



While GitHub has long had a steady revenue stream, its operating margins did get perilously thin. “Our ambitions were outstripping our resources,” Preston-Werner told Lacy. “We were in a phase where we were operating so cash-lean that we had essentially no money in the bank.” The company’s newly-hired chief operating officer looked at the books and was like, “What’s wrong with you people?”

Not only was Preston-Werner determined to squirrel away money in reserves in order to be “responsible,” but the company was also about to launch GitHub Enterprise, a big and expensive push into serving businesses. So when it did come time to discuss fundraising, GitHub decided it wanted to put itself in a position where it would never have to worry about having enough money to invest in a particular opportunity.


“We thought if this is something we’re interested in,” Preston-Werner said, “then we should do it when the opportunity is right.”

One assumes the company’s reserves are looking pretty healthy these days.
