Don’t be pushed: Build Big!

I can tell you about Leif Ericson / I know all the words to “De Colores” / And “I’m Proud to be an American”

via @flobots

I’ve always thought of my best friend as a bit of a technology dilettante. So much so, that any idea I bounce off him that he doesn’t understand, I chalk up to his lack of knowledge on the subject of all things internet. Off the top of my head I can list the editors of TechCrunch, founders of GoTo.com and explain the rationale behind Twitter booths (@zombielynx21).  I’m not sure Jaymie has ever heard of GoTo.com, read a startup profile on TechCrunch or even cares that Twitter’s new design is *effing* awesome. However, he is a massive internet user. His passion for the internet lies not in the M&A strategy of his favorite companies but in the communities which they create. Simple point, allow me to elaborate:

Point 1: WE ARE ALL IN A VOID

I’ve read time and time again that the best startup founders are those that see a problem and address it. They build where they see a need, and- oftentimes- where others like them express a desire to do something simpler, faster, better. Effectively, they build based on the wants and desires of a few very select remarkable individuals. But what time, if any, do founders devote to analyzing the greater need of their product, service, offering? Everyone at HackerNews may go nuts over the new Chumby, but what affect does it have on Jaymie who doesn’t particulary need an internet radio player/ alarm clock/ digital picture frame when his computer does all those things quite well?

Often, as founders/(proud) wannabes, we judge our success based on the reactions of very few people. We pitch at major startup conferences (TCdisrupt) to like-minded people who can immediately grasp our vision and (more often) explain our awesome features at Users Groups composed of other founders, programmers and VentureHacks Junkies. They pat us on the back, wish us luck and then promptly begin explaining their new product to us. 

Effectively, we’re stuck in a giant circle-jerk whereby we take turns ######## and ###### each ##### ####.

Point 2: It’s Not Your Fault

If you’re anything like me, which—if you are reading this far—you undoubtedly are, you know the current atmosphere in the Investment community is one of small exits for mid-sized returns. Besides Vinod Khosla (:-)), most angel investors and smallish VC firms are looking to do deals in the 200k-750K range. The push is no longer for the entrepreneur to tackle big problems but instead to fill in whitespaces left by the major players. Entrepreneurs are not encouraged to make the next Facebook, but instead to get acquired by Google 2 years down the line.

Furthering that notion, Vivek Wadhwa encouraged entrepreneurs to just take the small money and, “Go for the billion dollars when you start your next company.” While it’s not my place to refute a Harvard Research Associate, I will point out that this contradicts the always prescient David Heinemeier Hansson. Hanson, in an interview with Jason Calacanis quips that entrepreneurs should be working on their best idea at all times. He continues to say that he doubts he would ever be able to sell 37 Signals as, at the precise moment when he leaves the company, he would begin working on his SECOND best idea. Combined with Peter Thiel’s unintentionally helpful point that:

Facebook’s CEO and founder Mark Zuckerberg is a product visionary that resembles Apple CEO Steve Jobs. As long as Zuckerberg stays at Facebook, the company will be about building new products.

via @techcrunch

I think we can begin to make the point that for most founders, it may be best to avoid the small exit. Keep your baby! If you have a defined vision for your product, keep rocking it! Stay small, iterate fast and build something that redefines rather than disrupts. Build for the big exit, because the big exit companies are those that have the most effect on our day to day lives. I couldn’t imagine my day without Twitter, but I damn sure can imagine it without GameCrush (no offense, nice site). And don’t build for us, build for them (well, maybe not them).   

Point 3: How to fix it

I can’t even begin to claim to have the answers here. But I can suggest some things, tell every single person you know your idea, if you don’t get ten “Wows!” re-evaluate.

The points here are simple and concise if seemingly disparate: Don’t Circle-Jerk, Don’t let the funding climate push you into building something small and get feedback!

-JHR