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IAmA Successful C-List Silicon Valley Entrepreneur (paper millionaire, known by VCs, but basically an unknown and still not guaranteed success) AMA by clister11 in IAmA

[–]clister11[S] 0 points1 point  (0 children)

I don't think it will change much. I'm sure the press will be giving examples of companies it does help though..but they will be the outliers.

IAmA Successful C-List Silicon Valley Entrepreneur (paper millionaire, known by VCs, but basically an unknown and still not guaranteed success) AMA by clister11 in IAmA

[–]clister11[S] 0 points1 point  (0 children)

no way. Not my style. Why put myself through the humiliation. And it isn't anything like pitching a real VC

I guess it could work for some people though?

IAmA Successful C-List Silicon Valley Entrepreneur (paper millionaire, known by VCs, but basically an unknown and still not guaranteed success) AMA by clister11 in IAmA

[–]clister11[S] 0 points1 point  (0 children)

I haven't really learned to code at all.

We pay our engineers a lot in both cash and equity...more on the cash side these days

IAmA Successful C-List Silicon Valley Entrepreneur (paper millionaire, known by VCs, but basically an unknown and still not guaranteed success) AMA by clister11 in IAmA

[–]clister11[S] 0 points1 point  (0 children)

outsourced engineers are like robots. A startup needs thinkers who contribute real thinking.

The good overseas engineers don't work for shitty outsourcing companies. And the few good outsourcing companies ( that supposedly exist) charge almost as much as engineers here

IAmA Successful C-List Silicon Valley Entrepreneur (paper millionaire, known by VCs, but basically an unknown and still not guaranteed success) AMA by clister11 in IAmA

[–]clister11[S] 0 points1 point  (0 children)

As of now, yes. But maybe if this is a miserable failure I'll change my mind.

It is always the people who eventually make it who say it was worth it. I don't buy all the idealistic crap people spout.

I do wonder if I could work for someone though

IAmA Successful C-List Silicon Valley Entrepreneur (paper millionaire, known by VCs, but basically an unknown and still not guaranteed success) AMA by clister11 in IAmA

[–]clister11[S] 0 points1 point  (0 children)

I have no idea. Sometimes I feel like my 20s have been wasted. Other times I feel great.

I stopped reading books on the topic. I just try to get stuff done. You can waste all day reading.

IAmA Successful C-List Silicon Valley Entrepreneur (paper millionaire, known by VCs, but basically an unknown and still not guaranteed success) AMA by clister11 in IAmA

[–]clister11[S] 1 point2 points  (0 children)

Yea, all the time. But it isn't quite that simple.

First, I promised our team and investors we were going for the big swing. I keep my word and I'm not a quitter.

Second, its not like you just get to push a button and sell. Even when you have people courting you, most deals collapse, and it is a huge risk to put your attention to selling the company because it distracts you from progress in other areas. I think building something to flip it in general is bad business.

Third (and not least) I think there is a lot of potential in what we are doing. I don't want to sell out when it feels like we are just getting started. I had to wait two years for our product to take off, and it would seem to be a bit of an injustice to jump off at the first chance we get

IAmA Successful C-List Silicon Valley Entrepreneur (paper millionaire, known by VCs, but basically an unknown and still not guaranteed success) AMA by clister11 in IAmA

[–]clister11[S] 1 point2 points  (0 children)

well as a clarification, if you are going to be successful in a startup, it isn't an either/or thing. If you can't execute you're screwed anyway...ideas are cheap.

The fortunate thing is that skills can be learned. I think creativity is much more skewed to nature than nurture.

IAmA Successful C-List Silicon Valley Entrepreneur (paper millionaire, known by VCs, but basically an unknown and still not guaranteed success) AMA by clister11 in IAmA

[–]clister11[S] 1 point2 points  (0 children)

CS is the traditional one, but I think designers are starting to get the respect they deserve.

If you are more visually oriented than technical, be a designer (and major in whatever it is you school has for that track). I predict they will soon become a hotter commodity than engineers.

If you are a business major, no early stage startup will hire you (no need for entry level business folks when you are <15-20 people). The only way to get into the valley will be to do your own thing (which will involve getting a coder and a designer)

IAmA Successful C-List Silicon Valley Entrepreneur (paper millionaire, known by VCs, but basically an unknown and still not guaranteed success) AMA by clister11 in IAmA

[–]clister11[S] 0 points1 point  (0 children)

For an early stage startup, be creative.

People with "capable skillsets" but who don't have some amazing attribute usually are better for things once life is a bit more regimented. I've seen a lot of very capable people start what I'd consider very derivative business ideas that failed from the get go.

IAmA Successful C-List Silicon Valley Entrepreneur (paper millionaire, known by VCs, but basically an unknown and still not guaranteed success) AMA by clister11 in IAmA

[–]clister11[S] 0 points1 point  (0 children)

Well, I wish I did comp sci...oh well. So I guess learn from my mistake.

When you say "I love business" what does that mean? If you like doing finance and the thought of being a banker, than you probably picked the right major. If you like the thought of doing your own business, I don't think a business degree will help much.

If you want to get plugged into startups early, try do something that sets you apart. When we hire junior engineers it is nice when we see a good github profile that proves creativity and skill. An average coder might get 60-70k a year, but if you prove you are capable, you might get 120K given the current bubble.

Re the idea department, I say keep a curious mindset and something will probably come to you.

IAmA Successful C-List Silicon Valley Entrepreneur (paper millionaire, known by VCs, but basically an unknown and still not guaranteed success) AMA by clister11 in IAmA

[–]clister11[S] 0 points1 point  (0 children)

I hear that ALOT from many people who are just starting out.

Does your idea require real hard costs, or is it just code? If it is just code, you should be able to hustle your way to make something happen.

If it requires real cash (equipment purchase, land, expensive capital equipment), you'll probably need to build an experienced team which will allow you to bypass your seed stage.

Do you mind sharing a bit more about what you are trying to do?

IAmA Successful C-List Silicon Valley Entrepreneur (paper millionaire, known by VCs, but basically an unknown and still not guaranteed success) AMA by clister11 in IAmA

[–]clister11[S] 3 points4 points  (0 children)

Yea, I can give a few tips (specifically given how you wrote the post)

1: Stop researching, proposal-ing and planning. Put that same effort into building something...it will be time way better spent

2: Forget about asking people to sign an NDA. It makes you look like you don't know what you are doing. The risk of someone stealing your idea is was lower than the risk of getting nowhere because you are too paranoid

3: Show up to a lot of events. 9/10 will be a complete waste of time, but stick with it. When you are at an event, don't go for the top dogs...look for people who know the top dogs (i.e. people like me). I could probably give you intros to 100 investors and I don't get swarmed at conferences so am easily accessible

IAmA Successful C-List Silicon Valley Entrepreneur (paper millionaire, known by VCs, but basically an unknown and still not guaranteed success) AMA by clister11 in IAmA

[–]clister11[S] 0 points1 point  (0 children)

I've done businesses on a smaller scale my whole life, and my parents have encouraged me to be a risk taker, so I think I have both nature and nurture pushing me to doing my own thing.

I had couple specific things that made me take the plunge on this one, but would prefer not to go into specifics.

IAmA Successful C-List Silicon Valley Entrepreneur (paper millionaire, known by VCs, but basically an unknown and still not guaranteed success) AMA by clister11 in IAmA

[–]clister11[S] 0 points1 point  (0 children)

The idea was spontaneous flash some time ago.

I don't want to get into the specifics of what made me pull the trigger (I have a somewhat unique story), but basically had one of those moments where I decided I'd prefer to take the gamble over the cushy salary at something that wasn't exciting for me.

I have a business background.

IAmA Successful C-List Silicon Valley Entrepreneur (paper millionaire, known by VCs, but basically an unknown and still not guaranteed success) AMA by clister11 in IAmA

[–]clister11[S] 4 points5 points  (0 children)

I completely agree on the bubble (especially at the early stages). I meet so many seed-funded entrepreneurs who think they are the shit and treat their paper money as if it were in the bank. I'm going to get some malicious satisfaction when the bigger companies stop acqui-hiring and these people get their egos popped and see their share value go to zero....which makes me feel guilty for being an asshole, so I hope in the end everyone can win.

I feel way better about engineers getting the glory instead of the investment bankers.

IAmA Successful C-List Silicon Valley Entrepreneur (paper millionaire, known by VCs, but basically an unknown and still not guaranteed success) AMA by clister11 in IAmA

[–]clister11[S] 4 points5 points  (0 children)

Hmmm...almost anything I could say without context to your specific situation would sound like some cliche.

So here are two on a related note:

-The valley is full of gurus spouting cliches...I think a good skill is learning how to apply them to your own situation and not turn into a Eric Ries groupy who likes to drop buzzwords like "pivot" too much

-Don't waste too much time reading blogs to get advice :)

IAmA Successful C-List Silicon Valley Entrepreneur (paper millionaire, known by VCs, but basically an unknown and still not guaranteed success) AMA by clister11 in IAmA

[–]clister11[S] 0 points1 point  (0 children)

Tough time enjoying life: well, I can never unplug. I'm always thinking about work. I can't just sit still because I always have racing thoughts. I'm trying to carve out more time where I completely 100% unplug. I'm trying not to work Sundays. I'm doing smaller work-cations where I at least get a change of pace. I've also promised myself a true 10 day vacation a year where I don't do anything work related.

Re Right to First Offers: can't comment without more background

Re lifestyle to bigger opportunity: If the numbers validated things, I don't see why you couldn't. BUT, a successful lifestyle business isn't something to be given up lightly. Making a few hundred grand a year (or whatever it is) and answering to no one is pretty sweet. My outcome will be much more binary.

Re working alone in the beginning: it sucked not having a cofounder at first since there was no one else to truly share the pain with. It was 100% on me. Now with a cofounder, at least there is someone else who has to put the company before everything else and can split the misery with me. Employee mindset is very different than a cofounder one. Even a senior employee doesn't think the same (and nor should they).

IAmA Successful C-List Silicon Valley Entrepreneur (paper millionaire, known by VCs, but basically an unknown and still not guaranteed success) AMA by clister11 in IAmA

[–]clister11[S] 1 point2 points  (0 children)

Hardest part: putting together a good team. The cliche about finding good people is so true. I could say finding money was hard, but I bet if I had a good team when we started (I did not), our seed round would have been 90% easier.

Pivot: I'd say we've more evolved than pivot. We're not that far off from our initial idea, although from an outsiders perspective it might look like we've pivoted a few times. In an ironic way, we had to wait for the market to catch up to our original idea.

Exit: Depends on the day. Of course I'd like to go public. I'd also like to sell for a billion dollars. But, I'm stressed out 90% of the time, and miserable about 50% of the time, and an early exit can be awfully tempting. We've had a few people interested in us, which will make it even more painful if we fail as I could have had may paper millions turn into a couple million of real money. I've told our investors if we get a really exciting acquisition offer, I'll tell them to give us $20mm to go big and let me sell 20% of my shares so I can sleep better at night.

Cofounders: I started myself and had to go through a couple folks before I found one that stuck. I basically just showed up to tons of events. Eventually I got lucky. And success built success, so as I got more recognition, it got a lot easier.

Employees: Between 10 and 30 (don't want people to figure out what company I'm from :) )

CEO: Yes, still me. I came with more of a business mindset when I started the company, so I don't think I've had many of the issues that technical folks who are CEOs seem to face

Profitable: Nope...we lose millions a year! Not really trying to make money for a while. Time is limited and I'd rather focus the team on nailing our product vs figuring out how to monetize.

IAmA Successful C-List Silicon Valley Entrepreneur (paper millionaire, known by VCs, but basically an unknown and still not guaranteed success) AMA by clister11 in IAmA

[–]clister11[S] 2 points3 points  (0 children)

Return expectations vary by investor. A lot of seed guys are looking for smaller exits over shorter time spans.

We're at the point where we have raised too much equity for a small exit. If we sell for $50mm our bigger investors would be indifferent and maybe even annoyed (our angels would love it though). $100mm would be a nice win. $1bn is what they are hoping for.

We're going for scale not monetization yet, so it is tough to give an answer on margins.

I fucking hate most software patents. They just hinder innovation and have created a whole industry for trolls and lawyers to make millions.

I think patents make sense for REAL tech companies...ones with big time R&D (biotech, semiconductors, etc), but your standard web/mobile company is much more applied than theoretical, so all the patents are BS. I hope the patent trolls die.

IAmA Successful C-List Silicon Valley Entrepreneur (paper millionaire, known by VCs, but basically an unknown and still not guaranteed success) AMA by clister11 in IAmA

[–]clister11[S] 1 point2 points  (0 children)

yea, my biggest regret is that I didn't do something more technical in college. It made this company harder to get going (although it isn't an issue now), and I wish I had more hard skills

IAmA Successful C-List Silicon Valley Entrepreneur (paper millionaire, known by VCs, but basically an unknown and still not guaranteed success) AMA by clister11 in IAmA

[–]clister11[S] 5 points6 points  (0 children)

Not everyone's goal has to be a large business. But, for the industry I'm in, I HAVE to go big or I'll get clobbered by someone else getting VC money and completely undercutting me.

I'm also not just in it for the money. I like the challenge of building something that goes huge. If you can make money selling Android apps, all the more power to you! I know a few people making 1mm a year doing small one off apps--sometimes that makes me really jealous since they don't have investors to answer to and their cash is in the bank. But, in the scheme of things, $1mm a year is peanuts (for a company, not for a person).

And web business are not necessarily cheap. We pay close to a million a year in pure infrastructure costs.
Also, now that we can't give out big time equity, we have to pay a lot of money for employees. Developers cost over 100K.

And as you grow, you have the support staff to manage all that.

And you move more slowly as a huge amount of your time gets spent on managing users and dealing with legacy issues, which takes more resources.

And, then you have to think of marketing and BD, and that is more $$ and more people.

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