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We Also Failed to Build a Billion Dollar Company

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Re: We Also Failed to Build a Billion Dollar Company

#31

Post by rwallace »

> The greater availability of capital has been good for founders, but as Tim points out, it’s been a mixed blessing for society.

The only way to suggest that even for a moment is to compare it with a hypothetical state of affairs where capital is available from purely altruistic sources. Compared to the actual alternative state of affairs without the availability of capital - the lot of humanity for most of history and geography - blessings that exist in the real universe don't get any more unmixed.

Re: We Also Failed to Build a Billion Dollar Company

#32

Post by xiphias2 »

Mitchhhs wrote: post #25
xiphias2 wrote: post #8

I believe the solution is to be informed. Most of the problems I read about here in HN from founders come from information asymmetry: VCs have much more experience in negotiating. Still, I can't pity the founders, as it's always the employees in startups that get the worst deal. I was working only 1 year at a startup in my life as an employee, and I got burned out after 1 year. Working at a big company is so much eas…

Its not always being just informed. Its the difference between knowledge and wisdom. You may know all these things up front and make the same decision to take VC because of other factors, prestige, the easy money, thinking you will be the billion dollar company. Then things don't go as planned, the rubber meets the road, and the cool sound of telling people you raised VC wears off. Then you realize why all of these a…

I see. It's just so easy to get to a few million dollars of wealth over time if somebody's good enough to get to a big company and invest with a healthy diversification.

I really don't understand why people are risking that to be a billionaire with a small probability, when the difference in the lifestyle that that money allows is probably not that big.

I'm sure it's cool to be a billionaire for some time, but also it probably wears out quite fast when you get back to work.

Re: We Also Failed to Build a Billion Dollar Company

#33

Post by throwitaway6512 »

pnathan wrote: post #6

These titles are interesting. I have, myself, like pretty much everyone on this planet, never built a billion dollar company. As much fun as it might be to be that rich, it's never seemed to be more realistic to think that than to think about being an astronaut. So the interest to me is the metanarrative that's formed that says, yes, this is something achievable .

I mean it is achievable. Why would it not be? If you tried to become an astronaut and failed you might write an article titled: “how I failed to become an astronaut”. And why not? Is it not achievable?

Re: We Also Failed to Build a Billion Dollar Company

#34

Post by kingofpandora »

pnathan wrote: post #6

These titles are interesting. I have, myself, like pretty much everyone on this planet, never built a billion dollar company. As much fun as it might be to be that rich, it's never seemed to be more realistic to think that than to think about being an astronaut. So the interest to me is the metanarrative that's formed that says, yes, this is something achievable .

True, but you either become an astronaut or you don't, whereas if you set out to build a billion dollar company and you build a $900m-dollar company, that's not all that bad even if strictly speaking you didn't achieve your goal.

Re: We Also Failed to Build a Billion Dollar Company

#35

Post by throwitaway6512 »

titanomachy wrote: post #15
jim-greer wrote: post #9

Earlier quoted context omitted.

It’s more realistic than becoming an astronaut, but not by much. TechCrunch says there were 23 billion dollar exits in the first eight months of 2018. Call it 35 per year. That’s about as likely as being on a Superbowl-winning football team. Young people often neglect realistic opportunities for success to chase unrealistic dreams. As do entrepreneurs. https://techcrunch.com/2018/08/18/global-unicorn-exits-hit-m...

"It's more realistic [to create a billion-dollar company] than to become an astronaut" You're missing half of the equation. There are a relatively tiny number of people (I assume mostly scientists and military pilots) who have set themselves the goal of becoming an astronaut and are working towards it in a concrete way. In contrast, virtually everyone is trying to make money, and a huge number of people create compan…

Having a goal of “as much money as possible“ is very different from the VC fueled goal of Billion dollars or bust. Trying to draw parallels between everyone who starts a company and the select few who aim specifically to become astronauts is like comparing attempts at moonshot companies with everyone who “wants to do something in stem”

Re: We Also Failed to Build a Billion Dollar Company

#36

Post by nostrademons »

jim-greer wrote: post #9
pnathan wrote: post #6

These titles are interesting. I have, myself, like pretty much everyone on this planet, never built a billion dollar company. As much fun as it might be to be that rich, it's never seemed to be more realistic to think that than to think about being an astronaut. So the interest to me is the metanarrative that's formed that says, yes, this is something achievable .

It’s more realistic than becoming an astronaut, but not by much. TechCrunch says there were 23 billion dollar exits in the first eight months of 2018. Call it 35 per year. That’s about as likely as being on a Superbowl-winning football team. Young people often neglect realistic opportunities for success to chase unrealistic dreams. As do entrepreneurs. https://techcrunch.com/2018/08/18/global-unicorn-exits-hit-m...

The great thing about software entrepreneurship is that your plan B is pretty decent as well.

I failed at building a billion-dollar company too, a decade ago, but my consolation prize was working for Google, which was pretty good. Still working on building a billion-dollar company the second time around. I work harder and make less than I would've if I'd stayed at Google, but I'm not really passing up too much. Mostly just the opportunity to own an overpriced Silicon Valley quarter-acre Eichler.

Re: We Also Failed to Build a Billion Dollar Company

#37

Post by porpoisely »

jim-greer wrote: post #9
pnathan wrote: post #6

These titles are interesting. I have, myself, like pretty much everyone on this planet, never built a billion dollar company. As much fun as it might be to be that rich, it's never seemed to be more realistic to think that than to think about being an astronaut. So the interest to me is the metanarrative that's formed that says, yes, this is something achievable .

It’s more realistic than becoming an astronaut, but not by much. TechCrunch says there were 23 billion dollar exits in the first eight months of 2018. Call it 35 per year. That’s about as likely as being on a Superbowl-winning football team. Young people often neglect realistic opportunities for success to chase unrealistic dreams. As do entrepreneurs. https://techcrunch.com/2018/08/18/global-unicorn-exits-hit-m...

What you say is absolutely true. But on the flip side, young people chasing unrealistic dreams is why we have a lot of art, music, literature, science, business and progress.

Where would rock and roll or rap be if so many young people didn't "foolishly" pursue their dreams? Where would technology and the internet be?

And isn't it simply the nature of the pursuit? If a pursuit is "high risk and high reward", it naturally creates a few spectacular successes and a bunch of "failures".

Re: We Also Failed to Build a Billion Dollar Company

#38

Post by pm90 »

throwitaway6512 wrote: post #35
titanomachy wrote: post #15

Earlier quoted context omitted.

"It's more realistic [to create a billion-dollar company] than to become an astronaut" You're missing half of the equation. There are a relatively tiny number of people (I assume mostly scientists and military pilots) who have set themselves the goal of becoming an astronaut and are working towards it in a concrete way. In contrast, virtually everyone is trying to make money, and a huge number of people create compan…

Having a goal of “as much money as possible“ is very different from the VC fueled goal of Billion dollars or bust. Trying to draw parallels between everyone who starts a company and the select few who aim specifically to become astronauts is like comparing attempts at moonshot companies with everyone who “wants to do something in stem”

If you think the majority of business owners don't want their businesses to grow....you're in for a rude awakening.

The allure of technology in general and silicon valley in particular is the amount of sheer wealth that you can create very quickly.

Re: We Also Failed to Build a Billion Dollar Company

#39

Post by BoiledCabbage »

pm90 wrote: post #38
throwitaway6512 wrote: post #35

Earlier quoted context omitted.

Having a goal of “as much money as possible“ is very different from the VC fueled goal of Billion dollars or bust. Trying to draw parallels between everyone who starts a company and the select few who aim specifically to become astronauts is like comparing attempts at moonshot companies with everyone who “wants to do something in stem”

If you think the majority of business owners don't want their businesses to grow....you're in for a rude awakening. The allure of technology in general and silicon valley in particular is the amount of sheer wealth that you can create very quickly.

And the point he's making is that "wanting your business to grow" has almost absolutely nothing to do with wanting a billion dollar business.

It's like an athlete saying "I want to increase my endurance" vs "I want to be am ultramarathoner".

The way you train, what you do, how you spend your time, how much time you spend, the risks you take - entirely different worlds. Wanting a billion dollar business is not remotely in the minds of 99%+ of business owners.

Re: We Also Failed to Build a Billion Dollar Company

#40

Post by BoiledCabbage »

wmf wrote: post #26
EpicEng wrote: post #22

Earlier quoted context omitted.

Wow, well... maybe it's just my ignorance, these people do this for a living. Just seems like a crazy number to me. I'm sure there's a lot of detail and reasoning behind that number.

Running a successful startup is crazy and unnatural; that's why it's so rare and that's also why there's backlash against that becoming the default mode of thinking. Based on a quick calculation, to get from zero to one (billion) users takes just under six years at 7%/week growth.

The crazy part is people conflating starting up a business with trying to build a billion dollar business.

Thinking anything not a grand slam is a strikeout is idotic and perverse incentives.

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