The reality of building a business
New coming founders to the start-up world focus on the supposed successful businesses. They focus on the others getting funded when they don’t even get their business model. They read all the bravado through their Twitter feed. They see millions of dollars going into businesses that might have terrible cultures and wonder why it is so hard for them. They are fearful that they will let their investors and everyone around them down. They are worried that they will run out of cash. They are afraid to let the product out of the door because it isn’t perfect. They worry about the wrong hire. And of course, there is more.
On one hand we read about the “success” of companies such as Quirky, Zenefits and Uber where the bravado of the founder closes round after round at higher and higher valuations. Then we watch them start to fail for a variety of reason including bad management and bad culture. Those companies create this false sense of what success is supposed to look like for the founders in the weeds who are up all night. There is also the last group of YCombinator companies that just graduated and are already valued at $12-15M. Really?
There is a big disconnect between that is real and what isn’t. Here is what is real. Investors back people they believe in. They except lots of shit to happen, that is the reality of building a business. I want to hear more about the many companies that are being built that are managed well, have great gender balanced cultures, are profitable or on the edge of becoming profitable, that have incredible products and more. Maybe there could be a twitter feed just for them?
Comments (Archived):
Totally agree with this post. It is hard to sift out whats real success that should be analyzed and followed with hype that should be avoided. Microconf and IndieVC do share more about companies in the former vein.
Bravo to Bryce!
Na, when you focus on content, you have less time to do all the pretence. 🙂
I love you.
🙂
Thank you for addressing this reality, and I think your highlights of invested companies is a great step toward that Twitter feed.I’ve observed bravado and charisma going a very long way in getting unprofitable companies funded time and time again, and it baffles me, especially when I know enough behind the scenes to expect due diligence to derail it.I learned through the San Diego startup ecosystem, which is generally understood to be tighter with valuation and funding, to focus on building a meaningful, sustainable company, and to seek funding to scale. Some complain about lack of early money, but in hindsight I believe it forces us to create companies with real, lasting value. I look up to fellow startups that are 2-5 years ahead of me, profitable, and strong in their industries without the fanfare, and I dedicate time to mentor others behind me, too.Perhaps the next time you are in LA you could come south for a day? 😉
San Diego has a really positive tech community. It is great to see.
I want to hear more about the many companies that are being built that are managed well, have great gender balanced cultures, are profitable or on the edge of becoming profitable, that have incredible products and more. Maybe there could be a twitter feed just for them?”I want to hear more”.So do I. Back in the day this was done by the ‘classic’ Inc. Magazine articles (I am talking about the 80’s here) . I remember many of them. There doesn’t appear to be anything that has replaced that in the modern day.
true
Inc was epic.
Anita Roddick as only one example that I remember:https://www.inc.com/magazin…https://www.inc.com/staff-b…https://en.wikipedia.org/wi…Started in 1976, as a woman, in the UK no less.
Thanks for this. We’re living in a world where it’s becoming increasingly difficult to separate reality from illusion, where everything appears to happen at lightning speed and where money is used cover up people who lack a moral compass or other injustices. But there are a lot of people trying to solve those problems as well, and perhaps that will lead to the next wave of entrepreneurship. Glad you are on the side of reality.
Not a fan of “fake news”!
Amen!
Amen.