Comments on: Flat is failure http://rc3.org/2008/11/23/flat-is-failure/ Rafe Colburn on software development (and other topics) Mon, 21 May 2012 23:52:43 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Howard Berkey http://rc3.org/2008/11/23/flat-is-failure/comment-page-1/#comment-3287 Howard Berkey Sun, 30 Nov 2008 09:43:24 +0000 http://rc3.org/?p=8725#comment-3287 <p>The not growing/dying idiom is not new; I had a CTO say that to me (verbatim) in 1995. He was arguably wrong then; massive overgrowth definitely contributed to the company's three rounds of layoffs a year later.</p> The not growing/dying idiom is not new; I had a CTO say that to me (verbatim) in 1995. He was arguably wrong then; massive overgrowth definitely contributed to the company’s three rounds of layoffs a year later.

]]> By: Stan Taylor http://rc3.org/2008/11/23/flat-is-failure/comment-page-1/#comment-3280 Stan Taylor Sun, 23 Nov 2008 14:53:38 +0000 http://rc3.org/?p=8725#comment-3280 <p>I've experienced exactly the situation described in your 'die quickly' link. I've worked in two startups that were in zombie mode; one of them lasted for several years before the VCs finally had to close it down, the other was finally sold in a fire sale. It's crazy.</p> <p>Of course, zombie mode is an effect, not a cause. Anand hits on the real problem here:</p> <blockquote>Let me state at the very outset that this article applies only to venture-backed startups, which are a small minority of businesses in the economy. The sole purpose of most businesses is to create a steady income stream for their owners and operators. Venture-backed startups, on the other hand, are created with the sole purpose of leading to a meaningful exit for founders, investors, and employees. Such an exit might be either an IPO or an acquisition. </blockquote> <p>I really don't want to work at any more VC-funded companies for this reason. Such short-sighted management is just crazy.</p> I’ve experienced exactly the situation described in your ‘die quickly’ link. I’ve worked in two startups that were in zombie mode; one of them lasted for several years before the VCs finally had to close it down, the other was finally sold in a fire sale. It’s crazy.

Of course, zombie mode is an effect, not a cause. Anand hits on the real problem here:

Let me state at the very outset that this article applies only to venture-backed startups, which are a small minority of businesses in the economy. The sole purpose of most businesses is to create a steady income stream for their owners and operators. Venture-backed startups, on the other hand, are created with the sole purpose of leading to a meaningful exit for founders, investors, and employees. Such an exit might be either an IPO or an acquisition.

I really don’t want to work at any more VC-funded companies for this reason. Such short-sighted management is just crazy.

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