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Those tools are affordable until the company making the tool needs to start actually making a profit and they raise their prices or they decrease their LOS. The
by Karrot_Kream 4y ago
Those tools are affordable until the company making the tool needs to start actually making a profit and they raise their prices or they decrease their LOS. Then the tools become an expensive risk and the price increases end up percolating into your own startup. If you raise prices to compensate, you'll affect your growth. That's how startups go under.
In a ZIRP world using the tools of other startups makes sense but the stability of the FAANGs and their in-house tooling means they can weather much choppier economic conditions than the equivalent startup.
- wmf 4y agoI guess that's why so many SaaS startups have a policy of "you have to pay for our software but we never pay for software".