What factors actually matter the most for startup success?
First, the idea.
I used to think that the idea was everything, but then over time I came to think that maybe
the team, the execution, adaptability- that mattered even more than the idea.
Then I started looking at the business model.
Does the company have a very clear path generating customer revenues?
Then I looked at the funding - sometimes companies received intense amount of funding, then of
course the timing.
Is it early, meaning you're in advance and you have to educate the world?
Is it just right?
Or is it too late and there's already too many competitors.
So first - the top five companies: City search, cars direct, go to, netzero, tickets.com - those
all became billion dollar successes and the five companies on the bottom, we all had high
hopes for, but didn't succeed.
I looked at wild successes like AirBnB and Instagram and Uber and Youtube and Linkedin.
The number one thing, was timing.
Timing accounted for 42% of the difference between success and failure.
Team and execution came in second and the idea- that actually came in 3rd.
The last two: Business Model and Funding, made sense to me actually.
You could start out without a business model and then add one later if your customers are
demanding what you're creating.
And funding.
If you're under funded at first but you're gaining traction, it's very very easy to get
intense funding.
So take a wild success like AirBnB - that company came out right at the height of the
recession when people really needed extra money.
We started a company called Z.com - it was an online entertainment company, we were so
excited about it.
We raised enough money, we had a great business model, but broadband penetration was too low
in 1999, 2000 - it was too hard to watch video content online and the company eventually
went out of business in 2003.
So, what I would say in summary is: Execution definitely matters alot, the idea matters
alot, but timing might matter even more.
I think startups can change the world to make the world a better place.
Thank you very much, you've been a great audience.