venture-capital

Halvar's Guide to Entrepreneurship

3 months ago

The author founded two software/SaaS B2B companies: zynamics (bootstrapped, sold to Google) and optimyze (venture-backed, sold to Elastic).
Key reasons for becoming an entrepreneur include a need for agency, working with great people on challenging problems, alignment of interests, and building products that delight users.
Target markets are categorized into four types: no market (shop), growing niche (bootstrap), healthy specialized market (mid-sized company), and huge market (venture-backed). Market choice dictates funding strategy and company trajectory.
Venture capital involves high risk-return tradeoffs; VCs seek outsized returns, which can misalign with first-time founders' risk appetites. Founders should understand VC dynamics, including herding behavior and the importance of momentum.
Product development should start from customer problems, not technology solutions. Emphasize user and buyer personas, development partners, and creating a product with a great user experience (e.g., '10 minutes to dopamine' rule).
Hiring should focus on attracting great people through compelling narratives; interviewing should mimic actual work (e.g., take-home exercises). Management requires empathy, avoiding burnout, and fostering open communication.
Marketing should be content-based to build trust; sales involves managing a funnel with an internal champion. Founders must sell the product first before hiring sales professionals.
Running a business involves balancing three sheets: financial, technical debt, and personal energy. Cofounder relationships are critical and require open communication and fair equity splits.
Investors prioritize returns; founders should maintain emotional distance and manage perceptions. Consider getting a coach for psychological support during the high-stress startup journey.
Exits are common endpoints; aim to ensure all stakeholders feel fairly treated to build trust for future ventures.

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Halvar's Guide to Entrepreneurship