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When a VC gives you a giant boatload of money, they insist you "scale up" the company overnight. So you go on a massive hiring spree, and get triple-digit team
by nikanj 4y ago
When a VC gives you a giant boatload of money, they insist you "scale up" the company overnight. So you go on a massive hiring spree, and get triple-digit team of engineers before having any market traction.
And they're tasked with building a product that can handle Google-levels of demand, though they currently only have two customers, neither of them paying.
It indeed is imperative, but not for technical reasons.
- thirtyfivecent 4y agoThey do that so you're screwed later on without them when that first bit of money starts to run out and boom they own your company
- rafale 4y agoI would take the money then do none of that. And now I got a 5 years runway, enough time to build a product people like and use, and by then the investors won't be angry anymore.
- pharmakom 4y agoYou would never get the money with this plan.
- numpad0 4y agoAnd is it because those strawman VCs are all stupid, or, is it somehow ...
- 10000truths 4y agoIf the money comes with a stipulation that I have to spend it all in such a way that I screw myself and my company over, then I don’t want the money.
- cosmodisk 4y agoAnd then when the stock market drops by .1%, you lay off 30% of the workforce because that's what's needed for its survival.