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Nicolas Dessaigne

11/27/24

@ Y Combinator

I'm Nicolas Dessaigne, a General Partner at Y Combinator and co-founder of Algolia, a search API used by millions of developers to enhance search experiences in their applications and websites.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

A dev tool is software that assists developers in building products, encompassing coding, testing, debugging, documenting, deploying, and running applications.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

When starting a dev tools company, it's crucial to have a founding team composed of developers, as they will be building a technical product for other developers.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

With the rise of large language models (LLMs), distinguishing between good and bad dev tool ideas has become challenging; ideas that seemed bad yesterday may now be viable due to advancements in technology.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

Runtime ideas, which are critical for product functionality, are generally better than build-time ideas, as they ensure that your product is essential and used frequently by customers.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

Libraries and frameworks can be great dev tools, but they often face challenges in monetization; offering a hosting service can be a viable way to generate revenue from these tools.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

The trend of LLMs and AI is creating numerous new dev tools, but entering this market requires a clear differentiation strategy to stand out among many competitors.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

Many founders make the mistake of waiting for the perfect idea; it's better to start with what you have and iterate based on feedback rather than delaying your launch.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

Sticking with a wrong idea for too long is a common mistake; about 50% of companies in Y Combinator pivot from their initial idea, which is also true for dev tools.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

You don't necessarily need a business co-founder; many successful dev tools are created by technical co-founders who learn to sell their products as they grow.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

To start your dev tools company, focus on building a prototype and talking to users; feedback is essential to refine your idea and product.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

When creating a prototype, prioritize speed and simplicity over perfection; aim to identify the core value of your product quickly, as you may discard most of your initial code.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

It's important to gather user feedback early, even with a prototype, to ensure you're addressing real problems and providing value to your customers.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

Once you have a product that users appreciate, expanding your market becomes easier; starting with a niche can lead to broader adoption later.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

As a developer, you have a unique advantage in understanding your audience; leverage this to engage with users and gather insights about their needs.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

Outreach is essential for gaining initial traction; start by connecting with your network and gradually expand to reach more potential users.

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Y Combinator Cast

11/27/24

@ Y Combinator

Personalize your outreach messages instead of copying generic templates. Ask yourself if you'd be excited to open your own message.

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Y Combinator Cast

11/27/24

@ Y Combinator

When launching your product, consider using Hacker News as it's a community of developers who can provide valuable feedback.

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Y Combinator Cast

11/27/24

@ Y Combinator

Engage with comments on your launch posts, even if they are negative. Your goal is to show other readers how you handle criticism gracefully.

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Y Combinator Cast

11/27/24

@ Y Combinator

Segment successfully launched their idea on Hacker News, receiving hundreds of votes and comments, which validated their concept.

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Y Combinator Cast

11/27/24

@ Y Combinator

Stripe's early team engaged directly with customers, helping them implement the product, which provided invaluable feedback and ensured user satisfaction.

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Y Combinator Cast

11/27/24

@ Y Combinator

Avoid hiring too early; ensure your product provides value before expanding your team.

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Y Combinator Cast

11/27/24

@ Y Combinator

Open source is a strong go-to-market strategy for dev tools, as many developers prefer working with open source solutions.

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Y Combinator Cast

11/27/24

@ Y Combinator

If your product is open source, consider monetization strategies like offering cloud hosting or an open core model with premium features.

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Y Combinator Cast

11/27/24

@ Y Combinator

Don't fear outreach; it's essential for gaining initial traction before relying on inbound leads as your product gains recognition.

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Y Combinator Cast

11/27/24

@ Y Combinator

As a founder, you should be the primary salesperson for your product until you reach significant revenue milestones, like 1 million ARR.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

Hire people who are technical or at least understand developers, as developers prefer speaking with knowledgeable individuals rather than traditional salespeople.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

At Algolia, our first sales team members changed their titles to 'product specialists' to better connect with developers, which incentivized them to understand the product deeply.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

Selling developer tools differs from selling other products; developers prefer demonstrations over lengthy sales decks, so focus on showing rather than telling.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

At Algolia, we didn't use a sales deck until we reached $10 million in ARR; we relied on product demonstrations, which proved more effective.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

When selling to non-technical buyers, we often lose deals, but when the buyer is technical or has influence, we win more often. Leaning into the technical aspects of our product has improved our success.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

Most developer tools are sold bottom-up; sales teams should identify if employees within enterprises are already using the product and help management understand its value.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

In developer marketing, focus on creating awareness and establishing yourself as an expert in relevant communities without pushing sales too early.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

Documentation should be prioritized as part of the product; it serves as marketing and is often the first point of interaction for users.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

Support should be a key part of your marketing strategy; having developers handle support leads to higher customer satisfaction and better understanding of user needs.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

Founders should lead marketing efforts for as long as possible, as traditional marketers often lack the understanding of developer personas and can alienate the audience.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

Encourage your engineering team to participate in marketing activities, as they can effectively communicate with customers and understand their needs better than traditional marketers.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

Start building your product now; don't wait for the perfect idea. Rapid iteration and learning from users are crucial for success in developing a dev tool.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

Consider open source as a potential market for your dev tool, and observe how other players build their products before making a decision.

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Nicolas Dessaigne

11/27/24

@ Y Combinator

You are the best salesperson and marketer for your product; no one understands it or the developer audience better than you do.

How To Start A Dev Tools Company | Startup School

Takeaways