MS

Michael Seibel

01/27/22

@ Y Combinator

When starting a company, it's crucial to nail down a single use case before trying to accommodate multiple use cases.

MS

Michael Seibel

01/27/22

@ Y Combinator

Many founders mistakenly believe they know what their customers want without validating their assumptions through user feedback.

MS

Michael Seibel

01/27/22

@ Y Combinator

The 'Google-itis' phenomenon occurs when founders look at successful companies and assume they can replicate their success without understanding their initial simplicity.

MS

Michael Seibel

01/27/22

@ Y Combinator

OpenSea started as a simple website that allowed users to buy and sell NFTs, focusing on a straightforward use case before adding more features.

MS

Michael Seibel

01/27/22

@ Y Combinator

Gusto, originally Zen Payroll, focused solely on payroll services before expanding into a comprehensive HR tool, demonstrating the importance of starting simple.

MS

Michael Seibel

01/27/22

@ Y Combinator

A product with many features that doesn't work is infinitely worse than a product with one feature that works well.

MS

Michael Seibel

01/27/22

@ Y Combinator

Investors often fund ideas based on the assumption that if a product works in one market, it will work in another, which can lead to failures if not validated.

MS

Michael Seibel

01/27/22

@ Y Combinator

Validation from investors or media does not guarantee a product's success; founders must ensure their product meets real user needs.

MS

Michael Seibel

01/27/22

@ Y Combinator

Founders should seek ground truth answers from customers rather than relying on authority figures for validation of their ideas. Investors often misunderstand that founders need ground truth to validate their ideas, rather than just applying solutions from one context to another.

YC

Y Combinator Cast

01/27/22

@ Y Combinator

Many companies raise significant funds, ignore feedback for years, and then return to seek help when their product isn't working, often without having validated their solution.

YC

Y Combinator Cast

01/27/22

@ Y Combinator

When a startup's runway decreases to about 12 months, founders often start making better decisions as they face pressure to perform.

YC

Y Combinator Cast

01/27/22

@ Y Combinator

The best founders demonstrate discipline by consistently doing the right thing, even when not pressured by external circumstances.

YC

Y Combinator Cast

01/27/22

@ Y Combinator

Discipline in execution is often mistaken for genius; many successful founders are simply better at avoiding distractions and focusing on their work.

YC

Y Combinator Cast

01/27/22

@ Y Combinator

Successful founders are those who can consistently engage in focused work, which is a key differentiator in their performance.

YC

Y Combinator Cast

01/27/22

@ Y Combinator

Crowdfunding can create significant challenges for hardware startups, as many founders lack a clear understanding of costs and timelines, leading to unmet expectations.

YC

Y Combinator Cast

01/27/22

@ Y Combinator

Raising money through crowdfunding can lead to negative public perception if a product fails to deliver, making it a risky strategy for hardware companies.

YC

Y Combinator Cast

01/27/22

@ Y Combinator

The best practice for hardware startups is to launch crowdfunding campaigns only after they have developed and tested their product, to avoid creating a negative reputation.

YC

Y Combinator Cast

01/27/22

@ Y Combinator

Taking money from investors comes with accountability; if a startup fails to deliver, it can lead to lasting damage to the founder's reputation.

YC

Y Combinator Cast

01/27/22

@ Y Combinator

Screwing up with investors' money can have permanent consequences, including a negative public record that can follow a founder for life.

Simple Products That Became Big Companies – Dalton Caldwell and Michael Seibel

Takeaways