Should You Start a Startup?

Speaker: Hodge Tiger, Group Partner at Y Combinator

Lecture Overview

• Discusses key considerations for starting a startup
• Divides the topic into two main parts:
  1. Types of people suited to being startup founders
  2. How to prepare for becoming a startup founder in the future

Part 1: Who Should Become a Startup Founder?

• No Simple Test: No easy way to determine if someone will succeed as a startup founder
• Stereotypes: Common stereotypes (e.g., Mark Zuckerberg, Steve Jobs) aren't the only successful types
• Many Successful Types: Various types of people with different strengths can succeed
• Experience Doesn't Guarantee Success: School or work success doesn’t directly translate to startup success
• Importance of Resilience:
  • Critical trait for startup founders
  • Overcoming rejection and persistence are key
  • Confidence is not a reliable indicator of resilience

Example: Saji & Benchling

• Initially soft-spoken, but highly resilient
• Took nearly two years to achieve sales and revenue
• Demonstrated long-term growth despite early struggles

Part 2: Preparing to Become a Startup Founder

• Initial Motivations:
  • Money-making is a valid initial motive
  • Curiosity about startup life is also a good reason
  • Motivations often evolve over time

Practical Advice

1. Assess Worst-Case Scenario:
   • Understand the worst-case impacts of startup failure
   • Evaluate if you can handle a year without salary
   • Learning and career growth can be valuable outcomes
2. Gain Experience:
   • Experience diverse roles: sales, product, customer support, etc.
   • Startup experience is valued by many employers
   • Example: Nick Grandy’s career progression from founder to Airbnb’s first employee to founding Out School
3. Find an Idea and a Co-Founder:
   • Ideas often come from conversations with smart, like-minded people
   • Experiment with side projects
   • Work in environments with potential co-founders, e.g., other startups
   • Building version one prototypes is crucial
4. Knowing When to Commit:
   • Look for strong, positive reactions from initial users
   • Balance the enjoyment of side projects against the potential risks
   • Pay attention to your own excitement and energy levels
   • A great co-founder is a significant asset and reason to start

Summary

• Don’t stress too much about initial motivations
• Assess the worst-case scenario and ensure you can accept it
• Prepare by engaging in side projects and talking to smart people
• Take the leap when you find both an idea and co-founder you are excited about

"If you find someone you enjoy working with on side projects and you both want to start a company, make the jump."