WhoBuilt

Office Hours with Sam Altman

Jan 11, 2017· 25 min· 94K views·Watch on YouTube

Speaker

Sam Altman, then president of Y Combinator, answers founder and audience questions about early B2B sales, starting a company young, choosing a direction, and handling acquisitions during Y Combinator’s first YouTube Office Hours.

Finding your first B2B customers

Altman says the right sales approach depends on the market: some founders should attend an industry trade show, while others may need to reach a small set of potential customers directly. He recommends expanding a founder network, since YC companies often found their first 20 customers among other YC startups. He suggests contacting founders you respect and hosting a small dinner, and says a strong product can make outreach more compelling.

The advantages and limits of starting young

Altman says younger founders may have fewer commitments, more stamina, greater flexibility, and less experience to discourage them from taking on hard problems. He also says they may lack management and business experience, so should bring in experienced people where needed. He enjoyed his two years of college, but says school credentials rarely come up in YC conversations.

Building a company without a technical background

Altman says a nontechnical founder can lead through strong product judgment, leadership, and attention to detail, but must convince capable technical people to join. He recommends starting a company with someone you already know and have worked with on a project; six months is his stated minimum, and five years is preferable. Students can build basic technical familiarity through computer science classes or free online resources.

Choosing what to work on and spotting new platforms

Altman advises students to form their own convictions by studying history, science, and technology, and exploring a range of subjects before focusing. He names AI, synthetic biology, cheap clean energy, education, and VR or AR as areas with potential. For a new platform, he says to watch how much people use it: daily engagement matters more than total device shipments.

Navigating an acquisition

Altman says most acquisitions are difficult, so founders should negotiate the acquired company’s autonomy before the deal closes. Afterward, important leaders should build relationships across both companies and help bridge tensions. He recommends waiting six to nine months before deciding whether the new arrangement is not working.

Takeaways

  • Map your early customer strategy to how concentrated and accessible your market is.
  • Build founder relationships deliberately, and use a useful product to make outreach concrete.
  • If you lead without technical depth, bring strong product judgment and recruit technical people you trust.
  • Explore widely, then focus where your interests and abilities meet a real need.
  • Set acquisition autonomy terms before closing, then invest in relationships across both teams.

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What was claimed 8

  • feature
    Y Combinator: Its community helps many B2B companies find their first 20 customers among other YC companies.
    “most B2B companies get their first 20 customers from other YC companies”
    YouTube
    Unverified1 source· Talk
  • metric
    Sam Altman: Six months is the minimum time he would want to know and work with a potential co-founder before starting a company.
    “six months would be a minimum”
    YouTube
    Unverified1 source· Talk
  • uses
    “That's exactly what I did. I did Python the Hard Way.”
    YouTube
    Unverified1 source· Talk
  • feature
    crowdfunding: The crowd has been less willing to back startups without professional investor support, so it often supplements professional fundraising.
    “the crowd has been less willing to back things that don't have professional investor support”
    YouTube
    Unverified1 source· Talk
  • metric
    Sam Altman: Usage per individual user is a useful signal for when to focus on a new platform.
    “I can suggest a metric for how you should know when it's time to start really focusing: usage per individual user.”
    YouTube
    Unverified1 source· Talk
  • metric
    Sam Altman: Wait for a VR or AR device or software that people use a lot every day, rather than judging by total shipments.
    “wait until someone builds a device or software that, once people get it, they use a lot every day”
    YouTube
    Unverified1 source· Talk
  • feature
    iPhone: People who had one loved it and used it all the time.
    “the people who had one loved it and used it all the time”
    YouTube
    Unverified1 source· Talk
  • feature
    Daydream: Described as fairly cheap.
    “Daydream, which is fairly cheap”
    YouTube
    Unverified1 source· Talk

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