Why 99designs raised $35 million from Accel Partners

Re:Why 99designs raised $35 million from Accel Partners by mikx on Thursday April 28, 2011 @06:23PM (#2495359)

Building apps for the iOS marketplace is "spec" work. I'm working for free until someone decides to purchase my app.

Bootstrapping a startup is "spec" work. No one is paying founders anything.

It's a choice to do "spec" work, no one is forcing someone to work for free. 99design is building an amazing marketplace for customers and professionals on a global level. This will change the way the restrictive nature of supply and demand in design.

EDIT: When I graduated from college, I worked for free. I bootstrapped a startup with my savings that failed to support me and then I worked for free at a development agency doing random projects. From that experience, network, and portfolio I now am living very well doing contracting work and personal side projects.

[ Parent | on HN ]

Re:Why 99designs raised $35 million from Accel Partners by alanfalcon on Thursday April 28, 2011 @06:52PM (#2495468)

For a designer, it's generally a lousy deal. The upside for the iOS apps or a startup is a lot better than the $300 for winning a 99Designs contest. Yes, you can build a relationship with the contest holder, but you're starting in the basement and it's unlikely you'll make any actual money from that relationship.

That said, it can be good practice for those who need it (and the quality of available designs typically reflects this).

[ Parent | on HN ]

Re:Why 99designs raised $35 million from Accel Partners by mikx on Thursday April 28, 2011 @07:02PM (#2495499)

I've watched my friends work hard in basement for months when they were forming a band. All they got from that work was the chance to play for tips at a local bar.

There are a lot of designers who are passionate and have amazing potential, but no access any markets.

It can take months to build an app and startups can take a lifetime to build into a company.

The upside to all spec work is pretty bleak everywhere, but we do it out of passion and our audacity.

If it is too lousy of a deal, then 99design wouldn't even exist or be viable. There would be no startups, everyone would work at major established companies and Android and iOS would be terribly boring devices with only apps made by the platform manufacturers.

[ Parent | on HN ]

Re:Why 99designs raised $35 million from Accel Partners by alanh on Thursday April 28, 2011 @08:54PM (#2495880)

That’s not spec work. Investments ≠ spec work. You are not building an iOS app for one person/entity and getting paid if and only if they preferred your app to others built to the same spec. You are building and iterating and marketing something to be sold to any number of individuals. There is a world of difference there.

[ Parent | on HN ]

Re:Why 99designs raised $35 million from Accel Partners by biot on Thursday April 28, 2011 @11:20PM (#2496220)

You appear to not know what spec work is. For bootstrapping to be spec work, there would have to be (for example) 20 different entrepreneurs who attempt to bootstrap a business according to specifications that a third party dictates to them. They pour in their blood, sweat, and tears to build the business by those specifications and at the end of it the third party chooses only 1 of them. The other 19 are contractually obligated to throw their business in the garbage and will have wasted their time and effort simply because they weren't chosen.

Same thing for building iOS apps. Want an iOS app designed on spec? Get in touch with a few dozen developers, all of whom build the exact same app using your specifications. Pick only 1 of them as the winner and the losers are contractually required to throw their app away.

[ Parent | on HN ]