If the unit economy is truly 45.5% then it’s not very bad. However, if we take my argument and further deduct the 21% incentives cost from the margin, we’re left with 24.5% actual Contribution Margin. Not exactly the sexy platform business that we all dream of.
Accel (17.2%) stands to cash out $1.376B, Insight Venture Parnters (16%) $1.28B and Sequoia (10.7%) $856M. The three of them put in a total of only $400M. It’s a big win for every one.