Jim Frisby
I write tests that pass.

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August 12, 2012


Square to Lose Money Faster Than Ever

A few days ago, Square announced a partnership with Starbucks.

As a longtime fan of Square, my first thought was “hooray for them!” But then I remembered that they lose money on every transaction. This deal is only going to accelerate the process.

I want Square to achieve its goals, but I keep getting that Underpants Gnomes vibe: relentlessly pursue your goals, then figure out that whole “income” thing. Of course, Silicon Valley startups have known for years that Step 2 is “get acquired.” It worked for Instagram to the tune of a billion dollars.

I just hope Square figures out its plan in time. Also, that it isn’t a terrible plan.


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