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I bootstrapped my business because I think that the venture capitalist model is unethical. Digital services should be accountable to their users, not exploitati

I bootstrapped my business because I think that the venture capitalist model is unethical. Digital services should be accountable to their users, not exploitative of them - and VC moves accountability elsewhere and uses exploitation to deliver the returns VCs demand. Bootstrapping - earning money directly from paying customers - means that the line of accountability is drawn directly to those who would be affected by your decisions, and incentivizes you to work in their best interests. Sure, it might take longer, but at least I can sleep at night.

pembrook 6y ago
How does the nature of venture capital force companies to be exploitative of their users? This is only true for a super narrow category of consumer startups--social media companies (specifically like 3 of them). And the reason those companies exploit their users is because they can and the nature of competition, not because of VC money. If anything, I think it's the other way around. Users are exploiting the VC-backed companies. Because there's so many investors reaching for yield right now, the money is abundant. Startups are burning through cash to acquire you, so you can reap the benefits. I've got 5 delivery apps on my phone and rotate based on which is providing a credit. Ditto for ridesharing. When I was doing a short contract in a different city last year, I got a mattress from whatever mattress-in-a-box company offered the longest trial period, and returned it. I've gotten 3 months of WeWork credits for doing nothing. I could go on and on and on.
- ddevault 6y ago
  The gig apps are more broadly exploiting the population, if not their users directly. Workers rights are basically non-existent in these companies. And they're doing it for the purpose of driving their more fairly-run competitors out of business. What do you think they're going to do once they get that monopoloy?

pembrook 6y ago

How does the nature of venture capital force companies to be exploitative of their users? This is only true for a super narrow category of consumer startups--social media companies (specifically like 3 of them). And the reason those companies exploit their users is because they can and the nature of competition, not because of VC money. If anything, I think it's the other way around. Users are exploiting the VC-backed companies. Because there's so many investors reaching for yield right now, the money is abundant. Startups are burning through cash to acquire you, so you can reap the benefits. I've got 5 delivery apps on my phone and rotate based on which is providing a credit. Ditto for ridesharing. When I was doing a short contract in a different city last year, I got a mattress from whatever mattress-in-a-box company offered the longest trial period, and returned it. I've gotten 3 months of WeWork credits for doing nothing. I could go on and on and on.

ddevault 6y ago
The gig apps are more broadly exploiting the population, if not their users directly. Workers rights are basically non-existent in these companies. And they're doing it for the purpose of driving their more fairly-run competitors out of business. What do you think they're going to do once they get that monopoloy?