4 ms·

Some people might take away from this the idea that you can just build a cool little prototype and Google will come along and snatch you up. I'd bet this acqui

by staunch 15y ago

Some people might take away from this the idea that you can just build a cool little prototype and Google will come along and snatch you up. I'd bet this acquisition happened almost entirely due to relationships and salesmanship. Most hackers who don't already know the right people (e.g. former Googlers) would have no chance of pulling this kind of thing off. Do not try this at home folks. The only real chance of an exit for most startups is one based on actual success in the marketplace.

zach 15y ago
What is true for getting acquired is about as true for acquiring customers. If people don't know about you or haven't heard of your product from other means, you have to break through a wall of indifference. This is the real value of coverage in the industry press and why I think Steve Blank's fretting over people jockeying for TechCrunch articles, which I initially agreed with, is a little too idealized. Companies get a lot of mileage from being featured in startup industry press outlets. I know it doesn't get them many customers, but it puts them in position to get them. It really helps grow partnerships, boost stature at industry events and frankly increase interest in the founders' future endeavors.
- staunch 15y ago
  Getting tech press works largely based on relationships. If you have those relationships then of course you should exploit them. For everyone else the only safe bet is to follow Steve Martin's advice and "be so good they can't ignore you" Reddit didn't get a TechCrunch article until they were acquired.
  - zach 15y ago
    I hesitate to recommend the Steve Martin line to non-performers. I've known several entrepreneurs who have sunk a year or years of their lives into codebases and eternally-half-built products instead of businesses. Including myself at 20! It's actually a common affliction among game developers looking to become entrepreneurs. They have an artistic vision, no concept of hustle, and just want to put their head down until they get something amazing. It's the artistic E-myth, The Thief and the Cobbler syndrome. It's an important message because a lot of people today are probably still in this mode of thinking. I really need to write a blog post about it.
    - staunch 15y ago
      If you define being "good" as having a quality product that's growing revenue/users successfully then the Steve Martin idea works perfectly. Plenty of people have grown amazing businesses without being able to attract the attention of TechCrunch or Google's M&A guys.
      - zach 15y ago
        Absolutely agree. We're all passionate about great products here, right? And stories where great products win despite all odds are what I want to tell my kids at night. But I'm going to be honest, given a lone founder, I'd prefer to invest in one with great connections and ability to excite people but who is a little clueless (though passionate) about the product. I know that's heresy, but hear me out here. Entrepreneurs almost by definition go into fields where there's a huge gap between how crummy things are and how much better they can be with a little work. And we know that a startup is not going to be as able to define a market as a huge company is. And it's actually better for them not to come in with a lot of assumptions about a fully-formed product that customers "must" love. So it's honestly pretty important to get someone out there who is going to put the work into making those relationships and selling the product. I know people should rarely concern themselves with improving on their weaknesses, but I think this is one of the few counterexamples. Product and technology wonks really need to know they need to step up their bizdev game or have a co-founder who can do it to succeed as a startup. To bring this back around to the topic at hand, learn from Dan! He was tireless in presenting Ontela to everyone who would listen to his pitch, and got really good at communicating the best message. And he got some good practice presenting to audiences at conferences before he went into startups (Dan, forgive me for this one): http://www.google.com/search?q=dan+shapiro+they+wanted+to+stone+him http://www.google.com/search?q=dan+shapiro+they+wanted+to+st...
rdl 15y ago
I agree that knowing people and making connections is key, but it's perfectly reasonable for a hacker to develop those relationships in the course of building a successful startup. You don't need to be born knowing those people, or even have worked with them directly -- you can meet them at conferences, or through other introductions, and build relationships over time. When it comes time to do deals (or just getting bugs fixed), it's great if they have a pre-existing relationship with you, even if it's not an especially close one. Also, top-tier investors (YC, SV Angel, angels, VCs like Sequoia, A-H, Kleiner, Accel) will help you make those connections. Or getting a well connected lawyer (e.g. Ted Wang at Fenwick) to represent you.
- ma2rten 15y ago
  From the interview referenced in his blog: "Sparkbuy founder Dan Shapiro doesn’t like talking to people on airplanes. But on a trip between Silicon Valley and Seattle late last year, the entrepreneur started a conversation with the guy sitting next to him, which happened to be Google’s Matt Klainer. That chance encounter, along with a previous meeting with Google Kirkland site director Scott Silver, led to the search giant’s interest in Shapiro’s new search engine for consumer electronics." It might just be PR though.
nl 15y ago
I'd bet this acquisition happened almost entirely due to relationships and salesmanship. Most hackers who don't already know the right people (e.g. former Googlers) would have no chance of pulling this kind of thing off. They were a YC company. As has been previously noted, YC gives you lots of advantages. I suspect PG (& YC) would encourage everyone to try becoming a YC company too.
- danshapiro 15y ago
  No, we weren't a YC company. Here's what actually happened: I went on a networking trip to the valley to touch base & brainstorm with some VCs I'd met at my previous company, Ontela. On my way back, I got bumped in to first class. I hate talking to people on planes, but my rule is: if I'm in first, or I'm flying to/from SJC, I force myself. Well, this was a twofer. The guy sitting next to me turned out to be a Googler. We exchanged some emails - I was still working on company concepts at the time - and months later, when we were featured in Techcrunch, he called me up and said he wanted to talk. He was the one who put together the internal Google team that did the deal. The deal wouldn't have gotten done, though, without the tireless advocacy of a senior Google technical leader. I first met him maybe 4 years ago, introduced by an old friend, and we had coffee once or twice a year to keep in touch. We always talked about working together, and now we are. Truth is, I hate "networking" as much as the next guy (although I enjoy the resulting friendships that sometimes form). But one of the key jobs of a startup CEO is creating serendipity, so it's something I force myself to do. And it usually turns out for the best.
  - nl 15y ago
    Sorry - I must be confusing you with another company. I was sure there a YC company doing electronic parts search?
    - infinite8s 15y ago
      Yep, that would be octopart.
      - 15y ago

by staunch 15y ago

zach 15y ago

What is true for getting acquired is about as true for acquiring customers. If people don't know about you or haven't heard of your product from other means, you have to break through a wall of indifference. This is the real value of coverage in the industry press and why I think Steve Blank's fretting over people jockeying for TechCrunch articles, which I initially agreed with, is a little too idealized. Companies get a lot of mileage from being featured in startup industry press outlets. I know it doesn't get them many customers, but it puts them in position to get them. It really helps grow partnerships, boost stature at industry events and frankly increase interest in the founders' future endeavors.

staunch 15y ago
Getting tech press works largely based on relationships. If you have those relationships then of course you should exploit them. For everyone else the only safe bet is to follow Steve Martin's advice and "be so good they can't ignore you" Reddit didn't get a TechCrunch article until they were acquired.
- zach 15y ago
  I hesitate to recommend the Steve Martin line to non-performers. I've known several entrepreneurs who have sunk a year or years of their lives into codebases and eternally-half-built products instead of businesses. Including myself at 20! It's actually a common affliction among game developers looking to become entrepreneurs. They have an artistic vision, no concept of hustle, and just want to put their head down until they get something amazing. It's the artistic E-myth, The Thief and the Cobbler syndrome. It's an important message because a lot of people today are probably still in this mode of thinking. I really need to write a blog post about it.
  - staunch 15y ago
    If you define being "good" as having a quality product that's growing revenue/users successfully then the Steve Martin idea works perfectly. Plenty of people have grown amazing businesses without being able to attract the attention of TechCrunch or Google's M&A guys.
    - zach 15y ago
      Absolutely agree. We're all passionate about great products here, right? And stories where great products win despite all odds are what I want to tell my kids at night. But I'm going to be honest, given a lone founder, I'd prefer to invest in one with great connections and ability to excite people but who is a little clueless (though passionate) about the product. I know that's heresy, but hear me out here. Entrepreneurs almost by definition go into fields where there's a huge gap between how crummy things are and how much better they can be with a little work. And we know that a startup is not going to be as able to define a market as a huge company is. And it's actually better for them not to come in with a lot of assumptions about a fully-formed product that customers "must" love. So it's honestly pretty important to get someone out there who is going to put the work into making those relationships and selling the product. I know people should rarely concern themselves with improving on their weaknesses, but I think this is one of the few counterexamples. Product and technology wonks really need to know they need to step up their bizdev game or have a co-founder who can do it to succeed as a startup. To bring this back around to the topic at hand, learn from Dan! He was tireless in presenting Ontela to everyone who would listen to his pitch, and got really good at communicating the best message. And he got some good practice presenting to audiences at conferences before he went into startups (Dan, forgive me for this one): http://www.google.com/search?q=dan+shapiro+they+wanted+to+stone+him http://www.google.com/search?q=dan+shapiro+they+wanted+to+st...

rdl 15y ago

I agree that knowing people and making connections is key, but it's perfectly reasonable for a hacker to develop those relationships in the course of building a successful startup. You don't need to be born knowing those people, or even have worked with them directly -- you can meet them at conferences, or through other introductions, and build relationships over time. When it comes time to do deals (or just getting bugs fixed), it's great if they have a pre-existing relationship with you, even if it's not an especially close one. Also, top-tier investors (YC, SV Angel, angels, VCs like Sequoia, A-H, Kleiner, Accel) will help you make those connections. Or getting a well connected lawyer (e.g. Ted Wang at Fenwick) to represent you.

ma2rten 15y ago
From the interview referenced in his blog: "Sparkbuy founder Dan Shapiro doesn’t like talking to people on airplanes. But on a trip between Silicon Valley and Seattle late last year, the entrepreneur started a conversation with the guy sitting next to him, which happened to be Google’s Matt Klainer. That chance encounter, along with a previous meeting with Google Kirkland site director Scott Silver, led to the search giant’s interest in Shapiro’s new search engine for consumer electronics." It might just be PR though.

nl 15y ago

I'd bet this acquisition happened almost entirely due to relationships and salesmanship. Most hackers who don't already know the right people (e.g. former Googlers) would have no chance of pulling this kind of thing off. They were a YC company. As has been previously noted, YC gives you lots of advantages. I suspect PG (& YC) would encourage everyone to try becoming a YC company too.

danshapiro 15y ago
No, we weren't a YC company. Here's what actually happened: I went on a networking trip to the valley to touch base & brainstorm with some VCs I'd met at my previous company, Ontela. On my way back, I got bumped in to first class. I hate talking to people on planes, but my rule is: if I'm in first, or I'm flying to/from SJC, I force myself. Well, this was a twofer. The guy sitting next to me turned out to be a Googler. We exchanged some emails - I was still working on company concepts at the time - and months later, when we were featured in Techcrunch, he called me up and said he wanted to talk. He was the one who put together the internal Google team that did the deal. The deal wouldn't have gotten done, though, without the tireless advocacy of a senior Google technical leader. I first met him maybe 4 years ago, introduced by an old friend, and we had coffee once or twice a year to keep in touch. We always talked about working together, and now we are. Truth is, I hate "networking" as much as the next guy (although I enjoy the resulting friendships that sometimes form). But one of the key jobs of a startup CEO is creating serendipity, so it's something I force myself to do. And it usually turns out for the best.
- nl 15y ago
  Sorry - I must be confusing you with another company. I was sure there a YC company doing electronic parts search?
  - infinite8s 15y ago
    Yep, that would be octopart.
    - 15y ago