Earlier quoted context omitted.
Did you have a market fit before taking the funding?
Good question. I have the feeling most don't even have problem/solution fit and get money...
Ask HN: Do you regret taking investment?
31–40 of 67 posts
Re: Ask HN: Do you regret taking investment?
#32I regret not taking it. Hummer-Winblad really wanted to give us some money but I couldn't figure out what they brought to the table. In retrospect, it was marketing, the money could have paid for marketing. And because they were invested they would have insisted on marketing. Did I mention we needed some marketing? We really needed some marketing. So, while it's very common to ask about taking investment, also look h…
Interesting -- what company was this for? Maybe you can market it on HN :)
Which chaps my hide, git is an awful design, it's a tarball server pretending to be a source management system. Source management is basically an accounting program for programmers, it's suppose to faithfully log what you do. How does git do that when it has no concept of a file? Answer: it guesses about renames. And blame is slow because there are no file create or file delete events.
It was trivial for us to create a bk fast-export command and make it work incrementally. It's next to impossible to do it the other way incrementally because git doesn't have a versioned file object.
It's like a file system that has no inodes. To me, it makes no sense. But it won. Yeah. Not.
Re: Ask HN: Do you regret taking investment?
#33I regret not taking it. Hummer-Winblad really wanted to give us some money but I couldn't figure out what they brought to the table. In retrospect, it was marketing, the money could have paid for marketing. And because they were invested they would have insisted on marketing. Did I mention we needed some marketing? We really needed some marketing. So, while it's very common to ask about taking investment, also look h…
You definitely don't sound confident at all and I feel like your problem is much deeper one where taking VC money or not isn't the issue.
It's clear from reading you would've spent the money on non-marketing as the hindsight speaks for itself.
Marketing is a small part of the equation but shouldn't be most of the funding goes. Depending on your business and industry, it will vary greatly.
I really don't see any negative impact on you. It might feel that you missed out but maybe it was never a good fit.
Of course, today, you are wiser and know exactly what to do with it, so consider it a lesson that can't be taught in schools.
Re: Ask HN: Do you regret taking investment?
#34Earlier quoted context omitted.
Interesting -- what company was this for? Maybe you can market it on HN :)
BitMover/BitKeeper. Nice idea but too late, the market has gone to git. Which chaps my hide, git is an awful design, it's a tarball server pretending to be a source management system. Source management is basically an accounting program for programmers, it's suppose to faithfully log what you do. How does git do that when it has no concept of a file? Answer: it guesses about renames. And blame is slow because there a…
Git is both free AND viral. It's viral because if you want to use someone else's code, you have to use their source control system. Linux using git is a big deal in that respect (and yes I realize the kernel used BitKeeper :) ).
Also, Github as company and git the open source project are pretty complementary. It's hard to house both entities under the same roof, and you need that for ecosystem to succeed. Github is basically a UI/app company, and git is systems plumbing.
It's analogous to some PaaS companies wanting to make their own web framework. No actually that's a huge amount of work and you underestimated it. For all its faults, rewriting Rails is not something anyone can do. Heroku ended up being one of the early success stories because they just took your rails app and ran it.
Likewise everyone thinks they can rewrite Github, but that's pretty hard. It's at least 10x more work than you think, and you can get it wrong. If a tool isn't open source, there's much less incentive for a company like Github to come around and "popularize" it.
It seems like it's very hard to make money in developer tools in general, because so much is open source. And honestly they should be -- I would be a hypocrite if I said I didn't choose tools because they are open source. I guess Github and Atlassian are the outliers.
Anyway, my overall point is that I wouldn't necessarily chalk it up to marketing :) I do think open source got much bigger in the last decade, and it's hard for me to imagine that it wouldn't be built around an open source VCS.
Re: Ask HN: Do you regret taking investment?
#35I've been through a few startups and in all of them I've been within the first 15 or so employees, some of them took on hundreds of millions in VC funding. I regret instances where we took on too much funding, or in instances we took on funding without a good investment strategy for the capital we raised. In the startup I am running today we have taken on about $1.5MM from Samsung, Fontinalis, Story Ventures and a fe…
That's a very helpful walk through, thank you. I'm very naive about this and would appreciate any more thoughts - If you hit a sustained 20% net profitability with just this funding, would you be able to avoid raising more? Would investors demand an exit, and in what time-frames, and is it feasible to pay it out from your profits? Essentially my question is whether you would be forced to keep raising the stakes for y…
Re: Ask HN: Do you regret taking investment?
#36Earlier quoted context omitted.
BitMover/BitKeeper. Nice idea but too late, the market has gone to git. Which chaps my hide, git is an awful design, it's a tarball server pretending to be a source management system. Source management is basically an accounting program for programmers, it's suppose to faithfully log what you do. How does git do that when it has no concept of a file? Answer: it guesses about renames. And blame is slow because there a…
Thanks for the background. There are indeed awful things about git's design, but I think it would have been very hard to out-market git. Git is both free AND viral. It's viral because if you want to use someone else's code, you have to use their source control system. Linux using git is a big deal in that respect (and yes I realize the kernel used BitKeeper :) ). Also, Github as company and git the open source projec…
And BK is (was, until last year [too late]) closed software that requires a paid commercial license to use. Pretty much a show stopper for open source contributors donating their free time.
Re: Ask HN: Do you regret taking investment?
#37Earlier quoted context omitted.
That's a very helpful walk through, thank you. I'm very naive about this and would appreciate any more thoughts - If you hit a sustained 20% net profitability with just this funding, would you be able to avoid raising more? Would investors demand an exit, and in what time-frames, and is it feasible to pay it out from your profits? Essentially my question is whether you would be forced to keep raising the stakes for y…
Investors understand that projections are fantasies and risk is present: do not worry about them. You are only truly forced to do things as a company if you lose decision making power due to reduced voting rights. To avoid this situation, there are numerous strategies available many of which are outlined in the book Venture Deals .
Re: Ask HN: Do you regret taking investment?
#38I regret not taking it. Hummer-Winblad really wanted to give us some money but I couldn't figure out what they brought to the table. In retrospect, it was marketing, the money could have paid for marketing. And because they were invested they would have insisted on marketing. Did I mention we needed some marketing? We really needed some marketing. So, while it's very common to ask about taking investment, also look h…
What I wrote is going to be super harsh but I'm being purely analytical and this is not to be taken personally: You definitely don't sound confident at all and I feel like your problem is much deeper one where taking VC money or not isn't the issue. It's clear from reading you would've spent the money on non-marketing as the hindsight speaks for itself. Marketing is a small part of the equation but shouldn't be most…
That company changed the world. No, we didn't win, but all the distributed source management systems came after us, we were first, they are copies of our model. We invented that space, clone/pull/push/commit are our verbs. We invented, in effect [1], the concept of a changeset. Before us, there was CVS. No binding of a set of related files in a commit. I'm good with that, we changed the world for the better. If you are a programmer your world is better on a daily basis because of us.
As for "my problem being much deeper", not sure where you get that from. I'm retired, I'm fine. Do I have some regrets? You bet.
- I wish Git, since it won, was a pure clone of our stuff, we have a much better architecture, both for accuracy and for performance (try running Git on NFS, then try our stuff. Try running Git with a 4GB repo and then try our stuff.)
- I wish I had made enough money that my team could also retire.
Other than that, I'm good. I've got 4 dogs that I love, live in the Santa Cruz mountains with an awesome family that I also love, I've got nothing to complain about. Well, maybe some health stuff but I'm old so that is par for the course.
[1] One of my guys, Rick Smith, knows way more about this stuff than I do, and he tells me that Aide-de-camp had some sort of changeset concept. So perhaps we were not first. But nobody knew about it. Back when dejanews was a thing you could search usenet in a time range. I remember searching going backwards from the time that we introduced the changeset concept, there either 6 or 9 hits in over 2 decades of Usenet posts. The fact that everyone knows what a changeset is traceable to us far more than Aide-de-camp.
Edit: formatting
Re: Ask HN: Do you regret taking investment?
#39Earlier quoted context omitted.
Thanks for the background. There are indeed awful things about git's design, but I think it would have been very hard to out-market git. Git is both free AND viral. It's viral because if you want to use someone else's code, you have to use their source control system. Linux using git is a big deal in that respect (and yes I realize the kernel used BitKeeper :) ). Also, Github as company and git the open source projec…
>Git is both free AND viral. It's viral because if you want to use someone else's code, you have to use their source control system. Linux using git is a big deal in that respect (and yes I realize the kernel used BitKeeper :) ). And BK is (was, until last year [too late]) closed software that requires a paid commercial license to use. Pretty much a show stopper for open source contributors donating their free time.
Re: Ask HN: Do you regret taking investment?
#40In many cases, there simply aren't many good alternatives. I'll illustrate with our (flair.co's) example. FYI we are a hw/sw play. Why Not KS/Indiegogo We are building a product that has a large b2b angle and while the b2c angle is perhaps substantial enough that Kickstarter and Indiegogo could work, they have big enough draw backs that we decided to forgo. Specifically, it forces you to share your idea (AND its popu…
Great insights. Given the investment in time and money required to simply get to prototype, how did you develop the conviction to plunge ahead into the business at the outset?