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I wanted to leverage my age and experience by not applying and just getting on a building it. But I have a founder who is convinced that you need money first th

by Timzzz 3y ago

I wanted to leverage my age and experience by not applying and just getting on a building it. But I have a founder who is convinced that you need money first then prototypes.I assured her that there is nothing in her proposition needs any tech that you cannot buy off the self or use bubble.io or something. It really bemuses me as she has bootstrapped a confectionary business to over $100m. Sadly got trashed by the sociopath late stage growth investors who gave her back nearly nothing. Just like Dee Hock. In filling in the application it became clear that they want young, "moldable" and want to establish a power relationship with the reader. I became clearly nauseas.

pj_mukh 3y ago
“But I have a founder who is convinced that you need money first then prototypes and that nothing in her proposition needs any tech that you cannot buy off the self.” FWIW, when people get into YCombinator, the first lesson they drive home is to talk to users and ship product. Build tech isn’t on that list. People young and old, mess this part up.
- Timzzz 3y ago
  I agree wholly. But fear is real and understandable. My playbook used to be: 1) Have an idea 2) Identify any customers, Ideally one who is in a terrible emotional distress that they do not have that solution you have come up with. If you cant find one move on to another idea quickly. 3) Ask them if they want your solution - show storyboards. 4) Ask them to pay costs to build it and feed you ramen. 5) Ensure that the software, since they paid next to nothing for it, is yours. 6) Go sell it like Larry to a few more. 7) Show invetsor types once you start growing and getting longer contracts.
- Timzzz 3y ago
  >>Build tech isn’t on that list. ACTUALLY HUGE KUDOS THANK YOU FOR THAT!!! Yes, exactly what I thought. She would do so well with another person who cares about the retail experience as much as she does. THANK YOU AGAIN!!! :-)
- avmich 3y ago
  > the first lesson they drive home is to talk to users and ship product. Build tech isn’t on that list. That's the perennial mystery of Y :) - how is it even possible to ship product before building the tech?
- quickthrower2 3y ago
  I am confused. Then how do you ship a product? MVP i get. Tech free product I don’t. Unless we are talking selling something that doesn’t exist.
b20000 3y ago
how can you bootstrap a confectionary business to 100m? curious how that was possible at all to pay for marketing/sales in a cutthroat industry like the food business
- Timzzz 3y ago
  She raised expansion capital from traditional loans. It was a not for profit and she has a badass MBA. Yeah the margins were rough, distribution deals even rougher.
  - b20000 3y ago
    borrowed money with personal guarantee to pay for marketing and to hire people?
pedalpete 3y ago
Your co-founder is wrong, or going about it the wrong way. I don't know what your business is, but if she's already successfully bootstrapped a $100m business, why would she think she needs money to start this venture? If that money is the $500k from YC, how much difference is $500k going to make for your business? If it's the valuation post-YC, what makes her think you can get there without the money? BTW, my co-founder has the same attitude towards YC, and he's only in his 30s, but I'm the one pushing for us to apply. It can't hurt the business, but keep progressing as if you're not going to get in, because that is the most likely outcome anyway. Maybe I'm sadistic, but I like doing the application, and have been doing them for over a decade now without an invite.

by Timzzz 3y ago

pj_mukh 3y ago

“But I have a founder who is convinced that you need money first then prototypes and that nothing in her proposition needs any tech that you cannot buy off the self.” FWIW, when people get into YCombinator, the first lesson they drive home is to talk to users and ship product. Build tech isn’t on that list. People young and old, mess this part up.

Timzzz 3y ago
I agree wholly. But fear is real and understandable. My playbook used to be: 1) Have an idea 2) Identify any customers, Ideally one who is in a terrible emotional distress that they do not have that solution you have come up with. If you cant find one move on to another idea quickly. 3) Ask them if they want your solution - show storyboards. 4) Ask them to pay costs to build it and feed you ramen. 5) Ensure that the software, since they paid next to nothing for it, is yours. 6) Go sell it like Larry to a few more. 7) Show invetsor types once you start growing and getting longer contracts.
Timzzz 3y ago
>>Build tech isn’t on that list. ACTUALLY HUGE KUDOS THANK YOU FOR THAT!!! Yes, exactly what I thought. She would do so well with another person who cares about the retail experience as much as she does. THANK YOU AGAIN!!! :-)
avmich 3y ago
> the first lesson they drive home is to talk to users and ship product. Build tech isn’t on that list. That's the perennial mystery of Y :) - how is it even possible to ship product before building the tech?
quickthrower2 3y ago
I am confused. Then how do you ship a product? MVP i get. Tech free product I don’t. Unless we are talking selling something that doesn’t exist.

b20000 3y ago

how can you bootstrap a confectionary business to 100m? curious how that was possible at all to pay for marketing/sales in a cutthroat industry like the food business

Timzzz 3y ago
She raised expansion capital from traditional loans. It was a not for profit and she has a badass MBA. Yeah the margins were rough, distribution deals even rougher.
- b20000 3y ago
  borrowed money with personal guarantee to pay for marketing and to hire people?

pedalpete 3y ago

Your co-founder is wrong, or going about it the wrong way. I don't know what your business is, but if she's already successfully bootstrapped a $100m business, why would she think she needs money to start this venture? If that money is the $500k from YC, how much difference is $500k going to make for your business? If it's the valuation post-YC, what makes her think you can get there without the money? BTW, my co-founder has the same attitude towards YC, and he's only in his 30s, but I'm the one pushing for us to apply. It can't hurt the business, but keep progressing as if you're not going to get in, because that is the most likely outcome anyway. Maybe I'm sadistic, but I like doing the application, and have been doing them for over a decade now without an invite.