Some people were still keeping their day jobs since they were scared if their idea would succeed or not. So how can I evaluate my idea? YC does not only support companies that already have huge support. Some people pitch an idea and get into the program.
When you have growth, when you are growing very quickly, that is what investors are interested in. These are the company that raises 100 billion dollars. Investors will have their own set of metrics to measure your idea. Great investors will tell you how your company can become the next unicorn.
Why a company grows quickly? And my job is to create the pitch correctly so the investors understand, right away.
What is the setting for this company? And what solutions are you providing?
Basically, what is the problem and what is the solution, and what did you learn. Good problems are popular, what to avoid small problems and problems that are growing. More and more people are going to have these problems.
Are they urgent? Are they growing? Do they have to be solved? And they are expensive to solve? And are they mandatory? Is this problem frequent?
We want to have our problem to have a lot of them, don’t need all of them but quite a lot of them. Because this is key to growth.
Motivation is the client’s problem, the ability is your start up what is the triger? We need to tell the client that I am their solution, need to keep the audience engaged. (what about if they are forced?).
Investors like problems when the law has changed, new problems that have to be solved.
Solutions: DO NOT START HERE
So the general meaning is, solution in search of a problem, some new tech has come on the scene and you want to solve everything with this. That is not a good idea, start with the problem, do not try to shoe-horn the problem. (Much better to look at the problem and see how can I solve them.).
What is your companies unfair advantage? You need this for the investors to listen and you need something to grow quickly. Also know why, why are you trying to solve this problem?
Five different types of unfair advantages, you don’t have to have all of them, some of the good ones do, but at least one, nice to have two or three. Founder advantage, are you 1 in 10 of all the people around the world that can solve this problem? This is a very unique situation if you did a PH.D. and you have a special pattern, that's an advantage.
Market advantage, is it growing? By default is it growing, you build a solution and you will grow along with the industry. By the way, this is the weakest advantage. At the end of the day do not be in a shrinking industry.
Is your product way much better than others? That is a product advantage, and it has to be an order of magnitude of 10.
The acquisition is not the only way out, you want to find an acquisition path that is free, just word of mouth. If you don’t have any money at the beginning that is a great exercise, how can I grow this company.
Do you have a monopoly? As your company grows, can you have a larger market share?
Building the product is not the problem, client’s loving your company and your product, which is the key metric. Examples, include YC them-selves.
Invest in a company with open innovation, that was their solution. They have quite a lot of advantages, such as founder, market,
So this is a digital school but done in a much legit way. (they also had a monopoly as well)
Very impressive results, some of the biggest companies in the world. (Total market is over 100 Billion dollars.). Wufoo is software like survey-monkey, and they also had a couple of advantages from the starting point.
And with a small amount of the team, they were able to create something very valuable and mearningful.
Return on the company was 30k percent, which is a crazy amount of returns. Next, we are going to find a way to prove that my company will grow fast by talking to users.