Advice from Founders with Ryan Hoover

Founder of Product Hunt and the Weekend Fund

Introducing “Advice from Founders,” a series featuring insights from successful entrepreneurs. Starting a company can feel isolating, but it doesn’t have to be, and with the wisdom of experienced founders, you don’t have to feel alone. Here we bring you perspectives from startup veterans on common questions we receive from first-time founders.

As a founder and investor, Ryan Hoover is known for fostering the startup ecosystem through Product Hunt, the Weekend Fund and his support of early-stage entrepreneurs. In a recent conversation, he shared some of his insights on topics ranging from building community to raising capital.

Build community into your product

Ryan emphasized the importance of building your product with community integrated into it from the beginning; it can’t be an add-on or an afterthought. For Product Hunt, this meant experimenting and building community like you would approach an MVP for a product. Building a strong community can help accelerate growth while fostering connection, as seeking out and creating connections is a fundamental human need which is why online communities became more valuable during the pandemic as a way for people to connect and form meaningful relationships.

The roller coaster of product market fit

As a founder, navigating the uncertainty of finding product market fit can be a challenging and often frustrating experience. It often feels like a roller coaster ride, with moments of confidence and success followed by periods of doubt and uncertainty. There’s no definitive playbook or instructions for finding product market fit, but you can approach the process systematically. Listen closely to the market and your users, stay open to iteration and learning, and move quickly to make adjustments.

Don’t change your strategy or product for investors

Find investors who get your vision and will share insights and feedback without trying to dictate the direction of your business. Don’t let VCs focused on the latest trends change your product; remember that you know your customers better than they do. Some people may go to the extreme when they start listening to investors as if they know your business better than they do and change products to match what investors think is hot. You have to stay focused on delivering value to customers while building a sustainable business. When dealing with pitching VCs, communicate both your short-term goals and long-term vision to help them understand the potential for growth and the direction of the company.

Build a strong base of early customers

Finding the right balance between communicating your vision for the future while addressing your customers’ needs in the present is a challenge. Ryan tells founders to start with a clear focus on a targeted customer base and grow from there. Tailor your messaging, marketing, and branding for that dedicated group and learn everything about them. Doubling down on your product and story for a smaller set of customers is a better strategy to build loyalty and advocacy, and it’s much more effective than trying to appeal to a larger audience who is less engaged.

Don’t diss the party round

Contrary to popular wisdom, Ryan believes closing a round without a lead investor or party round can be a strategic advantage. When done thoughtfully, this approach allows founders to bring on a diverse group of experts who can provide valuable insights and support for the business. There’s no one size fits all, so founders need to carefully consider all their options before making a decision.

What’s next for seed funding

Investors are feeling the impact of decreased deal flow over the last few months, particularly in the seed stage. Ryan says this is the slowest he has ever seen but thinks the market is starting to pick up again with the recent influx of companies from Y Combinator. The Weekend Fund has written 20% fewer checks for deals this year, but he believes the slowdown also presents an opportunity for founders to focus on refining their product and strategy.