Do startups need to start writing wills?
I think some definitely do, and not just because might fail.
Pogoplug will begin shipping their product sometime next month. They have a will, and I think it’s a great idea. See, their device allows you to connect USB disk devices to it, access it as a NAS locally on the network, over the web remotely, and share files off the drives with anyone you like. It costs $129, with no fees afterward. The value in their product is totally dependent on them sticking around. So, if they fail, the millions and billions of installed devices become useless stylish little bricks. By making a promise to open-source the back-end pieces of their stack if they go under, they’re ensuring that anyone that buys the device will be able to use it, no matter what.
Now, granted if Pogoplug really went under and the product was viable at all, they’d probably just get gobbled up by a larger company at a bargain price. And, that company might continue the service. I would be curious to find out what Pogoplug would do in the case of an acquisition? Would it matter if the acquisition would kill the product?
I think creating a will is a great move for a small startup that is combining hardware with service. If this were Sony, or Samsung or some other giant entrenched company, I wouldn’t care. Their size and reputation would lower the risk of the service just disappearing. So, how does a small company compete without the pre-existing trust with the consumers? They write a will, that’s how.
What are your thoughts? What would happen if your favorite startup went bankrupt? Should they have a will?
