YC
Andrew Mason at Startup School SV 2014
@ Y Combinator
10/15/14
Takeaways
AM
Andrew Mason
10/15/14
@ Y Combinator
You don't need to read business books to learn how to excel in business; you can find inspiration in natural wonders, like witnessing the birth of an octopus.
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Andrew Mason
10/15/14
@ Y Combinator
I came up with the idea for 'The Point' while I was a grad student at the University of Chicago, aiming to create a social platform for collective action that required a tipping point of participation.
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Andrew Mason
10/15/14
@ Y Combinator
I received a million dollars to drop out of grad school and work on 'The Point', despite having no prior experience in starting a tech company.
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Andrew Mason
10/15/14
@ Y Combinator
We launched 'The Point' in September 2006, but after floundering for about a year, we pivoted to create Groupon.
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Andrew Mason
10/15/14
@ Y Combinator
While running 'The Point', we launched Groupon as a side project, which allowed me to shift my focus without admitting that 'The Point' was failing.
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Andrew Mason
10/15/14
@ Y Combinator
During the early days of 'The Point', we tried various marketing campaigns, including one that attracted a community of Insane Clown Posse fans, known as Juggalos, who ended up trolling our site instead of contributing positively.
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Andrew Mason
10/15/14
@ Y Combinator
Most startups go through a phase where things aren't working, and those who quit often have rational reasons; it's the ones who stick around despite the chaos that can turn things into success.
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Andrew Mason
10/15/14
@ Y Combinator
The idea for Groupon emerged from recognizing that group buying was a viable business model, especially since people were already attempting group purchasing campaigns through 'The Point'.
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Andrew Mason
10/15/14
@ Y Combinator
When we launched Groupon, we started with a two-for-one pizza deal at a local bar called Motel Bar, which was a simple way to test the market's interest.
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Andrew Mason
10/15/14
@ Y Combinator
After a couple of weeks, it became clear that we were onto something significant with Groupon, and we began making projections about its potential growth.
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Andrew Mason
10/15/14
@ Y Combinator
In the early days, we generated Groupon vouchers using a FileMaker app, which was a makeshift solution that involved exporting data and emailing vouchers manually.
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Andrew Mason
10/15/14
@ Y Combinator
We expanded rapidly, adding staff from 50 to over a thousand in just a few months, which made it challenging to maintain a cohesive company culture.
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Andrew Mason
10/15/14
@ Y Combinator
To scale effectively, we created a playbook for each city we entered, allowing us to replicate our success in multiple markets efficiently.
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Andrew Mason
10/15/14
@ Y Combinator
When we announced our funding, we knew we had to quickly develop our international strategy to stay ahead of clones that were emerging in the market.
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Andrew Mason
10/15/14
@ Y Combinator
I found it difficult to deal with clones of Groupon, as it felt demoralizing to see others copy our concept without the same passion for building a startup.
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Andrew Mason
10/15/14
@ Y Combinator
During meetings with potential partners, I focused on connecting as humans first, which helped in building relationships despite the competitive landscape.
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Andrew Mason
10/15/14
@ Y Combinator
I think if I were to do an acquisition again, I would ensure that the leaders of the acquired company are completely aligned with my values.
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Andrew Mason
10/15/14
@ Y Combinator
As a company grows, it's crucial to find people who share your values, as the small decisions they make can significantly impact success or failure.
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Andrew Mason
10/15/14
@ Y Combinator
Going public is awful; it consumes a significant amount of your time and diverts focus from building a great company.
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Andrew Mason
10/15/14
@ Y Combinator
The incentives to think short-term in a public company are overwhelmingly strong, leading to detrimental trade-offs for business and entrepreneurship.
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Andrew Mason
10/15/14
@ Y Combinator
I advise founders to avoid going public as long as possible, as it can hinder your ability to focus on long-term success.
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Andrew Mason
10/15/14
@ Y Combinator
In my new startup, Detour, I'm applying lessons from my past, such as maintaining clear company goals and avoiding unnecessary chaos.
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Andrew Mason
10/15/14
@ Y Combinator
Values are the principles you adhere to in your company, and having the courage to stick to them is essential for long-term success.
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Andrew Mason
10/15/14
@ Y Combinator
The biggest mistake I made at Groupon was rationalizing exceptions to our values, which ultimately led to failure in consistently putting the customer first.