
Why 99designs raised $35 million from Accel Partners - pitdesi
http://finance.fortune.cnn.com/2011/04/28/why-99designs-raised-3-million-from-accel-partners/
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calbear81
What is the general consensus in the HN community on the business model of
99designs especially in light of the protests against "spec" work from the
design community at large. There's obviously a market for what they're doing
but would your company consider using 99designs?

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mikx
Building apps for the iOS marketplace is "spec" work. I'm working for free
until someone decides to purchase my app.

Bootstrapping a startup is "spec" work. No one is paying founders anything.

It's a choice to do "spec" work, no one is forcing someone to work for free.
99design is building an amazing marketplace for customers and professionals on
a global level. This will change the way the restrictive nature of supply and
demand in design.

EDIT: When I graduated from college, I worked for free. I bootstrapped a
startup with my savings that failed to support me and then I worked for free
at a development agency doing random projects. From that experience, network,
and portfolio I now am living very well doing contracting work and personal
side projects.

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alanfalcon
For a designer, it's generally a lousy deal. The upside for the iOS apps or a
startup is a lot better than the $300 for winning a 99Designs contest. Yes,
you can build a relationship with the contest holder, but you're starting in
the basement and it's unlikely you'll make any actual money from that
relationship.

That said, it can be good practice for those who need it (and the quality of
available designs typically reflects this).

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mikx
I've watched my friends work hard in basement for months when they were
forming a band. All they got from that work was the chance to play for tips at
a local bar.

There are a lot of designers who are passionate and have amazing potential,
but no access any markets.

It can take months to build an app and startups can take a lifetime to build
into a company.

The upside to all spec work is pretty bleak everywhere, but we do it out of
passion and our audacity.

If it is too lousy of a deal, then 99design wouldn't even exist or be viable.
There would be no startups, everyone would work at major established companies
and Android and iOS would be terribly boring devices with only apps made by
the platform manufacturers.

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suking
Answer: So the founders could cash out.

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staunch
Yeah. Glad to see that was the answer. It's the only one that would make
sense.

