Adam Smith's Blog

Courage to Change Direction, Letters to Graduating YC Companies, Letter 1

(The latest group of Y Combinator companies graduate in two weeks. There are some thoughts I’d like to share with them. This is the first of a few letters.)

Dear YC Graduate,

First, I hope you’re excited. I remember the rush of the super early days. Wow, what a rush!

It’s important for you to focus on your demo for the next 10 days before demo day. Focus focus focus, and you’ll do great.

After demo day, though, I think you should consider where you’re taking the company in terms of its market/product/positioning. You applied to YC with a promising technology and a vision for the future. After working on the company for three months, now would be a good time to do some introspection.

We worked on a product called Xobni Analytics over the YC summer. It was a great product, but not the right product for our market. We scrapped [1] that product and are now working on something much better.

The YC company that became Scribd was working on something totally different over the summer. They realized it wasn’t going to pan out and had the guts to change direction completely.

Do you need a direction change, or are you already on the right vector?

Well, do you still believe that your market is large and addressable? Does your product solve a real pain? Does it create lots of tangible value? [2]

It's worth plowing through on your product over the summer without too much thought to the question Is this a $300M dollar company? But the time has come to ask yourself such questions.

This letter boils down to: Have the courage to say We need to change something. We were wrong about this or that. Be agile; don’t be stubborn.

Notes
[1] I spoke more about this in the 'Idea Due Diligence' paragraph of this post.
[2] All of these questions equal, ironically: Is it something people want?

The Coolest Hack I ’ve Ever Pulled Off

I was 17 and it was the last lecture of biology class. Dr. Donahue was the lecturer. He was also the academic director of the early college program I was at. And he was retiring. It was the last lecture he would give after a career that was decades long.

Lecture began at 8am. My friend and I snuck into the classroom at 6am. It was a big lecture hall that could hold 300 people. We booted up the lecture computer. I can’t remember how we managed to log in, but we did. I installed the hidden program I had written, and we left.

At 8:32am, in the middle of Dr. Donahue’s powerpoint lecture to 200 students, the screen went black. It started flashing, and the following video played.

Some of the inside jokes:

• Dr. Donahue used to erupt “Scoff!” at things he disagreed with
• "Street LSD is not pure. It’s made by biochem dropouts" he used to say

We got the photoshop’ed pictures by posting a black and white photo of him onto somethingawful.com.

Dr. Donahue asked Who did this? after the video ended. Aaron Jacobs and I didn’t volunteer ourselves because we didn’t know if he was happy or upset. Afterwards we decided he was happy, and we stepped forward.

What a great hack! I really need to beat it out; seventeen years old was some time ago! Any good ideas?

I recently wrote about the ugliest hack I’ve ever pulled off here.

My Startup Age

My startup self was born on March 14, 2006. It started asexually, created by its only parent, Y Combinator. I was such an infant. I didn’t know how to do anything other than write code. I could write code really well, but that was it.

During my early years I ran into walls and tripped on toys. We spent five months making a product that nobody really wanted. We missed a key hiring opportunity. I was the only one doing software development.

My teens were filled with growing pains and an identity crisis. Talking to investors constantly, doing a financing, setting up an office, and starting to act like a “real” company. *Wince*

My startup persona is a little older now. I’m learning more than ever, and making more mistakes than ever before. But I am taking more measured risks and making fewer rash decisions. I have some familiarity with the startup world, and have an easier time facing reality. I feel like I’m in my early twenties startup wise. There’s still a long way to go, and it will probably never stop.

People like Paul Graham, Josh Kopelman, and Rob Hayes have been around a while and pretty much know how to kick ass at everything. They’re senior citizens.

Vinod Khosla is 100 years old. You know he knows how to do everything, from chasing ladies (raising money) to retired travel in foreign countries (sitting on the boards of Fortune 500 companies).

I might be completely off the mark when I say I’m in my startup early twenties. Making a statement like that is a huge risk. There’s a reasonable chance that I’m way off the mark, and that five years from now I’ll be laughing at myself. But, hell, guessing is fun.