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State of Independent SaaS [pdf]

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Re: State of Independent SaaS [pdf]

#51

> Diversity continues to be an issue in SaaS. Only 11% of founding teams include a non-male and 21% include a non-white founder I find this line absolutely infuriating. And I'm disappointed it's right at the start. Must there always be an issue when the data doesn't suit a worldview? Why compromise a survey 's integrity with your own bias? It costs virtually $0 these days to start a SaaS company, regardless of gender…

Please don't rush from the first detail that infuriates you to the HN thread to post about it. That's the opposite of intellectual curiosity, the guiding value of this site. Curiosity looks around to see what's new; fury rushes to react to something old. It also breaks the site guidelines because (a) it will probably start a flamewar, and (b) such discussions are basically always the same. https://news.ycombinator.com/newsguidelines.html

Instead, wait until the first infuriated rush subsides, and then reflect on what a thoughtful post might say, and how it might contribute to curious conversation. If you can't think of anything like that, it's the better part of valor not to post. This is the reflexive/reflective distinction: https://hn.algolia.com/?dateRange=all&page=0&prefix=true&que....

Re: State of Independent SaaS [pdf]

#52

> Diversity continues to be an issue in SaaS. Only 11% of founding teams include a non-male and 21% include a non-white founder I find this line absolutely infuriating. And I'm disappointed it's right at the start. Must there always be an issue when the data doesn't suit a worldview? Why compromise a survey 's integrity with your own bias? It costs virtually $0 these days to start a SaaS company, regardless of gender…

> Must there always be an issue when the data doesn't suit a worldview? Why compromise a survey 's integrity with your own bias? Hello. Might I remind you of the Global North's historic and continued plundering of the Global South (developing countries)? Or should we forget about all of that? > It costs virtually $0 these days to start a SaaS company Yes, if you have a big cultural inheritance (which was itself plund…

Please don't take HN threads further into ideological flamewar. It just makes the thread even worse.

https://news.ycombinator.com/newsguidelines.html

Re: State of Independent SaaS [pdf]

#53

Earlier quoted context omitted.

> Must there always be an issue when the data doesn't suit a worldview? Why compromise a survey 's integrity with your own bias? Hello. Might I remind you of the Global North's historic and continued plundering of the Global South (developing countries)? Or should we forget about all of that? > It costs virtually $0 these days to start a SaaS company Yes, if you have a big cultural inheritance (which was itself plund…

So you give the example of Britain plundering India. Explain to me why Indians in America are the most successful ethnic group in the country then, at almost twice the median income of white people? https://en.wikipedia.org/wiki/List_of_ethnic_groups_in_the_U... By your logic of white "holy ground" whites should obviously be at the top of the list, no? Instead Indians and East Asians are.

What is there to explain? I am not challenging the intelligence of one ethnicity over another, that seems to be your argument here.

My argument is that we tell countries in the Global South to use strategy B (free competition) to try to become ‘successful’ like us, when actually we ourselves used strategy A (infant industry protection and export subsidies) [1].

In other words, we give them advice we ourselves didn’t follow, and then blame them for not having ‘caught up’ and become ‘developed’.

The delivery mechanisms for rich cultural inheritances, and use of the best time-saving strategies, are increasingly made artificially scarce through a combination of (1) the money system, and (2) through the IP system (the Aaron Swartz Doc. is great on this). Silicon Valley is Silicon Valley because of the US Intellectual Property regime.

To understand this deeper, I'd implore you to check out the work of Guy Standing [2]:

"…today, a tiny minority of people and corporate interests across the world are accumulating vast wealth and power from rental income, not only from housing and land but from a range of other assets, natural and created. ‘Rentiers’ of all kinds are in unparalleled ascendancy and the neo-liberal state is only too keen to oblige their greed.

Rentiers derive income from ownership, possession or control of assets that are scarce or artificially made scarce. Most familiar is rental income from land, property, mineral exploitation or financial investments, but other sources have grown too. They include the income lenders gain from debt interest; income from ownership of ‘intellectual property’ (such as patents, copyright, brands and trademarks); capital gains on investments; ‘above normal’ company profits (when a firm has a dominant market position that allows it to charge high prices or dictate terms); income from government subsidies; and income of financial and other intermediaries derived from third-party transactions."

The reviewer of Chang’s book then goes on to write:

"Rather than a “free market,” the neoliberal global economy praised as “free trade” by policy wonks is actually “a global framework of institutions and regulations that enable elites to maximise their rental income.”

Standing says 31% of Western corporate profits today, as opposed to 17% in 1999, are in industries where profits are rents on artificial scarcities like patents, copyrights and trademarks enforced under the neoliberal treaty regime established in the ’90s. To take one example, Apple — thanks to patents, copyrights and trademarks — runs a 40% gross profit on the iPhone. Two-thirds of drug research is funded by taxpayers, while patents add $140 billion to the annual price of drugs in the United States. And Standing makes short work of the propaganda myth in favor of so-called “intellectual property”; rather than being a reward for innovation, the main actual purpose of patents is to prevent others from innovating. This is especially egregious, considering that most of the new technologies and products under patent were developed with heavy taxpayer R&D subsidies, and then enclosed for private profit.

Alongside rents on the artificial scarcity of ideas, the state provides enormous rents to the propertied classes through the enclosure of land and natural resource commons, dating back to the enclosure of peasant land in early modern Europe, the engrossment of land (both vacant and native-occupied) in settler societies like America and Australia, the hacienda system in Latin America, the nullification of peasant land rights by colonial powers in Asia and Africa, and the looting of oil and mineral resources. Property claims to all these forms of looted land and resources have persisted in the hands of Western capital under neocolonialism, and one of the main functions of the state is to enforce such titles — in the name of “defending private property rights” — against attempts at reclamation by their rightful owners.”

[1] Kicking Away the Ladder: Development Strategy in Historical Perspective by Ha-Joon Chang (2002)

[2] https://www.resilience.org/stories/2017-08-03/book-day-corru...

Re: State of Independent SaaS [pdf]

#54
post #52

Earlier quoted context omitted.

> Must there always be an issue when the data doesn't suit a worldview? Why compromise a survey 's integrity with your own bias? Hello. Might I remind you of the Global North's historic and continued plundering of the Global South (developing countries)? Or should we forget about all of that? > It costs virtually $0 these days to start a SaaS company Yes, if you have a big cultural inheritance (which was itself plund…

Please don't take HN threads further into ideological flamewar. It just makes the thread even worse. https://news.ycombinator.com/newsguidelines.html

Dear dang, please could you unflag my comment?

I am up for a debate, and I am happy to be shown other perspectives. Yet flagging my comment seems to be the easiest way to scrub something you don't like, while avoiding constructive debate. It seems to me that you are labeling my writing as starting an 'ideological flamewar', when I would argue I back up my arguments with leading research/references.

I just replied to another comment below, with more links: https://news.ycombinator.com/item?id=22153575

When I googled ‘flamewar’, wikipedia defines it as:

"a flame war is a series of flame posts or messages in a thread that are considered derogatory in nature or are completely off-topic"

I am making connections that I think are worthwhile. They might seem overly critical and negative to those who are not familiar with the arguments. Do you want to limit connections you don’t make yourself, and discard them as ‘off-topic’ because you aren’t familiar with the research?

That sounds a bit like cherry-picking to me.

I don’t understand how constructive critique like this can be flagged, and my comment muted/hidden. Are we not all humans typing away at our keyboards here? Is your perspective really the ‘right’ or only useful perspective?

The only reason I can think of for you and others to flag my comment is if my comments are getting in the way of you or others in Silicon Valley from charging your rents? Is it that you see some truth in what I share that you might not be comfortable with?

Re: State of Independent SaaS [pdf]

#55
Along these lines, can anyone recommend a framework for developing a SaaS prototype? Ideally, it would include things like payment processing, user auth, admin dashboards, etc. I've been looking at Laravel Spark, but I'm wondering if people have other suggestions.

Re: State of Independent SaaS [pdf]

#56
post #4

Some surprises for me - 1. Why is VC funding so down the rank compared to self funding, friends and family, angels and even debt? Is it probably because VC funding expects a >100x exit and most SaaS probably can't deliver that? Or are SaaS founders turning away from VC for ideological reasons (like want to enjoy the process instead of rushing to justify a valuation?) 2. 50%+ people pursued ideas which were not their…

1. MicroConf, who put together the report, is a conference for bootstrapped founders so naturally the audience that participated was already skewed towards non-VC

2. I believe this trend will continue since there are much more interesting and lucrative problems to solve outside your sphere. My SaaS has nothing to do with what I was doing at the time and came from talking to people outside my industry

3. I'd like to see a comparison of how successful these companies are vs. didn't validate

4. Margins are pretty high in SaaS due to leverage in software. You can likely serve 10 customers with the same cloud costs as serving 100. The only exception here would be if your service was prone to scammers or abuse which would make requiring a CC much more prudent

5. When you're boostrapped (which is where this report is skewed toward), you don't have the time or resources to provide support to non-paying customers. Growth at all costs is not the strategy here

6. I still don't know my visitor -> trial conversion rate because it's not that important to optimize at my current stage. As long as you have a reasonable amount of users trying out your product, it should be enough to grow with. And I'm not dealing with thousands of visitors per month. If you have some traction, you should already have the intuition of what moves the needle like improving the product, making customers happy so you can get word of mouth referrals, reducing churn, building features that visitors keep asking for, etc.

Disclaimer: I run a bootstrapped SaaS @ https://trunkinventory.com

Re: State of Independent SaaS [pdf]

#57

> Diversity continues to be an issue in SaaS. Only 11% of founding teams include a non-male and 21% include a non-white founder I find this line absolutely infuriating. And I'm disappointed it's right at the start. Must there always be an issue when the data doesn't suit a worldview? Why compromise a survey 's integrity with your own bias? It costs virtually $0 these days to start a SaaS company, regardless of gender…

> It costs virtually $0 these days to start a SaaS company The average cost of raising a kid in a middle class family is around 250K. What percentage of micro SaaS founders do you think had less than double or triple that (inflation adjusted) spent on them between when they were born and when they founded their companies? If founding a SaaS company is free, it's only in the same sense that gas for a Tesla doesn't cos…

13% of America is literate enough to code??

Re: State of Independent SaaS [pdf]

#58

Along these lines, can anyone recommend a framework for developing a SaaS prototype? Ideally, it would include things like payment processing, user auth, admin dashboards, etc. I've been looking at Laravel Spark, but I'm wondering if people have other suggestions.

It's hard to go wrong with Spark. Jumpstart Rails is another option from a source I'd trust.

Re: State of Independent SaaS [pdf]

#59
post #56
post #4

Some surprises for me - 1. Why is VC funding so down the rank compared to self funding, friends and family, angels and even debt? Is it probably because VC funding expects a >100x exit and most SaaS probably can't deliver that? Or are SaaS founders turning away from VC for ideological reasons (like want to enjoy the process instead of rushing to justify a valuation?) 2. 50%+ people pursued ideas which were not their…

1. MicroConf, who put together the report, is a conference for bootstrapped founders so naturally the audience that participated was already skewed towards non-VC 2. I believe this trend will continue since there are much more interesting and lucrative problems to solve outside your sphere. My SaaS has nothing to do with what I was doing at the time and came from talking to people outside my industry 3. I'd like to s…

> 5. When you're boostrapped (which is where this report is skewed toward), you don't have the time or resources to provide support to non-paying customers.

I'm highly skeptical about this one. Very, very few freemium services actually struggle due to the cost of supporting free users. Unless you're doing something unusually resource intensive or nobody is paying, the infrastructure costs of having free users is usually a rounding error.

I'd estimate that around 99% of people who use the tutorials on my site do so for free, but the only cost I even really notice is for my email provider. Even at 100x the current usage, I'd still be on the same $10/month server.

Re: State of Independent SaaS [pdf]

#60
post #56

Earlier quoted context omitted.

1. MicroConf, who put together the report, is a conference for bootstrapped founders so naturally the audience that participated was already skewed towards non-VC 2. I believe this trend will continue since there are much more interesting and lucrative problems to solve outside your sphere. My SaaS has nothing to do with what I was doing at the time and came from talking to people outside my industry 3. I'd like to s…

> 5. When you're boostrapped (which is where this report is skewed toward), you don't have the time or resources to provide support to non-paying customers. I'm highly skeptical about this one. Very, very few freemium services actually struggle due to the cost of supporting free users. Unless you're doing something unusually resource intensive or nobody is paying, the infrastructure costs of having free users is usua…

Sorry, I meant customer support costs, not infrastructure costs.
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