WhoBuilt

Why Startup Founders Should Launch Companies Sooner Than They Think

Jul 12, 2024· 18 min· 118K views·Watch on YouTube

Speakers

Y Combinator partners and guests, including Michael, Diana, Harj, Peet, Aaron, Serby, and Garry Tan, discuss why founders should launch early and often, how to learn from customer reactions, and how to work through launch anxiety on YC’s Office Hours.

Fear keeps founders from launching

First-time founders may fear that nobody will see or try their product, and take that as proof they were wrong. But a quiet launch is recoverable: they can return with improvements a week later. Waiting delays feedback from real users.

A startup launch is not a one-time event

Michael and Diana challenge the idea that a launch is a founder’s only chance to make an impression. People often forget major companies’ launches, and most visitors who dislike an early product simply move on. The high-production launches at companies like Apple reflect big-company resources and timelines, not what a startup needs.

Find the customers who care

Early feedback helps founders identify the small group with an urgent need, rather than persuade every visitor. One example is filtering 100 sign-ups to find the five or six people whose problem the product addresses. YC’s advice is to build something 100 people love, and launching can help find the first 10 or 100.

Use a launch to diagnose what is wrong

If nobody uses a product, Peet advises looking for drop-offs and testing one variable at a time, such as email messaging or the target customer. Founders should identify which assumption was wrong and form a new hypothesis before deciding whether to pivot. A launch can reveal a messaging or targeting problem, and the product can be launched again.

Reduce scope and focus on learning

Aaron suggests treating a launch as a way to learn, so even harsh criticism provides useful information. Serby recommends cutting features: Brex initially set up accounts manually rather than building account creation and a dashboard. A product can launch with little polish if it works and provides some value; founders can handle tasks manually while they learn.

Takeaways

  • Set learning as the goal of an early launch; a quiet response still gives you information.
  • Treat a startup launch as repeatable, and plan to improve and launch again.
  • Use early sign-ups to find the few customers with the most urgent problem.
  • Test one change at a time when users are not responding.
  • Cut features and handle manual tasks yourself, while ensuring the product works and provides value.

Mentioned in this talk

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What was claimed 6

  • metric
    Airbnb: Launched three times before people started paying attention
    “Airbnb launched three times before anyone started to pay attention.”
    YouTube
    Unverified1 source· Talk
  • metric
    Vision Pro: The speaker described the project as involving eight years to a decade of work
    “eight years, a decade of work.”
    YouTube
    Unverified1 source· Talk
  • feature
    Y Combinator: Puts founders in batches where peer pressure can encourage them to launch
    “by putting people in a batch together ... peer pressure is applied”
    YouTube
    Unverified1 source· Talk
  • feature
    Y Combinator: Advises founders to focus on building something 100 people love
    “we tell founders to focus on building something 100 people love”
    YouTube
    Unverified1 source· Talk
  • feature
    Brex: Early credit card product account setup was handled by emailing a password
    “You just emailed them your password, and that's how they set up the account for you.”
    YouTube
    Unverified1 source· Talk
  • launched
    Color Lovers: Relaunched its product at a press event; the site then became slow and unavailable during heavy Google crawling
    “page loads took 30 seconds, and the whole site was down”
    YouTube
    Unverified1 source· Talk

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