What I'll Do if I Build a Startup Again

Starting a new venture requires a solid startup idea, but coming up with one is challenging. It isn't just about having a sudden flash of inspiration; however, it's not entirely based on luck either. From my experience, there are a few key factors that define a good startup idea.

Interests and Unfair Advantage
Early on, I was building on DeFi space, and I was very lucky as we got backed by amazing VCs. However, I quickly realized that, unlike other passionate founders, I lacked unique perspectives or resources on DeFi and crypto. More importantly, it just didn't spark my passion. This taught me the importance of having an unfair advantage—whether in knowledge, experience, or networks—and a genuine interest in the field.

Competition and Market Dynamics
After moving on from my DeFi venture, I participated in a genAI hackathon. Our team won with a project focused on multi-language email composition. We were even advised that it could be turned into a startup. However, after some research, we understood that entering the email productivity space was not wise, as big players like Microsoft and Google were poised to dominate (which they did shortly after with G-Suite and Microsoft Copilot).

Market Potential
Another learning moment was at Draper University, where I pitched a specialized LinkedIn CRM for early-stage founders to Tim. He quickly pointed out the limited market potential for such a niche—harsh but very real feedback. Despite less competition, the small market size and growth potential meant it was a no-go.

Reflecting on these experiences, I've realized that a viable startup idea needs to target a large market (ideally, at least $1B+), leverage the founding team's unfair advantage, and sit within the right market dynamics. Kevin Hale, a YC partner, gives an excellent talk on evaluating startup ideas. I highly recommend his presentation on "How to Evaluate Startup Ideas" for anyone having startup ideas.

Lean Startup Method

Once you have a solid startup idea, the next step is to make sure people are actually willing to pay for what you're offering. I was fortunate enough to learn from Albert and Trevor Owens, pioneers and practitioners of the Lean Startup Method. In my opinion, the lean startup method is the best approach for this.

The Essence of Lean Startup

My take on the lean startup method is that it's all about trying out many ideas with the least effort to see which one is the most viable, based on techniques like customer interviews and pre-orders. It may seem silly, but testing different ideas and being ready to pivot is a critical part of the startup journey. As I mentioned in a previous post about hiring, having a large pool of ideas to choose from is crucial.

It's crucial to have a large pool of candidates to select from, whether through referrals or job postings. It's about creating choices and then making informed decisions.

Take Masayoshi Son, the founder of SoftBank, as an example. He brainstormed over 100 startup ideas before zeroing in on the most promising ones during his early ventures. Another example is Davidd Liu, an AppWorks alum, who explored dozens of ideas before creating CHOCO TV. Most founders don't land on the right idea from the start.

So let's talk about how to validate startup ideas using the lean startup method:

• Explore (1-3 Hours): Talk to potential customers through customer interviews to understand their needs and problems.
• Validate (1-3 Days): Get potential customers to show interest in your product or service before it's fully developed by setting up a landing page. This confirms there's demand and helps you gather a list of potential early adopters.
• Iterate (1-3 Weeks): Develop minimal, basic versions of your product to see how the market reacts. And most importantly, will they really pay you? Why and why not?

My Approach for the Next Venture

Through my experiences, I've formed a method for starting a business from the ground up. This method combines lessons from the Lean Startup with my personal stories.

1. Understanding Our Edge and Interests

The journey starts with looking inward and observing the market. It's essential to recognize our passions and unfair advantages as founders.

2. Selecting the Right Market

With an understanding of our abilities and the market, the next step is choosing the right market where we can achieve founder-market fit as well as it's big enough to attract VCs.

3. Deep Dive into Customer Needs

Analyzing the market segments and talking directly to potential customers through customer interviews. Attending industry events or using existing networks can help connect with key individuals.

4. Validation and MVP

Before fully committing, validating that potential customers are willing to pay for a solution is crucial. This can be through pre-orders or letters of intent. Once there's proof of demand, focusing on creating an MVP to further validate.

5. Iterate or Pivot

Launching an MVP is just the beginning. Based on feedback and early results, we must be prepared to either improve the solution or pivot entirely.