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- Company X makes a product

- Product become popular

- Company X takes VC money/get aquired

- Company Y makes an alternative product that is cheaper and maybe Open Source

- Company X makes product worse due

- People switch to product from company Y

- Now repeat everything, but Company Y is now Company X.

Not long ago, Figma was Company Y in this cycle.



A few years later: “Sparky, Open Source Penpot alternative, raises $128M in funding”


this funding agreement came months ago, the FigmaGate had nothing to do with it. I'm surprised how many people think deals like this can happen in just a week, LOL!


I mean...no one is implying that those two are related. The point is that this is the cycle.




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