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This sentiment reminds me of DHH's talk at startup school (https://www.youtube.com/watch?v=0CDXJ6bMkMY https://www.youtube.com/watch?v=0CDXJ6bMkMY) in which he

This sentiment reminds me of DHH's talk at startup school (https://www.youtube.com/watch?v=0CDXJ6bMkMY https://www.youtube.com/watch?v=0CDXJ6bMkMY) in which he explains that the best way to create a business is to make money, but not just make money, make it on your own. I am a little removed from the Silicon Valley echo chamber and enjoy the ability to watch it from the sidelines, but I don't understand the obsession with the 'rapid growth, raise millions from investors, become a unicorn, own the world' mentality. I just don't get it. As a founder, your life is going to be just as good (probably better) if you made a couple million dollars in actual money that you don't have to divide up in odd percentages to all sorts of already rich guys who gave you tons of money in the first place. Why isn't everyone just trying to build products that work, that people like, that make money, and going from there? Why the need to go to YC, or raise any capital AT ALL, for the very very low chance of becoming gajillionaires? I understand the appeal of the #1 king on top thing, but not really, and not with the risks and pain associated with the journey and the reality. Whatever I guess. People will not stop investing or raising money, at least for now.

wj 11y ago
Plenty of people are starting software businesses without taking outside funding. I imagine the majority of Show HN posts are of that variety.
- elliotec 11y ago
  Agreed, most companies are this way in general. But that's why I'm surprised to see such hype around the alternative.
dluan 11y ago
I'm going to assume you're relatively new to startups, because this didn't always used to be the case. Founders 40, 30, even 10 years ago had much less leverage in that today it's so comparatively cheap to launch an app that can quickly get millions of users. Back then, even to think about launching an app you needed a server. The capital that founders needed came with investors who had all the leverage and board control. It's only recently that you could literally start accepting dollars from paying users without actually paying anything (servers, money integration, etc all free). That means founders have more leverage, which in turn means for the first time founders are getting more of a say in the trajectory of the company. Basically, your feelings are following recent developments, but it's unusual that this is the case. In other words, you are the long tail that previously never got a seat at the table. But, there are still going to be founders already at the table chasing the big bets. Of course, you are also discounting the value of having investors that prioritize growth. In most cases, all companies somewhat converge when it comes to what that start up needs to do to survive and succeed: grow.
- elliotec 11y ago
  This is insightful and informative, thanks. I am relatively new to startups, but at 25 years old, most of my peers seem to be in the category I've described and seem to think that is clearly the best way, if not the only way, to start a company.

wj 11y ago

Plenty of people are starting software businesses without taking outside funding. I imagine the majority of Show HN posts are of that variety.

elliotec 11y ago
Agreed, most companies are this way in general. But that's why I'm surprised to see such hype around the alternative.

dluan 11y ago

I'm going to assume you're relatively new to startups, because this didn't always used to be the case. Founders 40, 30, even 10 years ago had much less leverage in that today it's so comparatively cheap to launch an app that can quickly get millions of users. Back then, even to think about launching an app you needed a server. The capital that founders needed came with investors who had all the leverage and board control. It's only recently that you could literally start accepting dollars from paying users without actually paying anything (servers, money integration, etc all free). That means founders have more leverage, which in turn means for the first time founders are getting more of a say in the trajectory of the company. Basically, your feelings are following recent developments, but it's unusual that this is the case. In other words, you are the long tail that previously never got a seat at the table. But, there are still going to be founders already at the table chasing the big bets. Of course, you are also discounting the value of having investors that prioritize growth. In most cases, all companies somewhat converge when it comes to what that start up needs to do to survive and succeed: grow.

elliotec 11y ago
This is insightful and informative, thanks. I am relatively new to startups, but at 25 years old, most of my peers seem to be in the category I've described and seem to think that is clearly the best way, if not the only way, to start a company.