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Particularly for techies outside the major global funding hubs, employee ownership seems to be a model much more aligned with building a sustainable business with the potential for greater employee satisfaction and a healthier culture.
It's because of VCs. It's always the VCs.
It's because of VCs. It's always the VCs.
Do you mean VCs work undermine employee-owned businesses in some way? Why would they bother if we're talking about businesses servicing tiny niches?
VCs would want founders to restructure the company and would not invest for future rounds for Series A, B, C, etc, (unlikely to happen since employees own the company) or tell founders to dilute employee owned shares for funding (also unlikely), employees would rather make more self-fund the company with profits than go to VCs for funding.
Nowadays, it's it's obviously different. To come up with something innovative, you need to develop something for a longer time so that it's better than everything that's already out there.
Earlier quoted context omitted.
Do you mean VCs work undermine employee-owned businesses in some way? Why would they bother if we're talking about businesses servicing tiny niches?
Most current founders now go to VCs rather than an have employee owned model because VCs wouldn't be happy with employees owning the size of the pie. The changes they would want aren't in line with their goals. VCs would want founders to restructure the company and would not invest for future rounds for Series A, B, C, etc, (unlikely to happen since employees own the company) or tell founders to dilute employee owned…
On the other hand, it doesn't seem like the best move for some product that solves a very specific problem for a very specific group of clients. Why would such a product necessarily even need multiple rounds of funding to be profitable?
See also: https://news.ycombinator.com/item?id=41065227 , https://news.ycombinator.com/item?id=41066698
Consider it is the art of keeping money flowing that allows companies to survive. While employees owning stock is in no way rare, employees managing cash reserves (especially in the first three year viability phase) is a different matter.
Someone else owning the company you're paid to work for is the convenience tax for keeping business alive.
Try doing anything with anyone involving money and responsibilities and you will throw your rosey glasses away and get back to making your own value even if commoditized by another!