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A startup doesn't need to be a unicorn

mattgiustwilliamson.substack.com

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Re: A startup doesn't need to be a unicorn

#181

Post by tiffanyh »

carlosjobim wrote: post #126
tiffanyh wrote: post #109

“Startup” implies VC-backed company. And VC’s invest in companies to get a 100x return. Which almost by definition means, if you run a startup - you need to get it to become a unicorn for it to be successful. Otherwise, why take VC money … and just bootstrap it instead.

Most venture capital is invested into companies with traditional business models, not extreme growth ventures. Most startups are still traditional business model. Every company was once a startup. My local supermarket was funded by the people living in the community, each buying a few shares. I don't think any of them expected 100x return.

> Every company was once a startup.

I disagree.

Would you consider your neighborhood restaurant a "startup".

Startup for many people implies "high growth".

Re: A startup doesn't need to be a unicorn

#182

Post by 9rx »

whilenot-dev wrote: post #178
9rx wrote: post #159

Earlier quoted context omitted.

Trouble is that there isn't much the consumer is willing to pay for anymore. They've become accustomed to devices like their phone where a single purchase fulfills an endless number of functions. The thought of buying much more is becoming a foreign concept. To complicate matters: For what they are not buying, they aren't saving up the money ready to deploy when something compelling does come around. They've decided…

B2C isn't the only business model, businesses and governments pay for a ton of stuff.

> businesses and governments pay for a ton of stuff.

Yes, that was addressed in the second half of the comment. But ultimately business must serve consumers – unless angel money is paying for. If you sell to a business, who sells to a business, who sells to a business, who sells to a business collecting angel checks you are still dependent on angel money.

Government too is effectively the angel model. The money will be there even if the consumer isn't being served anything they want to pay for.

Re: A startup doesn't need to be a unicorn

#183

Post by jurgenaut23 »

Cthulhu_ wrote: post #63
Etheryte wrote: post #8

Well yes, that's called a regular company. Not sure if I'm missing something here?

At least some years ago, browsing HN's comment section felt like it was a different world, separated from reality. I think some people need this kind of grounding reminders every once in a while.

Actually, the rest of the comment section shows that this is still the case, at least to some extent.

Re: A startup doesn't need to be a unicorn

#184

Post by carlosjobim »

tiffanyh wrote: post #181
carlosjobim wrote: post #126

Earlier quoted context omitted.

Most venture capital is invested into companies with traditional business models, not extreme growth ventures. Most startups are still traditional business model. Every company was once a startup. My local supermarket was funded by the people living in the community, each buying a few shares. I don't think any of them expected 100x return.

> Every company was once a startup. I disagree. Would you consider your neighborhood restaurant a "startup". Startup for many people implies "high growth".

> Would you consider your neighborhood restaurant a "startup".

Of course, they started at one point, didn't they?

Re: A startup doesn't need to be a unicorn

#186

Post by nottorp »

conductr wrote: post #165
65 wrote: post #145

Earlier quoted context omitted.

If you read enough comments about AI or LLMs on here you will realize the people of Hacker News do live in a different world from reality.

I've been on here long enough to see it with every tech hype cycle in the past ~20 years. Self driving cars, VR, bitcoin, then generically 'crypto', web3, now AI/LLMs, probably a lot I'm missing right now... It's funny how the optimist control the narrative in the beginning then the pessimist start chiming in around the time the hype starts to vaporize. The AI/LLM cynicism is rising right now it seems.

> It's funny how the optimist

s/optimist/gullible

Re: A startup doesn't need to be a unicorn

#187

Post by aleph_minus_one »

cardanome wrote: post #127
aleph_minus_one wrote: post #93

Earlier quoted context omitted.

While I completely agree with many of the points that you made, I disagree with some: > Bureaucracy is crazy in Germany. Forget about doing anything online, paper and in person only. The latter point has nothing to do with bureaucracy. > Germany is also one of the least friendly countries for expats. And I say that as a native Germain. Officials will refuse to speak English to you. Yes, refuse. For example in the USA…

> For example in the USA, they will refuse to speak German with you. So what? Actually they would most likely be delighted to show off their German if they knew any. But that is besides the point. English for better or worse is the current international language. I can found a new company in Estonia in literal minutes without speaking a single word of Estonian and without being physically present in the country becau…

> I can found a new company in Estonia in literal minutes without speaking a single word of Estonian and without being physically present in the country because the whole process is digital and in English.

> If you want to attract international talent you have to adapt.

Calling English "international" is like calling Spanish, Chinese, Russian, Arabic, French, Portuguese, Turkish or German "international". Internationality is not "English".

> You can value deep friendships but still be friendly towards acquaintances.

I insist that Germans are typically not less friendly, but they are indeed less warm (compared to, say, people from South American countries, and also some South European countries). This is coherent with your claim "If expats feel like Germans are acting coldly towards them", which I would not consider to be unfriendly. Indeed: what is considered to be "friendly" differs a lot between countries.

> Not everyone, some do find it easy to integrate but most don't.

If you don't want to learn German, it will likely be hard (or at least much harder) to integrate. The problem rather is that many people invested years, sometimes decades, into learning English and US-American customs instead of learning German and customs of German-speaking countries. Thus the situation that your mentioned people don't find it easy to integrate is in my opinion partially self-inflicted.

Re: A startup doesn't need to be a unicorn

#188

Post by awongh »

aleph_minus_one wrote: post #93
cardanome wrote: post #75

Earlier quoted context omitted.

Bureaucracy is crazy in Germany. Forget about doing anything online, paper and in person only. Founding any form of limited company is expensive and complicated. Want to put a website online? Have fun putting your full name and address in the imprint. Want to offer some courses that teach X? Yeah, no, you need a license for that, mate! Also being self-employed you lose most social benefits. You need to get private he…

While I completely agree with many of the points that you made, I disagree with some: > Bureaucracy is crazy in Germany. Forget about doing anything online, paper and in person only. The latter point has nothing to do with bureaucracy. > Germany is also one of the least friendly countries for expats. And I say that as a native Germain. Officials will refuse to speak English to you. Yes, refuse. For example in the USA…

> For example in the USA, they will refuse to speak German with you. So what?

In the USA many official government forms are made in several different languages.

This may not always be the federal government (probably less likely these days), but in California you can cast your vote in like 5 different languages (maybe more)?

This would never happen in Europe. It's simply less friendly to diversity.

Re: A startup doesn't need to be a unicorn

#189

Post by bdcravens »

The company I work for is a small company that has enabled above-market results for everyone employed. Almost 20 years ago the founder saw a specific niche, and went after it aggressively, having software built out of his own savings. We've never taken a dime of outside funding (aside from PPP loan in 2020, allowing to us to lose no employees despite our income being decimated). He's very aggressive about keeping expenses low, but he takes care of his employees, knowing they are the most valuable part of his company. (Self-serving for me to say I know, but it really is his value system)

Re: A startup doesn't need to be a unicorn

#190

Post by aleph_minus_one »

awongh wrote: post #188
aleph_minus_one wrote: post #93

Earlier quoted context omitted.

While I completely agree with many of the points that you made, I disagree with some: > Bureaucracy is crazy in Germany. Forget about doing anything online, paper and in person only. The latter point has nothing to do with bureaucracy. > Germany is also one of the least friendly countries for expats. And I say that as a native Germain. Officials will refuse to speak English to you. Yes, refuse. For example in the USA…

> For example in the USA, they will refuse to speak German with you. So what? In the USA many official government forms are made in several different languages. This may not always be the federal government (probably less likely these days), but in California you can cast your vote in like 5 different languages (maybe more)? This would never happen in Europe. It's simply less friendly to diversity.

> This would never happen in Europe. It's simply less friendly to diversity.

In Germany, six minority languages are protected:

* Dänisch (Danish)

* Nordfriesisch (North Frisian)

* Saterfriesisch (Saterland Frisian)

* Romanes (Romany)

* Niedersorbisch (Lower Sorbian)

* Obersorbisch (Upper Sorbian)

Source: https://www.bmi.bund.de/DE/themen/heimat-integration/gesells...

This means in the respective German regions you can also speak to the administrative agencies in these minority languages.

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