Top
Best
New

Posted by doppp 2 days ago

The profitable startup(linear.app)
241 points | 84 commentspage 2
bingemaker 2 days ago|
Having lots of money to throw at moonshot problems is always important. The current breakthrough of the 2020s is LLMs. I wonder if such breakthroughs can be achieved with this kind of approach.
sergioisidoro 2 days ago||
> investors are quite interested in profitable companies that also grow fast.

I'm gonna dispute this. We're currently profitable, and to do so our growth is just "good" (80-100% yoy). We're also raising a smaller amount because we want to return to profitable as soon as possible, and repeat the cycle. Being profitable hasn't been a big selling point in our discussions.

Either our growth is not high enough, or our round is not big enough, as they are so used to seeing ridiculously inflated projections from the last decade.

Furthermore being profitable also removes a lot of leverage from investors. That might make them shy away from a discussion because they know they can't twist out arm as easily.

I agree tho, I wouldn't want to build our company any other way than being profitable. Just saying that being profitable is not something investors seem to like as much as we thought.

alberth 2 days ago||
48 Comments | 8-months ago

https://news.ycombinator.com/item?id=43130480

masterzachary 2 days ago||
The boot strapped startups I've seen that have had this holier than thou attitude that they are somehow selecting the best engineers by only having a tiny team have always had the absolute worst tech, the worst engineering, the worst leadership and usually also the worst processes that I've ever encountered.
jmtulloss 2 days ago||
Linear is a venture funded company
comradesmith 2 days ago|||
Yeah, but they know how to make money
madaxe_again 2 days ago|
Being profitable is no bad thing - but you can be too profitable, too.

My startup, my cofounder was obsessed with profitability - I was far more focussed on growth. In theory, not a bad balance - but in practice, his drive towards profitability meant that we ended up underinvesting in the business - millions of pounds sat in our coffers that could have gone to hiring, could have gone to maintaining and building upon our core mission rather than focussing on a profitable sideshow - and in the end, while the business still exists, it is now Just Another Agency, rather than the tech startup it once was.

Anyway. These days I run my own affairs, and place emphasis on long term growth and keep short term profits to the absolute minimum needed to live well enough.

It’s good to make a profit - but business should be viewed as any investment should be - let it compound.

joeiq 2 days ago||
Very good point. Some profitability while maintaining alignment with core principles is an excellent outcome too.
willsmith72 2 days ago||
totally agree with this, operating cash flow positive + internal reinvestment seems like the best mix for an early software company