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But the technical achievement wasn’t translating into revenue growth, and by last year, with the company at 130 employees and burning through cash, Masad said he had to make a painful decision. “I looked at our burn, and I looked at our progress on our revenue chart, and it just didn’t make any sense. The business wasn’t viable.” Replit cut its headcount by 50%, bringing it down to around 60 to 70 people at its lowest point.

Plus, Replit has another unusual advantage for a startup: a $350 million war chest. Despite raising $100 million in 2023, the company “hadn’t touched” those funds by the time it raised this latest round, Masad told me. The company is capital efficient by design, though Masad joked that as an entrepreneur who grew up watching his refugee father struggle, “one thing I need to learn is to be less frugal and start spending money.”

Awesome! Resolves ambiguity pretty well.