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Startups For the Rest of Us
Episode 707 | Once.com, Open Source to FT Income, and More (Hot Take Tuesday)
Apr 2, 2024
Tracy Osborn, a keen insight into SaaS trends, and Einar Vollset, a startup buyout expert, dive into the launch of Once.com and its controversial one-time sale model. They unpack the intricacies of liquidation preferences that can leave founders in a tough spot during acquisitions. The pair also discusses how open-source projects can transition into sustainable income sources. Additionally, they ponder whether building a startup is truly a hard endeavor compared to lifestyle businesses, highlighting essential strategies for aspiring entrepreneurs.
37:08
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Quick takeaways
- Once.com's model of one-time software sales challenges traditional SaaS approaches, as it lacks ongoing support and updates essential for most businesses.
- Understanding liquidation preferences is crucial for founders, as these terms can significantly affect their payout during startup acquisitions.
Deep dives
The Viability of One-Time Software Sales
Once.com presents a software option that allows users to purchase downloads instead of relying on a subscription model. This approach creates an appealing alternative for smaller teams that possess the technical skills to manage installations independently. However, this model may not fit the needs of most businesses accustomed to software-as-a-service (SaaS) arrangements, which typically offer ongoing support and updates. The challenges of providing adequate support for one-time purchases and ensuring user satisfaction are significant drawbacks that make SaaS still more attractive for the larger market.
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