{"id":9419,"date":"2020-10-26T11:31:33","date_gmt":"2020-10-26T09:31:33","guid":{"rendered":"https:\/\/www.dazzlepop.net\/site\/?p=9419"},"modified":"2020-10-26T11:31:38","modified_gmt":"2020-10-26T09:31:38","slug":"was-quibi-the-good-kind-of-startup-failure","status":"publish","type":"post","link":"https:\/\/www.dazzlepop.net\/site\/was-quibi-the-good-kind-of-startup-failure\/","title":{"rendered":"Was Quibi the good kind of startup failure"},"content":{"rendered":"
\"Was<\/div>\n

Was Quibi the good kind of startup failure<\/h3>\n\n\n\n

Startup <\/a>failure is easy to hold up as a type of martyrdom for progress, especially if the founders are starting out scrappy in the first place and trying to save the world. But heroic narrative gets complicated when the startup failure involves the biggest names in entertainment, dubious product decisions, and well over $1 billion in losses in an already very competitive consumer tech subcategory.<\/p>\n\n\n\n

I was going to skip any mention of Quibi because, like me, you have heard more than enough already. But this week its shutdown announcement<\/a> turned into a debate on Twitter about the nature of startup failure and whether this was still the right kind. Many in the startup world said it was still good, basically because most any ambitious startup effort leads to progress. Danny Crichton, in turn, argues<\/a> that the negativity was fully justified in this case.<\/p>\n\n\n\n

Let\u2019s be honest: Most startups fail. Most ideas turn out wrong. Most entrepreneurs are never going to make it. That doesn\u2019t mean no one should build a startup, or pursue their passions and dreams. When success happens, we like to talk about it, report on it and try to explain why it happens \u2014 because ultimately, more entrepreneurial success is good for all of us and helps to drive progress in our world.<\/p>

But let\u2019s also be clear that there are bad ideas, and then there are flagrantly bad ideas with billions in funding from smart people who otherwise should know better. Quibi<\/a> wasn\u2019t the spark of the proverbial college dropout with a passion for entertainment trying to invent a new format for mobile phones with ramen money from friends and family. Quibi was run by two of the most powerful and influential executives in the United States today, who raised more money for their project than\u00a0other female founders have raised collectively this year<\/a>.<\/p><\/blockquote>\n\n\n\n

Ouch. However, I think this still misses the bigger dynamic happening.<\/p>\n\n\n\n

Quibi was so easy to criticize that it created an opportunity to plausibly defend for anyone who wants to show that they are here for the startups no matter how crazy. When you defend Quibi, you\u2019re defending your own process, and making it clear to the next generation of startups that you\u2019re personally not scared off from other people with crazy ideas and have the will to try even if the result is a big mess. Which is who founders want to hire in the early days, and who investors want to bet on.<\/p>\n\n\n\n

I support both sides of this mass-signaling game. Analysts and journalists have provided a broad range of valuable insights about how Quibi was doing it wrong, that are no doubt being internalized by founders of all types. Meanwhile, Quibi defenders are no doubt sorting through their inbound admirers for great new deals. All in all, Quibi and the debate around it might ultimately make future companies a little better. Which is what we all wanted in the first place, right?<\/p>\n\n\n\n

\"Was<\/figure>\n\n\n\n

Image Credits:<\/strong> Larry Knupp (opens in a new window)<\/a>\/ Shutterstock(opens in a new window)<\/a><\/p>\n\n\n\n

Root Insurance plans pricing as Datto goes public<\/h2>\n\n\n\n

The IPO market has not shut down (yet) for election turmoil and whatnot. First up, managed service provider Datto went out on Wednesday and has inched up since then \u2014 a strong outcome for the company and its private equity owner, even if third parties did not benefit from an additional pop. A few more notes from Alex Wilhelm<\/a>:<\/p>\n\n\n\n

Datto\u2019s CEO Tim Weller  told TechCrunch  in a call that the company will still be well-capitalized after the public offering, saying that it will have a very strong cash position.<\/p>

The company should have places to deploy its remaining cash. In its S-1 filings<\/a>, Datto highlighted a COVID-19 tailwind stemming from companies accelerating their digital transformation efforts. TechCrunch asked the company\u2019s CEO whether there was an international component to that story, and whether digital transformation efforts are accelerating globally and not merely domestically. In a good omen for startups not based in the United States, the executive said that they were.<\/p><\/blockquote>\n\n\n\n

Read more: https:\/\/techcrunch.com\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Was Quibi the good kind of startup failure Startup failure is easy to hold up as a type of martyrdom for progress, especially if the founders are starting out scrappy in the first place and trying to save the world. But heroic narrative gets complicated when the startup failure involves the biggest names in entertainment, […]<\/p>\n","protected":false},"author":3,"featured_media":9421,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_vp_format_video_url":"","_vp_image_focal_point":[],"footnotes":""},"categories":[29],"tags":[31,238,960,11,923,711],"class_list":["post-9419","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-startup","tag-business","tag-entrepreneur","tag-quibi","tag-startup","tag-startup-life","tag-techcrunch"],"yoast_head":"\nDazzlepop | Was Quibi the good kind of startup failure<\/title>\n<meta name=\"description\" content=\"Was Quibi the good kind of startup failure Startup failure is easy to hold up as a type of martyrdom for progress, especially if the founders\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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