|
|
|
|
|
by ksajadi
1520 days ago
|
|
Netlify for me is a prime example of a great company gone wrong by raising too much VC money.
The basic product of Netlify is a great one: build and host static sites without the need to mess with any of the tech stack. For us developer folk, this should be easy: run the build command of any static site generator and stick the results into an S3 bucket. And yet, something as simple as this became so popular with even developer companies (see Hashicorp’s quotes on Netlify). This could have been a great story but then tons and tons of VC money came in and now you’d have to think of ways to make the valuation worth it and make the product sticky: so now we have edge Deno powered functions, lambda-esq applications, form embedded HTML and so much other features that are used by the long tail of their customer base while they changed their price to charge by git committees and have daily short downtimes of 1 to 5 mins for the past month (monitored by external services, as they wouldn’t reflect that in their status page). Soon, they’ll sell the company to some corp like Akamai or similar “enterprise” outfit leaving us high and dry. There is a lot of money in building businesses that do boring stuff that just makes peoples lives easier. But when you take VC money, you’d need to build a moat to fend off cloud providers from the bottom, capture the value for the top from developers and everything in between. |
|
Chime in if you’d like to be one of the first few customers. If there’s enough interest here’s how I’d play it:
1. I won’t raise VC money. I know how to build a SaaS business without it—I bootstrapped Poll Everywhere from $0 to $10m+.
2. My motivations these days are to build low complexity products. Ideally they’re “evergreen”, meaning I can ship a core feature set that I know will be the same in 10 years. The feature I’m selling their is stability.
3. I like to price things in a way that makes them accessible to as many people as possible while being sustainable for the business so it can operate for a long time with the support it needs for customers.