Technical Debt at a startup will be always be present at a large scale as long as your main mission statement is getting to market as soon as possible. Their first question is 'does the market want this' instead of 'will it scale when it reaches mass numbers'?<p>I always consider Facebook as a prime example. The first version may very possibly have been something hacked together in PHP, with the intent of releasing something asap that had a good chance of flourishing. Now that it has flourished, and the proof of concept is validated (with VC money), you can afford engineers who will rewrite the system the way it was meant to be, complete with a PHP compilers and custom flat file databases. The risk paid off.<p>Digg's technical debt served them well too. They got into the market fast, and the performance issues of the previous site wasn't nearly as big as a factor as the business domain problems they introduced. Submitters didn't mind the occasional 'invalid token' error messages nearly as much as the revolt caused by the publish of a certain encryption code.<p>Joel says don't rewrite from scratch. We talk about big design up front, when the design doesn't even appeal to the market. But when your product has reached a critical mass, and you have an army of talented engineers salivating to rewrite the system, all that debt is forgiven when the system is redesigned from scratch.