4 ms·

This reminds me of one of Warren Buffet's famous quotes: "When a management with a reputation for brilliance tackles a business with a reputation for bad econo

This reminds me of one of Warren Buffet's famous quotes: "When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact." Taking this thinking another step, one of the characteristics of good management is probably the ability to avoid bad businesses. If Zuckerberg were to leave Facebook to start another startup, and analysis of the idea makes an investor think it's a bad idea, I'm guessing they would still invest in Zuckerberg based on the assumptions: 1. He knows something you don't. 2. He'd move from a bad idea to a good idea later and it's worth investing in smart businesspeople.

staunch 13y ago
Tablets were a bad business before Apple got involved.
- grinich 13y ago
  Tablets weren't a business before Apple got involved.
  - Uhhrrr 13y ago
    Go Corp and several successive teams at Microsoft would beg to differ. https://en.wikipedia.org/wiki/GO_Corp https://en.wikipedia.org/wiki/GO_Corp.
    - grinich 13y ago
      From that link: Founder Jerry Kaplan says that in its lifetime, the company generated "no meaningful sales". Business => $$$.
nostrademons 13y ago
Reminds me also of one of Marc Andreesen's rules for startup success: 1. When a good market meets a bad team, market wins. 2. When a bad market meets a good team, market wins. 3. When a good market meets a good team, something special happens. Also, Zuckerburg himself has said that the reason he refused all buyout offers for Facebook was "I'm unlikely to have an idea as good as this ever again." That was probably the quote that changed my opinion of him from arrogant douchebag who got lucky to someone who just might have his head screwed on. It displays an interesting level of humility that's largely missing from his public persona.
- hello_newman 13y ago
  " "I'm unlikely to have an idea as good as this ever again." That was probably the quote that changed my opinion of him from arrogant douchebag who got lucky to someone who just might have his head screwed on. It displays an interesting level of humility that's largely missing from his public persona." You know, Zuck actually seems like a nice guy. Someone I'd love to grab a beer with. He's obviously smart, incredibly humble, (supposedly) easy to work with and doesn't really fit the existing molds of a wunderkind CEO like Jobs or Gates.
- SatvikBeri 13y ago
  Note that a16z invests in startups at a much later stage than YC does. For YC, the quality of the team may be the most important because they're at a stage early enough to significantly change the market they target. By the time a startup is looking for series A (or later) funding pivots are relatively more expensive.
  - nostrademons 13y ago
    Yeah, I suspect that YC is willing to invest based on team because they figure the idea can easily change anyway. I've heard that one of the points of the YC interview is to weed out inflexible founders that are not willing to radically change their approach. And Andreesen has recommended that "Until you achieve product/market fit, keep the team as small as possible.".

staunch 13y ago

Tablets were a bad business before Apple got involved.

grinich 13y ago
Tablets weren't a business before Apple got involved.
- Uhhrrr 13y ago
  Go Corp and several successive teams at Microsoft would beg to differ. https://en.wikipedia.org/wiki/GO_Corp https://en.wikipedia.org/wiki/GO_Corp.
  - grinich 13y ago
    From that link: Founder Jerry Kaplan says that in its lifetime, the company generated "no meaningful sales". Business => $$$.

nostrademons 13y ago

Reminds me also of one of Marc Andreesen's rules for startup success: 1. When a good market meets a bad team, market wins. 2. When a bad market meets a good team, market wins. 3. When a good market meets a good team, something special happens. Also, Zuckerburg himself has said that the reason he refused all buyout offers for Facebook was "I'm unlikely to have an idea as good as this ever again." That was probably the quote that changed my opinion of him from arrogant douchebag who got lucky to someone who just might have his head screwed on. It displays an interesting level of humility that's largely missing from his public persona.

hello_newman 13y ago
" "I'm unlikely to have an idea as good as this ever again." That was probably the quote that changed my opinion of him from arrogant douchebag who got lucky to someone who just might have his head screwed on. It displays an interesting level of humility that's largely missing from his public persona." You know, Zuck actually seems like a nice guy. Someone I'd love to grab a beer with. He's obviously smart, incredibly humble, (supposedly) easy to work with and doesn't really fit the existing molds of a wunderkind CEO like Jobs or Gates.
SatvikBeri 13y ago
Note that a16z invests in startups at a much later stage than YC does. For YC, the quality of the team may be the most important because they're at a stage early enough to significantly change the market they target. By the time a startup is looking for series A (or later) funding pivots are relatively more expensive.
- nostrademons 13y ago
  Yeah, I suspect that YC is willing to invest based on team because they figure the idea can easily change anyway. I've heard that one of the points of the YC interview is to weed out inflexible founders that are not willing to radically change their approach. And Andreesen has recommended that "Until you achieve product/market fit, keep the team as small as possible.".