Live data from Hacker News

There’s no such thing as “a startup within a big company”

hunterwalk.medium.com

21–30 of 326 posts

Re: There’s no such thing as “a startup within a big company”

#21
Ask yourself this, would your "startup within a big company" have managed to lure Mark Zuckerberg or Larry Page to join them instead of founding their own companies? And even more important, would it even let such people have lead a significant part of the company in order to realize their ideas?

If you answer no to either of those, there is your answer to why your "startup within a company" can't hit it as big as real startups.

Re: There’s no such thing as “a startup within a big company”

#22
post #9

I'm not sure why everyone seems so focused on the cafeteria thing. I'm not sure people and their attitudes towards amenities are really the problem here. From my understanding, the differerence is the companywide attitude to risk. A startup has a "grow at any cost, or maybe perish" attitude. If things go south, bankruptcy will take care of the leftover excess risk (barring criminal charges). A bigco cannot easily go…

If people really think of founding enterprises as a gamble with potential infinite reward, but limited downside (as bankrupcy will take care of it), I would say our economy has a problem...

Re: There’s no such thing as “a startup within a big company”

#23

I mean, sure, but it also misses the point a bit. "Startup in a big company" doesn't mean "yo take some cashdollar and try build and release something to the public", but it does mean "hey, take a small team and do your own thing with less oversight and process overhead from higher-ups". The team I worked in at AWS was like this and it felt a lot like startup teams I've worked with. That didn't mean we could take 'br…

Yeah, this. People who are used to actual startup culture and talk about how "startups" at big companies don't work have a different internalized concept of what startup autonomy looks like.

The success criteria are different, and measured differently.

Re: There’s no such thing as “a startup within a big company”

#24
post #8

Earlier quoted context omitted.

What's interesting about skunkworks is much it gets invoked by people vs how much it actually happens in practice. We engineers love skunkworks: working on cool stuff, without accountability and a lot of freedom ? Who would not want that ! But there are very few situations where this is sustainable, for reasons well explained by OP.

>We engineers love skunkworks: working on cool stuff, without accountability and a lot of freedom I'm pretty sure people who keep saying this have no idea what working at Skunkwork was actually like. If you read Ben Rich's book, which I recommend you do, you'll find out that they had tons of accountability, the more classified their projects were, the more they were drowning in paperwork. No employee was to be left a…

>I'm also pretty sure most engineers don't want this, and what hey actually want is cowboy coding, playing like kindergarten kids in the sandbox with the latest shiny toys, while leaving work at 5 PM.

Nope. They want autonomy, mastery and purpose. They want to be able to apply what they know appropriately - not to be micromanaged or frustrated by instructions that make no sense. They want to be able to develop skills that make them valuable to their peers and their organisation - valuable enough to be secure and able to earn sufficient to protect their families. They want to know why they are doing the things that they are doing and to be able to believe that their efforts will contribute to something worthwhile.

If you can provide that all your engineers will both love you and jump into a bonfire for you.

Re: There’s no such thing as “a startup within a big company”

#25
This happens with companies who are not big enough to take over other companies, so they try to latch on the loophole in capitalism by spawning different products often completely unrelated to original purpose of the company. Such company will have a competitive advantage over someone starting from scratch with a similar product. Question is should it be allowed? This ultimately leads to creation of those companies that are too big to fall, that have enough budgets to buy laws designed to keep competition at bay, do creative accounting and other measures that small company cannot afford to do. Fortunately these "startups" within a company usually fail and are not as effective as take overs. I think take overs should be illegal unless the technology your are buying is going to be incorporated into the original company line of products and does not spawn completely new business.

Re: There’s no such thing as “a startup within a big company”

#27
post #12
post #8

Earlier quoted context omitted.

What's interesting about skunkworks is much it gets invoked by people vs how much it actually happens in practice. We engineers love skunkworks: working on cool stuff, without accountability and a lot of freedom ? Who would not want that ! But there are very few situations where this is sustainable, for reasons well explained by OP.

Strongly recommend reading the book - they had tons of accountability as critical projects were handed to them on tight deadlines. Yes, working on cool stuff, but delivering at an extremely high level.

The final accountability of someone dying if you screw up must weigh heavily on people designing aircraft. I think it would make me pretty diligent...

Re: There’s no such thing as “a startup within a big company”

#29

I mean, sure, but it also misses the point a bit. "Startup in a big company" doesn't mean "yo take some cashdollar and try build and release something to the public", but it does mean "hey, take a small team and do your own thing with less oversight and process overhead from higher-ups". The team I worked in at AWS was like this and it felt a lot like startup teams I've worked with. That didn't mean we could take 'br…

While I worked for Adobe, one of the executives there (Mark Randall, serial entrepreneur that was "acquired" by the company, awesome guy) launched the "Red box" initiative that eventually become https://www.kickbox.org/. The red box was essentially a "toolbox" that he created on how to build a startup (set of training materials + $1000USD credit card that you could use however you wish), and the purpose was to get enough proof so that you get executive buy-in to continue your idea - if you achieved that, you got the "blue box" (whose content was a "secret" but was essentially custom-tailored support for your project). The entire process banks on the fact that you validate your ideas _without_ involving the Adobe brand, because if you slapped "Adobe" over it of course people and press would get interested. There were some legal caveats here and there (e.g. you couldn't outright lie and claim you were _not_ with Adobe), but I think it is to some extent the closest thing that you can get to "startup within a big company".

I personally got to the blue box - but then I gave up, when I realized that to get it to actually ship I had to sacrifice nights and weekends. Which would have been maybe fine - except that I knew that I didn't get to keep any upside. I had most of the risks of a startup, but very little of the payoff. Great learning process, but for me - it only managed to convince me that I shouldn't try within a corporation, if I want to try I need to actually do it by myself.

Re: There’s no such thing as “a startup within a big company”

#30

What is the main reason though? The BigCo being too risk averse? Or employees having too much of a safety net? Or BigCo processes weighing the team down? A combination of these?

If you work for someone with $80bn of shareholder capital at risk you can take 1/10000th of the risk at work than if you have $8M of shareholder capital at risk.

It's that simple.

Post reply on HN