3 ms·

Here's an idea. Go talk to these guys when you're starting your company. These guys are seeing all the failures, so they should have a decent grasp of what NOT

Here's an idea. Go talk to these guys when you're starting your company. These guys are seeing all the failures, so they should have a decent grasp of what NOT to do. Discounting for the fact that they're only seeing failures.

jksmith 10y ago
There's some innocence in your comment which I wish I still appreciated. I think the grittier reality is that a lot of these startups were based on generally mediocre ideas, but were funded anyway because of relationships and contacts. I cringe every time I see another "Come help us change the world at..." or "Come help us reinvent blah blah" here on HN. Instant red flag to me, but I'll be damned if they didn't get funded anyway.
- komali2 10y ago
  I really wish I remember where I had heard it or maybe read it, but it was an investor's advice to new investors: "If the (startup) company comes in to the (investor) meeting with lots of color and excitement, turn him down. The guy that comes in and nearly bores you to sleep with his spreadsheets, he's the one to invest in."
  - jksmith 10y ago
    Imagine how many good ideas may have been lost because those pitching them didn't have any connections? They don't even get the chance to be boring.
mikekchar 10y ago
I admit I'm jaded, but I'm still convinced this is the correct way to look at things: being an entrepreneur is about moving investor's money into your own pocket. The whole idea of creating a large valuation so that you can have a successful exit is literally just that. You are creating demand for the company so that you can sell it to somebody and keep part of the money. The idea of starting a company so that you share in part of the profit generated by the company is ludicrous in today's world. But always keep in mind that being "successful" is not the only way to move money from an investor's pocket into your own. You can merely hype the hell out of the company. If successful, you can engineer an exit with no viable product. You can also create the "killer demo" which encourages a large company to buy you just so that they can suppress the technology (not so common in this decade, but was standard practice in the 2000's). And here's the best part. If you "fail" utterly, you can still pocket a fair amount of cash. Most successful entrepreneurs that I worked with do not have the attitude that "this company must succeed". Not by a long shot. They throw spaghetti up against the wall over and over and over again, with the belief that eventually something will stick. They view the "failures" as the salary they get paid (from investors) while waiting for the money train to roll in to town. What's even more awesome (as in, it strikes me with awe) is that if you manage to hype your way into the second round (or higher) consistently, then you are a high flyer and people will flock to stuff money into your pockets, even though you have never actually produced a "successful" venture. I am absolutely convinced that your job as a founder is not to make the company "successful". Your job is to raise money, make connections and sell the company. Sure success is a "nice to have", but leave that to your CTO/COO/unwitting co-founder. I often see founders on HN complaining of burnout, trying to keep it all together. Meanwhile all of the successful founders I've worked with don't get bogged down with that stuff. Their the ones going home at 4:30 while the hired help stays until 2 in the morning propping up the server with popsicle sticks and devising various sacrifices to appease whatever god seems to be angry at the time. Typed partially in jest... only partially...

jksmith 10y ago

There's some innocence in your comment which I wish I still appreciated. I think the grittier reality is that a lot of these startups were based on generally mediocre ideas, but were funded anyway because of relationships and contacts. I cringe every time I see another "Come help us change the world at..." or "Come help us reinvent blah blah" here on HN. Instant red flag to me, but I'll be damned if they didn't get funded anyway.

komali2 10y ago
I really wish I remember where I had heard it or maybe read it, but it was an investor's advice to new investors: "If the (startup) company comes in to the (investor) meeting with lots of color and excitement, turn him down. The guy that comes in and nearly bores you to sleep with his spreadsheets, he's the one to invest in."
- jksmith 10y ago
  Imagine how many good ideas may have been lost because those pitching them didn't have any connections? They don't even get the chance to be boring.

mikekchar 10y ago

I admit I'm jaded, but I'm still convinced this is the correct way to look at things: being an entrepreneur is about moving investor's money into your own pocket. The whole idea of creating a large valuation so that you can have a successful exit is literally just that. You are creating demand for the company so that you can sell it to somebody and keep part of the money. The idea of starting a company so that you share in part of the profit generated by the company is ludicrous in today's world. But always keep in mind that being "successful" is not the only way to move money from an investor's pocket into your own. You can merely hype the hell out of the company. If successful, you can engineer an exit with no viable product. You can also create the "killer demo" which encourages a large company to buy you just so that they can suppress the technology (not so common in this decade, but was standard practice in the 2000's). And here's the best part. If you "fail" utterly, you can still pocket a fair amount of cash. Most successful entrepreneurs that I worked with do not have the attitude that "this company must succeed". Not by a long shot. They throw spaghetti up against the wall over and over and over again, with the belief that eventually something will stick. They view the "failures" as the salary they get paid (from investors) while waiting for the money train to roll in to town. What's even more awesome (as in, it strikes me with awe) is that if you manage to hype your way into the second round (or higher) consistently, then you are a high flyer and people will flock to stuff money into your pockets, even though you have never actually produced a "successful" venture. I am absolutely convinced that your job as a founder is not to make the company "successful". Your job is to raise money, make connections and sell the company. Sure success is a "nice to have", but leave that to your CTO/COO/unwitting co-founder. I often see founders on HN complaining of burnout, trying to keep it all together. Meanwhile all of the successful founders I've worked with don't get bogged down with that stuff. Their the ones going home at 4:30 while the hired help stays until 2 in the morning propping up the server with popsicle sticks and devising various sacrifices to appease whatever god seems to be angry at the time. Typed partially in jest... only partially...