In Defense of Tech Debt

I’m a fan of tech debt if used properly. Just like real debt, if you can pull some value forward and then invest that value so that it outgrows the debt considerably, it’s good.

Mortgages and tuition-debt can possibly do this. Credit card consumption debt does not. If your tech debt looks like the former, do it.

For example, if can can close a big enterprise deal with some tech debt, and the alternative is another round of VC to “do it right”, I think it’s obvious to hack away. When you close that deal, your valuation goes up. Maybe you don’t even need to raise.

The decision depends on the specifics. Tech debt isn’t “bad”, it’s a cost. Calculate the cost.

It can be worth it.