Jason Bosco's post celebrates the milestone of his company, SendGrid, achieving profitability instead of relying on venture capital funding. He emphasizes the deliberate choice to prioritize building a sustainable and profitable business from the ground up, highlighting the benefits of controlling their own destiny and focusing on customer needs. This approach, while potentially slower in terms of rapid scaling, allowed them to build a stronger foundation and ultimately led to a more rewarding outcome in the long run. The post implicitly contrasts the often pressured, growth-at-all-costs mentality of VC-backed startups with SendGrid's more measured, organic path to success.
Vicki Boykis reflects on 20 years of Y Combinator and Hacker News, observing how their influence has shifted the tech landscape. Initially fostering a scrappy, builder-focused community, YC/HN evolved alongside the industry, becoming increasingly intertwined with venture capital and prioritizing scale and profitability. This shift, driven by the pursuit of ever-larger funding rounds and exits, has led to a decline in the original hacker ethos, with less emphasis on individual projects and more on market dominance. While acknowledging the positive aspects of YC/HN's legacy, Boykis expresses concern about the homogenization of tech culture and the potential stifling of truly innovative, independent projects due to the pervasive focus on VC-backed growth. She concludes by pondering the future of online communities and their ability to maintain their initial spirit in the face of commercial pressures.
Hacker News users discuss Vicki Boykis's blog post reflecting on 20 years of Y Combinator and Hacker News. Several commenters express nostalgia for the earlier days of both, lamenting the perceived shift from a focus on truly disruptive startups to more conventional, less technically innovative ventures. Some discuss the increasing difficulty of getting into YC and the changing landscape of the startup world. The "YC application industrial complex" and the prevalence of AI-focused startups are recurring themes. Some users also critique Boykis's perspective, arguing that her criticisms are overly focused on consumer-facing companies and don't fully appreciate the B2B SaaS landscape. A few point out that YC has always funded a broad range of startups, and the perception of a decline may be due to individual biases.
Peter Roberts, an immigration attorney specializing in working with Y Combinator and startup companies, hosted an "Ask Me Anything" (AMA) on Hacker News. He offered to answer questions related to visas for founders, employees, and investors, particularly focusing on the complexities of navigating U.S. immigration law for early-stage companies. He emphasized his experience with O-1A visas for individuals with extraordinary ability, H-1Bs for specialty occupations, and E-2 treaty investor visas, as well as green cards. Roberts also touched upon the challenges and nuances of immigration law, encouraging participants to ask specific questions to receive the most accurate and helpful advice.
Commenters on the "Ask Me Anything" with immigration attorney Peter Roberts largely focus on practical questions related to visas, green cards, and startup-related immigration issues. Several ask about the specifics of the O-1 visa, its requirements, and success rates. Others inquire about the timelines and challenges associated with obtaining green cards through employment, particularly for those on H-1B visas. Some commenters express frustration with the current immigration system and its complexities, while others seek advice on navigating the process for specific scenarios, such as international founders or employees. There's significant interest in Roberts's experience with YC companies and the common immigration hurdles they face. A few commenters also touch upon the ethical considerations of immigration law and the impact of policy changes.
For startups lacking a dedicated UX designer, this post offers practical, actionable advice centered around user feedback. It emphasizes focusing on the core problem being solved and rapidly iterating based on direct user interaction. The article suggests starting with simple wireframes or even pen-and-paper prototypes, testing them with potential users to identify pain points and iterate quickly. This user-centered approach, combined with a focus on clarity and simplicity in the interface, allows startups to improve UX organically, even without specialized design resources. Ultimately, it champions continuous learning and adaptation based on user behavior as the most effective way to build a user-friendly product.
Hacker News users generally agreed with the article's premise that startups often lack dedicated UX designers and must prioritize essential UX elements. Several commenters emphasized the importance of user research, even without formal resources, suggesting methods like talking to potential users and analyzing competitor products. Some highlighted specific practical advice from the article, such as prioritizing mobile responsiveness and minimizing unnecessary features. A few commenters offered additional tools and resources, like no-code website builders with built-in UX best practices. The overall sentiment was that the article provided valuable, actionable advice for resource-strapped startups.
Several key EU regulations are slated to impact startups in 2025. The Data Act will govern industrial data sharing, requiring companies to make data available to users and others upon request, potentially affecting data-driven business models. The revised Payment Services Directive (PSD3) aims to enhance payment security and foster open banking, impacting fintechs with stricter requirements. The Cyber Resilience Act mandates enhanced cybersecurity for connected devices, adding compliance burdens on hardware and software developers. Additionally, the EU's AI Act, though expected later, could still influence product development strategies throughout 2025 with its tiered risk-based approach to AI regulation. These regulations necessitate careful preparation and adaptation for startups operating within or targeting the EU market.
Hacker News users discussing the upcoming EU regulations generally express concerns about their complexity and potential negative impact on startups. Several commenters predict these regulations will disproportionately burden smaller companies due to the increased compliance costs, potentially stifling innovation and favoring larger, established players. Some highlight specific regulations, like the Digital Services Act (DSA) and the Digital Markets Act (DMA), and discuss their potential consequences for platform interoperability and competition. The platform liability aspect of the DSA is also a point of contention, with some questioning its practicality and effectiveness. Others note the broad scope of these regulations, extending beyond just tech companies, and affecting sectors like manufacturing and AI. A few express skepticism about the EU's ability to effectively enforce these regulations.
Paul Graham argues that the primary way people get rich now is by creating wealth, specifically through starting or joining early-stage startups. This contrasts with older models of wealth acquisition like inheritance or rent-seeking. Building a successful company, particularly in technology, allows founders and early employees to own equity that appreciates significantly as the company grows. This wealth creation is driven by building things people want, leveraging technology for scale, and operating within a relatively open market where new companies can compete with established ones. This model is distinct from merely getting a high-paying job, which provides a good income but rarely leads to substantial wealth creation in the same way equity ownership can.
Hacker News users discussed Paul Graham's essay on contemporary wealth creation, largely agreeing with his premise that starting a startup is the most likely path to significant riches. Some commenters pointed out nuances, like the importance of equity versus salary, and the role of luck and timing. Several highlighted the increasing difficulty of bootstrapping due to the prevalence of venture capital, while others debated the societal implications of wealth concentration through startups. A few challenged Graham's focus on tech, suggesting alternative routes like real estate or skilled trades, albeit with potentially lower ceilings. The thread also explored the tension between pursuing wealth and other life goals, with some arguing that focusing solely on riches can be counterproductive.
Struggling electric truck manufacturer Nikola has filed for bankruptcy after years of financial difficulties and broken promises. The company, once touted as a Tesla rival, faced numerous setbacks including production delays, fraud allegations against its founder, and dwindling investor confidence. This bankruptcy filing marks the end of the road for the troubled startup, which was unable to overcome its challenges and deliver on its ambitious vision for zero-emission trucking.
Hacker News commenters on Nikola's bankruptcy expressed little surprise, with many citing the company's history of dubious claims and questionable leadership as the root cause. Several pointed to Trevor Milton's fraud conviction as a pivotal moment, highlighting the erosion of trust and investor confidence. Some discussed the challenges of the electric vehicle market, particularly for startups attempting to compete with established players. A few commenters questioned the viability of hydrogen fuel cells in the trucking industry, suggesting that battery-electric technology is the more practical path. Overall, the sentiment reflects skepticism towards Nikola's long-term prospects, even before the bankruptcy filing.
Electric truck maker Nikola has filed for Chapter 11 bankruptcy protection after struggling for years to meet production targets and facing financial difficulties. The company, once touted as a Tesla rival, has seen its stock price plummet and faced numerous setbacks, including fraud allegations against its founder. Nikola's bankruptcy filing signals a significant downturn for the once-promising electric vehicle startup.
Hacker News commenters on Nikola's bankruptcy filing express little surprise, with many citing the company's history of misleading claims and lack of viable product as the root cause. Several point to the founder, Trevor Milton's, fraud conviction as a pivotal moment, highlighting the damage done to the company's credibility. Some discuss the broader implications for the EV truck market, suggesting that Nikola's failure doesn't necessarily reflect poorly on the sector as a whole, but rather on companies built on hype rather than substance. A few commenters express skepticism about hydrogen fuel cell technology's viability in the trucking industry, while others suggest Nikola's existing assets might be valuable to other players in the market. There's a general sense of disappointment and a belief that Nikola's downfall was predictable.
After their startup failed, the founder launched VcSubsidized.com to sell off the remaining inventory. The website's tongue-in-cheek name acknowledges the venture capital funding that allowed for the initial product creation, now being recouped through discounted sales. The products themselves, primarily blankets and pillows made with natural materials like alpaca and cashmere, are presented with straightforward descriptions and high-quality photos. The site's simple design and the founder's transparent explanation of the startup's demise contribute to a sense of authenticity.
HN commenters largely found the VCSubsidized.com site humorous and appreciated the creator's entrepreneurial spirit and marketing savvy. Some questioned the longevity of the domain name's availability given its potentially controversial nature. Others discussed the prevalence of subsidized goods and services in the startup ecosystem, with some pointing out that the practice isn't inherently negative and can benefit consumers. A few commenters shared personal anecdotes of acquiring and reselling goods from failed startups. The overall sentiment was positive, with the project viewed as a clever commentary on startup culture.
Token Security, a cybersecurity startup focused on protecting "machine identities" (like API keys and digital certificates used by software and devices), has raised $20 million in funding. The company aims to combat the growing threat of hackers exploiting these often overlooked credentials, which are increasingly targeted as a gateway to sensitive data and systems. Their platform helps organizations manage and secure these machine identities, reducing the risk of breaches and unauthorized access.
HN commenters discuss the increasing attack surface of machine identities, echoing the article's concern. Some question the novelty of the problem, pointing out that managing server certificates and keys has always been a security concern. Others express skepticism towards Token Security's approach, suggesting that complexity in security solutions often introduces new vulnerabilities. The most compelling comments highlight the difficulty of managing machine identities at scale in modern cloud-native environments, where ephemeral workloads and automated deployments exacerbate the existing challenges. There's also discussion around the need for better tooling and automation to address this growing security gap.
The website "YC Graveyard" catalogs 821 Y Combinator-backed startups that are considered inactive, meaning they appear to be defunct, acquired for a small sum (acqui-hire), or simply operating far below expectations. This list, while not official or exhaustive, aims to provide a perspective on the realities of startup success, highlighting that even with the support of a prestigious accelerator like YC, a significant number of ventures don't achieve widespread recognition or significant scale. The site offers a searchable database of these companies, including their YC batch and a brief description of their intended product or service.
Hacker News users discuss the YC Graveyard, expressing skepticism about its methodology and usefulness. Several commenters point out that the site's definition of "inactive" is overly broad, including companies that may have been acquired, pivoted, or simply operate under a different name. They argue that simply not having a website doesn't equate to failure. Some suggest the list could be valuable with improved filtering and more accurate data, including exit information. Others find the project inherently flawed, dismissing it as merely a "curiosity." A few commenters question the motivation behind the project and its potential negative impact on the startup ecosystem.
Ron Garrett reflects on six failed startup attempts, rejecting the label of "failure" and instead focusing on the valuable lessons learned. He emphasizes the importance of choosing the right co-founder, validating ideas early and often, building a minimum viable product (MVP) quickly, and iterating based on user feedback. Marketing and distribution proved crucial, and while passion is essential, it must be coupled with a realistic market and sustainable business model. Ultimately, he learned that "failing fast" and adapting are key to entrepreneurial growth, viewing each setback as a stepping stone toward future success.
HN commenters largely praised the author's vulnerability and honesty in sharing their startup failures. Several highlighted the importance of recognizing sunk cost fallacy and knowing when to pivot or quit. Some questioned the framing of the experiences as "failures," arguing that valuable lessons and growth emerged from them. A few commenters shared their own similar experiences, emphasizing the emotional toll of startup struggles. Others offered practical advice, such as validating ideas early and prioritizing distribution. The prevailing sentiment was one of empathy and encouragement, acknowledging the difficulty of entrepreneurship and the courage it takes to try repeatedly.
Y Combinator (YC) announced their X25 batch, marking a return to pre-pandemic batch sizes with increased applicant capacity. This larger batch reflects growing interest in YC and a commitment to supporting more startups. Applications for X25, the Spring 2025 batch, open on November 27th, 2024 and close on January 8th, 2025. Selected companies will participate in the core YC program, receiving funding, mentorship, and resources. YC is particularly interested in AI, biotech, hard tech, and developer tools, although they welcome applications from all sectors. They emphasize their focus on global founders and the importance of the YC network for long-term success.
HN commenters largely expressed skepticism and criticism of YC's x25 program. Several questioned the program's value proposition, arguing that a 0.5% equity stake for $500k is a poor deal compared to alternative funding options, especially given the dilution from future rounds. Others doubted the program's ability to significantly accelerate growth for already successful companies, suggesting that the networking and mentorship aspects are less crucial at this stage. Some criticized YC for seemingly shifting focus away from early-stage startups, potentially signaling a bubble or desperation for returns. A few commenters, however, saw potential benefits, particularly for international companies seeking access to the US market and YC's network. Some also raised the point that YC's brand and resources might be particularly valuable for companies in highly regulated or difficult-to-navigate industries.
Peter Roberts, an immigration attorney working with Y Combinator and startups, hosted an AMA on Hacker News. He primarily addressed questions about visas for startup founders, including the O-1A visa for individuals with extraordinary ability, the E-2 treaty investor visa, and the H-1B visa for specialty occupations. He discussed the requirements and challenges associated with each visa, emphasizing the importance of a strong application with ample evidence of achievement. Roberts also touched on topics such as incorporating in the US, the process of obtaining a green card, and the difficulties international founders face when raising capital. He highlighted the complexities of US immigration law and offered general advice while encouraging individuals to seek personalized legal counsel.
Commenters on the "Ask Me Anything" with immigration attorney Peter Roberts largely focused on practical questions related to visas for startup founders and employees. Several inquiries revolved around the complexities of the O-1 visa, particularly regarding demonstrating extraordinary ability and the impact of prior visa denials. Others asked about alternatives like the E-2 treaty investor visa and the H-1B visa, including strategies for navigating the lottery system. A few commenters also discussed the broader challenges of US immigration policy and its impact on the tech industry, specifically the difficulty of attracting and retaining global talent. Some expressed frustration with the current system while others shared personal anecdotes about their immigration experiences.
The original poster is exploring alternative company structures, specifically cooperatives (co-ops), for a SaaS business and seeking others' experiences with this model. They're interested in understanding the practicalities, benefits, and drawbacks of running a SaaS as a co-op, particularly concerning attracting investment, distributing profits, and maintaining developer motivation. They wonder if the inherent democratic nature of co-ops might hinder rapid decision-making, a crucial aspect of the competitive SaaS landscape. Essentially, they're questioning whether the co-op model is compatible with the demands of building and scaling a successful SaaS company.
Several commenters on the Hacker News thread discuss their experiences with or thoughts on alternative company models for SaaS, particularly co-ops. Some express skepticism about the scalability of co-ops for SaaS due to the capital-intensive nature of the business and the potential difficulty in attracting and retaining top talent without competitive salaries and equity. Others share examples of successful co-ops, highlighting the benefits of shared ownership, democratic decision-making, and profit-sharing. A few commenters suggest hybrid models, combining aspects of co-ops with traditional structures to balance the need for both stability and shared benefits. Some also point out the importance of clearly defining roles and responsibilities within a co-op to avoid common pitfalls. Finally, several comments emphasize the crucial role of shared values and a strong commitment to the co-op model for long-term success.
Summary of Comments ( 10 )
https://news.ycombinator.com/item?id=43406293
HN commenters largely discussed the merits and drawbacks of bootstrapping vs. VC funding. Several pointed out the inherent bias in Jason Bosco's original tweet, noting that he's incentivized to promote bootstrapping as a founder of a bootstrapped company. Others argued that profitability allows for more control and long-term vision, while VC funding enables faster growth, albeit with potential pressure to prioritize investor returns over other goals. Some users shared personal experiences with both models, highlighting the trade-offs involved. A few questioned the longevity of Bosco's "forever company" aspiration in a constantly evolving market. The idea of "ramen profitable," where founders earn just enough to survive, was also discussed as a viable alternative to both VC funding and robust profitability.
The Hacker News post "Are you VC-funded? No, we're profitable" (linking to a tweet about a company proudly proclaiming its profitability) sparked a discussion with several compelling comments. Many commenters expressed appreciation for the company's focus on profitability over growth-at-all-costs, viewing it as a refreshing counterpoint to the prevailing startup narrative. Some highlighted the long-term sustainability and resilience that profitability offers, particularly in uncertain economic times.
Several commenters delved into the nuances of "profitable," questioning whether it referred to gross profit, operating profit, or net profit, and emphasizing the importance of clarifying the specific type of profitability being claimed. Others discussed the potential trade-offs between prioritizing profitability and pursuing rapid growth, acknowledging that while profitability can be a strength, it might also limit a company's ability to aggressively capture market share.
A few commenters shared anecdotal experiences, either from their own businesses or from observing other companies, about the benefits and challenges of bootstrapping versus seeking VC funding. These anecdotes provided real-world context to the broader discussion about different funding models and their implications for company strategy and culture.
Some commenters also touched upon the signaling effect of proclaiming profitability, suggesting that it could be a way to attract a different type of investor or customer, one who values stability and sustainable growth over rapid scaling. There was also discussion about the potential for a shift in investor sentiment, with more investors potentially favoring profitable businesses over those focused solely on growth. Finally, a few commenters offered practical advice for companies aiming for profitability, such as focusing on customer acquisition cost and lifetime value.