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I expected this when the terraform license changed. Not IBM specifically but it was obvious they weren't interested/ able to continue with their founding vision

I expected this when the terraform license changed. Not IBM specifically but it was obvious they weren't interested/ able to continue with their founding vision.

paxys 2y ago
Hashicorp had a $14 billion IPO in Dec 2021 and was trading at ~$4.7 billion right before the acquisition announcement. At that point it doesn't matter what the company or its founders want or what their long term vision is. Shareholders are in charge and heads are going to roll if the price doesn't get back up quick by any means necessary.
- bigstrat2003 2y ago
  Yet another example of why I think it's a mistake to take your company public. If I put in the work to build up a successful business, no way would I ever let it be turned into a machine that ignores long term health for the sake of making the stock price go up.
  - paxys 2y ago
    While I would think that, realistically most of my principles are for sale for a few billion dollars.
    - chrishare 2y ago
      If anyone is listening, I'll gladly undercut this guy by a few orders of magnitude
      - elzbardico 2y ago
        You need to let some head space for the inevitable bargaining, let's act as sensible cartel members and not undercut ourselves in a race to the bottom, capisce?
  - typeofhuman 2y ago
    You have no idea what decisions you'll make if you ever were to get that successful. I'm sure you've broken many promises to your younger self.
  - financetechbro 2y ago
    If companies didn’t go public regular people would not be able to invest in innovation. As much as people hate it, public markets democratize access to investments
    - tootie 2y ago
      True but no company has a vested interest in the democratization of investment. IPOs are purely about getting paydays for founders.
      - freedomben 2y ago
        *and early investors. Mostly early investors in many cases.
        ZealousIdeal 2y ago
        crux of the problem is the SV model is completely broken and leads to these cycles. wish it were more about sustainable progression and not rapid half-baked innovation to achieve paydays for greedy founders/investors
        tootie 2y ago
        I guess it's not possible to fuel "hypergrowth" this way, but why not just issue debt? Let the market buy in to your growth with a healthy dividend and reduced risk.
        geodel 2y ago
        Huh, they won't get pay day if no one use their products. And there are plenty of examples of failed products. If people have idea and execution capability for sustainable progression they can very well try outside the valley. It is not like companies don't start outside valley.
        ZealousIdeal 2y ago
  - ekianjo 2y ago
    if you go thru VC you are expected to go public to generate returns for the early investors. its baked in
  - berniedurfee 2y ago
    If I put in the work to build a successful business and someone offered me a hundred million dollars for it, I’d have a hundred million dollars.
  - JeremyNT 2y ago
    > Yet another example of why I think it's a mistake to take your company public. If I put in the work to build up a successful business, no way would I ever let it be turned into a machine that ignores long term health for the sake of making the stock price go up. It's a mistake if you care about the long term health of a company. But... why should you? Hashicorp had a great run, and contributed a lot of great open source products over the years. Today, their products have large user bases and healthy forks seem likely. The founders and early employees cash out, and it's a win for everybody involved. Nothing lasts forever.

I expected this when the terraform license changed. Not IBM specifically but it was obvious they weren't interested/ able to continue with their founding vision.

paxys 2y ago

Hashicorp had a $14 billion IPO in Dec 2021 and was trading at ~$4.7 billion right before the acquisition announcement. At that point it doesn't matter what the company or its founders want or what their long term vision is. Shareholders are in charge and heads are going to roll if the price doesn't get back up quick by any means necessary.

bigstrat2003 2y ago
Yet another example of why I think it's a mistake to take your company public. If I put in the work to build up a successful business, no way would I ever let it be turned into a machine that ignores long term health for the sake of making the stock price go up.
- paxys 2y ago
  While I would think that, realistically most of my principles are for sale for a few billion dollars.
  - chrishare 2y ago
    If anyone is listening, I'll gladly undercut this guy by a few orders of magnitude
    - elzbardico 2y ago
      You need to let some head space for the inevitable bargaining, let's act as sensible cartel members and not undercut ourselves in a race to the bottom, capisce?
- typeofhuman 2y ago
  You have no idea what decisions you'll make if you ever were to get that successful. I'm sure you've broken many promises to your younger self.
- financetechbro 2y ago
  If companies didn’t go public regular people would not be able to invest in innovation. As much as people hate it, public markets democratize access to investments
  - tootie 2y ago
    True but no company has a vested interest in the democratization of investment. IPOs are purely about getting paydays for founders.
    - freedomben 2y ago
      *and early investors. Mostly early investors in many cases.
      - ZealousIdeal 2y ago
        crux of the problem is the SV model is completely broken and leads to these cycles. wish it were more about sustainable progression and not rapid half-baked innovation to achieve paydays for greedy founders/investors
        tootie 2y ago
        I guess it's not possible to fuel "hypergrowth" this way, but why not just issue debt? Let the market buy in to your growth with a healthy dividend and reduced risk.
        geodel 2y ago
        Huh, they won't get pay day if no one use their products. And there are plenty of examples of failed products. If people have idea and execution capability for sustainable progression they can very well try outside the valley. It is not like companies don't start outside valley.
        ZealousIdeal 2y ago
- ekianjo 2y ago
  if you go thru VC you are expected to go public to generate returns for the early investors. its baked in
- berniedurfee 2y ago
  If I put in the work to build a successful business and someone offered me a hundred million dollars for it, I’d have a hundred million dollars.
- JeremyNT 2y ago
  > Yet another example of why I think it's a mistake to take your company public. If I put in the work to build up a successful business, no way would I ever let it be turned into a machine that ignores long term health for the sake of making the stock price go up. It's a mistake if you care about the long term health of a company. But... why should you? Hashicorp had a great run, and contributed a lot of great open source products over the years. Today, their products have large user bases and healthy forks seem likely. The founders and early employees cash out, and it's a win for everybody involved. Nothing lasts forever.