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You don't "do business with startups". You do business with other businesses, and expect them to be serious about their propositions.


You can't will away the extra risks carried by immature businesses. This isn't a moral issue. Some companies mature and stabilize around viable businesses; most don't.


if you're talkinga bout a b2b transaction, no. your business negotiates your terms well with the startup to ensure you're innovating but not going to be significantly impacted if the startup goes under.

In semiconductor startups, you sometimes need to secure "second source" agreements with a bigger business (that could be your eventual acquirer ) that assures they'll takeover manufacture your existing silicon if they go down.

In our case we had a second-source partner until our acquisition that had "rebadged" parts available. It was annoying, but it's sometimes the only way for a startup to sell to big multi-million dollar customers.




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