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Today: November 27, 2024
March 14, 2024
1 min read

Unicorn Mythbusting: The Messy Truth of Silicon Valley Startup


TLDR:

  • The sociologist Benjamin Shestakofsky studied an early-stage tech startup that became a Silicon Valley “unicorn,” valued at over $1 billion.
  • The company faced pressure to grow quickly from venture capital investors, leading to a focus on user growth and hiring in San Francisco, as well as the use of Filipino contractors for various tasks.

Full Article:

Benjamin Shestakofsky studied an early-stage tech startup called AllDone that evolved into a Silicon Valley “unicorn” valued at over $1 billion. The company focused on creating a digital platform connecting buyers and sellers of local services, facing pressure from venture capital investors to grow rapidly. This led to a strong emphasis on user growth and hiring new staff in San Francisco.

AllDone’s strategy included utilizing Filipino contractors to perform various tasks such as manually matching buyer requests with sellers, expanding the user base, and enhancing user experiences on the platform. The Filipino workforce was considered essential for the company’s rapid growth, with contractors executing over 10,000 routine tasks per day to support the company’s success.

The San Francisco team at AllDone also utilized contractors to support quick and dirty tests for potential new product features before investing significant resources in coding. The interplay between software engineers in San Francisco and low-cost contractors in the Philippines highlighted the ongoing role of human workers in the automation process, showcasing the global inequalities present in the tech industry.


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