
Don't Die of Heart Disease
During my "hiatus" I've been doing research in a variety of different areas that interest me. After a personal experience with basal c...
The Deal
Founders have little to no diversification. They are all in on one idea, company, and mission. It's an insanely high-risk, high-reward endeavor. As founders become increasingly wary of this level of risk concentration, they begin to think about ways to mitigate it. One idea I've heard repeatedly is the notion that a group of founders can self-assemble and contribute a percentage of their equity in their company to a shared pool. That way, if they fail and one of the other founders in the grou...

Sequoia Wants It Hard
I have seen a lot of young first-time founders play it fast and loose in their fundraising processes the past several years. It’s been frothy times, so I think it brings out a lot of strange behavior. It got me thinking of when I was a young founder and the things I’d do, particularly one specific story that I tell people when I get asked “what not to do” when fundraising. Back in 2010 Steve and I launched GroupMe to much fanfare. It got a lot of attention out the gate because we built it at ...
I oftentimes hear tropes like these from early-stage startup founders:
Customer acquisition is slow right now, but we just hired an amazing head of marketing who is going to fix it for us.
Our upcoming release has the right feature set that will improve virality and kickstart growth.
We will start scaling and hit our targets when we hire our new VP Sales.
The rebrand work we are doing is going to change the game for us.
When we launch this BD partnership things are going to skyrocket.
There are endless permutations of these. Entrepreneurs gravitate towards the optimistic outlook that a new hire, feature launch, redesign, etc., will miraculously solve the most pressing problems, course correct the startup, and catapult it into the stratosphere. I have been guilty of this myself many times over.
This wishful thinking is dangerous. Most senior hires do not work out, especially at the early-stage. An overwhelming majority of launches (90%+), whether it's a new feature, product, distribution partnership, or rebrand, do not have the desired or intended impact. Things go wrong way more often than they go right.
On the quest to achieving product-market fit, which I think of as having a product that 1) solves a real problem for customers with a 2) clear path and trajectory towards reaching the upward bound of the first S-curve, entrepreneurs delude themselves into thinking there are silver bullets. The fact of the matter is the only silver bullet that exists in these early stages is raw grit and ingenuity. This means all hands on deck, trudging through the weeds, wringing out every drop of trial-and-error progress you can to optimize for the lucky but well deserved breakthrough that gives you line of sight to a bigger and brighter future. Grit and ingenuity. That's it.
I oftentimes hear tropes like these from early-stage startup founders:
Customer acquisition is slow right now, but we just hired an amazing head of marketing who is going to fix it for us.
Our upcoming release has the right feature set that will improve virality and kickstart growth.
We will start scaling and hit our targets when we hire our new VP Sales.
The rebrand work we are doing is going to change the game for us.
When we launch this BD partnership things are going to skyrocket.
There are endless permutations of these. Entrepreneurs gravitate towards the optimistic outlook that a new hire, feature launch, redesign, etc., will miraculously solve the most pressing problems, course correct the startup, and catapult it into the stratosphere. I have been guilty of this myself many times over.
This wishful thinking is dangerous. Most senior hires do not work out, especially at the early-stage. An overwhelming majority of launches (90%+), whether it's a new feature, product, distribution partnership, or rebrand, do not have the desired or intended impact. Things go wrong way more often than they go right.
On the quest to achieving product-market fit, which I think of as having a product that 1) solves a real problem for customers with a 2) clear path and trajectory towards reaching the upward bound of the first S-curve, entrepreneurs delude themselves into thinking there are silver bullets. The fact of the matter is the only silver bullet that exists in these early stages is raw grit and ingenuity. This means all hands on deck, trudging through the weeds, wringing out every drop of trial-and-error progress you can to optimize for the lucky but well deserved breakthrough that gives you line of sight to a bigger and brighter future. Grit and ingenuity. That's it.

Don't Die of Heart Disease
During my "hiatus" I've been doing research in a variety of different areas that interest me. After a personal experience with basal c...
The Deal
Founders have little to no diversification. They are all in on one idea, company, and mission. It's an insanely high-risk, high-reward endeavor. As founders become increasingly wary of this level of risk concentration, they begin to think about ways to mitigate it. One idea I've heard repeatedly is the notion that a group of founders can self-assemble and contribute a percentage of their equity in their company to a shared pool. That way, if they fail and one of the other founders in the grou...

Sequoia Wants It Hard
I have seen a lot of young first-time founders play it fast and loose in their fundraising processes the past several years. It’s been frothy times, so I think it brings out a lot of strange behavior. It got me thinking of when I was a young founder and the things I’d do, particularly one specific story that I tell people when I get asked “what not to do” when fundraising. Back in 2010 Steve and I launched GroupMe to much fanfare. It got a lot of attention out the gate because we built it at ...
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