37signals on Angels and Entrepreneurs
28 02 2006Ok, so I’m a year late to the party reading this post on startups, investors, and launching by 37signals’ code wunderkind David Heinemeier Hansson, but it’s still a darn good read, regardless.
The more that I understand about the business side of software, the less convinced I am of the value of investor money for many startup models. In one sense, it’s always nice to have validation of your ideas, team, self, etc., and people throwing money at you is definitely a sign that those folks think your idea/team/self is/are good. Having been at a few startups and having helped launch several others, it’s apparent that those folks with the cash are typically clueless as to the viability of your idea.
That is not to say they are stupid or didn’t do their due diligence, but the investor may not be an expert in the startup’s industry. They rely on the narrative the founders tell in the business plan, attempt to poke some holes in that, and then if they think there is an opportunity, they go after it. As an outsider Chicagoan who’s watched 37signals grow, they made a transition from a consulting services company to a software as service company with some consulting. I don’t know if this was something they planned on or something that occurred, but it is a fairly unique situation. If you were starting at ground zero, with neither a company nor a product, which would you develop first?
Hmm, I lost the thread of my thoughts. Time to go back to the research on accessibility and AJAX.
Categories : General, media, user centered design





