this post was submitted on 15 Mar 2024
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I often wonder exactly what the pathway is to a company growing in response to a huge influx of cash.
It seems like a company could simply not let itself be transformed, but it never happens.
Why not? Is it in the nature of people who run companies that they can’t constrain themselves from 10x-ing the staff? Are there Men in Black type folks who show up and start threatening you if you don’t try to grow the company?
I mean generally I think it's cause the people who start these more creative focused companies like video games have a bunch of things they want to do but can't because of money. But when they get lots of money suddenly they're able to do all these cool ideas and hire the staff to make them happy. Then just naturally as companies get bigger they become harder to manage and the CEO who probably was just wanting to do creative stuff now is managing stuff instead so a new CEO comes in and that's when things start to become more profit focused and start to go bad. Or just when the original owners get greedy and take it public to try and make even more money.
Generally that’s true but there are outliers. Valve for example continues to rake it in while not turning immensely shitty. (Not saying they aren’t without issue, but they are vastly better than many others in the industry)
Similarly, the route that Hello Games took. They started off with an unfinished product rushed to market, but took the money made and invested back into NMS, continuing to release big free expansions to this day.
I think a big part is “don’t go public.” As soon as you go public, your dedication is no longer to your product / your customers, but to quarterly growth / gains for shareholders
I wonder if there are other forces analogous to that public stock commitment, even with private stock. When I’ve been in startup circles, I’ve met people who are “money experts” who have like zero conception of what quality is, or even the joy of work. It’s like a blind spot in their mind.
What I want to know is how do these people worm their way into positions of control? Is it a CEO getting invited to rich people dinners and they slowly get talked into what they “have to” do now that they’ve got big money? “Oh you’ve got to hire Dave he’ll help you navigate this money thing” and then Dave is soulless ghoul?