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Completely anecdotal and subjective, I know: Personally I try to steer clear of venture-backed startups when I can for the following reasons. The first is out
by dkersten 7y ago
Completely anecdotal and subjective, I know:
Personally I try to steer clear of venture-backed startups when I can for the following reasons.
The first is out of fear of the dreaded announcement about the exciting next steps for the team because they got acquired yay (which typically translates to either the product I was relying on being shut down, merged into a shitty bigger product and/or my data being used by Big Co which is possibly what I was trying to avoid by using a small companies product in the first place. Basically, a service provider being acquired has never translated to a positive to me the customer in my personal experience). Especially if the company gets bought by google: now I can look forward to both having my data taken by google (something I’m going to great lengths to minimise!) and an above average chance of the product getting cancelled.
The second is the pressure to make the big return on investment (not just sustainable profit), which in consumer products usually means advertisement and in b2b often means aggressive analytics.
Finally, if the company wasn’t successful enough fast enough it often gets shut down.
Either way, the business pressures usually mean it ends up negative for me, the customer.
- mmhsieh 7y agoExactly how (typically venture backed) cyber vendors for the financial vertical evolved over the last 10 years.
- dehrmann 7y agoAt one place I worked with a lot of customers' data, I floated the idea of adding a clause in the standard customer contract that an acquirer would only be able to use customers' data to continue to offer the service. I didn't push hard enough for it to be rejected, but this wasn't usually a dealbreaker for customers.
- dehrmann 7y ago> dreaded announcement about the exciting next steps for the team because they got acquired This announcement usually means it was an acquihire, and the company was already dead, so you have to stop using the product either way.
- dkersten 7y agoRight, but if they didn’t focus on hyper growth because of VC pressure and focused on sustainability instead, then it wouldn’t be a problem.