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by AlexandrB 2070 days ago
> so if that exit is gone, it would be even worse

Worse for whom? As a customer, I groan every time a product I use gets acquired by FAANG because I know it's going to get shuttered in a few months.

Edit: Or in the case of large acquisitions like Instagram slowly integrated with the parent company's shitty products.
2 comments
Aunche 2070 days ago
This implies that the product wouldn't be shuttered if it weren't acquired. Startups aren't extactly know for their longevity. Some were intended to be sold to a FAANG on day one. As for Instagram, products are cool until their investors start expecting them to turn a profit.
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TuringNYC 2070 days ago
>> Worse for whom?

Worse for those in the real world where you have payroll obligations, rent, AWS bills, health insurance, and mortgages.

As a customer I feel the same way. However, having been a co-founder and CTO of a startup, let me tell you the real story:

- Most startups are not like snapchat, they are not once-in-a-generation unicorns.

- Most startups have huge burn, especially consumer-entertainment type startups (imagine how much network bandwidth YouTube was burning before Google purchased them.)

- Startups are at the mercy of funding rounds and sometimes the market itsself can get away from you, through no fault of your own startup

- FAANG provide a put option -- "whats the worse that can happen? we get acquired by X" which allows people to take on more risk while trying to swing for the fences.

- It is arguable how long darling consumer apps could survive as independent when consumers often dont want to pay money. It is a catch 22 -- the startup is told the product has to be free but they are also not allowed to seek bigger coffers to actually subsidize it

So in the end -- sure, I agree with you, but who pays? Esp if this is something massive with network effects. Perhaps I can pay for WhatsApp, but can my grandma pay for it with her meager overseas salary? And if she cannot, how is the network sustainable?

I'm not saying I disagree with you, but I dont know what the solution is other than the current one.

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