Owen Thomas, Business Insider
Github CEO Tom Preston-Werner
For a long time, Github's three founders never thought about raising a round of financing. They bootstrapped the company, which helps developers build software, and hired only when revenue allowed. Revenue was always rolling in; on its first day GitHub generated $1,000.
Github wasn't meant to be a huge business. It was supposed to provide a comfortable life for the founders. Eventually, they set their sites on something greater.
"At some point, we stopped thinking of it as a lifestyle business," Github CEO Tom Preston-Werner tells PandoDaily's Sarah Lacy.
He says the self-sustaining company raised $100 million for two reasons: to have a "buffer," and to be "more awesome."
The way Github was operating before, its margins were thin. "“We were in a phase where we were operating so cash-lean that we had essentially no money in the bank," he tells Lacy. The $100 million was also easy to raise, and as the investment climate started to change, Preston-Werner wanted to err on the safe side.
More From Business Insider