codefest 2014. brett martin — postmortem of a venture-backed startup
TRANSCRIPT
Postmortem of a Venture-backed
StartupLessons learned from the rise and fall of @ Sonar
via @brett1211
Quick introBrett Martin, @brett1211
Three time founder: “NewCo”, @Sonar, Dataowl…Getting less bad each time
Went to Dartmouth, worked on Wall Street, won a Fulbright, published by HBR and a bunch of other things that don’t matter
Not actually 103
@Sonar by the #s~2,000,000 users
100+ countries
~$2,000,000 in Venture Capital
+300 press mentions (NYT, Time, CNN etc)
Dozens of awards (e.g. Ad:Tech best mobile startup)
Value today = $0
AgendaProduct/Market Fit
False positivesFalse negativesMetrics that matter
Time WastersEventsBrandsSide ProjectsCompetitionSelling
PeopleMisalignmentBe practicalCulture is your cofounder
OnwardWhat kills startupsWhen to move onNext steps
P/M Fit: False positivesLesson Learned:
“I would use your product if only you had X feature” is a dangerous signal to follow.
P/M Fit: False negativesLesson Learned:
Removing friction from existing user behaviors almost always has a higher ROI than building castles in the sky.
P/M Fit: Metrics that matter
Lesson Learned:
Know what metrics will be required to raise your next round.
Time Wasters: Events Lesson Learned:
Events are for research, business development, and hiring; NOT for getting to 10,000,000 downloads.
Time Wasters: BrandsLesson Learned:
Be polite, but postpone brand and agency “intros” until you’ve built your own audience. If you build it, they will come (and pay).
Time Wasters: Side projects
Lesson Learned:
You do not have 20% time. Identify your top three priorities. Throw away numbers two and three.
Time Wasters: Competition
Lesson Learned:
Be steady at the wheel. The only way one startup can kill another startup is by getting into the other’s head and leading them off a cliff.
Time Wasters: Selling the company
Lesson Learned:
Companies don’t get sold, they get bought. The best way to get bought is to build something of value. That’s hard to do when you are trying to sell.
People: MisalignmentLesson Learned:
Avoid bad relationships like the plague but when you inevitably find yourself in a difficult partnership, don’t waste precious energy wailing against it. Make it work or move on quickly.
People: Be practicalLesson Learned:
Prove yourself by finding diamonds in the rough, like yourself.
People: Culture is your cofounder
Lesson Learned:
Think of culture as a cofounder that is present when you are not.
Onward: What really kills startups
Lesson Learned:
Startups don’t die when they run out of money, they die when their founders let go.
Onward: When to move on
Lesson Learned:
Startups take 7-10 years. Life is short so choose wisely.
Onward: ResilienceLesson Learned:
You ain’t beat if you don’t quit.
Thanks for listening!
If you are savvy, hardworking, and honest and want to kick @$$ and learn how to make sausage this spring and/or summer, ping me:
Thanks. Peace.