I do trace basically every bad decision made at unity over the last 5 years back to either doing the IPO or getting ready to do the IPO, but this timeline starts WAY before 2020.
- October 2009: Unity Technologies closes a $5.5 million investment round with Sequoia Capital, Diane Greene & David Gardner
- July 2011: Unity Technologies closes a $15 million investment round with iGlobe Partners, Westsummit Capital Management & Sequoia Capital
- September 2015: Unity Technologies closes a $25 million investment round with iGlobe Partners & Sequoia Capital (AGAIN!?!)
- December 2015: Unity Technologies closes a $62.7 million investment round with iGlobe Partners & Sequoia Capital (AGAIN AGAIN!?! wtf!)
- July 2016: Unity Technologies closes a $181 million investment round with iGlobe Partners, Max Levchin, Westsummit Capital Management, Thrive Capital, China Investment Corporation, Sequoia Capital, FREES FUND & Dfj Growth
- May 2017: Unity Technologies closes a $400 million (ALMOST HALF BILLION??) investment round with private equity firm Silver Lake Partners
I remember being at a xfest (the xbox developer conference) around the time when the xbox one came out (so like.. 2013?) and having lunch with some Unity people, one of them was talking about a recently closed round of investment that had happened and how that cash was mostly just sitting in the bank. They didn’t really know what to do with it all. I remember them saying that at the time, the business was mostly sustainable from licence sales, so they didnt even really need it, but they would figure something out. (This was before the subscription model was introduced, we were paying $1500 per platform per seat, for a perpetual licence).
That was a real no OH moment for me. The second they took a single penny from investors that made the path to going public inevitable (or a sale, which could have happened but didn't). The investors need their exit eventually. They need their blood. The second that the first round closed, trying to make this a sustainable business was over.
We were on this trajectory from the start imo. Capital is the reason we can’t have nice things!