How to Start a Technical Startup

Key Elements of a Startup

1. Team Composition
   • 2 to 4 co-founders
   • At least 50% should be engineers
   • Each founder should have a year’s worth of money (living frugally)
   • All founders must quit their jobs
   • No initial idea required

Developing the Idea

• Brainstorm with teammates
• Solve personal or well-understood problems
• Focus on daily and weekly problems over monthly or yearly problems

Market Research

• Conduct minimal research (about an hour)
• Ensure the market is large (billions of dollars)
• Use competitors' products

Legal Aspects

• Incorporate in the US for raising funds easily
• Affordable and simple process (e.g., $250 on clerk.com)

Minimum Viable Product (MVP)

• Key to success: Get the product in people's hands quickly
• Launch within two months
• Avoid over-iterating before user feedback
• Growth is the primary metric for investors

Growth Strategies

• Avoid heavy reliance on ads
• For B2B: Focus on reference customers
• For Consumer products: Usage should naturally lead to sharing

Public Relations (PR)

• DIY in the early stages
• PR is like Business Development (warm introductions, building relationships, provide value)
• Focus on real news (product launches, significant hires, deals)

Fundraising

• Avoid needing money initially
• Fundraising is faster when meetings are tightly scheduled
• Investors have FOMO (Fear of Missing Out)
• Growth attracts investors
• Tips for Fundraising
  1. Ensure growth
  2. Engage with the Press
  3. Build momentum by scheduling many meetings at once
  4. Target investors who understand the problem

Operations

• Avoid overspending
• Regularly review and minimize expenses

Hiring

• Aim to increase the team’s average talent with each hire
• Be transparent and fair with offers and stock options
• Hire slowly; leverage the founding team’s capabilities
• Example: SocialCam grew to 20 million downloads with 3 founders, no employees