We need a middle class for startups (neilthanedar.com)

Article summary

The article discusses the need for a middle class of startups, arguing that the current focus on bootstrapped or VC-backed companies leaves out a significant segment of businesses with $10M-$1B in annual revenue. The author proposes creating a studio and fund to build and buy these types of businesses, which they term 'Mittelstands'. The goal is to provide an alternative to the traditional VC model and create a more stable and fair economy. The author draws on their own experience with successful Mittelstand businesses to make the case for this approach.

Main themes

• Mittelstand businesses
• VC funding
• lifestyle businesses
• startup culture
• economic stability
• business models
• investment strategies

What commenters say

• Some commenters argue that the concept of a 'lifestyle business' is being rebranded or misunderstood, and that many successful businesses can be built without VC funding.
• Others disagree, pointing out that the definition of a 'lifestyle business' is unclear and can be subjective.
• There is a need for a more nuanced understanding of businesses that fall between the categories of small, lifestyle businesses and large, VC-backed companies.
• The idea of building a portfolio of Mittelstand businesses to achieve top-tier VC returns is met with skepticism by some, who argue that the math does not add up.
• The concept of Mittelstand is not well-defined, even in its country of origin, Germany, and can encompass a wide range of businesses.
• Some argue that the focus on VC-backed startups has created a polarized and absolute definition of what it means to be a successful business, and that this needs to change.
• The example of Berkshire Hathaway, which started as a small business and grew into a large conglomerate, is cited as evidence that small businesses can become successful without VC funding, but this is disputed by others.