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I used to think about startups in bovine terms. Some startups are beef type. These are made to grow as fast as possible, increase the user base by whatever means, without care about long-term health. They hunt for investments, especially big ones. Then, the sooner the better, such a company is sold to a large company and butchered, either to be digested and feed the corporate muscle, or just to remove competition with the big company's product line. Other startups are milk type. These are grown steadily and sustainably, if slowly, with great care about long-term health. They are usually become profitable early on, at least ramen-profitable. Owners usually reject several acquisition proposals, and are careful with 3rd-party investments so as not to lose control of the company. I think that a milk-type company has a far better chance to be a long-term success and transform the industry. It may grow huge, like Google, or stay small, like Github or Craiglist. In rare cases beef-type companies do not die within a large corporation but become an important organ (e.g. Android inside Google), or enjoy a benign neglect (e.g. Instagram inside Facebook). But usually they just die, the way the post explains, or even worse. |