47 karma · joined May 25, 2012
One thing that's been useful for me is to get off the startup founding train for a while, go get a job or consulting gig in a larger company in an industry that you think is worth learning about, and then rebuild your savings and sanity while looking for new problems to solve. You may spot an opportunity to productize a solution for your client that they are willing to pay for and beta, and this will help you avoid wandering around testing abstract MVPs in the market since you will have your first customer on board on day 1.
I don't think a month off is going to help you feel better or accelerate your trajectory in the right direction. You'd rest a lot better knowing that your next 6 months are figured out.
* Company is raising now * You can get in on the deal * Terms are acceptable * You want to invest in the company
These are some reasons why professional investors are so busy taking meetings, and why so many angels piggyback on deals with more active/well known investors.
I think the big challenge for this is that traditional bandwidth is becoming cheap, and anyone who cares about QOS can pay for it and/or build out their own distribution network.
The city has a host of infrastructure and political problems that make things like basic housing development extremely difficult. And while it's fun when you're 20-30ish, single, and without kids the vast majority of employees will bail from SF when they get a little older. I know this seems far off, but it happens to almost everyone. Then... where?
But the largest return I've seen for a founder was a solo founder who raised no capital at all.
Has anyone run the numbers on tech company founder ROI across funding type and amount yet?
While this was an erroneous assumption, I can see how this may have contributed to a perception of lower risk to the investors.
What they seemed to ignore was that stuffing a very early consumer startup with a ton of cash and a lot of hype to live up to might have contributed to the failure. Instead of giving them resources to figure out the space, investors contributed rope with which the company could hang itself.
As an example, when I was growing up I was extremely nearsighted but didn't get glasses until I was out of the home and in college. I was unable to read the chalkboard from K through 12. Yet no teacher intervened to suggest glasses to my parents, or to suggest I see an eye doctor. Only when a college prof noticed that I was squinting my eyes at the board and said "hey man, you need glasses!" did I get my eyes examined and discover what the world looked like in focus.
Along the way, everyone from the public school nurses who administered eye and hearing tests to a DMV examiner fudged my eye test results to "help" me pass those tests. And I was pretty good at doing things with limited vision. I know I'm not alone in this regard -- many children find a way to get by with a range of limitations because they don't know there is an alternative.
But we're living in the modern world, and many limitations can be controlled given early intervention. And teachers are well positioned to observe children over extended periods of time, while doctor visits are often 5 minutes ling and most children will never see a psychiatrist at all.
Not that women don't drive startup success! But DJ disappoints on statistical analysis.
But it's not cool how they at least used to operate: contact US startups that had traction, and tell them they wanted to invest and bring them into EU. Ask for info on the business. Then, clone it.
As a side note it actually isn't great to have such a short cycle between startup traction and inevitable cloning. It means small startups have to rely on things like (gasp) the patent system to protect themselves from paying upfront to work out a business model only to have someone come in immediately to fragment the market.
Hm.
There seems to be an abundance of advice out there regarding startups from people who have very limited experience, and it's a bit worrying to see it get voted up on hackernews so easily.