That's a reasonable tactical perspective. For the individual entrepreneur, it's valid.
That doesn't mean that this article isn't a valid complaint from other perspectives. E.g., It's totally reasonable that CEOs and investors will grumble about this. I'm sure Bezos, Page, and Brin were grumbling at the costs back in the day.
But I think the interesting perspective here is at the ecosystem level. If startups have to spend a lot more, it changes what's possible. We'll have fewer startups. We'll have less interesting startups. The incentive to pretend to be a zillion dollar winner is higher. As is the incentive to pursue artificially amazing growth rates. And to lie, cheat, and steal your way to making good on your sky-high valuations.
Personally, I think the startup world was way more interesting 10-20 years ago. The pressure to be the next unicorn is so intense that I think we've lost a lot. There are a lot of factors here, but I strongly believe that much higher living and operating costs is one of them.
This is why I'm kinda getting on board Courtland Allen's belief in indie startups. They're a counter reaction to that unicorn obsession of the current startup world. And the developer and entrepreneurial ecosystem is now such that launching and running small, competent businesses with useful products/services is easier than ever.
In other words, yes, the ecosystem is starving out traditional startups. But it seems like it's making a breeding ground for indie startups. They don't suffer the cost of a $350k/yr salary, which gives them a nice advantage.
Definitely. A friend is bootstrapping a company that she just loves. It will never be a unicorn, but it doesn't have to be. They already have a bunch of wildly satisfied customers, good press, and excellent prospects for sustainable growth. This is probably the last year she'll have to consult on the side to pay the bills. And she's so happy with it.
> If startups have to spend a lot more, it changes what's possible. We'll have fewer startups.
Paying higher salaries and spending more on development are related but distinct things.
You might be able to get more done by having fewer, higher paid employees. Or maybe you need have more of a mix of different ability levels to keep costs down.
> If startups have to spend a lot more, it changes what's possible.
Sometimes the business plan is just not workable. Why blame employees for expecting higher pay and not customers for not being willing to spend more? Or other cost centers for not being cheaper?
> There are a lot of factors here, but I strongly believe that much higher living and operating costs is one of them.
That doesn't mean that this article isn't a valid complaint from other perspectives. E.g., It's totally reasonable that CEOs and investors will grumble about this. I'm sure Bezos, Page, and Brin were grumbling at the costs back in the day.
But I think the interesting perspective here is at the ecosystem level. If startups have to spend a lot more, it changes what's possible. We'll have fewer startups. We'll have less interesting startups. The incentive to pretend to be a zillion dollar winner is higher. As is the incentive to pursue artificially amazing growth rates. And to lie, cheat, and steal your way to making good on your sky-high valuations.
Personally, I think the startup world was way more interesting 10-20 years ago. The pressure to be the next unicorn is so intense that I think we've lost a lot. There are a lot of factors here, but I strongly believe that much higher living and operating costs is one of them.