Startup Development
What are the key tips for starting an IT company according to Thomas Preston-Werner?
According to GitHub co-founder Thomas Preston-Werner, the first essential tip is to start something—anything—and keep trying multiple ideas. As he notes, 'The best way to have a good idea is to have a lot of ideas,' because success rarely comes from your first attempt. GitHub was his '17,000th idea' after many failures. Second, be very careful about building your team, as most companies fail due to team issues rather than product problems. Start with co-founders rather than employees to create equal partnerships and shared commitment. Finally, build something people actually want—no amount of marketing can trick people into using a product they don't need.
Watch clip answer (04:27m)
Rishav Raj Jain
01:59 - 06:26
What advice would you give to someone trying to build a company?
The entrepreneurs emphasize two key components: planning what needs to be done and then actually doing it. They stress that finding a good team is crucial - working with people you enjoy collaborating with and have worked with before makes things fall into line. They recommend breaking any problem into clear steps and executing them. Additionally, they suggest building something fun and cool with friends, as the right team dynamics significantly impact success. Having technical talent and strong relationships creates the foundation for effective company building.
Watch clip answer (01:11m)
KJ Hardrict
09:50 - 11:01
Why do most startups fail?
According to Robin Banerjee, nine out of ten startups fail primarily due to three critical factors. First, they lack a Unique Selling Proposition (USP), often merely copying existing businesses without offering anything distinctive. Second, they have poor operations, failing to focus on customer usability and practical implementation of their ideas. Third, startups frequently fail in financial planning - they don't properly estimate how much money they need or understand basic financial requirements like maintaining sufficient cash balance. Additionally, many startups struggle with effective human resource management.
Watch clip answer (01:47m)
K. K. Wagh Institute Nashik
13:15 - 15:03
What is the true definition of an entrepreneur according to Henry Kravis?
According to Henry Kravis, a real entrepreneur is someone who operates without a safety net underneath them. When students mention wanting to work at established companies like IBM or Procter & Gamble, he tells them they've failed to understand entrepreneurship. Kravis emphasizes that true entrepreneurs have their own ideas and a clear vision. They stick to their convictions despite challenges and take calculated risks rather than blind ones. Entrepreneurship isn't about joining corporate structures but about creating something new while being willing to operate without the security that established organizations provide.
Watch clip answer (00:46m)
Academy of Achievement
33:24 - 34:11
How do capital and customers differ in their importance to a startup?
According to Kevin Hartz, customers provide the most nutritious sustenance for startups, while capital is like sugar - it gives a quick energy burst but doesn't sustain the business long-term. At Eventbrite, they initially bootstrapped for two years focused on customer-centricity, which helped them build a solid foundation. When markets collapsed in 2008-2009, companies bloated with capital failed, while Eventbrite thrived by being capital efficient and customer-focused. This approach ultimately attracted investment from Sequoia Capital when they were in a position of strength rather than desperation.
Watch clip answer (03:03m)
Stanford eCorner
13:08 - 16:11
What challenges did Brian Chesky face when pitching Airbnb to angel investors?
Brian Chesky encountered significant rejection when seeking angel investment for Airbnb. Out of approximately 15 angel investors he approached, nearly half didn't even reply to his emails. Among those who responded, many rejected the concept, claiming it didn't fit their investment thesis despite being consumer internet companies, or stating the market wasn't big enough. One investor simply wasn't excited about the travel category. The challenges culminated in a particularly awkward meeting with angel investor Mike Maples, where Chesky arrived without a presentation deck, planning to showcase their newly launched website. Unfortunately, the website didn't work during the meeting, leaving Chesky struggling to explain the concept for an hour while the investor had difficulty understanding the vision.
Watch clip answer (01:22m)
Greylock
12:49 - 14:11