pil·lo·ry [pil-uh-ree] noun
a wooden framework erected on a post, with holes for securing
the head and hands, formerly used to expose an offender to public
derision.
Is that really what grandparent did? I think it's an unfair characterization. It was a personal opinion stated weakly and with restraint, not some attempt to incite a mob.
I have no opinion on this specific startup. Perhaps they've provided enough time to migrate; that's for their paying customers to judge. But it's naive to think failures doesn't affect your reputation. It does, and it should. Do you really think savvy users won't take your track record into account when deciding whether to use your service? It goes against their interests, and nothing is more darwinian than a startup.
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Here in silicon valley we say that failure is ok. And yet accountability is also good. There's a tension here.
Perhaps failed startups are fine for investors, who might have diversified into many different vehicles. They're more problematic for customers who rely on a product. And paradoxically, the closer a startup gets to solving a hair-on-fire problem, the more careful they need to be about how they treat their customers on the way out.
Even if investors claim failure is ok, is that always the case? I suspect past track record does play a role somehow, even if it's subtle and hidden behind the scenes.
Even if failure is sometimes ok, there are failures and there are failures. A lot depends on how the wrap-up was carried out, and how people feel about it.
When startups are few and creation is to be encouraged, failure can be ignored. When startups are plentiful and failure starts to be taken for granted, perhaps it's time to emphasize accountability.