Every Entrepreneur wants to know what are the few important things that if you did those not only can you raise money from VCs like David Sacks (Founder of Yammer – sold to Yahoo for $1B) but truly have a successful company.
Here are David’s 4 things:
Product Hook: Simple way to engage with the product… simple behaviors that people could be hooked on… has to be a believable and natural process.
Market Need: Iterate to it in most cases.. start somewhere but pivot but there has to be a market need. Is this a whole market idea or just a part of the solution.
Distribution Model: How does it spread. Hardest component. Virality – how viral can the product be. There is a big internet out there … sales is prohibitively expensive, marketing is expensive. This is the hardest part.
Non-copyability: Ok you launched this idea… why aren’t others going to copy you. Software, once you see it, others can build it. Fundamentals of your market. Do you have a Network Effect (Facebook has such an interconnected network of users that is hard to copy). First Mover… what makes what you are doing defensible. pipeline of innovation is important because other people who are copying you are back at what you have in the market now and don’t have the passion… or the pipeline of ideas you have.
Watch the entire interview or just jump to the 4 things a startups should have here:
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