Singularity Summit Roundup

Ashley and I attended the Singularity Summit at Stanford yesterday – an event focused on examining the future when artificial intelligence and other advanced technologies reach an “event horizon” that dramatically exceed or augment humanity’s abilities. Four of the presenters in particular stood out: Ray Kurzweil, Erik Drexler, Bill McKibben, and Cory Doctorow.

The Singularity Is Near Book Cover Ray Kurzweil started the conference off by reading a page of text from his new book, The Singularity Is Near, using a compact device designed to read books for the blind. Using the device, Ray took a picture of the page with the device and had it read the page aloud on his behalf. This is apparently a project that Ray started working on with the National Federation of the Blind about five years ago, but at the time the technology was not sufficiently advanced to enable the application. At the time of original investigation, digital cameras didn’t have enough resolution to enable good pattern recognition, and pattern recognition algorithms had not yet been designed to handle the difficult environment in which such a device would need to operate. All this changed in the intervening five years. This ever increasing rate of change, which Ray terms the Law of Accelerating Returns, was the central focus of Ray’s keynote.

Ray blazed through a presentation that exposed a lot of the core data that he uses in his book to support his thesis of the accelerating rate of change. Particular items which I found to be interesting:

  • The expectation is that traditional photolithography will allow 4nm features by 2018, providing sufficient computing power to emulate the human brain for under $1000.
  • The majority of Ray’s slides consisted of graphs showing either capabilities trending linearly up and to the right (on a log-scale diagram), or price/performance ratios trending linearly down and to the right (on a log-scale diagram). What I found amazing was just how steady, how predictable these trends appeared to be, despite the fact that the success of any given individual project or technology’s development was essentially unpredictable. Not to sound overly optimistic, but I did find there to be something comforting in the apparent inevitability of progress these graphics presented when contrasted with the uncertainty we see in everyday life (for example: war, oil prices, global warming, American Idol results).
  • Ray highlighted the possibility (or possibly the current reality?) of a respirocyte – an artificial red blood cell. Using such a device to replace red blood cells would allow you to do an Olympic sprint without taking a breath, or sit on the bottom of your pool for four hours!
  • Advancement in state of the art brain scanning technology is starting to bear fruit, providing researchers with insights into how the brain processing information. One example of success is the work Ray and his team did in reverse engineering some of the transforms performed by the brain’s audio cortex as part of researching improvements to their speech recognition technology.
  • The growth of the Internet is providing a vast data set to use in training pattern recognition systems. For example, Google has developed an English-to-Arabic (and vice versa) translation tool using the large set of texts available online in both languages to train the system. No one on the team developing the program speaks Arabic.
  • In a rather impressive demonstration, Ray showed a video of himself demonstrating a speech-to-text-to-speech system that accepted voice input in one language, and output speech in a different language.
  • An observation on biological and other systems that seems to apply increasingly in the world of online social networking tools, and other collaborative software: “decentralized, self-organizing systems are inherently stable”.

I found Erik Drexler‘s presentation to be somewhat confusing – he provides abundant examples of recent success in manipulation of DNA and proteins into arbitrary structures, and yet seems dedicated to a vision of a world where we manipulate individual atoms like so many Lego blocks. It would seem to me that the biological route is more likely, and in the nearer term will achieve the end goal of humanity being able to build whatever they want with arbitrary precision. I just can’t understand why Drexler is so dedicated to the idea of applying existing mechanical principles on the molecular scale, when manipulation of biological systems appears to be a more ready-made solution.

Cory Doctorow delivered a tailored version of his standard speech on the evils of Digital Rights Management, spinning his argument to focus on the need for users to remain in control of their technology. I thought his best point was that doing so provides the raw material for future innovation. For example: he proposes that consumer’s investment in unprotected CDs has paid an enormous ‘dividend’ in the form of the mass of unrestricted innovation resulting from the development of portable MP3 players (driven primarily by user’s ability to fill said devices with the contents of ripped CDs); the success of these devices drove the miniaturization of storage technology, large scale collaborative filtering web sites, online music stores, etc. This innovation is not available to the users of DVDs because of the provisions of the DMCA that prevent them from ripping their movies to use with other devices. Food for thought for legislators that appear more interested in protecting the current media regime, than trading up for a much greater public good.

Bill McKibben brought a welcome element of calculated sobriety to the discussion, questioning the drive towards additional technological development. In particular, Bill questioned whether or not our advanced technology have made us any happier. By analogy, he questioned the idea that more is better – if more is better, faster is better, why then would it be worthwhile to run the Boston marathon? We could just as easily drive the distance with our technology – but getting there was not the point! The arguments for pursuing the Singularity, in his opinion, sometimes sound like observations shared by concert-goers on the way out of a Phish concert.

A few items of note on the other presenters:

  • Douglas Hofstadter followed Ray Kurzweil and delivered what can only be described as a thinly veiled personal attack on Ray’s book. While I believe his central thesis, that scientists in general are not considering the ramifications of the Singularity and taking it into consideration as they advance research, was reasonable, his style of delivery marred what might have been an otherwise constructive presentation. Though he lampooned Ray for “hand-waving” too much, Hofstadter provided little substantial material to support his own claims. A disappointing and somewhat unproductive session.
  • Nick Bostrom provided a moment of humorous respite in his presentation considering possible changes that result in a catastrophic end to the human race – one of his possibilities: “We are living in a computer simulation and it gets shut down”.
  • Sebastian Thrun showed a number of highly entertaining videos from the DARPA Grand Challenge. He presented a compelling reason for the importance of this work that I hadn’t previously considered: the potential to save significant lives and improve quality of life for the elderly by automating driving. Of particular note: there are 42,000 deaths due to automobile accidents in the US each year – equivalent to the number of deaths in Vietnam, and 3X (though I question this number) the number of deaths resulting from September 11th, 2001 – imagine eliminating these deaths through automated driving.

All in all, an excellent event – not the standard fare for tech events of late in Silicon Valley. My thanks to the Singularity Institute for putting on the event. See Renee Blodgett‘s blog for more in-depth coverage of the summit.

Startup School 2006 Notes



I had the unique opportunity to attend Paul Graham/Y Combinator‘s Startup School 2006. Held at Stanford’s Kresge Auditorium, the day featured an impressive lineup of local entrepreneurs and experts who shared their experience with a large group of aspiring entrepreneurs.

For the benefit of those who weren’t able to attend this phenomenal event, I’m putting my notes online (supplementing those available on the Startup School Wiki):

Founders’ Q&A

This is part of my set of notes from the Startup School 2006 sessions at Stanford.

In this session, founders from Pixoh, Kiko, WuFoo, Reddit, Flipt, Flagr, YouOS, and Inkling Markets answered questions posed by the audience. Unfortunately, I had to leave the session early, so my notes do not cover the entirety of the session.

  • Where do you find co-founders? It’s the same as where do you find a wife? Finding a co-founder is finding a friend you’re going to be with for the long-term. You want to find people that are smart and hard-working – something that’s pretty rare.
  • What would you do differently if you were going to do it all over again?
    • Would have started earlier – it was an idea I had a year before and the only thing that was stopping me from doing it was me.
    • Avoid incorporating as an LLC
    • Don’t try to start something else ahead of time
    • We were too pumped about doing a startup, so much so that we didn’t talk about all the other things that needed to be discussed.
    • Wouldn’t have started a company that is so dependent on other people (mobile operators in his case).
    • Making sure that you have the difficult conversations are up front; they only get more difficult the more you delay.
    • Keeping the idea a secret for a month
  • When did you implement a stock option plan? Do it on day one; get a lawyer to do this.
  • What books were most influential? Anything by Seth Godin. The Ten-Day MBA.
  • How do you find investors? Look to the people that you’ve worked with/for in the past. It’s the people that you’ve really impressed in the past that you can tap for investment, or other input.
  • What was the hardest thing about starting the company? Actually getting started – I had a good job already, and kept getting paid more and more money. You keep buying more crap and it ways you down. As soon as we started, it all stopped being important.
  • What will an investor ask you? During funding – Why someone else can’t do this? Board meetings – Are you making the user experience as good as you possibly can? They usually ask the important questions about strategy.
  • What happens when you start getting users? They expose the holes in the system – both exciting and intimidating.
  • What’s it like to work on such a big idea (directed to YouOS)? Incredibly exciting.
  • What keeps you motivated? The big dreams you want to fulfill. Traffic and feedback.

Joshua Schachter: Lessons Learned During the Creation of Del.icio.us

This is part of my set of notes from the Startup School 2006 sessions at Stanford.

Joshua Schachter is the creator of del.icio.us, the popular social bookmarking system now owned by Yahoo. In this session, Joshua shared his advice for entrepreneurs looking to start a company.

Backstory

  • Created memepool back in 1999, people sent in a lot of links, and he never had time to look at them, write them up. Kept a text file of links, along with a note on the same line that just kept getting shorter and shorter
  • Built muxway, which was a lot like del.icio.us but for a single user. Allowed user to organize bookmarks by tags. Interestingly, left the site open so others could see his bookmarks. Ended up realizing he had 10K daily readers just of stuff that he thought was interesting.
  • Started del.icio.us in 2003 and left to work on it fulltime in 2005 before being acquired by Yahoo

The Problem

  • “Too many links, how can I organize them?”
  • Also, “I’m bored, give me some good links!”
  • Make sure it’s a problem that you have that you’re solving. You can’t be the smartest person out there, but you can be the most passionate.

Ideas

  • Write them down, keep an idea log where you write everything down, even the bad ideas
  • Implementation of your ideas: what ideas are interesting that are low-cost to implement so you can move quickly from idea to implementation. Before del.icio.us, he tried to do about an idea a year besides the day job. You need to get in the habit of having lots of ideas, implementing them, and getting better at that whole process.

Secrets

  • Get the stuff out there, a prototype. Hiding it behind a “we’ll tell you when we’re launched” only worked the first 80 times. You get far more value talking about stuff.

Market

  • Everything you do is marketing – every feature is something you can talk about, your competitors can talk about, that helps you. Generating this enormous project alone in secret hurts you.
  • Who are you going to infect next?
  • Interesting note: all his competitors have an import from Del.icio.us, but none of them have export functionality like Del.icio.us.

Listen

  • You’re always doing usability testing
  • It’s the most stressful thing just looking at how people use it
  • Del.icio.us was explained as “social bookmarks” – most people didn’t know what bookmarks were, as it was a Netscape term. Most people knew about Favorites, because that’s what IE calls them.
  • Go to Starbucks, offer someone coffee to sit down and play with your product. Don’t give them tasks, as they will behave incredibly differently than they will sitting at home in their underwear.

Design

  • Understand that design is also marketing
  • Throw out everything you don’t need – serves you because you understand the problem better, implement it better, because there’s less to have to understand or implement.
  • Make URLs readable, albeit to technical users; it’s prime real estate, so why is it full of .php and session IDs?

Scale

  • Advice is: don’t…yet
  • You don’t know how users will use it, and you’ll end up spending a lot of time on it only to have to do it again later.
  • A lot of systems do not grow up appropriately. For example, forums work for 50 users, but not 10,000 users.

Abuse

  • If you’re building a social or online system, abuse and spam will happen. If you’ve got something worth using, abuse is inevitable.
  • Build in some logging to allow you to observe aggregate behavior. Del.icio.us had a guy who would post an item, delete it a minute later, and then re-post it so he was always on the front page. People that put 475 tags on a post are abnormal.

Technology

  • Expect to spend about 300x what you budget for this type of stuff. MySQL will fail. RAID array will crash and burn. CSS will not render properly in Opera. Get good or find someone that is good at them. But when you’re getting started, skip’em and focus on what matters.

Get lazy

  • Don’t be involved in low value transactions. Be focused on what’s a good use of your time. Figure out someone who’s better with dealing with VCs, organizing your schedule, etc.

Audience questions

  • What were your goals for del.icio.us when you were doing it? Was only really doing it for myself, never really trying to build a company despite having people offer to buy it away from him.
  • Enterprise versus consumer apps – what direction should an entrepreneur take? Enterprise apps – if you can point to a specific guy in the organization who’s life will be made easier by your app, you’ve got something. Conversely, look at wikis – for whom does this solve a problem. It’s valuable, but there’s no one who’s specific life would be made easier by a wiki.
  • What was the turning point when you decided to quit and work on it full time? I was lucky because my group blew up, so my choices were to either go find another job or pursue del.icio.us.
  • What was your funding model or business model? They had actually 15 different ways to make money off of it, but given the growth of the user base it seemed to stop mattering as advertising was the obvious route.
  • Do you think it’s bad advice to start a company on your own? His situation is not representative – walking into a room with large number of users, steady growth made it very simple to defend a company that was a single person.

Chris Sacca: Advice for Startups

This is part of my set of notes from the Startup School 2006 sessions at Stanford.

Chris Sacca is Google’s Head of Strategic Initiatives. Most of his time these days is spent being haunted by lamp-posts, and thoughts of what it would take to pull up to those lamp-posts and slap a wifi transceiver on them. In his session he covered some advice for startups, as well as shared some heartfelt concerns over the “sameness” he’s observed lately in the ventures entrepreneurs are choosing to create.

Start!

  • It’s never too early to start

Stay cheap!

  • Google is running massive amounts of computers. They’re running up against limits imposed by the speed of light – but they’ve got some guys working to try to accelerate to eek out a little extra performance 😉

Go big!

  • Google goal: Organize the world’s information and make it universally accessible and useful
  • Believe there’s 5 million TBs of data out there, and they’ve only got 250 TBs

Focus on user experience

  • Most stuff breaks down one of three applications for users: making stuff, sharing stuff, and keeping stuff (organized)

Obsess over users!

  • Example: Email from Omid ordering turning off campaigns that were performing < 1.0%. Despite the fact that these adds were still turning 5 times industry click thru rates. Why? Because it didn’t serve the user’s interest.

Feed! Bring food into your culture

  • Food is where people let their guard down – most new ideas are conceived over lunch or dinner. Google has long tables that bring people together, mix them up.

Be Open!

  • Using open source, admits there are ways in that they’re falling short on their obligations on that front currently
  • TGIF: All employees gather in cafeteria. Larry and Sergey go over everything the company achieved that week, introduce all the new employees, take every single question from the audience. The level of transparency is incredible, creating a sense of openness and trust.

Geeks rule!

  • The secret sauce: set the bar as high as possible. The best engineers, the largest infrastructure, the hardest problems.
  • Compensation: not only best salary, but also many amenities that contribute to the best total compensation
  • In any day, there’s probably only 1 or 2 hours that are actually productive. They try to optimize the chance that the 1 or 2 hours is as productive as possible.
  • Founder’s awards – reward those who build something extraordinary as if they had built a company that had been acquired by Google.

Interesting people make interesting companies

  • Concerned about the number of MBAs/business school produced business plans creeping into the valley. When you see as many pitches as he does, everyone starts to look like sheep.
  • It’s easier than ever to build a company, and we’ve seen the results – all the Web 2.0 companies that cause his eyes to start to glaze over. Yikes!
  • Haven’t been unimpressed by the talent, but thematically, the innovation has gone stale
  • Hats off to Flickr – they figured out “interestingness”. I’ve been finding people to be less and less interesting. I just want people to stand out.
  • Used to encourage people to code for themselves – forget about coding for yourself.
  • Who to build for? How about Fortune 500 companies? There are old stodgy companies who need help to get more efficient. How about the developing world? They need software and hardware to aid their development.
  • How do you find these interesting sets of people? Go away! Travel out of your comfort zone, see the world!
  • Has seen 15-20 pitches this year that the camera phone would click to advertising. Just like in Japan. Right now.
  • The Internet is supplemental – log off now and then
  • Examination of logs for Freakonomics – shows how offline trends, like TV, affects online behavior. Believes that the interesting development will be in marrying offline with the online world.

Care!

  • We’re in times where we can’t be apathetic. Worried that he’s seeing less passion from those who are trying to build companies.
  • It goes beyond what you’re actually working on.
  • David Cole – calculated energy required to transport bottle water, represented as amount of oil in a bottle of water.
  • Google chefs are entrepreneurs as well, taking on the task of buying local

Listen more than you talk

Audience Questions

  • What’s the worst thing about Google? Besides all the bottled evil waiting to get out? We’re getting big, it’s hard to collaborate over dinner, to know what everyone’s working on, to keep it small, and maintain the transparency.
  • Women are much less forceful when they’re presenting ideas – how would you recommend they change their pitches to be more acceptable? Blogs and emails are the great equalizers. Right now, he looks to blogs to get a read on someone to see what they’re capable of doing. I’m also big on organizing your thoughts. People write emails that are overly forceful – a well-structured pitch has what you’re doing, why you’re doing, why you’re well positioned to solve that problem. Uses Meebo as an example of a company with predominately female coders.

Om Malik: What Really Makes Startups Work From a Press Perspective

This is part of my set of notes from the Startup School 2006 sessions at Stanford.

Om Malik is a writer for Business 2.0 who sees dozens (if not hundreds) of startups and products. During this session, he shared his observations on what makes a startup successful.

Successful Companies Cause Changes in Behavior

  • Example: index cards ($5 billion) v. PowerPoint ($1 billion)
  • Flickr – why did they succeed? Because they didn’t have the boneheaded ads like their competitors. A clean user interface – very simple. There is nothing more annoying that having to sign up for a service to see a photo. It changed the way we store and catalog photos with the addition of tags; it changed the way people catalogs their images. Similarly, del.icio.us changed the way I stored my bookmarks.
  • If you can change people’s behavior, you’ve got a winner
  • iPod – changes the way people used their music. Your entire music library in your pocket!
  • Memeorandom – changes the way how news comes to you from blog
  • Problem is that Web 2.0 is developing for geeks; developing for Firefox, ignoring IE. They’re ignoring regular people, people not in Silicon Valley. What’s cool is never what’s profitable.
  • BlogLines – changed the way people consumed RSS. Many people who don’t even know what RSS is can still use BlogLines
  • Believe this is the difference between the winners and the losers
  • Keep things simple – it’s the hardest thing. If you keep it simple and listen to people (look to the guy pumping your gas) and how they experience the world, then that’s how you can figure out how to reach the users.
  • Most of the products I see are severely over-engineered; they take me fifteen minutes to figure out what they do! Come on, tell me in one line what you do – if you can’t, you shouldn’t be doing what you’re doing. Time is the only thing which is not a commodity in our existence; time has no price, and it’s not falling. So in order to get your customer, to respect their time, keep it simple. That’s how you win. Listen to the world.
  • Fortune magazine did an article on how the corporate cube culture was causing a slacker attitude – it’s actually the biggest opportunity ever! You’re sitting in your cube after lunch in your cube coma, and what do you do? You go to YouTube! Haven’t you noticed that YouTube’s performance declines between 1-2pm? Ditto people who stay up late and drink – a great opportunity for QVC!

Audience Questions

  • What catches your attention? How do you find new sites, services? As a technology writer, the passive role (i.e. just reading press releases) is over. I find my story by participating in the story. There is, however, a very simple filter: if you don’t grab my attention in the first five minutes, you’re not interesting. I end up only writing about 1 in 5 startups/products that I look at?
  • Startups you like? Netvibes (though believes they are not mass market), Sling Media, and 30 Boxes
  • Could you speak to the difference between time and attention? Not really sure that’s a difference that matters – if they’re not interested, they won’t give their time. Then you need to figure out how you’ll build a business around that time.
  • How does your writing differ for Business 2.0 from your blog? Business 2.0, when I write, it’s like when I talk to my mother. Blogging, I write like I’m talking to you (peers). Blogging is like having a conversation.
  • Do you see an actual trend in increasing the focus on usability? No. They’re not simple, they’re complicated, and is non-existent in many of them. Nobody is thinking it through. Why is MySpace successful? It looks like a teenager’s room, hence the success with teenagers.

Caterina Fake: Interactive Q&A

This is part of my set of notes from the Startup School 2006 sessions at Stanford.

Caterina Fake is part of the phenomenal team behind Flickr, the popular photo-sharing web site now owned by Yahoo. In this session, she sat down with Jessica Livingston to answer questions posed by attendees.

If you were doing Flickr again, what would you do differently? What did you get wrong that you would change if you were doing it again?

  • Everyone says hire slow, fire fast. They thought they knew that, but they did end up with their backs against a wall with one particular person, made the mistake of hiring too fast and firing too slow. The difference is that Flickr was created as a result when the backend team got so far behind the frontend development team, so it was kind of a blessing in disguise.
  • Other errors – they made a fairly stupid product in the end. The IM client thing was kind of neat. Normally you want to make your mistakes fast. We had this “foo” up fast – learned the hard way by creating many products that they killed very fast. Making mistakes is inevitable however, and crucial to the whole development of Flickr.

What sort of usability testing (if any) did you use in developing Flickr? Did you find it helpful?

  • Zero. We did none. Get it out early is the best way to do their usability testing. They originally put out this Flash-based IM chat client with photos product. They interacted daily in conversation with their users, watching what they were doing (which is doubly important, because many people can’t tell you what they want). They had open forums where people could report bugs, make suggestions, report bugs. The Flickr employees were answering 50 times a day in the forums – it was a dialog – they developed the product in concert with the users. They wouldn’t have been able to develop it that quickly if they hadn’t done that. People don’t have a problem telling you that something really sucks.
  • For example, they redesigned the main photo page (when they were about 50K users) – within 10 minutes, they realized it was a really bad design. One user went so far as to comment: “I’ve had a really bad childhood, and this redesign has just pushed me over the edge”

Why did Flickr not make the move into video sharing to take on YouTube?

  • When they started Flickr, they thought it was going to be all things to all people. Video, MP3, rich text, online collaboration tool. We actually started out with a fairly large morass of features we planned on implementing (and actually did in some cases, and then later removed). At some point we had to boil it down to what it actually did – “this is a photo site” – strip down the product to its essence. At the time the media was images – camera phones and digital cameras were just taking off. A lot of the reason the way Flickr evolved were also heavily involved in blogging – unlike other competitors in the space who viewed photos as a loss leader to funnel people to buy photo prints, photo sharing itself was the product.
  • Video – I have nothing to announce on that front, but I don’t preclude the possibility of video in Flickr in the future.

How have things changed for Flickr now that you’ve been acquired?

  • Prior to acquisition, they were growing extremely quickly and facing scalability problems. As a result, they needed to either get an infusion of cash, or get acquired. Had many suitors, but were looking for someone who had the right DNA and believed in the product as it was. They had a really close relationship with their users, and it seemed to be the place to be. They were looking for a place hat would preserve the ‘isness” of what Flickr was. Startups have the advantage that they don’t have the baggage of the brand that large companies have – so preserving feel of the company is a risk of a small company going into a big company. Caterina had a similar experience as a child with a friend who loved his hamster so much that he crushed it to death (“I love you so much”) – hence the phrase we have, “Don’t hamster me”

Did Ludicorp hire a PR group to stir up buzz for Flickr, or what it user generated? How did you start getting users?

  • We, being small and underfunded, developed the product in such a way that it would be viral. They had no marketing/PR budget whatsoever. We had to come up with features that would get the word out. Having a background in blogging (both she and Stewart), blogging seemed like a good way to spread the word. As a result they created features that were tuned to using blogging to get the word out (badges, “Blog this” button). 80% of people found Flickr through blogs.
  • At one point we were about to launch our payment service, and users were clamouring to buy more storage. Created a marketing offer of “invite five users and get extra storage for free” – was extraordinarily successful.
  • We also had a number of influential articles written by alpha geek writers in popular newspapers and other publications. They wrote the first three articles that were about Flickr (without even interviewing Flickr). As things started to pick up that there was enough momentum that they received calls from reporters; we talked to everyone that we could. Eventually hired a PR firm to handle all the incoming requests, not generate PR.
  • When the Internet came around, there was a culture of generosity that made the Internet interesting. Weinberger: In the real world, strangers are a source of fear; on the Internet, strangers are the source of everything good. When you’re designing a user experience, turning people from facing to the web site to facing each other is a very crucial part of how Flickr was designed. Constantly putting people in contact with each other. We launched the IM photosharing client at O’Reilly Emerging Technology conference – spent 24×7 greeting each person who came in, reviewed their profiles, and introduced them to other people. In online communities, it’s like arriving you at a party where you don’t know anybody; there needs to be a host that invites you in, takes your coat, shows you around. As Paul Graham said earlier, people’s finger is poised over the “back” button when they visit your site. The active hands-on experience was crucial to the success.

Paul Graham: The Hardest Lessons for Startups to Learn

This is part of my set of notes from the Startup School 2006 sessions at Stanford.

Paul Graham of Y Combinator shares the counterintuitive things startups learn over time (including his experience with ViaWeb) in the vain hope that he can avoid having to keep repeating himself.

#1: Release early

  • Get a version one out fast, improve based on user feedback. Don’t release something full of bugs, but something minimal. Pays to get version 1 done fast. It’s the right way to write software – seen a lot of software dies because it was released too slow.
  • If you don’t release early, you won’t know who your users are – as you don’t know your users, you don’t know what they will like.
  • WuFoo release their form-builder early – they haven’t even release the engine underneath it. Many Linux users complained early about too much Flash, so they removed it
  • Initial release shakes out the bugs earlier
  • Makes you work harder – when you’re working on something that’s released, it makes problems be critical to fix
  • Getting into the English channel gradually is going to take a long time

#2: Keep pumping out features

  • Don’t make application more complex; one quantum of hacking that makes the user’s life better
  • Improvements beget improvements – the more ideas you implement, the more ideas you’ll have. Not just a good way to get development done – also a form of marketing: users love sites that constantly get better. Will like it even better if you’re improving in response to their input, because they’ll recognize that you’re listening – thus generating fanatical devotion to the application.
  • If your product seems finished, there are two possibilities: it is finished, or you lack imagination.

#3: Make users happy

  • You can’t force anyone to do anything, to do deals with them. A startup sings for its supper, otherwise they die.
  • If users pick you up, no competitor can keep you down
  • Vast majority of users will be casual users, and it’s for them that you need to design
  • Think of all the links you’ve visited on the web; a vast majority of them have led to something lame.
  • Do things to make people pause (from hitting the back button):
    • Concisely explain what your site does: You have to be able to explain in one or two sentences what you do. Not just for users, but also reporters, partners, press. You probably shouldn’t start a startup if it can’t be explained in one or two sentences.
    • Give users something immediately up front: The front page is probably the only page most users will see. Show, don’t tell – just like as in writing fiction.
  • The job the site is conversion – convert visitors to users; if you have decent growth, you’ll win

#4: Fear the right things

  • Startups right to be paranoid, but fear the wrong things. Disasters are normal in a startup. They won’t kill you unless you left them.
  • “What if Google builds the same thing” – most startups worry about large companies. Don’t fear the established players, fear instead the other startups. Like you, they’re cornered animals. Don’t fear what people could be doing, fear what people are actually doing. No matter what you’re doing, there is someone else doing it.
  • Competitors are not the biggest threat – internal disputes, ignoring users. Almost everyone’s initial plans are broken.

#5: Commitment is a self-fulfilling prophecy

  • Would like to believe that Viaweb succeeded because they were smart, not their commitment
  • What students lack in experience, they make up in determination
  • You can lose quite a lot in the brains department, and it won’t kill you.
  • There’s always a disaster – if you’re inclined to quit, there’s always a reason at the ready
  • If you lack commitment, it will seem that you’re unlucky. If you determined to stick around, people will have to pay attention to you. Y Combinator mistakenly has funded groups who have decided to “try this startup thing for three months and see if something great happens”.
  • You have to be the right kind of determined; determined, but flexible, not stubborn.

#6: There’s always room for new stuff

  • Example: Suggested to founder to add social networking component – founder responded that the social networking area was pretty much played up.
  • The reason we don’t see the opportunity is that we adjust to the way things are, not the way they should be
  • There’s no limit in the number of startups. People don’t argue there’s no limit on the small number of large, slow moving companies, why should it be different for the large number of small, fast moving startups?

#7: Don’t get your hopes up

  • Founders are naturally optimistic
  • It’s OK to be optimistic about what you can do, but you should assume the worst about machines and other people.
  • Things change suddenly, and often for the worst.
  • If you’re doing a deal, just assume that it won’t happen. Then, when things work out, you can be pleasantly surprised.
  • Not said to prevent people from being disappointed, but to avoid leaning company towards something that’s going to fail. Example: Don’t stop looking for VC deals just because you’ve got one on the table. Deals are dynamic, there’s not a single point where you shake hands and it’s over.

Tim O’Reilly: How to Think About the Future

This is part of my set of notes from the Startup School 2006 sessions at Stanford.

Unfortunately, I returned from lunch a bit late and only caught the tail end of Tim O’Reilly’s presentation; hence, my notes are a bit sparse.

Marketing

  • “Find a parade and get in front of it”
  • For example, when launching the Whole Internet User’s Guide, O’Reilly used it to tell the world “the Internet is coming” as opposed to trying to simply hawk the book. Sent the book to Congress members to inform, not to peddle.
  • Amazon One-Click Patent: Know who your friends are – used Scripting News, Slashdot, others to push the agenda against Amazon 1-click

Asymmetric Competition

  • Figure out where there’s an industry that right for disruption – look at how Craig Newmark is hurting the newspaper industry. Craigslist is at number 7 on the list of top sites on the net in 2005 – 18 employees versus 9,000 of Yahoo (#1 on the same list)!
  • The best way to be ahead of the curve is to be working on something that you’re passionate about