> There's really three outcomes to a startup: They die, they get acquired, they IPO.
There's a fourth: they serve the needs of their customers over the course of years and decades. which, as someone in the market for an email client I can fall in love with and use for the rest of my life; is exactly what I want.
It's interesting that this option wasn't even considered.
Why does every startup need to aim to take over the world overnight? Is it not feasible to first take external funding to grow quickly in early stages, and then transition to a more organic growth model once you reach a point of profitability and sustainability (and maybe also slowly buy back shares in the company to eventually become fully autonomous)?
If that was an option, he wouldn't be in YC, half-accidentally or otherwise. Nothing against YC here, but long-term steady-state isn't what they're looking for. Remember that next time you start using a VC-funded tool.
Again, how was that not an option? Why did he have to get into YC? What's wrong with telling them that the type of unsustainable growth isn't right for their business now that they've had a chance to look at things?
Of course its feasible! But is it preferable? No. I want to work on on something for 2-3 years, tops, and then cash out and or move on. I don't want to grind a project for the next 10 years. Life is too short for that.
thats certainly your choice to make, but my point was simply that there is an alternative way to do things. For me, if I could work on my best idea for the rest of my life, and it could go and serve the needs of millions of people (or even just a few thousand) across the globe, that would be pretty cool.
I don't disagree with you at all, but the idea I want to work on isn't going to make me wealthy. I just need enough money in the bank so that basic needs are met, rent is taken care of, and I can go work on fixing homelessness, dysfunctional healthcare systems, etc.
Those are really the only three outcomes for a venture-backed startup
Once you raise venture capital, you have to go big or go home, in the span of a decade. You don't have the "grow slow and stay private" option after raising a Series A.
That being said, this is just the current, common state in VC-backed companies. With the weak IPO market and hostile public environment that forces short-term quarterly thinking, we may see alternatives like formalized secondary markets. Perhaps companies like Uber will be able to avoid going public and still provide liquidity options for their early investors & employees.
There's a fourth: they serve the needs of their customers over the course of years and decades. which, as someone in the market for an email client I can fall in love with and use for the rest of my life; is exactly what I want.