[HN Gopher] Pre-seed, seed startups with employees in office hav...
       ___________________________________________________________________
        
       Pre-seed, seed startups with employees in office have higher
       revenue growth
        
       Author : npalli
       Score  : 92 points
       Date   : 2023-02-14 14:01 UTC (8 hours ago)
        
 (HTM) web link (steveblank.com)
 (TXT) w3m dump (steveblank.com)
        
       | jasonlotito wrote:
       | Should also note: "In Offices" includes "Associated with an
       | office, but work from home; available as needed."
        
       | newaccount2021 wrote:
       | [dead]
        
       | jdulay19 wrote:
       | As others have said, the small sample size in this really quite
       | silly.
       | 
       | I would also add, companies raise more for in-office in the first
       | place - most are in the Bay Area, more need to pay more to
       | justify in-person to employees with options -> more funding
       | needed, etc ..
        
       | duxup wrote:
       | I work at a small company, not a start up. I work from home 3 out
       | of 5 days a week, but having said that:
       | 
       | When I am in generally most of us sit around a conference table
       | and work together when we are in the office. All but one of us is
       | generally at the table when we're in the office.
       | 
       | It works great, we can work fast and efficiently, I can overhear
       | things other people have to say and so on. There's lots of things
       | that happen fast and on time because we're all right there.
       | 
       | Having said that this is all OPTIONAL. It works for all but one
       | guy and I think that is part of what makes it work.
       | 
       | Too many folks out there want a one size fits all deal and forget
       | about the team part of team...
        
       | shmatt wrote:
       | This is too easy. Some forced office time means you have
       | employees from a big tech hub working for you. Fully remote seed
       | stage companies aren't paying anything close to paying rent in
       | Sunnyvale or NYC.
       | 
       | If you broke this down hiding the office situation, comparing
       | startups from Kansas or Minnesota to seed stage startups in SV or
       | Seattle, guess who would grow faster
        
       | tarokun-io wrote:
       | I've worked both 3-persons startups twice, once all sharing an
       | apartment (with this exact reasoning: being together should make
       | us more productive or increase motivation), one other time
       | completely remotely.
       | 
       | In both cases, no member of the team know anyone else before
       | joining the team.
       | 
       | Guess which one was more performant? The remote one. By an order
       | of magnitude.
       | 
       | Two examples are anecdotal data, but so are 37 IMO. It almost
       | feels like the title of the article was written before the
       | experiment was done.
        
       | WaitWaitWha wrote:
       | Could it be that the specific seed companies that "[m]ost roles
       | required to work a traditional in-office work week" were involved
       | with business idea that had a better chance in succeeding,
       | because of market conditions and product demand?
       | 
       | That is, maybe the seed companies that did better with in-office
       | had tangible products, versus no-office seed companies did not -
       | and at this time the market wants tangible products?
       | 
       | edit: i.e., are the all software development firms? Are they all
       | widget making companies? All service companies?
       | 
       | (why is it so hard today to express what I mean?)
        
         | colinmorelli wrote:
         | I think I can summarize this for you:
         | 
         | The conclusion in the article might be true, but for
         | innumerable reasons the study was flawed and its results
         | shouldn't be taken seriously.
        
       | ElfinTrousers wrote:
       | "The survey sample size was 37 companies from the Reach Capital
       | portfolio. That's large enough to see patterns"...[citation
       | needed]. n=37 is skimpy.
        
         | blackbear_ wrote:
         | Statistically speaking, n>=30 is indeed considered a "large"
         | sample, but that is assuming the examples are iid (independent
         | and identically distributed) which is definitely not the case
         | here.
        
         | PeterisP wrote:
         | If the effect size is this large, then n=37 is perfectly
         | sufficient to assert that the effect exists; however, the issue
         | is about sample selection, as "n companies from the Reach
         | Capital portfolio" can't be reasonably considered to be a
         | representative sample of all startups, so it can't be assumed
         | that the conclusions can be extrapolated beyond the niche of
         | startups like these which Reach Capital selects to fund,
         | perhaps it depends on location or domain or size or other
         | characteristics which affect what Reach Capital funds.
        
       | webjunkie wrote:
       | > Working from home may offer more distractions by chores,
       | family, network issues. Do those little things add up to
       | meaningful productivity differences?
       | 
       | When you say "more", you have to compare both sides. Working in
       | an office "distracts" me with noise, questions by others,
       | spontaneous meetings, socializing in general, as well as other
       | interruptions. I find it always baffling that in such arguments,
       | the office is per default fine, and it's always remote which is
       | the culprit.
        
         | baidifnaoxi wrote:
         | This. Offices are hugely distracting. All sorts of things to
         | take your attention away and add the hierarchy element and your
         | are obligated to talk to higher ups if the "swing by"
        
         | dexterdog wrote:
         | Plus they don't mention the commute time which can be a good
         | palette cleanser if if is just the right length, but also can
         | be a massive waste of time and stress-inducer.
        
           | [deleted]
        
         | naravara wrote:
         | Personally I think almost all of my distractions while working
         | at home would go away if I could afford a maid or just had more
         | spare time and energy for housework. So really the issue isn't
         | "the home" so much as the fact that my home is in disarray
         | because I have too much to do.
        
           | JustSomeNobody wrote:
           | You don't need a maid. Start small. The habit will build.
        
             | naravara wrote:
             | I'm a parent. I need a maid.
        
               | disgruntledphd2 wrote:
               | Just get a cleaner 2-3 times a week. As long as you can
               | tidy first, they'll be able to clean stuff, and
               | specifically get all the annoying stuff done (fllors,
               | bathroom etc).
        
         | JustSomeNobody wrote:
         | I've been WFH full-time for about a decade. When I'm at work,
         | I'm at work[0]. I don't do chores during work hours. I have
         | fewer network issues than the workers who work at the office
         | do. Family doesn't distract because if they happen to be home
         | there's another adult home too and they know not to disturb
         | unless it's important (and they would be contacting me at the
         | office for this same issue).
         | 
         | Are these idiots saying the quiet part out loud - that _they
         | 're_ completely distracted while working and don't have the
         | discipline to fix it?
         | 
         | [0] Except HN during brain breaks.
        
           | foobarian wrote:
           | I found that WFH and certain chores go really well together.
           | The trick is to use the "get up and walk around" time you're
           | supposed to allocate to push forward asynchronous tasks like
           | dishwasher or laundry. You're like a human reactor thread
           | :-). Then things like Pomodoro timers help as well.
        
           | [deleted]
        
       | alirob69 wrote:
       | I read a study that ranked productivity as going: 1) Hybrid; 2)
       | Remote; 3) In-office.
        
       | destitude wrote:
       | Since these were all education related would be helpful to know
       | exactly what that means since that could also directly affect
       | this result.
        
       | helmsb wrote:
       | Revenue of a startup is no where close to being a reliable
       | measure for such a small sample size. Give me any variable and I
       | can make a similar graph to prove anything you want. Correlation
       | != causation.
        
       | eweise wrote:
       | Personally I could care less which is more productive. My life is
       | much better working from home. I've optimized for founders wealth
       | at my own expense for too much of my career. Stock options are a
       | gimmick. 90 days to vest after leaving? "Unlimited" vacation.
       | Tiny little desks squished together. No thanks.
        
       | [deleted]
        
       | crsv wrote:
       | Did they control for industry? When looking at something like
       | revenue you so much of your outcomes at early stages are
       | functions of externalities as much as they are from how you
       | organize and operate. Did they control for business model? This
       | sample just seems super unrepresentative and cherry picked for an
       | outcome.
        
       | sithlord wrote:
       | small sample, and a single VC portfolio? Could also be selection
       | bias in who they want to fund.
        
       | manimino wrote:
       | "Average % Revenue growth in pre-seed companies" is a very noisy
       | metric.
       | 
       | Example:
       | 
       | Suppose you had one company doing $10 in sales a year, now it's
       | doing $100 per year. 900% growth!
       | 
       | When you average 900% with the rest, it will skew the results
       | wildly.
        
         | ahelwer wrote:
         | Yeah, it is even possible to do this sort of analysis in
         | domains with exponentially-distributed outcomes?
        
           | disgruntledphd2 wrote:
           | Yes, but it will be incredibly misleading. You'd want to look
           | at the distribution of outcomes to get a sense of what's
           | really happening. The startup I work for is remote first but
           | has some offices so we wouldn't count as fully remote even
           | though we mostly are.
        
       | windex wrote:
       | Trying really hard on the narrative to get people back to filling
       | expensive real commercial real estate. A lot of firms are
       | invested or locked into expensive real estate.
       | 
       | As someone who realized the additional life benefits of working
       | alone and away from the stupidity of mindless commutes, I am not
       | buying this kool aid.
       | 
       | Saving a ton of money on rent as well.
        
       | cmdialog wrote:
       | I wonder how long this conversation is going to continue. In-
       | office vs. Remote. Seems like the In-office folks are pining for
       | a bygone era, as if we will ever go back to the way things used
       | to be. Personally, I will never go back to the office again
       | except for special occasions. And I will never work for a company
       | who would force their staff to be in-office.
        
         | horns4lyfe wrote:
         | As long as there are powerful people in a position to lose
         | money on their office real estate investments, we'll keep
         | hearing this dreck, and people will keep naively believing it's
         | just an organic news cycle.
        
       | sublimefire wrote:
       | Who is responsible for the revenue growth in the very early
       | stages? Think about that person who's job is to pull cash from
       | someone. Well, that person probably has a background in sales,
       | and I would argue, is fairly extroverted. IMHO it might be to do
       | with the ability to attract talented extroverted people and ask
       | them to work remotely.
        
       | superb-owl wrote:
       | Aside from the tiny sample size, there's a lot of potential
       | correlation/causation confusion here.
       | 
       | A pre-seed startup where the founders meet f2f every day is
       | probably much more serious than one where the founders are just
       | on Zoom. But that doesn't mean you can't be a serious remote
       | team.
        
       | methyl wrote:
       | It doesn't surprise me. There is a huge advantage, in the first
       | years of a startup, to be able to sit around with all the co-
       | founders and early employees and exchange ideas as they come.
       | Later on it matters less, as the advantage of synchronous
       | communication diminishes once you have more employees than one
       | office room can fit, which seems to be reflected in the research
       | results.
        
       | waynenilsen wrote:
       | There is a very clear statistical standard here "difference of
       | means" test at the very least. Very very small dataset. Lots of
       | options all of which would most likely conclude no statistical
       | difference and low power.
        
       | esskay wrote:
       | Honestly this is a pretty weak argument. The number of companies
       | taking part in the survey is pitifully inadequate to gain any
       | real useful insight.
        
       | jonathanstrange wrote:
       | I'd love to see a study that investigates the benefits or
       | drawbacks of remote work + 4 hours of joint rowing and having a
       | beer afterwards per week.
       | 
       | My experience is in academia, which certainly doesn't translate
       | to business 1-1, but I suspect that most benefits of in-person
       | office work come from social aspects of team-building such as
       | personal bonding, meeting for a coffee, chatting in the hallway,
       | and so on, and not from working in an office itself, especially
       | not when the office space consist of large, shared offices.
        
         | prettyStandard wrote:
         | As a rower... Joint rowing?
        
       | dasil003 wrote:
       | I'm extremely skeptical that this kind of study can tell us
       | anything about the relative value of remote vs in-office work.
       | 
       | When it comes to early stage startups, success is going to hinge
       | on the founders and early hires ability to focus and execute on
       | the right things. What those "right things" are is nebulous
       | (hence the challenge of startups!), but I'm quite sure that
       | remote vs in-office is not one of those inflection points (unless
       | it is! in a specific case!). I'd further postulate that VCs who
       | use remote vs in-office as a meaningful investment signal will do
       | nothing but water down their ability to find the outliers in
       | their non-preferred segment.
       | 
       | At this point it's pretty clear that remote vs in-office has a
       | huge list of pros and cons on both sides, many of which could be
       | showstoppers for specific individuals or businesses, but none of
       | which are universal. It's a tradeoff. As with all tradeoffs you
       | should make it with your specific context in mind. A founder who
       | is keying off a study like this because they think data > gut
       | feelings does not have what it takes to be a successful founder.
        
       | gct wrote:
       | Begun the RTO wars have
        
       | Waterluvian wrote:
       | Pre seed and seed companies are very small and very young, right?
       | 
       | This seems to be plausible: when you don't yet know what you're
       | doing, your machine isn't even built let alone well-oiled, you
       | need very low latency, high quality communication.
       | 
       | I'm doubtful that this translates into the future much, beyond,
       | perhaps, that companies that start well are more likely to do
       | well.
        
         | PeterisP wrote:
         | It's also unclear whether it's a causal relation or not - it's
         | also plausible that the startups who happen to be "more mature"
         | from the very beginning are both growing faster, and also able
         | to afford an office faster; perhaps that early office doesn't
         | influence anything but is simply a consequence or side-effect
         | of 'better startups'.
         | 
         | This kind of observation simply can't distinguish between
         | correlation and causation.
        
           | oldgradstudent wrote:
           | It's not even clear there is a relationship.
           | 
           | What are the p-values?
           | 
           | Was there a study protocol BEFORE the data was collected?
           | 
           | How many other hypotheses were tested against the data? Were
           | the p-values adjusted accordingly?
        
       | cowmix wrote:
       | FWIW, the company I work for went hiring crazy as soon as we
       | committed 100% to full remote a few years before COVID.
        
       | asoneth wrote:
       | I recall a Computer-Supported Cooperative Work paper (possibly
       | this one? https://dl.acm.org/doi/10.1145/358916.359005) that
       | identified different levels of collaboration including working
       | together in the same room ("radically colocated" in CSCW jargon),
       | working near others on the same floor, working on different
       | floors or parts of the building, and working remotely or from
       | different offices. They claimed that radical colocation was
       | significantly more productive compared to the others, and
       | collaborating across different floors was no better than being in
       | different parts of the world.
       | 
       | Based on my experience since then I am less skeptical about those
       | claims than when I first read the paper. I've been on skunkworks
       | projects where a half-dozen people worked out of the same
       | conference room for a couple months, offices where my teammates'
       | desks were clustered together around a meeting space, open-plan
       | offices with my team spread across the building, and working
       | remote during Covid.
       | 
       | For well-established projects any of them were fine. But for new
       | projects I felt like we gained a tremendous advantage by being in
       | the same room. Maybe that won't always be true, but I wouldn't be
       | surprised if it still holds today.
        
       | gt565k wrote:
       | Face to face collaboration is a lot more efficient. Startups gain
       | from the small tight knit team being able to do impromptu brain
       | storming and discussions on the fly. Can't do that when everyone
       | is behind a monitor.
       | 
       | I am a firm believer that 100% remote work is actually a net
       | negative for collaboration.
       | 
       | Workshops, ideation, brainstorming, all of these thrive when
       | people are engaged in the moment, not on a scheduled zoom call.
       | 
       | There's definitely a balance between in-office and WFH. WFH is
       | great for corporate jobs cuz half your day is filled with boring
       | meetings, but for start-ups, it's the opposite.
        
         | nbaugh1 wrote:
         | Yeah I think the balance should be hiring people local to your
         | office who are willing to go in (ideally WANT to go in) but
         | also give them the option to decide for themselves when they
         | want to be in office vs at home. As much as I love working from
         | home, if most of my team was together in an office that's a
         | reasonable commute from my home, I'd definitely not want to be
         | left out/behind by staying home everyday - personally.
        
           | jossclimb wrote:
           | That might work if you're working on a very popular stack,
           | doing something like web development on react etc, but
           | anything more specialised then that (unless you're in the
           | valley or somewhere with a big tech community), is going to
           | be a challenge to hire in. If you can hire globally the
           | talent pool becomes much more fruitful.
        
         | macNchz wrote:
         | Having worked on a number of early stage startups and projects,
         | in varied remote/in-person settings, and currently fully
         | remote, the only thing I genuinely miss from an office is
         | having a huge whiteboard to gather around.
         | 
         | In my experience, whatever gains come from increased
         | communications bandwidth in-person are kind of a wash with
         | losses to focused work being in a distracting environment.
        
         | rybosworld wrote:
         | The problem with statement's like yours is that there is no
         | evidence to support the things you are saying.
         | 
         | - "I am a firm believer that 100% remote work as actually a net
         | negative for collaboration."
         | 
         | You're entitled to your beliefs, but they are just that. I'd
         | hate to see companies making decisions based on "feelings" they
         | have in regards to one format being more effective than
         | another.
         | 
         | - "Workshops, ideation, brainstorming, all of these thrive when
         | people are engaged in the moment, not on a scheduled zoom
         | call."
         | 
         | I'll counter your anecdote with my own: I've observed no
         | difference.
        
           | danielrpa wrote:
           | And I'll add my own anecdote: the top performers on the 100+
           | software engineer org I work in are either fully remote or
           | mostly remote. Losing our fully remote people would be
           | catastrophic to the team. Collaboration with them is
           | extremely easy, even from different time zones.
           | 
           | On the days I go to my office, all I observe is people
           | wearing headphones to be able to focus. Team lunches are
           | nice, but we never talk about work. As I've already developed
           | personal connections with my coworkers, I could go months
           | without seeing them in person (as a matter of fact, that's
           | what happens with my coworkers who live across the country).
           | 
           | The famous "whiteboarding sessions where ideas are born" can
           | be easily done remotely, or in one off events in the office
           | if people who believe in office work insist. I found shared
           | docs and basic digital whiteboards allowing me to draw
           | rectangles, arrows and labels as efficient than physical
           | chalk/marker boards. Why? Because the hard work is on the
           | ideas and conversations, not the drawing.
           | 
           | Also anecdotally, in 10+ years of office work, I've never
           | observed a single "watercooler conversation" leading to a
           | particularly interesting idea. I generally hear sports,
           | weather chat and complaints about the food by the
           | watercooler. Oh, have you seen that? I'll counter that with
           | the dozens of non-watercooler conversations that led to
           | interesting ideas.
        
             | macNchz wrote:
             | > On the days I go to my office, all I observe is people
             | wearing headphones to be able to focus.
             | 
             | It's funny to hear all this hand wringing about the loss of
             | spontaneous collaboration in offices, because in 10 years
             | of working in tech offices in NYC, this was by far the
             | dominant pattern: dozens of people sitting in a big open
             | room wearing noise canceling headphones, talking to each
             | other on Slack.
        
             | rybosworld wrote:
             | I always laugh when I hear the importance of "watercooler
             | conversation" in birthing new ideas.
        
             | slotrans wrote:
             | > Also anecdotally, in 10+ years of office work, I've never
             | observed a single "watercooler conversation" leading to a
             | particularly interesting idea.
             | 
             | I have. Happens all the time.
             | 
             | > The famous "whiteboarding sessions where ideas are born"
             | can be easily done remotely
             | 
             | Really? How? All the tools are garbage and none have the
             | tactility of a marker.
        
           | MAGZine wrote:
           | "there's no evidence to support the things you are saying,
           | but they're wrong."
           | 
           | Is it really hard to believe that activities that rely on
           | communication thrive in environments that support high-
           | bandwidth communication? nb: lack of evidence does not
           | substantiate the absence of something, it may mean nobody has
           | bothered to collect the evidence (or that the evidence is
           | difficult to capture).
        
             | rybosworld wrote:
             | Why did you append "but they're wrong" to my quote? That's
             | not different than lying.
        
               | MAGZine wrote:
               | It's not lying, that's how your comment came across to
               | me. It was extremely dismissive. A simple 'but could you
               | provide evidence?' would be fine. But no--it was more
               | akin to "there is no evidence, your argument is invalid."
               | 
               | Maybe you didn't use the word 'wrong', but you did
               | dismiss their opinion without consideration, and then
               | proceeded to commit the same fallacy so as to prove a
               | point. So not only was your comment dismissive, but it
               | was devoid of content or constructive conversation.
               | Actually, the inclusion of the counter example actually
               | made it the opposite of constructive imo.
               | 
               | Why participate in the same rhetoric you're throwing out,
               | even for example, when what you're saying is already
               | quite clear?
               | 
               | This isn't debate club. It's a conversation.
        
               | rybosworld wrote:
               | "It's not lying, that's how your comment came across to
               | me" - altering a quotation in order to change it's
               | meaning _is_ lying. The fact that you interpreted what I
               | said in your own way does not change that.
               | 
               | The OP's argument _is_ invalid because there is no
               | evidence. It seems silly to discuss that point further.
               | 
               | "proceeded to commit the same fallacy so as to prove a
               | point" - what fallacy is that? I never made any broad
               | assertions and stated them as fact. I even stated that I
               | was providing my own anecdote. The OP did the opposite.
               | That is, they stated their anecdotal experience as fact.
               | How any of this could be misinterpreted is beyond
               | understanding, and is a _you_ problem.
               | 
               | In my opinion, it seems like you are having a reading
               | comprehension issue here.
        
               | MAGZine wrote:
               | You've fundamentally missed the point that I was making
               | in order to take more 'technically correct' potshots.
               | 
               | Perhaps you should try to internalize the whole of my
               | comment (i.e. comprehend it) before trying to reply
               | again. Sniping individual pieces by being needlessly
               | pedantic is--again--not productive to conversation.
               | 
               | Anyhow, I won't be replying again unless if you have
               | something constructive to add to the conversation; I'm
               | not interested in debate club with you. Perhaps ChatGPT
               | is though!
        
             | lordnacho wrote:
             | He's just saying "your word is as good as mine".
             | 
             | Neither side is bringing any evidence.
             | 
             | You can throw in all sorts of argumentation, eg remote
             | people have more time, you can get better people casting a
             | wider net, and so on.
             | 
             | But until someone does a proper study you don't know what
             | arguments are backed up by data.
        
         | Delphiza wrote:
         | "Net negative"? So you're saying that remote workers are
         | uncollaborative? If that were true, all remote companies would
         | have people that un-talked to each other, which is hardly the
         | case. Maybe less efficient, but certainly not negatively. It is
         | the small difference in collaborative efficiency that allows
         | different types of people and organisations to function.
        
         | version_five wrote:
         | Agreed. This is common sense, and is historically one of the
         | main reasons why business travel exists. A caveat might be that
         | "pure" software development jobs where the role is mostly to
         | just sit and code probably have a smaller benefit. But for most
         | early startups, such a job shouldn't really exist because
         | there's so much more to do. I'd be interested to see the
         | analysis done differently, comparing how people actually spend
         | their time vs just where they spend it.
        
         | jossclimb wrote:
         | A quick look at projects as huge as the Linux Kernel and its
         | distributions (debian, arch, fedora), platforms such as
         | kubernetes, apache, entire languages such as rust, python etc,
         | databases (postgres, etc) shows this is nonsense.
         | 
         | Most of the internet is run on software built by geographically
         | dispersed engineering teams working asynchronously. Software so
         | well developed and innovative that companies as large and
         | office based as Microsoft eventually had to back down and hop
         | on the ride.
        
         | throwawaycopter wrote:
         | > Face to face collaboration is a lot more efficient.
         | 
         | That's really not my experience. I'm always very confused when
         | I see this statement being thrown around as if it was a
         | universal truth. Perhaps depends on your role?
         | 
         | Honestly, for all the companies I worked in the past decade,
         | the ones where I had better quality communication were the ones
         | where I worked remotely.
         | 
         | Then again, I'm a software developer. Developers tend to be
         | good at communicating through pull requests, documentation,
         | screen sharing and text-based chat where you can send snippets.
        
           | slotrans wrote:
           | > That's really not my experience. I'm always very confused
           | when I see this statement being thrown around as if it was a
           | universal truth.
           | 
           | Because it's obviously true.
           | 
           | Communicating through pull requests is shockingly
           | inefficient. It can take days or even weeks to accomplish
           | what face-to-face communication would accomplish in SECONDS.
        
       | throwaway5Am1k wrote:
       | I don't pay attention to these studies any more. It's all endless
       | shilling, scheming, and hidden agendas to strip workers of their
       | recent pandemic wins (WFH). I encourage all workers to push back
       | on this. Ignore the studies, there's big money behind it. Call
       | out this bullshit, and call out anyone pushing this as a shill
       | with an agenda. There is no objectivity here. The capitalists
       | have had productivity wins for the last 50 years, time to give
       | some time back to the worker.
        
         | newaccount2021 wrote:
         | [dead]
        
       | tiffanyh wrote:
       | Title should be: _For Pre-Seed /Seed_ round startups...
       | 
       | There's virtually no difference for Series A and beyond.
       | 
       | This makes sense to me. Pre-seed/seed is all about finding
       | product/market fit. Which means high iteration, fast
       | collaboration and that definitely happens best if everyone is in
       | the same room.
       | 
       | Series A and beyond is largely about scaling, which lends itself
       | to more asynchronous tasks.
        
         | blagie wrote:
         | I think there is also a question of organizational size. A
         | 4-person team in one room can be a hyper-efficient cohesive
         | unit, a lot like a family or a group of friends.
         | 
         | A 100-person organization requires very different processes,
         | with planned meetings, emails, records, etc. All of that works
         | fine (and likely even better) when people are remote.
        
       | JamesMcMinn wrote:
       | Articles With Headlines that Exaggerate the Story Get 300 Times
       | More Views
        
       | arthurofbabylon wrote:
       | Beyond the insignificant sample sizes, this study also fails to
       | respect selection bias.
        
       | importantbrian wrote:
       | This is very likely just selection bias. Companies who's founders
       | choose to be remote first are going to vary philosophically from
       | in office companies in more than just one way. In my experience,
       | remote first companies tend to be less focused on growth at all
       | costs and less wrapped up in hustle culture. That probably does
       | mean sacrificing growing revenue at the fastest possible rate,
       | but in order to draw the broader conclusions from this that
       | people are trying to ascribe to it you would need to have both a
       | much higher powered study, and have a study where companies are
       | randomly assigned to in office or remote so that you can control
       | for all the possible confounders.
        
       | arnaudsm wrote:
       | There is a big bias that older founders are more pro-RTO and have
       | more network and experience. Also 37 samples from a single fund
       | is not enough.
       | 
       | That's Statistics 101 : decent p-values and control your
       | variables before making bold statements like this.
        
       | dmitrygr wrote:
       | People who cannot tell correlation and causation apart appear
       | 31/2 times stupider when talking in public.
        
       | mmikeff wrote:
       | There are plenty of us who'd like this to be untrue. Myself
       | included.
       | 
       | Can't deny that it's a reasonable theory, especially for certain
       | types of companies at certain stages.
        
       | ntkachov wrote:
       | They had 16 companies in this survey that were remote, 2 that
       | were "office", And the rest were some form of hybrid. They
       | considered anything other than full remote "some office". This
       | could easily get skewed if one of these office companies had
       | 10x'd their revenue.
       | 
       | And even though they grew faster, the attrition for Office was
       | higher.
        
         | sjducb wrote:
         | In other words: "Study" was not statistically significant, all
         | results should be ignored.
        
           | colpabar wrote:
           | All the experts agree!
        
             | teeray wrote:
             | Expert tested, landlord approved.
        
             | Zurrrrr wrote:
             | Or at the least 7 out of 10 dentists agree
        
           | ekianjo wrote:
           | more cherry picked than anything else, seeing the minuscule
           | sample size and the obvious categorical bias
        
           | rhaway84773 wrote:
           | In other words, as the article says, the study is "suggestive
           | and not conclusive" and others should also be doing similar
           | research.
        
             | wokwokwok wrote:
             | >>> others should also be doing similar research.
             | 
             | >> BTW, Nick Bloom at Stanford and others have done
             | extensive research with thousands of people on remote and
             | hybrid work here, and here...
             | 
             | ^ from the article
             | 
             | > Home working led to a 13% performance increase, of which
             | about 9% was from working more minutes per shift (fewer
             | breaks and sick-days) and 4% from more calls per minute
             | (attributed to a quieter working environment). Home workers
             | also reported improved work satisfaction and experienced
             | less turnover, but their promotion rate conditional on
             | performance fell.
             | 
             | ^ from the linked paper.
             | 
             | ...but hey, go the statistically irrelevant one to share
             | with people if you want a cool link to prove whatever point
             | you want to make with it.
        
         | freitzkriesler2 wrote:
         | Yup a classic case of correlation != Causation
         | 
         | And too small a data set.
        
       | karmelapple wrote:
       | I co-founded a remote-first organization over a decade ago, and
       | we beat the odds of how most businesses fail in the first few
       | years - we're still in business today, and growing.
       | 
       | We were remote from the beginning, but we got together in-person
       | more frequently at the start. It was helpful to brainstorm and
       | get other ideas generated in-person.
       | 
       | Along with the other comments here, it seems the advice is to get
       | together in-person more often at the start of a business. I
       | highly agree.
        
       | jsjohnst wrote:
       | In addition to the tiny sample size point of a sibling commenter,
       | this seems telling:
       | 
       | > almost 90% of the responses from pre-seed/seed startups said
       | team culture was influenced
       | 
       | Building a good work culture is hard, it's understandable that
       | it'll take time to identify and distill patterns that work well
       | in a remote first setting, and then more time for the industry to
       | adopt them. That doesn't mean remote work is bad for employers,
       | it just means it's different. The companies that adapt will very
       | likely have a strategic advantage in the future.
        
         | rhaway84773 wrote:
         | > In addition to the tiny sample size point of a sibling
         | commenter, this seems telling:
         | 
         | I don't understand HN comments. We don't need to read a sibling
         | commenter to know that it was a small sample size. The article
         | repeatedly mentions that.
         | 
         | All the other comments are also of the same ilk, making
         | comments about reasons why the study's result may not hold, as
         | if they are new insights and rebuttals to the article, but
         | almost all these caveats are mentioned in the article itself.
         | 
         | One sees this in nearly every other thread as well. It's almost
         | as if no one even reads what they're commenting about.
        
           | jsjohnst wrote:
           | > It's almost as if no one even reads what they're commenting
           | about.
           | 
           | For the record, I did read it entirely, but I'm tired of low
           | effort/quality crap like this article trying to *splain why
           | RTO is better and I'm making counter points not made in the
           | source article to the article's claims.
           | 
           | Irregardless of my intent:
           | 
           | https://news.ycombinator.com/newsguidelines.html
           | 
           | > Please don't comment on whether someone read an article.
           | "Did you even read the article? It mentions that" can be
           | shortened to "The article mentions that".
        
       | quartz wrote:
       | YC probably has some really interesting data on this for pre-seed
       | companies since moving from a required relocation to fully
       | remote.
       | 
       | For new founders the value of being in person around other
       | founders in the epicenter of your industry can be pretty huge.
       | It's the questions you don't know to ask that are often the most
       | valuable-- the overheard conversations, unexpected connections,
       | and coffee chats that often make the difference between survival
       | and death in the early days.
       | 
       | IIRC early data during the pandemic indicated that while remote
       | work didn't impact productivity for established employees it was
       | harder for new hires to find personal traction within the
       | company.
        
       | ren_engineer wrote:
       | pre-seed startups from a single VC and they don't release the raw
       | data. A single company doing well could be completely skewing the
       | data. the fact they lump all forms of hybrid remote with fully
       | in-office is also dumb.
       | 
       | This seems like a VC twisting their data to push a narrative
       | against remote work. I will say that hybrid seems the worst of
       | both worlds, you get most of the bad parts of remote work and
       | also lose most of the benefits like being able to recruit talent
       | anywhere, people being happier due to shorter commute, etc.
        
       | kryptiskt wrote:
       | Is it causation or just correlation? It would make sense if those
       | who were growing fast were the ones most likely to be able to
       | afford office space.
        
       | Ambolia wrote:
       | Could it be that early Startups that are doing well are more
       | likely to be able to afford an office? If all the graphs pointed
       | to better performance in office I'd be more convinced, but only
       | one does.
        
       | tarotuser wrote:
       | Grew their office size?
       | 
       | Grew their square footage of their office?
       | 
       | Grew their costs?
       | 
       | Grew their profits?
       | 
       | > Data shows that pre-seed and seed startups with employees
       | showing up in a physical office have 31/2 times higher revenue
       | growth than those that are solely remote.
       | 
       | Revenue.. So how does that index to costs? Evidently
       | profitability isn't changed.. or is even lowered, else it too
       | would have been used as an anti-remote wedge.
       | 
       | > James Kim at Reach Capital, an early-stage tech ed investor,
       | surveyed their portfolio of 37 companies
       | 
       | 37? That's it?
        
       | aliqot wrote:
       | why are news outlets so wishful for RTO?
        
         | ahelwer wrote:
         | They're predominantly owned by real estate interests, which is
         | also why they bang on the crime & homelessness issue so
         | relentlessly.
        
         | esskay wrote:
         | Probably some backwards thought that it means people will buy
         | their newspapers on their pointless commute that didn't need to
         | happen.
        
         | malermeister wrote:
         | People bored on commutes read news to pass the time?
        
         | horns4lyfe wrote:
         | They're bought and paid for by commercial real estate
         | interests.
        
       | ilyt wrote:
       | No wonder, they have money to afford one!
        
       | throwaway8j3 wrote:
       | And I'm 3.5 time happier working from home.
        
       | hgsgm wrote:
       | What are these Seed and Pre-Seed companies that have revenue at
       | all? Isn't landing 1 customer a huge revenue boost for many early
       | companies?
        
       | sokoloff wrote:
       | I would have described "Static Hybrid" and "Synchronized Hybrid"
       | as the opposite of the way they appear in the image table.
       | 
       | https://i0.wp.com/steveblank.com/wp-content/uploads/2023/02/...
        
       | renewiltord wrote:
       | The reactions to these are just like the "marijuana causes/cures
       | cancer" articles. If it cures, it is evidence of the Man keeping
       | it down. If it causes, the methodology is flawed.
       | 
       | The reactions describe the community more than they describe the
       | article.
        
       | varelse wrote:
       | [dead]
        
       | claudiulodro wrote:
       | It wouldn't be an HN comment about a survey without noting that
       | correlation != causation. :)
       | 
       | Assuming their statistics are sound, could it simply be that
       | companies with good product-market fit can afford offices? Going
       | full-remote seems to be a popular cost-cutting measure at some of
       | the companies doing layoffs these days (e.g. GitHub), and
       | especially pre-revenue it may not make sense to spend thousands
       | of dollars a month on office space.
       | 
       | Additionally: For startups that start in a garage, like Apple
       | originally, is that in office or remote?
        
       | ironlake wrote:
       | So employees of seed startups should have higher equity if they
       | work in the office even once, since apparently walking through
       | the doors of a leased cube farm leads to much better results for
       | the management class.
       | 
       | From my perspective, as a not-seed investor, my expected rate of
       | return (salary) remains exactly the same if I work from home or
       | at the office.
       | 
       | Seed investors have stacked the terms so early employees get as
       | little of the exit as possible, even in the rare instance where
       | there is a profitable exit, why do I care about higher revenue
       | growth?
        
       | dboreham wrote:
       | Pre-seed startups have offices, and revenue?
        
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