Ask HN: Why does tech industry not have more co-ops?
28 points
23 hours ago
| 7 comments
| HN
Sounds like this should be the default path if AI is really enabling everyone and setting an even field. Why is it just winner (CEO and co) takes all and losers go home?
GianFabien
19 hours ago
[-]
I think it is due to the wide disparity between potential members.

For example, consider an agricultural co-op, e.g. wheat growers. The members of the co-op have farms of differing sizes, use similar techniques, have more or less comparable conditions. They produce grain which has a commodity level set price. The main differentiator between members of the co-op is the volume of grain they produce. But on the basis of the commodity pricing it is a relatively level playing field.

Now consider any tech company. Products have vastly different pricing - ranging from free to millions of $ (or whatever your currency) for enterprise levels. The "producers" vary in capability from newbies to rock-star programmers. Plus you need management to facilitate communications, etc. Everywhere you look, you find disparity.

The closest you get to a tech co-op is a startup with a small group of people who respect one another's contribution and follow a shared vision. Unfortunately as soon as you introduce outside investors inequality seeps in.

reply
Ekaros
3 hours ago
[-]
With co-op burning money gifted by some idiot until you get scale or get bought out does not work. And being bought is much harder exit strategy. As such less people will select such.
reply
redmattred
3 hours ago
[-]
What is the ideal coop structure for a tech business you have in mind?
reply
brudgers
19 hours ago
[-]
Co-ops primarily are a way of funding local infrastructure that serves small businesses and communities when there is not a viable ROI for commercial banks or existing businesses: for example grain elevators, rural electrical service, grocery stores etc.

“Tech” (whatever that is) probably tends not to have cooperatives because it does not have a similar combination of conditions.

reply
micoul81
6 hours ago
[-]
everything is going to change
reply
slater
23 hours ago
[-]
Because unfortunately that (winner takes all) is the world we live in.
reply
conqrr
23 hours ago
[-]
Can't disagree with that. Agriculture, Energy, Grocery, Credit all have co-ops, Yet tech is non-existent.
reply
benoau
22 hours ago
[-]
As they say, money brings out the worst in people - they might rethink if they could scale to 3 billion consumers at relatively little cost and keep the proceeds for themselves.
reply
VirusNewbie
4 hours ago
[-]
Every big tech company gives massive amounts of stock. I would guess more multi-millionaires have been created by Google, Meta, Amazon, and Apple than any other companies or industry ever.

The fastest way for anyone hear to make 7 figures right now would be to join a series D startup and with some luck their stock grants will 2-5x in a year or two.

Levels.fyi did some analysis where it showed the average software engineer who joined Anthropic 2+ years ago are going to be making 10M this year given the valuation increases (and yes they have liquidity events, you don't have to wait for an IPO).

Even for less hocky-stick growth companies, people can make life changing amounts of money for RSU growth.

Personally, even working for a well established company, Over ~3 years, I've made an additional 500k in equity from stock appreciation (not from holding the stock, I mean when granted) beyond what my target compensation was intended.

reply