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Comment by ngrilly

5 hours ago

I'm afraid this is a form of reversion to the mean. Successful startups are made of exceptional people: the founders, the initial investors, the first employees, the first clients. But when they get acquired by much larger companies, they are necessarily diluted in pool of people that are more "normal", less exceptional. This includes the customer base that is more "normal" as well. Slowly but surely, the extraordinary product/service the startup has been developing reverts to the mean. This is quite sad, because it feels inevitable. I'd like to know how to avoid it.

“I'd like to know how to avoid it.”

To paraphrase a popular quote from IBM: “Executives and MBAs can never be held accountable: therefore executives and MBAs must not be allowed to make decisions.”

Slightly less flippant: The only way to stop this is to stop letting companies like MSFT gobble up smaller companies. That doesn’t seem likely in the near future, though. Once the Borg assimilate something, it’s just a matter of time before it’s digested and drained of value.

That could be A problem, but to me THE problem is that the larger companies buy these smaller companies for resource extraction, not to make the product better.

In this frame you can see that making the product worse (paying less for its upkeep) and raising prices are just two sides of the same coin - extract more resources.

Almost no big company has any reason to shepherd a product in a way that's beneficial to its users because they have so much momentum that even changing their approach either costs too much money or those in power are too insulated from the outcomes (fix it for me or I will fire you while I continue to make bad choices and under fund the product).

It's not inevitable that the founders have to sell to big tech. They wanted money more than the excellence of the craft. They got the money, the company got to grow and made way more profit than when it was small scale but excellent. The wheel keeps turning.