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the absolutely batshit advice and business building strategy that comes out of the world of venture capital and tech accelerators. Would you mind elaborating o

by rsp1984 8y ago

the absolutely batshit advice and business building strategy that comes out of the world of venture capital and tech accelerators. Would you mind elaborating on this? What advice concretely are you talking about and what exactly is batshit about it?

s-shellfish 8y ago
I think the point is that while the economics might be sound in terms of anticipated risk, risk management, and expected growth; the 'folklore' that arises to relate that learned experience in a convenient, easily understood way is often only a shadow - a poor construct - of the experience that actually keeps these systems running. Whether that's because 'trade secrets' or 'elevator speeches', whatever the reason, information gets lost, exaggerated, and permuted along the way. So sometimes it can easily become kind of batshit because of how far removed from reality - the actual guiding forces that sustain that economy, are. I don't know if you can point out concrete examples, because for every concrete example there's probably a successful startup out there that followed that model. But the exception doesn't prove the rule in systems that are fundamentally opened, like the relationship between culture (consumer, startup, academia, enterprise) and the economy. That's because those rules (advice) influence the system. You can't simultaneously account for the effect the advice will have on the system while following and dispensing the advice, unless the advice and it's effects on the system are immutable. But that's not how capitalism works.
kabouseng 8y ago
Not OP but I would assume one of the issues would be building and growing a business while having no monetisation strategy, but chasing growth at all costs nevertheless. Or monetisation can in no way sustain the current and future costs of the business. There are many examples, like twitter, whatsapp, homejoy, various food delivery services, springpad... etc etc etc Sometimes the strategy works though, for example Google and Facebook.
- magnetic 8y ago
  It seemed to have worked pretty well for WhatsApp, no?
sbov 8y ago
Growing up I had a friend whose dad was a regular business starter. At first he had his own computer stores, which was put out of business by CompUSA, who sold parts cheaper than he could source them. Then he started his own internet cafes, which the ubiquity of broadband put out of business. Eventually he moved onto various profitable online websites. The point is he made money every step of the way. You never heard of his companies, he never took VC, and despite starting companies at the edge of what was modern technology he never ran a "startup" by Paul Graham's definition, and he still made fuck you money.

s-shellfish 8y ago

I think the point is that while the economics might be sound in terms of anticipated risk, risk management, and expected growth; the 'folklore' that arises to relate that learned experience in a convenient, easily understood way is often only a shadow - a poor construct - of the experience that actually keeps these systems running. Whether that's because 'trade secrets' or 'elevator speeches', whatever the reason, information gets lost, exaggerated, and permuted along the way. So sometimes it can easily become kind of batshit because of how far removed from reality - the actual guiding forces that sustain that economy, are. I don't know if you can point out concrete examples, because for every concrete example there's probably a successful startup out there that followed that model. But the exception doesn't prove the rule in systems that are fundamentally opened, like the relationship between culture (consumer, startup, academia, enterprise) and the economy. That's because those rules (advice) influence the system. You can't simultaneously account for the effect the advice will have on the system while following and dispensing the advice, unless the advice and it's effects on the system are immutable. But that's not how capitalism works.

kabouseng 8y ago

Not OP but I would assume one of the issues would be building and growing a business while having no monetisation strategy, but chasing growth at all costs nevertheless. Or monetisation can in no way sustain the current and future costs of the business. There are many examples, like twitter, whatsapp, homejoy, various food delivery services, springpad... etc etc etc Sometimes the strategy works though, for example Google and Facebook.

magnetic 8y ago
It seemed to have worked pretty well for WhatsApp, no?

sbov 8y ago

Growing up I had a friend whose dad was a regular business starter. At first he had his own computer stores, which was put out of business by CompUSA, who sold parts cheaper than he could source them. Then he started his own internet cafes, which the ubiquity of broadband put out of business. Eventually he moved onto various profitable online websites. The point is he made money every step of the way. You never heard of his companies, he never took VC, and despite starting companies at the edge of what was modern technology he never ran a "startup" by Paul Graham's definition, and he still made fuck you money.