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(a) That the correct path for starting any company is to convince venture capitalists to fund it. In fact, this post seems downright derisive of that idea. Sur

(a) That the correct path for starting any company is to convince venture capitalists to fund it. In fact, this post seems downright derisive of that idea. Sure. My notes on the problems with VC (specifically, the career incentives on VC-istan that make it suck) were to explain why bad ideas get funded. I didn't think he was arguing that, since he was clearly going out against the VC-istan mentality. (b) That the way to take advantage of on-the-job experience at BigCo's is to convince them to do things differently while you're on staff there. No, that's not why you make friends with decision makers; you make friends with decision makers to learn what it is they need. Then you leave, and go build a product. He's still carrying the assumption that the dynamic, highly intelligent people who often end up in VC-istan (by default, because traditional corporate environments can't accommodate them) will be so far above the competition in these stodgy dinosaur companies that they get magically put on a protege track and get to "make friends with decision makers" and acquire the trust (in that company, or later on, as you alluded) to solve their problems. I argue that it's not that simple.

tptacek 13y ago
That's not the assumption he made; that's a third argument you may have (accidentally?†) made up just to knock down. It's not the case that the only way to find problems that BigCos will pay you to solve is to be smarter than everyone at the BigCo. You will almost certainly have a different tolerance for risk than any senior BigCo employee. It's likely you'll enjoy product development more than they will. It's almost certain that you'll enjoy the trappings of "brand new company" more than they will; Matasano's "brand new company" trappings were "desk at a library", followed by "attic of a print shop with no air conditioning accessible only by a freight elevator". You also don't need to acquire the trust of BigCo decision makers to sell them products. You can learn about problems BigCo's have just by having routine conversations with the right people, and you can sell anybody a product if the product solves a problem for them at the right price. Scott Wensing solves the White House Situation Room's "tracking devastating storms" problem. How much do you think Barack Obama trusts Scott Wensing? He has an account in StormPulse. † I'm a little pissy today
- patio11 13y ago
  How much do you think Barack Obama trusts Scott Wensing? Barack Obama cited Matt Wensing by name as an American innovator solving American problems in a public speech, but to your point, several years ago the decision to use StormPulse in the White House was made by a GS-whatever with a nondescript .gov email address, and it was certainly not made due to StormPulse's superior access to the Valley in-crowd. (Disclaimer: I invested in them.)
  - tptacek 13y ago
    Dammit. Matt. Not Scott. Sorry.
dylangs1030 13y ago
I'd argue that you can start smaller than that if you want to get in with decision makers. Let me give an example. Typically, when people need a software solution and they are not executives, they go to whoever is in charge of such things and ask for a budget to acquire that service. The Human Resources and Accounts Payable departments deal with it, but an employee initiates the prompt. This is the underpinnings of SaaS models, and how they market to a lot of companies. Let's say I was a waiter in a very inefficient restaurant, or better yet, I had experience for a few years in different restaurants. Let's say our waiter also happens to be a talented software engineer doing market research. He's well within a degree of separation from his boss, presumably, even if the restaurant he works at is part of a huge chain. If he can justify solving a very important problem that's hemorrhaging money to his immediate superior, his immediate superior can go one step above himself and make a case for the software. Not only is this possible, I have literally done this, which is why I have such a detailed example. You can go up the chain link by link without having to wait until you've physically climbed to the top. Now, that said, I also don't agree with the premise of even needing to get in touch with decision makers. As long as you can verify there is an existing problem, and you can verify that it exists for a legitimate group of people who'd throw cash at you to solve it for their own business, you have a business model. Granted, that is not easy, but it's certainly an alternative to needing connections. I think the author understands this and realizes that he's not suggesting startup ideas require people with extreme levels of experience. He didn't mean that you need to get in with the C level executives of a corporate culture just to be relevant to them - the entire argument about how easy it is, how blind they are to talent, etc. is irrelevant. He's not recommending that. He just wants people to have practical field experience so they understand their problems from the perspective of the domain - whether they are in the top, middle or bottom of that domain is not necessarily important.

tptacek 13y ago

That's not the assumption he made; that's a third argument you may have (accidentally?†) made up just to knock down. It's not the case that the only way to find problems that BigCos will pay you to solve is to be smarter than everyone at the BigCo. You will almost certainly have a different tolerance for risk than any senior BigCo employee. It's likely you'll enjoy product development more than they will. It's almost certain that you'll enjoy the trappings of "brand new company" more than they will; Matasano's "brand new company" trappings were "desk at a library", followed by "attic of a print shop with no air conditioning accessible only by a freight elevator". You also don't need to acquire the trust of BigCo decision makers to sell them products. You can learn about problems BigCo's have just by having routine conversations with the right people, and you can sell anybody a product if the product solves a problem for them at the right price. Scott Wensing solves the White House Situation Room's "tracking devastating storms" problem. How much do you think Barack Obama trusts Scott Wensing? He has an account in StormPulse. † I'm a little pissy today

patio11 13y ago
How much do you think Barack Obama trusts Scott Wensing? Barack Obama cited Matt Wensing by name as an American innovator solving American problems in a public speech, but to your point, several years ago the decision to use StormPulse in the White House was made by a GS-whatever with a nondescript .gov email address, and it was certainly not made due to StormPulse's superior access to the Valley in-crowd. (Disclaimer: I invested in them.)
- tptacek 13y ago
  Dammit. Matt. Not Scott. Sorry.

dylangs1030 13y ago

I'd argue that you can start smaller than that if you want to get in with decision makers. Let me give an example. Typically, when people need a software solution and they are not executives, they go to whoever is in charge of such things and ask for a budget to acquire that service. The Human Resources and Accounts Payable departments deal with it, but an employee initiates the prompt. This is the underpinnings of SaaS models, and how they market to a lot of companies. Let's say I was a waiter in a very inefficient restaurant, or better yet, I had experience for a few years in different restaurants. Let's say our waiter also happens to be a talented software engineer doing market research. He's well within a degree of separation from his boss, presumably, even if the restaurant he works at is part of a huge chain. If he can justify solving a very important problem that's hemorrhaging money to his immediate superior, his immediate superior can go one step above himself and make a case for the software. Not only is this possible, I have literally done this, which is why I have such a detailed example. You can go up the chain link by link without having to wait until you've physically climbed to the top. Now, that said, I also don't agree with the premise of even needing to get in touch with decision makers. As long as you can verify there is an existing problem, and you can verify that it exists for a legitimate group of people who'd throw cash at you to solve it for their own business, you have a business model. Granted, that is not easy, but it's certainly an alternative to needing connections. I think the author understands this and realizes that he's not suggesting startup ideas require people with extreme levels of experience. He didn't mean that you need to get in with the C level executives of a corporate culture just to be relevant to them - the entire argument about how easy it is, how blind they are to talent, etc. is irrelevant. He's not recommending that. He just wants people to have practical field experience so they understand their problems from the perspective of the domain - whether they are in the top, middle or bottom of that domain is not necessarily important.