Y Combinator’s startup school kicked off on 22nd July and they’re putting out all the lessons as podcasts / videos over here. Whether you’re taking part or not.
If you do want to join, registration is still open until 4th August (and it’s free).
Back to the podcast… this is the first of the lessons and Kevin Hale walks through the process of evaluating ideas and how founders, who are looking for VC funding, should think about startups.
Interesting to hear ideas talked about from the perspective of what an investor is looking for. And don’t dismiss the episode because you’re not looking for funding – it offers a different perspective on whether you’ve got an idea that has a chance of working.
- An idea is a hypothesis about why a company could grow quickly and has 3 parts – a problem, a solution and an insight.
- Great problems are… popular, growing, need solving frequently, urgent and expensive to solve. Even better if they are mandatory from regulation.
- Insight is the unfair advantage. For example:
- You are one of the only people in the world who can solve this
- Market is growing at 20% per year
- Product is 10x better than competition
- Acquisition model can’t only be paid – should also include free (word of mouth)
- Is a monopoly – the bigger it gets the harder it is to defeat.