Disrupted: My Misadventure in the Start-Up Bubble

Disrupted: My Misadventure in the Start-Up Bubble

Dan Lyons

Dan Lyons, a journalist with a respectable career covering technology accidentally started working at a start up. He finds a lack of transparency on decision making, a dysfunctional culture and some serious time-wasting; it’s depressing until he realises that it’s great source material and recasts himself as a cultural anthropologist. The result is this book.

Lyons has form for subversive writing, he was the writer behind the Fake Steve Jobs blog. In Disrupted he covers his own motivation for joining a startup; financial and curiosity – but mostly financial. He tried to pitch good ideas, and tried to understand what he was working with. Most of the book is his memoir of the year and he’s funny about his time at Hubspot, he takes shots at the company including the paradox of a company supposedly dedicated to automating sales having a high pressure telephone sales team. He explains the drive for growth and connects it back to the venture capital.
financial instrument

Disrupted covers the economic downside of the startup/digital industry with a personal perspective, fantastic wit and a healthy irreverence. He has the highly evolved bullshit meter of a journalist. I think reading this made it easier for me to digest and comprehend the more theoretical discussion in Throwing Rocks at the Google Bus, which I read at roughly the same time.

It’s an entertaining book, with interesting commentary on the startup industry, and he adds his voice to the call for more diversity across the digital world. You can read an excerpt of the book on Fortune – it’ll give you a feeling for his year at Hubspot and a taste of the humour of the book. Reading the excerpt was enough for me to want to buy the book.

Unicorn

CM2016_07_Unicorn

The unicorns of my childhood were mythical, rare and wonderful beasts. Today’s unicorns are young companies that have a valuation of 1 billion USD. That might sound like something rare and wonderful, but Venture Beat magazine lists hundreds of them, with Uber leading the list in terms of valuation. Most of the companies rely on digital technology in their business model, without it their business could not scale.

So where did the term come from?

A Techcrunch article in 2013 reported on 39 companies that had been founded in the previous ten years and were valued at more than 1 billion USD. Unicorns were rare, representing 0.07% of internet related companies funded per year.

Aileen Lee, the woman behind the Techcrunch article and who is credited with coining the term, sees that the rise in unicorns may have peaked for this wave of technologies.

But what do the companies make that is so wonderful? Most exploit the possibilities of “platform economics“, rather than make something, these companies connect supply with demand. Think of airbnb which is in the lodging services business without owning a single bedroom. Rather than building hotels and then selling those rooms to guests, airbnb offers a platform for the supply side (people with spare rooms) to offer accommodation directly to the demand (visitors to the city). These platforms are often said, in approving tones, to be “disruptive”, meaning that they change an existing industry. In many cases regulators have stepped in to limit that change, for example Amsterdam City Council limits the time allowable for rent to two months per year.

We look set to have continued disruption, and while a few experts are predicting dead unicorns on the horizon it seems we’ll see a growing number of unicorns, decacorn (companies valued at more than 10 billion) and hectacorns (companies valued at over 100 billion) for a while yet. Perhaps we are, as Fortune magazine suggest finally in the age of the unicorns.

Image: Unicorn  |  Yosuke Muroya  |  CC BY-NC 2.0