HACKER Q&A
📣 AbstractH24

Why have co-ops never played a major role in tech?


Modern tech has a vast open source ecosystem and a huge investor backed one, but very little if any significant activity in the form of cooperatives, where individuals or small companies pool their money and other resources to take advantage of economies of scale and compete with large companies, but not one another.

Seems like something the space could increasingly use as folks become beholden to a handful of massive companies who are increasingly trying to exploit their size to increase prices, margins, and profit.


  👤 iamnothere Accepted Answer ✓
In the past: everyone wanted the easy money. There’s probably a good opportunity for this now given tech layoffs and the pivot to AI. The best model is probably a variant of FOSS + paid support/consulting/hosting. I think I came across a couple of co-ops doing this in the past but they didn’t heavily advertise their structure.

Nobody will get rich from it but you could build a decent life.

Edit: found a list, posted here https://news.ycombinator.com/item?id=47364221


👤 ydlr
When it comes to software specifically, there are a couple advantages of capitalist ownership:

1. Access to cash. While software does not require much physical capital (factories, equipment, raw materials, etc) those with capital have easier access to cash and can therefore scale much quicker.

2. Intellectual Property. In software industry, workers do not just use capital to make finished goods. They produce new capital out of their imaginations and that capital (which lasts 120 years, never breaks down, never deteriorates) is typically owned those who put up the cash. That makes their advantage grow over time.

None of that is insurmountable, but we are a long way from having the organization or political support to overcome them.


👤 owebmaster
Software don't scale like agriculture (where coop thrives).

10 organized farmers function like a big efficient farm.

10 app creators won't be the same as 1 huge platform.


👤 remyp
Not a co-op, but similar: I'm working on an owner-operated SaaS incubator[0]. A few of us are pooling our own money to buy, operate, and grow a small SaaS company together. We're currently in the diligence phase.

It's an experiment and could fail spectacularly. But if it's successful then we'll finally own our own success and build wealth for ourselves, not VC or PE funds.

[0] https://www.notion.so/notventurescale/Wild-Built-Incubator-2...


👤 raw_anon_1111
Small companies don’t need to work together for the economies of scale. There are companies called PEOs including YC company Rippling.

Basically you are “co employed” by your company and the PEO. For all day to day stuff, you work for your company, for the purposes of taxes, insurance, etc you work for them.

https://www.rippling.com/products/hr/peo


👤 rithdmc
Some games company's have been - Motion Twin for example. I'm sure they exist in Tech too, but that's just a feeling.

👤 markus_zhang
I think as long as you need some capital then co-op is not for you. You have to make sure that you already have a sound business, but most likely you will work alone as a LLC.