This Week in Startups

David Heinemeier Hansson (DHH) on the ‘Post-SaaS era' | E1856

Dec 1, 2023

David Heinemeier Hansson (DHH), Co-founder of Basecamp and creator of Ruby on Rails, discusses the future of SaaS, alternative cost structures, challenges of remote work, internal culture struggles at Basecamp, and the importance of branding and domain names for startups.

01:21:37

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Episode guests

David Heinemeier Hansson (DHH)

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Episode notes

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Quick takeaways

Startups are recognizing the potential of AI and remote work, leading to a shift in business formation and operation.

There is a growing trend towards software products that can be purchased and owned outright, challenging the dominance of SaaS models.

There is a push for decentralization in the tech industry, driven by a desire to embrace the original vision of the internet.

Deep dives

Startups embracing AI and remote work

More startups are recognizing the potential of AI and remote work, leading to a shift in how businesses are being formed and operated. Entrepreneurs are realizing that they can achieve success and effectiveness as individual entrepreneurs by harnessing the power of AI and embracing remote work. Additionally, the traditional approach of raising large amounts of funding is becoming less viable for many startups, leading to a shift towards more lean and self-sustaining models.

Introduction

4min

The Shift from SaaS to Product Businesses

6min

Absurd Pricing and the Importance of Compliance for Software Sales

2min

The Importance of Branding and Domain Names for Startups

8min

Changing Cost Structure in Startups, Importance of Business Insurance, and Remote Work

2min

Opportunities and Challenges of Remote Work for Startups

6min

Order of Magnitude Advantage and Startups

6min

Constraints, Creativity, and Conservative Growth

26min

Creating Gods and Embracing Optimism

21min

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Today’s show:

DHH joins Jason to discuss a post-SaaS world and Once.com (2:29), the evolving landscape of remote work (21:31), navigating internal culture struggles at Basecamp (32:53), and much more!

Timestamps:

(0:00) DHH joins Jason

(2:29) David discusses his new SaaS alternative Once.com, which charges a one-time fee rather than a recurring subscription

(10:44) Vanta - Get $1000 off your SOC 2 at https://vanta.com/twist

(11:50) David's philosophy on copyrighting

(20:17) Embroker - Use code TWIST to get an extra 10% off insurance at https://Embroker.com/twist

(21:31) The evolving landscape of remote work

(31:46) Equinix - Join the Equinix Startup Program for up to $100K in credits and much more at https://equinixstartups.com

(32:53) The state of fundraising and DHH recounts Basecamp's internal culture struggles

(49:03) Should AI progress should be accelerated or slowed down?

(1:08:08) How willful exposure to hardship can build grit and resilience.

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