Episode 632 | Hot Take Tuesday: Figma Exit, Side Project Distraction, No Code Dogma
Oct 25, 2022
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Joining the discussion is Einar Vollset, a savvy thinker in tech news. They dissect Adobe's $20 billion acquisition of Figma and what it means for the startup landscape. The duo debates the merits of focusing on one product versus juggling multiple side projects. Einar shares insights on the quirks of Apple's ad tracking policies and the rise of no-code apps, examining both their potential and pitfalls. They even humorously tackle the great playback speed debate, exploring how we consume content today.
Adobe's $20 billion acquisition of Figma raises concerns about the sustainability of high valuation strategies in tech.
The no-code movement is empowering creators, yet understanding coding fundamentals remains crucial for long-term entrepreneurial success.
Deep dives
Analysis of the Figma Acquisition
The recent acquisition of Figma by Adobe for $20 billion has sparked diverse reactions among consumers and industry observers. The deal, representing a high valuation at approximately 100 times its annual revenue, raises questions about the sustainability and rationale behind such pricing strategies in tech acquisitions. Analysts suggest that while it could be a sound strategic move for Adobe due to Figma's unique collaborative tools, the high cost might face scrutiny from antitrust regulators. Additionally, the implications of combining Adobe's resources with Figma's innovation could dramatically alter the competitive landscape in digital design software.
The Cost of Trying Multiple Products
A tweet by Pierre DeWolf highlights the inefficiencies associated with launching multiple products simultaneously compared to focusing efforts on scaling one successful product. He argues that the energy and resources required to develop several small projects could be more effectively leveraged to enhance one product to a more substantial revenue milestone. Founders and indie hackers often chase novelty, leading to fragmented attention and a lack of depth in product development, which can result in higher churn rates and difficulties in achieving product-market fit. Understanding the opportunity cost of diversifying too early can guide entrepreneurs toward more strategic decision-making about their growth efforts.
No Code and Bootstrapping Doctrine
The rise of the no-code movement has resulted in a dogmatic following that sometimes overshadows the practical application of coding skills. Discussions highlight that while no-code tools empower many to launch products without extensive technical knowledge, there remains significant value in understanding coding principles. This perspective emphasizes that no-code tools can be seen as a stepping stone rather than an endpoint, potentially limiting users' growth if they do not learn the fundamentals. The discourse suggests that achieving entrepreneurial success requires a balanced view of tools and techniques, rather than adherence to strict methodologies.
Apple's Advertising Strategy Shift
Apple's anti-tracking policies have positioned the company to potentially expand its own advertising services while limiting third-party ad revenues. With the growing dominance of Apple devices, leveraging user data for targeted ads could present a lucrative opportunity for the tech giant. Industry insiders believe Apple could frame this as a consumer protection initiative while simultaneously capturing a significant share of the advertising market. As competitors like Facebook and Google face increasing scrutiny and operational challenges, Apple's strategy may not only reshape its business model but also incite regulatory challenges surrounding antitrust issues.
In episode 632, join Rob Walling and Einar Vollset for Hot Take Tuesday, where they analyze and discuss some of the latest news. Some topics covered include the Figma exit, side project distractions, no-code apps, and more.
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Topics we cover:
2:35 - Adobe acquires Figma
8:20 - Growing one product to $20k MRR vs. launching a bunch of side projects
If you have questions about starting or scaling a software business that you’d like for us to cover, please submit your question for an upcoming episode. We’d love to hear from you.