A book taking the business world by storm is Disrupted: My Misadventures in the Startup Bubble, written by Dan Lyons. The work is a scathing critique of tech startups and their Wonderland-meets-the-Hunger-Games sensibility, centered mostly on Lyons’ stint as a marketer for inbound software company HubSpot.
I haven’t laughed out loud in years while reading a book—although weeping might have been a more suitable reaction in various sections. Lyons describes the new normal of tech startups: a work culture that exploits workers within racist, misogynistic and ageist ecosystems; a business model that fosters neo-feudal economic realities where a few get very rich while the middle class gets atomized; an Orwellian atmosphere of mystic Groupthink where workers fall on their swords while simultaneously glorifying egomaniacal founders and supporting mediocre management.
Lyons, a former Newsweek reporter and current writer for the HBO hit Silicon Valley, makes HubSpot the centerpiece to his case for the toxic malady that are tech startups on the American workforce biology. Witness hallways teaming with beer taps, free candy, orange bean bags and overworked Hipsters. Witness endless meetings where a founder bestows a teddy bear an exclusive seat at the conference table. Witness realms of magic realism math where a company that has never made a profit can go public. And witness that Doublespeak tech lingo where a fired employee is called a “graduate” and never spoken of again, while management goes around telling employees that 1+1= 3 (and they better believe and make it happen).
That’s just scratching the surface of Disrupted. However, one can tell that Lyons does have fondness, empathy and even admiration for HubSpot. Personally, I can say HubSpot has brought value and useful information to my marketing life.
Lyons’ true wrath falls on an individual who seems to exemplify the corruption and greed of tech startups.
“The Ron Burgundy of Tech,” Lyons calls this person (and is the title of a chapter in his Disrupted). This is none other than Marc Benioff, the billionaire founder and CEO of Salesforce. Lyons’ revelation of Benioff occurred when he attended Dreamforce—Salesforce’s annual conference in San Francisco in late 2013. We might as well get to his insights from the book.
He starts the chapter by offering this formula:
Imagine Joel Osteen pumped up on human growth hormone. Imagine there’s a secret government lab where scientists have blended the DNA of Tony Robbins with the DNA of Harold Hill, the aw-shucks shifty salesman from The Music Man. Imagine a grizzly bear in a pinstriped suit, standing on his hind legs and talking about changing the world through disruptive innovation and transformation.
That’s how Lyons sees Benioff, watching him give the keynote speech at the Moscone Center.
The critique gets worse.
Lyons calls him “a buffoon, a bulls**t artist, and such an out-of-control egomaniac that it is painful to listen to him talk.” He says Benioff is like “some kind of cheesy talk-show host, roaming up and down the aisles, a man of the people” saying astral remarks like “the speed of now” and “the internet of customers.” He further mocks at how Benioff states: “Have you transformed the way you innovate?” (you can switch the two buzzwords around, and it makes just as little sense).
“There’s an art to this kind of horses**t, and Benioff is its Michelangelo,” Lyons declares, dejected at the speech while thousands of techies eagerly drink Benioff’s Kool-Aid. It gets worse for Lyons, as such figures as Sean Penn and Deepak Chopra appear to edify Benioff, while Huey Lewis and Green Day are prostituted to play at the festivities.
The rest of Dreamforce is a mixture of Roman debauchery and New Age spirituality. As mentioned, this where Lyons has his epiphany, the point the Red Pill fully goes down—for he sees Salesforce and the rest of the tech startup industry for they are (not companies who claim falsely, like Google and Apple, that they want to change the world). As he writes:
Having the best product has nothing to do with who wins. What matters is who can put on a great show, who can create the biggest spectacle, who can look huge and unstoppable and invincible, and who is the best at bluster and hype.
When it comes to these things, nobody comes close to Benioff. Nobody has cashed in on the bubble as well as he has. In 2012, Salesforce.com lost more than a quarter of a billion dollars, and in 2013 it will lose almost as much. In 2013 the company is fourteen years old and not making a profit. But its revenues are growing more than 30 percent each year, and growth is what investors are looking for, so even though Salesforce.com is bleeding red ink, its stock has doubled over the past two years, and Benioff’s personal net worth has soared to $ 2.6 billion.
Now, here in the Moscone Center, the P. T. Barnum of the tech industry is giving a master class in how the game is played. It’s the Marc Benioff show, brought to you by Marc Benioff, with special guest Marc Benioff. Fifteen thousand people are packed into this hall. Thousands more are packed into spillover rooms. It feels like a rock concert. In fact it is a rock concert.
Oddly enough, Lyons admits that he wanted to buy Salesforce software, such is the charisma of Benioff under the spectacle of watery lights and frenzied sound in the auditorium. More than a rock concert, the keynote speech event (and conference) is more like a religious revival where the audience devours the software like Communion.
Lastly, Lyons criticizes Benioff’s philanthropy because he makes it public and way to leverage customers—instead of being discreet like Bill Gates or other old tech guards. Okay, there’s more, but hopefully you have gained a taste of Disrupted and the alarm it sounds.
Personally, I’ve never used Salesforce and know little of Benioff. I suspect he has probably brought more light than darkness into the world. Still, Lyons characterization of the mogul, at the very least, is an allegory of what has befallen the tech startup industry. He is obviously not alone in this assessment (hey, there are more writers on Silicon Valley). The worst is not the dog and pony show of the tech startup industry, the smoke and mirrors full of self-mythologizing, or its vicious, Darwinist work philosophy dressed in Star Trek themes.
No, it’s the reality that, according to Lyons, another tech bubble bursting will soak the middle and lower classes even worse than in the 90s. Then the whole country will be disrupted in ways that might make the 2008 crash seem like a small interruption.
Note: A similar story appeared in Valleywag, Marc Benioff Is the Ron Burgundy of Tech, in 2013 and written by “Anonymous.” It’s not secret, though, that Lyons went to write for Valleywag after leaving HubSpot. No plot thickening here.