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Don't Talk to Corp Dev (2015)

paulgraham.com

121–127 of 127 posts

Re: Don't Talk to Corp Dev (2015)

#121
post #97

Earlier quoted context omitted.

Hah, a past SaaS “big startup/small enterprise” company I worked for also had Unilever as a customer, and they were also arguably our worst, most toxic customer. Constantly draining the time of everyone they interacted with. Managed to convince our execs to build a number of custom features just for them, that we spent a huge amount of time on, and they never used them (nor did our other customers).

I've encountered similar time-wasting behaviour with large companies, although not specifically Unilever. In most cases I don't even think it's malicious: just that if you work somewhere in the middle of a giant corporation you forget the value of time. I suspect this is perhaps because it may take you years to deliver value for any initiative or project (assuming you can do it at all). Whereas smaller companies migh…

I think this is the natural destination of bureaucracies, because the entire point of a bureaucracy is to reduce risk by creating a documented process for anything you could imagine wanting to do, leaving employees with no opportunities to think for themselves or be creative. So they just get to work, watch the clock, mindlessly follow the rules, and then go home. I suspect the lack of imagination required to work such a job draws people who prioritise stability and predictability over creativity.

Re: Don't Talk to Corp Dev (2015)

#122
post #107
post #101

Earlier quoted context omitted.

It's definately easier nowadays to do it, but you still have the issue of services becoming unavailable because certs expired - something that routinely happens, so it adds some operational overhead that - in the examples I described -- provides no benefit. This operational complexity is there even if the certs themselves are free. More importantly, security theater is something that should be avoided as it creates b…

In the time it took you to write this reply you could have set up an auto-renewing certificate for your site with let’s encrypt. Or you could have pressed a button and have it served behind cloudflare. The nuance of if encryption is really required in this specific case is pointless when it is so easy and readily available. The effective direction becomes “just blanket serve everything over HTTPS” because there isn’t…

>auto-renewing

my super-smart and hardworking admins just lost a dozen services over the weekend because one of the hundred "easy" certs they manage expired, was not refreshed for whatever reasons, and the node happened to be an LDAP services node.

at some point, "easy" and "instant" becomes "needs constant attention"

Re: Don't Talk to Corp Dev (2015)

#123
post #42

>If they can, corp dev people like to turn the tables on you. They like to get you to the point where you're trying to convince them to buy instead of them trying to convince you to sell. I worked for an established company (not a startup) and had a run in with Wal-Mart. Wal-Mart managed to buy some stuff at an ultra low discount because ... someone thought maybe if we get in there we could sell tons to their IT team…

I wonder if there are any gropus out there anymore with the intention of becoming successful by making good product for users, serving the client? I read articles like this, stories like yours, talk to startup owners recruiting who answer "Sold to someone." when you ask them "Where do you see your company in 5 years?" and I have doubt the product and users are in focus. And organizations proud themself being series n…

I think the nature of the startup world where you shoot for the moon to be unicorn or get bought out... or bust, leads to an all or nothing approach.

Re: Don't Talk to Corp Dev (2015)

#124

The only response you should make to these sorts of things are "Give me a number, if it is close we can go to the next step." That is it. If they give you a number, then you say "Put it in a MOU where you will pay us 10% of that number if these discussions break off for ANY reason." Only after you have a number you would actually sell the company for, and you know that if they are wasting your time you will still get…

> "Give me a number, if it is close we can go to the next step." If they reply that they need to know your revenue, expenses, number of sales, etc., before they can even guess at a number, then what? Do you give them your financial info? Or do you stick to your guns and ask them to come up with some number by themselves before you engage with them at all?

I don't give them any of that. They ALREADY know what they think it would cost them to get into your space. They figured that out long before they called you and talked to you. That they called you means one of two things; Either the number they came up with was large and so they are looking to see if they can get a discount by buying something, or there are some employees in your company they want for their effort.

This litmus test will tell you which it is. If their number is reasonably high, they know it will be hard to get into your space. If the number is low, they just want to poach employees.

There is zero value in talking to them without a number you like on the table. You must defensively reduce the information asymmetry in any way possible.

Re: Don't Talk to Corp Dev (2015)

#125

The only response you should make to these sorts of things are "Give me a number, if it is close we can go to the next step." That is it. If they give you a number, then you say "Put it in a MOU where you will pay us 10% of that number if these discussions break off for ANY reason." Only after you have a number you would actually sell the company for, and you know that if they are wasting your time you will still get…

Have you actually done this yourself for one of your own companies?

Yes, and it what a much better experience than companies where I had to watch people make the mistake of thinking that BigCorp's interest was based on the quality of the CEO's talents and wasted months doing due diligence which did nothing but slow us down.

Re: Don't Talk to Corp Dev (2015)

#126

Ha this reminds me of a video of Justin Kan talking about selling Twitch to Amazon.[0] Most of the tactics in this blogpost by Paul G. show up in that negotiation, include the 11th hour 20% off move. [0] https://www.youtube.com/watch?v=RwUA5i-QolY

I really enjoyed that video, thanks for sharing.

Re: Don't Talk to Corp Dev (2015)

#127

Earlier quoted context omitted.

How do you know what you read is actually what pg wrote?

I don't know, how do you know someone hasn't hacked into his server and changed the text there even if he had HTTPS? There are things to worry about, and there is a simple text blog not using HTTPS.

It's much easier to intercept and tamper with non encrypted network communication than to hack into a server.
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