4 ms·

Remember the CEO's idiotic (and apparently now deleted) blog post: "It's a fucking startup, why are you here" [1]. I guess 1/3 of the staff couldn't come up w

by scottfr 12y ago

Remember the CEO's idiotic (and apparently now deleted) blog post: "It's a fucking startup, why are you here" [1]. I guess 1/3 of the staff couldn't come up with a good enough answer. It's a shame they're the one's getting axed and not the CEO. [1] http://www.fastcompany.com/3029439/most-innovative-companies/fab-ceo-sent-this-terrifying-memo-in-a-bizarre-attempt-to-rally-hi http://www.fastcompany.com/3029439/most-innovative-companies...

confluence 12y ago
> why are you here To get fucking fired by incompetent blowhards apparently. That appears to be the norm with most startups, and companies for that matter. Sad state of affairs.
adventured 12y ago
Management demolishes $300 million in venture capital, employees get axed instead.
- jpatokal 12y ago
  Most of that $300 million was spent on salaries for employees.
  - nerfhammer 12y ago
    How much of it was spent on salaries for managers?
    - tptacek 12y ago
      If most of the employees are technical, and the company is run like a typical tech company (ie, with too much middle management, but not headcount literally dominated by them), then line employee headcount costs likely dwarf those of management. That is one reason why executive compensation can get so outrageous; if you have a lot of employees, most singular expenses become rounding errors.
  - adventured 12y ago
    Of course, and it was the execution choices by management that allocated that $300 million in such a way that they didn't arrive at a sustainable business. As such the business goes down the drain and the employees with it.
  - rhizome 12y ago
    Employees received an average of $1MM over their time there? Global workforce is/was ~275-300 according to the article.
  - kyleblarson 12y ago
    More interestingly, how much did Goldberg take off the table in these huge later rounds?
- electic 12y ago
  Very simplistic view. When VCs put in that much cash, they also pressure management to spend it as fast as they can and expand and conquer new markets. That's the bet. That's the game. Fab did that and it turned out the market was not there to float the investment. It happens, sometimes the firm beats the odds and people celebrate the management and their free spending ways as the reason for impressive growth. The ignore all the mistakes because the end result is all that matters. Sometimes the bet doesn't pay off and here we are. Blaming the management and all the mistakes they made as the reason they ended up in this situation. The reality is the VCs, the management, and the employees know the truth. It is a game, it is a bet. If it folds, they move on. Not sure why people get so worked up, lash out against management and go on and on about calling them "evil". It is a cop out. A lot of those same people were calling that same management "geniuses" for the rapid growth a couple of years ago.
  - bowlofpetunias 12y ago
    Just a reminder: the employees they chew up and spit out during this process are human beings.
    - electic 12y ago
      Just a reminder: the employees know it is a startup and they know the risk. That is why they picked Fab because of the potential upside vs. working at a place like IBM.
      - omilu 12y ago
        still no reason to treat them like dog poo. there are ways of inspiring your team and calling them expendable etc... ain't one of them.
ilamont 12y ago
"Ultimately, if your goal is to build a great company — and that is our goal — you have to figure out your sustainable customer value proposition (your product differentiation) and your business model. Growth without solving for the USP and equation of the business only gets you so far." So the way to rally the troops is to spout a bunch of talking points from the VC pitch deck? Source: http://www.thesups.com/news/its-a-fuing-startup-why-are-you-here-were-here-to-build/ http://www.thesups.com/news/its-a-fuing-startup-why-are-you-...

by scottfr 12y ago

confluence 12y ago

> why are you here To get fucking fired by incompetent blowhards apparently. That appears to be the norm with most startups, and companies for that matter. Sad state of affairs.

adventured 12y ago

Management demolishes $300 million in venture capital, employees get axed instead.

jpatokal 12y ago
Most of that $300 million was spent on salaries for employees.
- nerfhammer 12y ago
  How much of it was spent on salaries for managers?
  - tptacek 12y ago
    If most of the employees are technical, and the company is run like a typical tech company (ie, with too much middle management, but not headcount literally dominated by them), then line employee headcount costs likely dwarf those of management. That is one reason why executive compensation can get so outrageous; if you have a lot of employees, most singular expenses become rounding errors.
- adventured 12y ago
  Of course, and it was the execution choices by management that allocated that $300 million in such a way that they didn't arrive at a sustainable business. As such the business goes down the drain and the employees with it.
- rhizome 12y ago
  Employees received an average of $1MM over their time there? Global workforce is/was ~275-300 according to the article.
- kyleblarson 12y ago
  More interestingly, how much did Goldberg take off the table in these huge later rounds?
electic 12y ago
Very simplistic view. When VCs put in that much cash, they also pressure management to spend it as fast as they can and expand and conquer new markets. That's the bet. That's the game. Fab did that and it turned out the market was not there to float the investment. It happens, sometimes the firm beats the odds and people celebrate the management and their free spending ways as the reason for impressive growth. The ignore all the mistakes because the end result is all that matters. Sometimes the bet doesn't pay off and here we are. Blaming the management and all the mistakes they made as the reason they ended up in this situation. The reality is the VCs, the management, and the employees know the truth. It is a game, it is a bet. If it folds, they move on. Not sure why people get so worked up, lash out against management and go on and on about calling them "evil". It is a cop out. A lot of those same people were calling that same management "geniuses" for the rapid growth a couple of years ago.
- bowlofpetunias 12y ago
  Just a reminder: the employees they chew up and spit out during this process are human beings.
  - electic 12y ago
    Just a reminder: the employees know it is a startup and they know the risk. That is why they picked Fab because of the potential upside vs. working at a place like IBM.
    - omilu 12y ago
      still no reason to treat them like dog poo. there are ways of inspiring your team and calling them expendable etc... ain't one of them.

ilamont 12y ago

"Ultimately, if your goal is to build a great company — and that is our goal — you have to figure out your sustainable customer value proposition (your product differentiation) and your business model. Growth without solving for the USP and equation of the business only gets you so far." So the way to rally the troops is to spout a bunch of talking points from the VC pitch deck? Source: http://www.thesups.com/news/its-a-fuing-startup-why-are-you-here-were-here-to-build/ http://www.thesups.com/news/its-a-fuing-startup-why-are-you-...