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mikeokner | 6 years ago
Maybe. I took it slightly differently. They received negative feedback after a 10 minute pitch, and immediately dropped everything to change their product & strategy to appease a potential investor.
Was monetizing in this manner at this moment the right strategy for them? That's a pivotal decision to make and not one I'd throw together at 2 am to try impress a party with no skin in the game.
glangdale|6 years ago
It's not like YC told them "put on a chicken suit and dance in front of our headquarters and we might consider you".
Monetizing and finding out whether there's anyone willing to actually pay for the product is a straightforward move. They weren't building a social network or something with a massive network effect. Putting off the terrifying discovery ("hey, will anyone pay for this?") in their case may just have been procrastination - and YC's rejection may have been a useful trigger to end it.
dyeje|6 years ago
hluska|6 years ago
In your favour, the strategy was successful and they grew to $5k MRR in four months with estimates suggesting they'll hit $100k in recurring annual revenue by the end of the year. It worked so it's hard to criticize it.
But, what if it hadn't, or what if the founders were in a different situation where they had a bigger team? Last minute "we have to do this now" decisions are often wrong. When they're not, they often result in some really ugly code that will be tough to maintain. Further, they can be hard on morale.
Chances are that the founders had this type of conversation and talked about the risks while they were brainstorming. It almost sounds like they had debated this in the past. Those kinds of debates are very valuable and I think that founders need to talk about how a new feature can go bad.
hinkley|6 years ago
Some investors may be attracted to this kind of behavior, and I fear they are also the least pleasant to work with. Things can get a little exploitative sometimes.