22 November 2006
Startup.com- Lessons
I’ve watched Startup.com multiple times. Last time I had watched the movie was about 14 months ago, right after Frank and I decided we were going to leave my first venture to strike it out on our own. Watching the movie again, I’ve noticed I’ve learned a LOT. I think you really notice how much you learn, by going back and looking at old scenarios later on in life. Startup.com is an interesting movie, and brings out the best and worst of the old dotcom bubble. I think there’s a few obvious and huge errors the guys made at GovWorks:
Focus
For a ten minute period, about twenty minutes into the film, Tom and Kaleil are arguing about focus. They’re both on different pages, and worst of all in front of a VC that’s invested in them. Why in God’s name are they arguing about focus after raising a round of money? This is Startup 101 stuff, get your focus down. Yes, you will have to adapt, but without a simple focus, your startup is done. Example: Riya.com, now Like.com has adapted and changed, but their focus is the same: facial and visual recognition technology. They have adapted it to search recognition, but it’s still the same business. Look at Facebook, connecting people through a social directory. Three years down the road and it’s the same focus, but expanded outwards. There are three levels of focus throughout the business:
1. First Initial Focus: We provide X for Market Y, which makes Market Y work better.
2.Adaption Focus: Keeping the same focus, while adapting to feedback from your customers. Make the business better, but still Provide X for Market Y, to make Market Y better.
3. Expansion Focus: Take what you’ve done in Step 1, and expand it to other vertical businesses. Keep the same core focus of the business, but do it for Market X and its coordinated verticals.
Relationships
Business is all about relationships. There is nothing more important than relationships. Your cofounders? Should be like brothers. Your Investors and VCs? Should be like fatherly figures for advice, not Warlords. Granted they NEED to be hardasses. In Startup.com, the company lost TWO of its cofounders. It seemed to be at odds and constantly fearful of their VCs. Everyone that you have a business relationship needs to do one simple thing: GET IT. Either they get it or they don’t get it. They need to see the same vision as you. Without that, it’s not a relationship, but two people fumbling around trying to explain some odd contraption to each other. Get Co-Founders who you trust like family and VCs that are with you.
Don’t Be a Fool With the Money
I know it was the bubble, but please don’t be an idiot with the money. 30 employees, only 200k in the bank,etc. WTF? By the way, did they even run a damned company. All I saw were trips to the Valley and across to New York to raise more money. The valuations I heard, seemed like they were diluted to hell and back. The product wasn’t even close to being launched and they were burning through money. I’d love to see with how little money and scarce resources that a Web 2.0 company could build something like GovWorks. I’d be astonished. You know what, we’re not in a bubble. We have startups who are more nimble and can do it with very little money. Not to tout my horn, but we’re a small team of 3 right now and are building this product with very little money. Why else aren’t we in a bubble? The products are more focused. They may seem ridiculous to some, but that’s because they’re not mainstream products. The products are niche. They serve actual needs that people actually have. Calling this a bubble brings pageviews, that sells advertisements. It’s not a bubble, and I’m happy to be in Web 2.0.
Technorati Tags: web 2.0, web 1.0, startup.com, publictivity, startups, failures, riya, like.com
