Re:American tech giants are making life tough for startups (...
by scarface74 on Thursday June 02, 2022 @02:35PM
(#31598833)
The entire “business” of startups is to get acquired. Few expect to go public.
[ Parent
| on HN ]
Re:American tech giants are making life tough for startups (...
by nonrandomstring on Thursday June 02, 2022 @02:45PM
(#31598957)
I think we might more accurately say; the entire “business” of some
investors is to get companies acquired. That's not the same motive
as seen from inside the startup. And indeed, it's only some
investors. I believe there are plenty who are in it for the long
game, or are far more strategic in terms of ROI.
Re:American tech giants are making life tough for startups (...
by scarface74 on Thursday June 02, 2022 @03:03PM
(#31599186)
Once the startup takes investor funding, it’s irrelevant what those inside the startup want.
That being said, we all go to work to exchange labor for money. It’s naive for employees to see working for any for profit company as anything more than just a financial transaction.
Investors know that the chances of a startup to go public and then be profitable enough to have long term stock gains is infinitesimally small.
Can you name one startup that has been really successful - ie throwing off crazy profits and margins since Facebook?
Investors aren’t interested in “lifestyle businesses”.
Re:American tech giants are making life tough for startups (...
by jdsully on Thursday June 02, 2022 @05:54PM
(#31601000)
> Once the startup takes investor funding, it’s irrelevant what those inside the startup want.
It really depends on the ownership structure, and that will depend on leverage at the time of fundraising. YC companies are unlikely to give up control until Series B (but like all things your mileage may vary).
Re:American tech giants are making life tough for startups (...
by nonrandomstring on Friday June 03, 2022 @06:22AM
(#31606465)
I don't know what the contractual structure entails, but I thought
this recent post from R Bronson [1] is an exemplar of strategic
investment in "good cause" projects without a nose for short term ROI,
planned acquisition or any 'controlling' investor behaviours.