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> Because the people who like to start new companies and take lots of risks generally tend to not like running stable businesses and dealing with FP&A managers,
by BaseballPhysics 5y ago
> Because the people who like to start new companies and take lots of risks generally tend to not like running stable businesses and dealing with FP&A managers, lawyers, compliance and tax experts
... in SV/the tech industry.
That's kinda my entire point.
Stealing someone else's analogy: If you went to a bank to get a small business loan to open up a coffee shop, and you told them "Yeah, I'm hoping to take a bunch of your money, open a coffee shop, never return a profit, and then sell it to Starbucks", you'd get laughed out of the room.
In SV that's a business model.
- charcircuit 5y agoYou won't get much money selling a small coffee shop which is why it won't work. There is a small upper bound to what you can possibly be worth.
- Talanes 5y agoThe more accurate to life version of that sale is "I'm going to open a small regional coffee chain and then sell it to JAB Holding Company" https://en.wikipedia.org/wiki/JAB_Holding_Company https://en.wikipedia.org/wiki/JAB_Holding_Company
- airstrike 5y agoCoffee shops don't grow at the speed software does because they are limited by the physical world. There aren't many "startup industrial companies"