WhoBuilt

Stop Innovating (On The Wrong Things)

Feb 15, 2024· 12 min· 100K views·Watch on YouTube

The Y Combinator hosts, whose names and roles are not clear from the transcript, discuss how founders can focus innovation on making a product customers want.

Save your innovation energy for the product

The hosts argue that building a product people want is already a rare achievement. Founders should put their limited time and risk-taking into solving a real customer problem, while using established practices for other parts of the business.

Avoid unnecessary corporate experiments

They call unusual incorporation and governance choices common distractions, citing Wyoming LLCs and the OpenAI structure of a nonprofit owning a for-profit. They recommend familiar choices such as a Delaware C corp, and describe governance as covering investment documents, vesting, and share classes.

Keep unrelated contrarian bets out

The hosts caution against pairing a startup with a separate mission to disprove conventional advice or bet on an unrelated future. One example is a founder betting that hydrogen would replace gasoline, solar, and wind, even though that prediction was not central to the startup.

Choose tools and pricing customers can understand

The hosts acknowledge that unusual programming languages can be fun, but warn that extra technical risk may not help the customer. They contrast Digg's high-risk technology choices with Reddit's simpler approach, and argue that familiar pricing, such as AWS-style cloud pricing, can help customers understand what they will pay.

Make usability the priority

They say software founders can mistake lessons from branding and fashion, where being radically different can matter, for useful product strategy. They advise against novel interface conventions that make a site harder to use, and suggest saving ambitious experiments for a later startup.

Takeaways

  • Spend your biggest bets on solving a problem customers care about.
  • Use established company structures unless a clear need calls for something else.
  • Check whether a contrarian idea helps the product before adding its risks.
  • Make pricing and interfaces easy for customers to understand.
  • Save side projects and ambitious technical experiments for when they serve a clear purpose.

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