The partners at Y Combinator emphasize the importance of timing when launching a startup. They debunk the misconception of a glamorous launch and stress the need for founders to be prepared and in good shape beforehand. Startups struggle with launching early and moving quickly due to a lack of understanding or application of this advice. Fast in the startup world means being uncomfortable and constantly pushing boundaries. Founders often struggle with launching their startup due to high expectations and a desire for a perfect launch event, hindering progress and growth. The worst case scenarios and fears of founders include negative perception, competition, and premature exposure to investors. Successful companies like Dropbox, Ripple, and Stripe did not launch publicly immediately after their inception. The timing of launching a startup is crucial, as demonstrated by the success of Rippling. Zenefits took the strategy of launching a simplified version first to gain knowledge and feedback. Founders commonly make the mistake of only knowing a small part of the story when it comes to successful startups. Experienced founders can ignore the advice given, but early-stage founders should launch fast and move fast.
Inside the partners' lounge
The partners' lounge discussion focuses on the importance of timing when launching a startup. The partners debunk the misconception of a glamorous launch and emphasize the need for founders to be prepared and in good shape beforehand. As YC partners, they openly discuss this advice to help startups understand the significance of timing their launch.
Key points:
- Timing is crucial when launching a startup
- Launches are not glamorous events like the Oscars
- Founders need to be prepared and in good shape before launching
- YC partners frequently give this advice to startup founders
Why don't startups like to launch early and move quickly?
- Startups struggle with launching early and moving quickly, despite it being common knowledge in the startup community.
- Lack of understanding or application of this advice is one of the reasons for startups not launching early and moving quickly.
What is fast?
Fast in the context of startups means being uncomfortable and constantly pushing boundaries.
- Different founders and companies have varying speeds at which they operate.
- Working at a big company may give the illusion of moving fast.
- Fast in the startup world means being uncomfortable and constantly pushing boundaries.
V1 of Instacart
- Instacart's early version was a simple and hacked-together product
- Founders and Craigslist employees manually drove to grocery stores to pick up groceries for customers
- Despite its lack of sophistication, the product had a good user interface
V1 of Brex
The launch of V1 of Brex, a startup, is discussed in this video. The founders started with a basic product and were able to provide virtual credit cards, but with limited functionality. They couldn't track expenses or see spending details. The video also highlights the tendency of founders to believe they are exceptions to general advice and strive for a perfect launch.
Founders perfect launch and why can't they move fast?
Founders often struggle with launching their startup due to high expectations and a desire for a perfect launch event. However, this mindset can hinder progress and slow down growth. Instead, launching should be seen as a continuous process of getting people excited about the product. It is important to quickly get the product in front of people and not worry about the initial reaction. Multiple launches may be necessary to effectively communicate the product's value.
What's the worst case scenario? What founders are afraid of?
Founders' worst case scenarios and fears include:
- Fear of negative perception of their product's appearance or functionality
- Concerns about competitors or investors learning about their product prematurely
- Some founders deceive themselves by creating waitlists or forms instead of launching, which hinders valuable product feedback.
V1 of Magic
The launch of V1 of Magic reflects a mindset of learning and iterating in real-time rather than waiting for a perfect product.
- Founders decided to launch a simple website with a phone number for users to text their requests.
- The approach emphasizes learning and iterating in real-time.
- The focus is on launching quickly rather than waiting for a perfect product.
Devils advocate
The most profound aspect of the text is the discussion on when to launch a startup and when to wait.
Key points:
- Successful companies like Dropbox, Ripple, and Stripe did not launch publicly immediately after their inception.
- The speakers address the pushback on this common argument.
- They provide their answer on when to launch a startup and when to wait.
Rippling
The timing of launching a startup is crucial, as demonstrated by the success of Rippling. The founder's deep product insight and domain expertise allowed him to wait until the minimum viable product (MVP) was robust before launching. This level of experience is rare among founders, but it highlights the importance of waiting until the product is ready before launching.
- Rippling took a year and a half to officially launch
- The founder had deep product insight and domain expertise
- He had previously built a similar product for his previous startup
- The previous startup had many users
- Waiting until the MVP was robust before launching is crucial
- This level of experience is rare among founders
Zenefits
Zenefits is a startup that initially launched with a feature-rich HR software built quickly using forms and without a back end. The founder, Parker Conrad, took the strategy of launching a simplified version first to gain knowledge and feedback before doing a big build.
- Zenefits is a startup that launched with a feature-rich HR software.
- The software was built quickly using forms and without a back end.
- Founder Parker Conrad launched a simplified version first to gain knowledge and feedback.
- The strategy was to gather insights before doing a big build.
Founders common trap
- Founders commonly make the mistake of only knowing a small part of the story when it comes to successful startups.
- They should strive to understand the full picture and not just focus on exceptions.
- Examining the early stages of successful companies on platforms like GitHub and their blogs can provide valuable insights.
- These early stages have lower stakes and simpler features, making them a good source of information.
Wrap-up
- Experienced founders can ignore the advice given in the talk
- Early-stage founders should launch fast and move fast
- Every day not launching is a choice to go slower