Venture capital representative tells 'For startup to succeed'

Sam Altman of the representative of " Y Combination (YC) " who is known for raising Dropbox and Reddit with a different investment style to nurture venture companies so that they can collect funds by consulting themselves, To succeed "movies that told about on the company's YouTube channel .

Sam Altman - How to Succeed with a Startup
https://blog.ycombinator.com/sam-altman-how-to-succeed-with-a-startup/

Sam Altman - How to Succeed with a Startup - YouTube


The key points of Mr. Altman's story were as follows.

◆ 1: Products that you want to talk to people unexpectedly <br> If you can make good ones, everyone will want to tell their friends about that product. At this stage, it can be said that 80% of the things necessary for the startup success are achieved.

◆ 2: In order to make "products that you want to talk to people" that you must understand, it must be simple and easy to explain than anything else. When you can not briefly explain products, or when you do not understand the product, in most cases there is something wrong.

◆ 3: Market grows exponentially <br> Even though we assume a small market at start up, it grows rapidly. In the movie, for example, the market of the iPhone application was originally zero, I emphasize the difficulty of paying attention to market trends.

◆ 4: Distinguish between real trend and fake trend <br> The true trend is that, as new technology platforms emerge, people who got them early (Early Adapter) are hooked and how long it is It is what you like to talk to a friend whether you like it. On the other hand, fake trends are those that you do not use, even if you buy it. Mr. Altman gave the iPhone as a true trend, VR (Virtual Reality) as being a fake trend, "VR has been buzzed by a lot of people and many people have purchased it, It can not be said that he received an enthusiastic response from the early adapter like the iPhone. " We should note this trend before making a big investment.

◆ 5: The presence of a central leader <br> Founder like start receiving God's revelation is indispensable for startup. Altman says it is difficult to form a team without the existence of a centripetal force to move people.

◆ 6: Ambitious vision - Never increase too much, but people will respond by growing ambition over time and making it real from the fundamental. The ambitious vision contributes to the motivation of the working side.

◆ 7: Simple startup is difficult to the contrary
Altman says that the Silicon Valley in 2018 seems to contradict that "startups with more hurds are easier than easy startups". There are so many startup companies currently because funds procurement is relatively simple, but it is really hard to concentrate enough talent. The most important thing when setting up a company is to evolve the ambitious vision into something that many people agree and want to participate.

◆ 8: Having confidence and clear outlook
When repeatedly thought about the characteristics seen by the successful companies and founders , they are all confident and have a clear future vision, confident in ambition and reveal the prospects We are preaching the importance of doing.

◆ 9: The importance of the team Altman seems to think that building a strong team is more important than choosing an appropriate market or making a strong product. "Establishing a company" is equivalent to "teaming up".

◆ 10: Being an optimist <br> As the world sees such a thing as "startup is not successful", it actually makes such a thing, so it is very difficult to keep running until success without an optimistic spirit is.

◆ 11: Bringing ideas <br> I do not mean that there are many idea men, but if a company constantly generates new ideas, even if most of the ideas are bad, It will be casting a very important stone to the team.

◆ 12: There is nothing I do not know <br> I heard that the most favorite thing I heard from Mr. Altman's initial team is the spirit of this "We'll figure it out". Even if I am not qualified, even if I have not solved it so far, even if that problem can kill the company, I say that the spirit of understanding and solving it is very important.

◆ 13: Do what I do best One of the words Altman liked in the same way is "I've got it". "It is outside my jurisdiction", but there are images that you often hear in large companies, etc. However, there are those who show willingness to step up "I will try" "I will do my best" "Please leave it to me" It is desirable for the startup team.

◆ 14: It moves with my own thoughts. At startup, things that moved quickly will win. In the absence of adequate data and time, it is necessary to move quickly according to your own idea and shift quickly to another method when it does not go well.

◆ 15: Blessed with lack of experience <br> While I saw the startup team working on unbelievable things, there was no one who said that such efforts were difficult or impossible, Altman said I am talking. Especially in the beginning of the startup, things will happen before it is supposed to be impossible, people with less experience tend to show higher potential in unknown happening.

◆ 16: Momentum is important The founder's most important work is not to lose momentum. Your own momentum will allow the startup to survive. People keep their momentum and people will demonstrate their maximum potential and continue to bring results, but once they lose their momentum it is difficult to regain it.

◆ 17: Competitive significance
YC to the startup team, "What is the long-term monopoly effect?" "What is the long-term competitive advantage?" "Where is the network effect in this business?" I repeatedly asked. People who are doing wonderful business are able to answer these questions.

◆ 18: Distribution strategy <br> Similarly, when asked how to grow and how to acquire users, it is a bad sign if it seems to be conscious for the first time. It is important to first assume a specific strategy.

◆ 19: Why Startup Can Win a Large Company <br> It is very difficult for the startup team to overthrow a large company, so it is important to grasp what kind of example is in the past "Altman says. As an example of the factor that the startup team can win a large company, it is difficult for a large company to execute "good idea that seems to be bad at first glance", it is difficult to get "YES" from everyone, and the rapidly changing markets and platforms The point is that startup with agility becomes advantageous in the other.