Ah, I see you have figured it out the thing that has always been the case.
- it demonstrates they have funding (pre-empting "no-one will fund something weird like this")
- its transparent and open (pre-empting "which bastards are the ones who really own it?")
Investors can be good for funding but they can also be good for education. Later, they're also very good for strategy.
> What happened to the good old way of figuring out product market fit first? Is that the only way a product can succeed nowadays
Generally it's very challenging. I have two products I'm building this way and you face a lot of up-hill climb where people with VC backing are getting the door opened for them. Of course, because of those same pressures to deliver and succeed, it's equally possible those same doors will eventually get closed on them.
I think Mitchell also lives in a bit of a bubble now. He went from friendly open source guy to very rich friendly open source guy. That's no knock on him, but I would consider viewing business from the perspective of someone who has been a CEO, CTO, and IC at the same company (his company) as his only job who became insanely wealthy as a result. I have a friend who has largely only worked in big tech, and successful startups, who tells me all the time level and salary don't matter to him. They don't matter to him because he found success early. Again, not a knock but sustained success will shape how you view the world and how you play the game.
Insert "It always was" meme
Something something "never spend your own money if you can spend someone else's money." That plus the perception of having those specific investors gives the idea/business fast authority/prestige.
It's not the gangster move, but it's a move.
That was my question, too. Does Mitchell even need to take outside funding? I get why you would prefer to use others' poker chips instead of your own, especially if they're happy to give them to you, but usually funding comes with strings attached.
Superlogical (allegedly) uses it for the multiplexer.
Mitchell Hashimoto is just the icing on the cake and he has a track record of building defining dev tools used by millions of devs.
So it makes sense why you see 15 angel investors.
More money / investment in the dev tool space is great for everyone!
I'm also not doubting that there would be tons of investors throwing themselves at him for a new venture like this.
But why, apart from forced market access would it be in his interest to take that money, given that he can nicely fund it for a few years with ~1% of his net worth if not for forced market access?
It said they are funded, but it doesn't mean they lost control or have to be VC hyper growth. Apart from Notable Capital and Amplify Partners all others are individuals. There are lots of benefits having these group of company founders and CEO as investors. They are likely interested in the problem space as well.
Had it been hyper growth startup you would be looking at a16z or other bigger names.
2. Recruiting - many people would be wary of working on a rich guy's pet project. Taking investment makes it more of a real company that has to deliver something and is not subject solely to the whims of one person.