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I always wonder, looking at this from Europe, how " We have raised $4.6 million in seed funding, led by Accel." even happens in the US. Who is giving that much

I always wonder, looking at this from Europe, how " We have raised $4.6 million in seed funding, led by Accel." even happens in the US. Who is giving that much money to an obscure build tool ? What is the monetization plan ? How are they ever trying to earn the money back ? Does this happen in any way or form outside the US ?

sph 2y ago
The lower the interest rate, the sillier the investments. The goal nowadays for these kind of tools is to get bought out by platforms such as Vercel/Fly/etc. or to become a platform of their own. Given that devs these days are afraid if not unable to deploy a React website on a VPS by themselves, it's become a self-sustaining lifecycle. This tends to be a particularly US phenomenon. It's a house of cards waiting for the next shaky economic phase.
Cthulhu_ 2y ago
Every build tool was obscure at some point. A common monetization plan for these is cloud services (promising faster builds and such) with usage-based plans. A few enterprises may use these services over time; for one project I'm at they're considering e.g. Expo and its cloud / CI offerings, because spinning up and configuring your own Mac machines in the cloud is painful and expensive.
throw4950sh06 2y ago
The real answer is that this is not a lot of money in the US.
- mgoetzke 2y ago
  In Europe it certainly is. Try to find an investor for this kind of money for an open source dev tool or anything really
  - throw4950sh06 2y ago
    Yes, I know. But in the US this is not considered a lot of money - they actually got considerably less money they could've gotten if these founders had a product in another market. And, making the money back in the US market is easy - this is really not a lot; just 5-10 senior engineer yearly wages...
scotty79 2y ago
I think the reason it's a thing is the same as the reason Hollywood exists and Las Vegas exists. Overabundance of inhumanely rich idiots that are bored and want to gamble. And they do because they falsly believe they have an edge in their bets due to their secret knowledge of the game and unique talent in picking the right horses. Most of them will lose most of their bets. But a handful of wins is more than enough to write about to draw in next batch of idiots or even the same idiots again if they still have money to lose.
aeze 2y ago
I saw a video a few weeks ago where an individual involved in an VC-backed open source project (SST) spoke about this topic for a while. https://www.youtube.com/watch?v=E-w0R-leDMc https://www.youtube.com/watch?v=E-w0R-leDMc - starts about halfway through.

sph 2y ago

The lower the interest rate, the sillier the investments. The goal nowadays for these kind of tools is to get bought out by platforms such as Vercel/Fly/etc. or to become a platform of their own. Given that devs these days are afraid if not unable to deploy a React website on a VPS by themselves, it's become a self-sustaining lifecycle. This tends to be a particularly US phenomenon. It's a house of cards waiting for the next shaky economic phase.

Cthulhu_ 2y ago

Every build tool was obscure at some point. A common monetization plan for these is cloud services (promising faster builds and such) with usage-based plans. A few enterprises may use these services over time; for one project I'm at they're considering e.g. Expo and its cloud / CI offerings, because spinning up and configuring your own Mac machines in the cloud is painful and expensive.

throw4950sh06 2y ago

The real answer is that this is not a lot of money in the US.

mgoetzke 2y ago
In Europe it certainly is. Try to find an investor for this kind of money for an open source dev tool or anything really
- throw4950sh06 2y ago
  Yes, I know. But in the US this is not considered a lot of money - they actually got considerably less money they could've gotten if these founders had a product in another market. And, making the money back in the US market is easy - this is really not a lot; just 5-10 senior engineer yearly wages...

scotty79 2y ago

I think the reason it's a thing is the same as the reason Hollywood exists and Las Vegas exists. Overabundance of inhumanely rich idiots that are bored and want to gamble. And they do because they falsly believe they have an edge in their bets due to their secret knowledge of the game and unique talent in picking the right horses. Most of them will lose most of their bets. But a handful of wins is more than enough to write about to draw in next batch of idiots or even the same idiots again if they still have money to lose.

aeze 2y ago

I saw a video a few weeks ago where an individual involved in an VC-backed open source project (SST) spoke about this topic for a while. https://www.youtube.com/watch?v=E-w0R-leDMc https://www.youtube.com/watch?v=E-w0R-leDMc - starts about halfway through.