RECONSIDER

Key ideas

Hansson urges founders to question the unicorn definition of success, examine why they are starting up, and consider that a small independent business can be enough.

1. 1

   Ask why you are starting up

   Hansson argues that the word startup has narrowed to mean the pursuit of total market domination. He asks founders to examine their own motives instead of accepting a definition of success because everyone is cheering for it. His own were independence, selling directly to people, long working relationships, financial stability and a life beyond work.

2. 2

   Outside money brings more bosses

   Hansson writes that each funding step adds people offering guidance, and that once you take their money the guidance becomes a debt. In his view, independence given up to investors rarely comes back, and that once under way there is no getting off before a crash or an IPO.

3. 3

   Choose your odds, because strategies conflict

   Hansson notes that a 30% chance at $3M and a 0.3% chance at $300M are equal in the abstract. He argues that in practice you generally have to pick one, because the tactics for each often work against the other. He adds that returns on life and meaning diminish past a certain level of financial success, and for many people turn negative.

4. 4

   Sell directly and grow slowly

   Hansson says charging people directly aligns your financial motives with serving users, unlike selling their attention to the highest bidder. He describes Basecamp starting as a side business, waiting over a year before going full time, and building an audience slowly rather than buying one. He also describes aiming for a roughly 40-hour work week.

5. 5

   Discount the story investors tell

   Hansson argues that capital providers act in their own interest and promote the idea that founders need their money. He says the picture is skewed because profitable companies outside venture capital have little reason to tell their stories, while investors need constant publicity. He tells founders the web's low barriers mean there is no real wall of money to get past.

In David’s words

What’s available here

• Original source

  Linked. Opens on the publisher’s site.

• Player on this page

  Not applicable. Written piece; nothing to play.

• Full text or transcript

  Not reviewed. No license to show a text version here.

• Our summary

  Draft. Written by us with AI from the full public text and checked against it; quotes are word for word. Not yet rights-reviewed.

• Ask questions with AI

  Not reviewed. Off until there is licensed text to work from.