The Lean Startup
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The company showcased in the presentation IMVU.com proposes an idea we very much subscribe to: that startups must learn by experimentation. We believe “trial & Error” is the ultimate judge of any business-plan. To that we might add they are “useful”, inasmuch one actually learns from the experience.
As the author points out, with lean startups “the problem is unknown and the solution is unknown”, thence the need for a constantly adaptive approach. We posit that virtually all startups are in this situation, even the ones who have a so called well-defined problem-space and solution. We argue there is no such thing as a "well-defined" problem, much less a "well-defined" solution. Most entrepreneurs have a vague, fuzzy idea of what they want to tackle and look at it through foggy glasses. It is only through iteration that the problem gets into focus. As the classic adage goes “all plans are wrong, but all are useful”. The businesses that succeed are the ones who adapt and iterate constantly.
Eric points out startups must “learn to learn”, and do so constantly.
1 comment:
A much simpler way to express your first paragraph is that VCs manage protfolios, entrepreneurs manage a single company. So VCs are looking to maaximize the return on their portfolio, not necessarily on your company. That is where some of the conflict comes from. Preferred vs. common stock and lots of other stuff prevent the VC and the entrepreneur from truly being on the same side of the table. At least that's my experience from founding 4 VC backed companies with 3 positive exits.
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