8 ms·

Confessions of a Middle-Class Founder

122 points by caser 3y ago

JackFr 3y ago
Article could be summed up by "Comparison is the thief of joy." The guy has built a successful, profitable company, with satisfied customers and a culture he claims to be proud of. And yet the whole article is him carping.
schnable 3y ago
The tech version of a successful small to medium business, like maybe a regional restaurant group or car dealership. Seems good to me, both for the owners and the broader culture. These owners are the group that keeps the country stable and common sense alive. We can't all have big exits but lots of people can generate enough value to satisfy customers and make a comfortable living with skin the game of society.
- eli 3y ago
  Restaurant group and car dealership owners are what’s keeping common sense alive?
- Solvency 3y ago
  To me the picture perfect software company that meets this archetype is McNeel (who made and maintain Rhino3D). A comparatively niche market NURBs design tool for artists, engineers, and industrial designers. Been in business over 20 years. Constantly improving the software. Everyone treated fairly and making honest and competitive wages. I wish there were far more companies like this than there are.
  - schnable 3y ago
    Bear, Things, and AnyList are software apps I use that are small businesses and provide tremendous value for me.
vjulian 3y ago
Greater social context would be useful. It’s hard to accurately imagine lifestyles denoted simply by “middle” or “upper-middle” class. They are effectively meaningless terms.
- Gimpei 3y ago
  Upper-middle class reads to me like in the top decile at least aka rich.
  - eastbound 3y ago
    To me it means wealthy but without the higher-class connections that makes it easier to get the right kind of expertise when needed.
- _jal 3y ago
  Especially in the US, those are nearly meaningless terms. People from the 1% to 80% call themselves "middle class". All self-described "middle class" status tells us is they're not homeless, and also capable of easily recalling how many homes they own.
  - nineplay 3y ago
    We're in a funny state because calling oneself 'rich' or 'upper class' sounds like bragging even if it is more accurate. If some 6-figure-earner went around calling themselves 'rich' most people would roll their eyes. 'Upper-class' is not much better because 'class' is still a loaded term. Does 'upper-class' mean 'has more money' or 'knows what fork to use' So everyone uses 'middle class' unless they own a jet or an island. It's the safe choice.
    - randomdata 3y ago
      > Does 'upper-class' mean 'has more money' or 'knows what fork to use' It means 'derives their income from capital', just as the working class 'derives their income from labour'. The middle class walk both lines, seeing some of their income come from capital, and some from labour. Realistically, most people talking about class probably are middle class.
ryandrake 3y ago
> I could have tried roughing it without venture funding, what the industry calls “bootstrapping.” The venture world has a condescending label for bootstrapped companies without scale potential: a “lifestyle” business, which roughly translates to: Good for you, now back to the sandbox until you’re ready to play with the big boys. Given my professed aim, this could have made sense. But there was so much funding for the taking, and part of me figured that if I was swinging, I may as well swing big. From this bit (and honestly the whole first half of the article) it sounds this guy just wanted to gamble on the lottery instead of being a businessman. You could replace this guy's bio with that of a professional poker player and not change many words. Did he even want to run a business, or did he just want to spin the wheel for a low-probability chance to turn as little time as possible into as much money as possible? I know this is heresy on a site hosted by a VC firm, but the world needs fewer of these "entrepreneurs" and their gambles and more of those icky "lifestyle people" and their actual businesses that serve people.
- neilv 3y ago
  > From this bit (and honestly the whole first half of the article) it sounds this guy just wanted to gamble on the lottery instead of run a business. Isn't that the norm for the last decade or two of tech startups? (Not being glib here. I really think that's the recognized norm, not a big secret.)
- BoxFour 3y ago
  While it does sound this particular author was just interested in a cash grab, the author and you are both recognizing the stark reality facing many aspiring founders: the choice often boils down to taking a high-stakes gamble with venture capital or settling for the security of a 9-5 job. The current financing landscape offers limited options for those aiming to establish lifestyle businesses in unpredictable markets. One can either secure a small business loan for a conventional business model or take a leap of faith with venture capital—unless, of course, they have the personal wealth to shoulder the financial risk. Edit: While the reasons behind the absence of such financing are clear, it is perfectly valid to feel disheartened by the situation.
  - 3y ago
marklar423 3y ago
Honestly it sounds like this person was a success. Their company is growing and sounds profitable, their customers are happy, and they have a working product. They avoided the "megafunds" and the strings attached to them, and still managed to pay themselves a salary. It's not a smashing unicorn success but it's definitely a success.
- glimshe 3y ago
  Will their definition of success remain static? The danger is that the target number and company size could keep increasing in a sort of hedonic treadmill. I'm still a believer that after a certain, not so big, amount of money, earning more money makes little difference and could even make your life worse. That's at least what I noticed in my own life progression and the life of my friends. Maybe this amount isn't 70K/year as it is often repeated, but it's certainly not 1M/year.
- NickC25 3y ago
  Seriously - they built the company on their terms, have a happy customer base, and don't have a host of Vultures screeching "grow grow grow" in their ear all day. Not every company needs to grow to a 10,000x investment ROI for investors. Let people build companies that serve their local niches, and if it grows organically past that, great. If it doesn't, but the business is healthy, great! There's a local restaurant chain in South Florida where I live that serves an upscale demographic. They have no outside investors but they've grown from 1 location to roughly 23 in under a decade. Their locations are always full and according to a friend of mine who knows the owner, their cash flow is absurd and the business itself is incredibly profitable. I'm sure the owner has had offers to take the brand to other locales like LA or NYC, but is quite comfortable where he is. There's nothing wrong with that! And we as a society need to celebrate large business that scale, but also be able to celebrate when someone builds a great healthy business that serves a niche, and is happy serving that niche without needing to constantly grow just to satisfy investors who by and large aren't part of the communities the business serves. It's OK to build a successful local business!!! Not everything needs to hit hyperscale to be considered a success!
  - 3y ago
renewiltord 3y ago
Actually pretty honest and probably relatable to many. It's interesting to see the shift from the "if you build it, they will come" to the highly refined startup culture now. It was inevitable and now there's a bunch of startups around finding someone who has found PMF but not yet executed to capture the market and then copying them with the hope of out-executing them. A few YC companies even clone your website to chase the same market. It's total shark time out here.
Solvency 3y ago
$6 million in personal wealth is middle class? Woof!
- phone8675309 3y ago
  As painful as it is for some people to hear this - yes, $6 million in personal wealth is middle class. If you have to work a 9-5 for somebody else to survive then you're working class, not middle class.
  - fourseventy 3y ago
    [flagged]
  - encoderer 3y ago
    That is not the traditional definition of middle class in the United States. The traditional American dream was a middle class life: stable career, single income family, house in the suburbs and a nice pension check when you retire. Fair to point out that that is a bygone era and maybe you do need $6 mill now, but maybe we need a different name than “middle class” to describe it.
    - phone8675309 3y ago
      That is the original meaning of the term middle class - a class that does not need to sell its labor to a boss to survive but who is also not part of the idle rich crowd.
      - encoderer 3y ago
        In pre-revolution France, yes. But not in the United States.
        phone8675309 3y ago
        We're rapidly approaching the pre-revolution France when it comes to income inequality and political division.
stork19 3y ago
Fabulously written.
mitchbob 3y ago
https://archive.ph/2023.10.25-160720/https://nymag.com/intelligencer/article/venture-capital-backed-startup-founder-confessions.html https://archive.ph/2023.10.25-160720/https://nymag.com/intel...
j0hnyl 3y ago
I liked the story, but I'm not sure what the moral is. I don't think running a company is really what people mean by "lifestyle business". I also think the author seems just as disappointed to not be rich just as many of us are disappointed to be employees that never experienced an exit either.

122 points by caser 3y ago

Article could be summed up by "Comparison is the thief of joy." The guy has built a successful, profitable company, with satisfied customers and a culture he claims to be proud of. And yet the whole article is him carping.

schnable 3y ago

The tech version of a successful small to medium business, like maybe a regional restaurant group or car dealership. Seems good to me, both for the owners and the broader culture. These owners are the group that keeps the country stable and common sense alive. We can't all have big exits but lots of people can generate enough value to satisfy customers and make a comfortable living with skin the game of society.

eli 3y ago
Restaurant group and car dealership owners are what’s keeping common sense alive?
Solvency 3y ago
To me the picture perfect software company that meets this archetype is McNeel (who made and maintain Rhino3D). A comparatively niche market NURBs design tool for artists, engineers, and industrial designers. Been in business over 20 years. Constantly improving the software. Everyone treated fairly and making honest and competitive wages. I wish there were far more companies like this than there are.
- schnable 3y ago
  Bear, Things, and AnyList are software apps I use that are small businesses and provide tremendous value for me.

vjulian 3y ago

Greater social context would be useful. It’s hard to accurately imagine lifestyles denoted simply by “middle” or “upper-middle” class. They are effectively meaningless terms.

Gimpei 3y ago
Upper-middle class reads to me like in the top decile at least aka rich.
- eastbound 3y ago
  To me it means wealthy but without the higher-class connections that makes it easier to get the right kind of expertise when needed.
_jal 3y ago
Especially in the US, those are nearly meaningless terms. People from the 1% to 80% call themselves "middle class". All self-described "middle class" status tells us is they're not homeless, and also capable of easily recalling how many homes they own.
- nineplay 3y ago
  We're in a funny state because calling oneself 'rich' or 'upper class' sounds like bragging even if it is more accurate. If some 6-figure-earner went around calling themselves 'rich' most people would roll their eyes. 'Upper-class' is not much better because 'class' is still a loaded term. Does 'upper-class' mean 'has more money' or 'knows what fork to use' So everyone uses 'middle class' unless they own a jet or an island. It's the safe choice.
  - randomdata 3y ago
    > Does 'upper-class' mean 'has more money' or 'knows what fork to use' It means 'derives their income from capital', just as the working class 'derives their income from labour'. The middle class walk both lines, seeing some of their income come from capital, and some from labour. Realistically, most people talking about class probably are middle class.

ryandrake 3y ago

> I could have tried roughing it without venture funding, what the industry calls “bootstrapping.” The venture world has a condescending label for bootstrapped companies without scale potential: a “lifestyle” business, which roughly translates to: Good for you, now back to the sandbox until you’re ready to play with the big boys. Given my professed aim, this could have made sense. But there was so much funding for the taking, and part of me figured that if I was swinging, I may as well swing big. From this bit (and honestly the whole first half of the article) it sounds this guy just wanted to gamble on the lottery instead of being a businessman. You could replace this guy's bio with that of a professional poker player and not change many words. Did he even want to run a business, or did he just want to spin the wheel for a low-probability chance to turn as little time as possible into as much money as possible? I know this is heresy on a site hosted by a VC firm, but the world needs fewer of these "entrepreneurs" and their gambles and more of those icky "lifestyle people" and their actual businesses that serve people.

neilv 3y ago
> From this bit (and honestly the whole first half of the article) it sounds this guy just wanted to gamble on the lottery instead of run a business. Isn't that the norm for the last decade or two of tech startups? (Not being glib here. I really think that's the recognized norm, not a big secret.)
BoxFour 3y ago
While it does sound this particular author was just interested in a cash grab, the author and you are both recognizing the stark reality facing many aspiring founders: the choice often boils down to taking a high-stakes gamble with venture capital or settling for the security of a 9-5 job. The current financing landscape offers limited options for those aiming to establish lifestyle businesses in unpredictable markets. One can either secure a small business loan for a conventional business model or take a leap of faith with venture capital—unless, of course, they have the personal wealth to shoulder the financial risk. Edit: While the reasons behind the absence of such financing are clear, it is perfectly valid to feel disheartened by the situation.
- 3y ago

marklar423 3y ago

Honestly it sounds like this person was a success. Their company is growing and sounds profitable, their customers are happy, and they have a working product. They avoided the "megafunds" and the strings attached to them, and still managed to pay themselves a salary. It's not a smashing unicorn success but it's definitely a success.

glimshe 3y ago
Will their definition of success remain static? The danger is that the target number and company size could keep increasing in a sort of hedonic treadmill. I'm still a believer that after a certain, not so big, amount of money, earning more money makes little difference and could even make your life worse. That's at least what I noticed in my own life progression and the life of my friends. Maybe this amount isn't 70K/year as it is often repeated, but it's certainly not 1M/year.
NickC25 3y ago
Seriously - they built the company on their terms, have a happy customer base, and don't have a host of Vultures screeching "grow grow grow" in their ear all day. Not every company needs to grow to a 10,000x investment ROI for investors. Let people build companies that serve their local niches, and if it grows organically past that, great. If it doesn't, but the business is healthy, great! There's a local restaurant chain in South Florida where I live that serves an upscale demographic. They have no outside investors but they've grown from 1 location to roughly 23 in under a decade. Their locations are always full and according to a friend of mine who knows the owner, their cash flow is absurd and the business itself is incredibly profitable. I'm sure the owner has had offers to take the brand to other locales like LA or NYC, but is quite comfortable where he is. There's nothing wrong with that! And we as a society need to celebrate large business that scale, but also be able to celebrate when someone builds a great healthy business that serves a niche, and is happy serving that niche without needing to constantly grow just to satisfy investors who by and large aren't part of the communities the business serves. It's OK to build a successful local business!!! Not everything needs to hit hyperscale to be considered a success!
- 3y ago

renewiltord 3y ago

Actually pretty honest and probably relatable to many. It's interesting to see the shift from the "if you build it, they will come" to the highly refined startup culture now. It was inevitable and now there's a bunch of startups around finding someone who has found PMF but not yet executed to capture the market and then copying them with the hope of out-executing them. A few YC companies even clone your website to chase the same market. It's total shark time out here.

Solvency 3y ago

$6 million in personal wealth is middle class? Woof!

phone8675309 3y ago
As painful as it is for some people to hear this - yes, $6 million in personal wealth is middle class. If you have to work a 9-5 for somebody else to survive then you're working class, not middle class.
- fourseventy 3y ago
  [flagged]
- encoderer 3y ago
  That is not the traditional definition of middle class in the United States. The traditional American dream was a middle class life: stable career, single income family, house in the suburbs and a nice pension check when you retire. Fair to point out that that is a bygone era and maybe you do need $6 mill now, but maybe we need a different name than “middle class” to describe it.
  - phone8675309 3y ago
    That is the original meaning of the term middle class - a class that does not need to sell its labor to a boss to survive but who is also not part of the idle rich crowd.
    - encoderer 3y ago
      In pre-revolution France, yes. But not in the United States.
      - phone8675309 3y ago
        We're rapidly approaching the pre-revolution France when it comes to income inequality and political division.

stork19 3y ago

Fabulously written.

mitchbob 3y ago

https://archive.ph/2023.10.25-160720/https://nymag.com/intelligencer/article/venture-capital-backed-startup-founder-confessions.html https://archive.ph/2023.10.25-160720/https://nymag.com/intel...

j0hnyl 3y ago

I liked the story, but I'm not sure what the moral is. I don't think running a company is really what people mean by "lifestyle business". I also think the author seems just as disappointed to not be rich just as many of us are disappointed to be employees that never experienced an exit either.