Startup in 2019–4 Steps to Get Started. Inspired by WebSummit 2018.
WebSummit is the biggest technology conference of the world. It takes place annually in the beautiful city of Lisbon, Portugal. Entrepreneurs and tech-savvy people from all over the world come together to learn about the latest trends and network at events all over the city. It’s a very intense four days event, with additional gatherings like SurfSummit and NightSummit.
Same as last year, this time I tried to attend as many sessions as possible, running between stages in four different pavilions and the centre stage. And I must say it’s totally worth it, as it brings a lot of valuable insights from founders like Ev Willams (Twitter, Medium), Sean Rad (Tinder), Cal Henderson (Slack) and many more. Here are some common thoughts the speakers shared about building a company in 2019:
Focus on the user and everything else will follow
If you followed successful tech companies in the last 20 years carefully, you might have noticed, how often they speak about being out in the field with their users. They might describe themselves like anthropologists — observing a user in their natural habitat. Jens Riegelberger, UX Director at Google AI, describes a principle of Google’s early success as: ”Focus on the user and everything else will follow”, find the talk here. And they are very right with this approach. It’s critical for the success of a product to understand the problem of a user.
There is a well-known advice by Paul Graham, co-founder of Y-Combinator, to Brian Chesky, co-founder of AirBnB, sending the young founders from San Francisco to New York, where there first users reside in one of Masters of Scale episodes. I totally see the value of his advice to the young founders and I think it’s the best first step. Also Hugo Augusto, Managing Director at TechStars Lisbon, brings it to the point: ”Go out and find your earlyvangelists”. These are the people, who have the problem that you intend to solve. They are desperately looking for a solution and they are enthusiastic about it. Often they will help you to promote your product and accompany your startup journey.
Nail it, then Scale it
After a few iterations of the solution with your “earlyvangelist”, your drafty prototype slowly evolved into an almost usable product, bringing actual value to the customers. Quantitative and qualitative measures will tell you: “Yes, you are on the right track.” That’s the moment, when you want to start thinking about offering it to more people. Not earlier. There is no point in attracting masses of potential customers before, as they will hate using your broken product. They will have a bad aftertaste and never come back.
Hugo recommends young founders to: “Nail it, then Scale it”.
Getting VC money is like a forced marriage
But wait, how can I attract more customers, if there is no money in the bank? Although, it’s seems like a better choice to keep control of your business by not accepting any external investments, it will not always be possible. If you are operating in a fast-paced environment, you will have to think about talking to VCs. When approaching them keep in mind: “Don’t be the “Uber of”, don’t talk in acronyms and warm intros are always preferable”..
A talented team of founders will easily find required funds. You should focus on finding the right partner, who is a great addition to your whole team. Knowledge and network are important. But also entrepreneurial alignment, as Trae Vassallo, Co-Founder of Defy.vc, puts it here. Keep in mind, VCs also have business models, as Greg Sands, Costanoa Ventures, reminds us. Bigger checks might not be always the right thing for your startup.
Overall, you can describe the VC game like Gonçalo Vasconcelos, Co-Founder at Syndicate Room and Contributor to Forbes: “Getting VC money is like a forced marriage — we all do it for the money.” Let’s make the best out of it or stay single.
World-Class Athletes have Coaches
Have you ever heard an olympian not being grateful to their supporters? Not thanking a coach and family? I don’t think so! Their achievements are a collaborative effort of multiple people. As a founder, you will face challenges that require extraordinary capabilities. You will have to work everyday to achieve your goals — almost like an athlete, right? Hear more about it from Garry Tan, managing partner at Initialized Capital.
Be like an athlete — have supporters, have coaches. It’s at the core of personal and professional development. It doesn’t make sense to make the same mistake as the previous generation of founders, so learn from their journey. An experienced founder will understand your situation and will see things from an external perspective. You should look for mentors early on and have regular check-ins. How about a lunch date?!
To wrap it up: How to get started?
Find your earlyvangelists and nail the product with them. Then find the right VC and scale your product. But at all time, have a few mentors around you.
Are you a young founder or about to start a new business? Drop me a message or tweet me. I would be curious to hear about your story. Also, I would be happy to connect you with the amazing people from First Momentum Ventures. Check them out.
