The sustainability of the model relies on BIG finding paying customers to assign to the advances provided by FCC. If they are able to manage this prudently there is inherently nothing stopping them continuing to grow until such a time that they do not need to rely on any funding.
For instance.
Say they shoot 3 videos for free for every video that's paid. If that is able to cover their expenses of shooting all the videos then they are essentially building out a video ecosystem for free. Add to this they do have direct paying customers as well.
This would be a good strategy to try develop the 'network' effect of businesses then wanting to be involved on the ecosystem they develop, App, revamped website, partnership with Zeta etc.
They should have simply raised a bit more money for working capital and been honest about this practice.
At least they didn't hide this and do a big raise without disclosing....
I still think that this company could succeed and become something very special.
But as much as I hate to say it, I won't be surprised if it goes back to under $1 first.
