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So, one thing to keep in mind with all of this is that, if it was a small, fast-growing startup that got acquired, there was zero chance of it staying that way
by rossdavidh 4y ago
So, one thing to keep in mind with all of this is that, if it was a small, fast-growing startup that got acquired, there was zero chance of it staying that way even if it did not get acquired. Being small and fast-growing for very long, is by definition impossible. In many cases, when a smaller company gets acquired by a big one, it's because they have hit the point where the founder of the smaller company realizes that their company's infrastructure and culture aren't going to work at a large scale, so they would rather offload the task of turning into a big company to somebody who already knows how to do that. But, even if they hadn't, they usually would have had to turn into something that looked a lot like the big company they got acquired by, anyway.
- mekoka 4y agoSometimes you just get acquired because "large sums of money". Some startups are on their way way up, with spare room to improve on their value proposition and mission at the time of their acquisition, and it's difficult to know what the road not traveled would've looked like. Even if you see improvements post-acquisition, you can't tell if the acquisition actually stifled the potential. For some of the companies lauded in this very thread, I'd argue that's the case.
- waynesonfire 4y agoThis is such bs. Why do you have to grow so fast? Wtf. Stop taking loans and having to sell your soul to get out.
- mikercampbell 4y agoThe best way to do X is to do it as hard as possible until it becomes Y overnight. Haha I joke, but seriously. I was cramming my way to the finish line of my startup idea when I realized I didn't need to. HN showed me that side-gigs can be as big or small as you want or need them to be, customers be willing.
- rossdavidh 4y agoWell you don't _have_ to grow fast. But a slow-growing or not-growing company also has a very different feel. Fast-growing companies have lots of room for growth for everyone who works there, because there are new positions and new responsibilities opening up all the time. Slow-growing companies have less of that, so somebody else has to leave or die before you get a chance to move up. Sometimes, this is still better than the problems of fast growth, but it is a tradeoff. Also, if you took VC money to start the company in the first place, then you may require fast growth in order to offer some prospect of a return to the people who invested with you. Similarly, if you maxed out your credit cards and took loans from family to get going, you need/want to grow fast to pay that back. Not every small company is in that situation, but many of them are.
- balderdash 4y agoYep - it just accelerates what would have happened down the road. In addition to institutionalization (yeah “asking Bob” is not a scalable solution) the other thing is risk skew changes. When you’re a startup in a garage with nothing to lose, who cares about compliance and adhering to laws and regulations (there is very little downside, and you’re a small target). When you’re worth a $1b now you’re a bigger target, and have value to protect…
- rossdavidh 4y agoTruth; Uber comes to mind.