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by kpandit 909 days ago
My favourite comment as well in this world so full of pump and dump shows. The mentality is so intrenched that if you are not one of these pump and dump shows with an exit strategy then you are labelled a lifestyle business instead of a proper "startup".

[Off topic] That is some throwaway account with 60k+ karma and almost 7 years in age.
1 comments
codeptualize 909 days ago
There are lots of pump and dumps but this one isn't a pump and dump. Figma was founded in 2012, they pretty much took over UI design, did $400M ARR in 2022, great retention, rapid growth, great margins, there is a lots of actual value there and still quite a bit of potential left.

A "proper" startup does indeed include an exit as that's the point where they give a return on investment to their VC's. That is the startup game, use the VC money to accelerate growth, then exit/go public.

Not saying I like it, but once you take the VC money that is the game you play.

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kpandit 909 days ago
My bad. I was just responding to the parent comment and the comment(by showbug) they were replying to in isolation. Figma is a product I liked and was so terribly disappointed with the news of acquisition by adobe.

Regarding startups, I just did google "define: startup" and in the dictionary definition there has no VC and no exit.

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codeptualize 909 days ago
We can debate definitions and labels but that's not really relevant to the discussion imo, name it whatever you want, what I'm referring to is a company taking VC money to accelerate growth.

Once you take VC money, like Figma did, your goal is a lucrative exit.

It's high risk, high reward. It's a different way to build a company, and it's not really possible to change that once you take that route.

Doesn't mean you have to do this. I am all for building steady profitable private companies that aim for the long run, I think it's a great way to build great companies, but then you should stay far away from VC money, take a lot less risk, have different compensation strategies etc etc.

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michaelcampbell 906 days ago
> It's high risk...

for everyone

> , high reward.

for the owners, solely.

For everyone else, notably generally those that actually produced the thing of value, the reward is that if you're VERY VERY LUCKY, you get to keep your job.

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porridgeraisin 909 days ago
What the dictionary says is completely irrelevant.
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