How to Start a Technical Startup

Team

• Co-founders: 2-4 co-founders, with at least 50% being engineering.
• Financial Situation: Each should have a year's worth of money, living minimally.
• Commitment: All co-founders must quit their current jobs.
• Important Note: No initial idea required.

Idea Generation

• Brainstorming: Best to brainstorm with the entire team.
• Personal Problems: Focus on solving personal or deeply understood problems.
• Frequency: Aim for daily and weekly problems (e.g., Uber) rather than monthly or yearly problems.

Market Research

• Research: Spend an hour researching if billions are made in the market.
• Competitors: Use competitors' products to understand the market.

Legal Incorporation

• Incorporation in the US: Simple process, costs around $250 via clerky.com for those looking to raise money in the US.

MVP (Most Viable Product)

• Launch Quickly: Get something out within 2 months.
• Feedback: Importance of user feedback for iterations.

Growth Strategy

• Key Metric: Growth is a primary metric for investors.
• Strategies:
  • Ads: Least favored.
  • Reference Customers: Ideal for B2B.
  • Built-in Sharing: Essential for consumer products (usage should equal sharing).

Press and Public Relations (PR)

• DIY PR: Early-stage PR can be managed without expensive firms.
• Relationship Building: Treat reporters like business development contacts.
• Pitching: Need real news (e.g., launching, funding, significant hires).
• Follow-Up: Maintain relationships with reporters.

Fundraising

• Investor Interest: Create a scenario where you don't appear desperate for money.
• Strategy:
  • Minimize initial capital requirements.
  • Schedule all investor meetings tightly (within one week) to create urgency.
  • Highlight growth to attract investors.

Operations

• Cost Management: Spend as little as possible, reduce personal and operational expenses.
• Assessment: Regularly review and cut unnecessary expenses.

Hiring

• Talent: Hire individuals smarter than the current team to uplift overall talent.
• Transparency: Be clear about stock, salary, and other compensations.
• Loyalty: Show loyalty to first employees for long-term retention.
• Hire Slowly: Work can often be managed with a small, intelligent team.

Key Takeaways

• A startup's success hinges on a committed, talented team, rapid product launch, smart growth strategies, and efficient use of resources.