4 ms·

The problem comes when MBAs, generally without technical background, build companies without real value and expand an already existing bubble.

by dataker 11y ago

cinquemb 11y ago
And plenty of devs go and work for such companies and individuals… One would think we'd come up with better ways by now to lessen the allocation of resources for things in the present that are of marginal utility for most people, but somehow, humans have a knack of creating/engaging red queens races relative to other things that are theoretically possible and feasible.
- dataker 11y ago
  Becomes hard to turn down a compensation that could be 1.5-2x larger than others.
  - jacquesm 11y ago
    More likely: 0.8 times what you'd make elsewhere but a significant chunk of equity (0.0001% or so, vesting over 5 years...).
  - cinquemb 11y ago
    Most start ups (and large co's) are offering devs to work on pretty much the same thing, which in my opinion is very easy to turn down and actively avoid… 1.5x, 2x (at best for most) to ship marginally interesting projects that will probably provide not much more than marginal utility for most people while being around people who will pretend (or believe) otherwise… yeah…
Xcelerate 11y ago
I don't think I would join a startup that wasn't founded by people with some kind of technical degree.
- k__ 11y ago
  Same here. But it seems to be a thing. Best email I got from a start-up that wanted to hire me went something like this: "We are a team of 5 MBAs with an idea and need you to be our employee #1 to build it!" I mean 5 founders seems rather excessive to me but all of them MBAs and the only technical person will be an employee and not a co founder.
  - foobarian 11y ago
    Maybe it's not such a bad idea. Someone has to do the no-fun work of sales, promotion, taxes, etc., might be nice to have a bunch of MBAs around to do that. Could also ask for 40% equity or so.
- prostoalex 11y ago
  For some companies the core value is the tech they produce, and thus having non-tech people at the helm makes little sense. Others, usually also dubbed "tech startups" due to their Silicon Valley location, use generic pieces of technology to achieve their purpose. There are entire sectors (ad tech, Uber for X), where basic building blocks have been built and now it's sell, sell, sell.
ryandrake 11y ago
What about MBAs WITH technical backgrounds? Are they allowed to build companies?
- hnnewguy 11y ago
  I get the impression from HN commentary that the minute you receive your MBA you become a sociopath whose IQ drops 40 points.
  - deleted 11y ago
    [deleted]
- dataker 11y ago
  MBAs with technical background usually have a BS in STEM and go work to a bank/corporation in finance/management positions. Hence, they are not actual engineers actively building a product. Please do build a company, but not a money-making scheme treating developers like dispensable tools.
michalu 11y ago
Indeed http://en.wikipedia.org/wiki/List_of_Wharton_School_alumni http://en.wikipedia.org/wiki/List_of_Wharton_School_alumni with all due respect it's a bit tiring to hear about all those 'uselss MBA' stereotypes. There's a substance to it but I start to feel that 9 out of 10 comments like this one reflect the insecurity of the author rather than anything else. One of the people not mentioned on the list is founder of Warby Parker - surely he contributed to the bubble by building the 2nd most profitable retail stores and one of the few startups that are actually profitable.
- dataker 11y ago
  With all due respect, if you're a MBA, you've just followed such stereotype. So what I didn't even graduate college? I'm proud to have built a company whose employees are happy and treated with dignity. Diligence, respect and passion drove people like me to success, not a HBS MBA. From experience, that's not what usually happens with MBAs. Because of an 'alumni list' or a privileged network, many feel entitled to success and will do anything to reach their goals(often unethically).

The problem comes when MBAs, generally without technical background, build companies without real value and expand an already existing bubble.

by dataker 11y ago

The problem comes when MBAs, generally without technical background, build companies without real value and expand an already existing bubble.

cinquemb 11y ago

And plenty of devs go and work for such companies and individuals… One would think we'd come up with better ways by now to lessen the allocation of resources for things in the present that are of marginal utility for most people, but somehow, humans have a knack of creating/engaging red queens races relative to other things that are theoretically possible and feasible.

dataker 11y ago
Becomes hard to turn down a compensation that could be 1.5-2x larger than others.
- jacquesm 11y ago
  More likely: 0.8 times what you'd make elsewhere but a significant chunk of equity (0.0001% or so, vesting over 5 years...).
- cinquemb 11y ago
  Most start ups (and large co's) are offering devs to work on pretty much the same thing, which in my opinion is very easy to turn down and actively avoid… 1.5x, 2x (at best for most) to ship marginally interesting projects that will probably provide not much more than marginal utility for most people while being around people who will pretend (or believe) otherwise… yeah…

Xcelerate 11y ago

I don't think I would join a startup that wasn't founded by people with some kind of technical degree.

k__ 11y ago
Same here. But it seems to be a thing. Best email I got from a start-up that wanted to hire me went something like this: "We are a team of 5 MBAs with an idea and need you to be our employee #1 to build it!" I mean 5 founders seems rather excessive to me but all of them MBAs and the only technical person will be an employee and not a co founder.
- foobarian 11y ago
  Maybe it's not such a bad idea. Someone has to do the no-fun work of sales, promotion, taxes, etc., might be nice to have a bunch of MBAs around to do that. Could also ask for 40% equity or so.
prostoalex 11y ago
For some companies the core value is the tech they produce, and thus having non-tech people at the helm makes little sense. Others, usually also dubbed "tech startups" due to their Silicon Valley location, use generic pieces of technology to achieve their purpose. There are entire sectors (ad tech, Uber for X), where basic building blocks have been built and now it's sell, sell, sell.

ryandrake 11y ago

What about MBAs WITH technical backgrounds? Are they allowed to build companies?

hnnewguy 11y ago
I get the impression from HN commentary that the minute you receive your MBA you become a sociopath whose IQ drops 40 points.
- deleted 11y ago
  [deleted]
dataker 11y ago
MBAs with technical background usually have a BS in STEM and go work to a bank/corporation in finance/management positions. Hence, they are not actual engineers actively building a product. Please do build a company, but not a money-making scheme treating developers like dispensable tools.

michalu 11y ago

Indeed http://en.wikipedia.org/wiki/List_of_Wharton_School_alumni http://en.wikipedia.org/wiki/List_of_Wharton_School_alumni with all due respect it's a bit tiring to hear about all those 'uselss MBA' stereotypes. There's a substance to it but I start to feel that 9 out of 10 comments like this one reflect the insecurity of the author rather than anything else. One of the people not mentioned on the list is founder of Warby Parker - surely he contributed to the bubble by building the 2nd most profitable retail stores and one of the few startups that are actually profitable.

dataker 11y ago
With all due respect, if you're a MBA, you've just followed such stereotype. So what I didn't even graduate college? I'm proud to have built a company whose employees are happy and treated with dignity. Diligence, respect and passion drove people like me to success, not a HBS MBA. From experience, that's not what usually happens with MBAs. Because of an 'alumni list' or a privileged network, many feel entitled to success and will do anything to reach their goals(often unethically).