maybe they didn't, its just as shame they couldn't take that extra step and sell from stock.
continuing the do the math thread $5.5m < $20m and they already spent money they said:
$5.5m - burnrate x 9 months - SP10,SP30 pre-payments to TSMC < $20m
however many they make, they'll probably SELL OUT immediately they get any stock
This here is irrelevant to whether they do pre-orders or build up supply and sell from stock. Once the initial supply of units is in stock you start selling, then once you start selling you start making more units to restock your product ready for new sales. Once you get going you have a constant stream of manufacturing, a minimum level of stock to supply your customers, and a stream of sales that most probably will grow exponentially IMHO.
But Spondoolies-Tech already explained to that these $20m order pipelines that they have to pay up-front are like 3months deep. Not just TSMC, the other parts. If they do what you say, their pipeline will be very low capacity. (You need lots, like > $10m up front cash to build a high capacity pipeline).
So either they raise $20m (or some large amount of cash) or if they follow your advice and fund with sales, there is a 3month delay in pipeline capacity increases, they produce a trickle of hardware and ramp up really slowly.
At least thats what I took from reading what was said here - I'm a crypto guy, no manufacturing pipeline experience at all!
Adam
(Disclaimer I'm a crypto consultant to Spondoolies)
