Gastown's Strutta quietly made an adjustment to their business model last week. According to Co-founder Danny Robinson, instead of seeking a second round of financing, they're making a move that promises to get them to a cashflow positive model sooner.
"Taking more money is always a tough decision. If you can make your company cashflow positive without the need for additional financing, it's usually a good idea to do that, especially when you still have the same upside potential. When that opportunity presented itself, we devised a plan and went for it."
Strutta's new business approach (not a surprise that this is stealth again) will apparently be achievable with their current funding. This business realignment will see Strutta moving under the Bootup Labs umbrella as the first start-up in their roster. An easy move considering considering Bootup Labs has been sharing Strutta's office space on Water Street since inception.
More to come... [more]
We translate for you:
"Taking more money is always a tough decision. [unless you are Facebook, Slide, RockYou, LinkedIn, or virtually any other Web 2.0 company of substance that can actually get more money] If you can make your company cashflow positive without the need for additional financing, it's usually a good idea to do that, especially when you still have the same upside potential [translation - spending less money to achieve the same end is better than spending more - duh. alternate translation - we wasted money the first time around]. When that opportunity presented itself, we devised a plan and went for it. [translation - our first plan didn't work since we overestimated the market for people watching how far they could hork on the Internet, so we are now pretending to have a new plan, but it isn't fully baked so we can't tell you what it is. That said, it probably won't involve body gunk]."
We appreciate your very succinct translation, pwn.
I felt compelled to reply in defense of Strutta: Despite the fact that some of our model has changed, we are still moving forward at lightning speed, and we will most certainly still welcome videos featuring at least some forms of body gunk.
You know, to stay true to our roots and all.
Strutta are poseurs. Nothing more nothing less. I stand by my earlier belief that all the whitespace on their site will come in handy for banner space when the VC runs out. Stealth mode huh? I smell vapour-web 2.0
