Thu. Jan 20th, 2022

Even so, owning one is still beyond the reach of the average person. Chen gives the example of Tiny Speck, that the gaming company will go slack. Everything was there for Tiny Speck: a star team, an exciting launch, and $ 17 million from respected investors (including Andresen Horowitz, where Chen works). It got a lot of people to try the game, which is called Glitch. The problem is it can’t have people.

What was the difference between glitch and slack? For one thing, Slack’s time worked: it required the expected distributed workforce and text logs. But it has also benefited from tiny, nuclear networks. People joined the team, and since those groups were familiar with the product themselves, they could probably continue to use it. (According to Slack, the magic number is when a team exchanged about 2,000 messages.) Later, the company grew by merging multiple teams into a unified workplace tool, encouraging companies to adopt Slack across the entire workforce.

Of course, network effects alone cannot explain the success or failure of a startup. Slack was one of the many workspace communication apps with a similar concept; Not all of them had the same success. “For every successful launch like Slack, there are many more failures,” Chen admits, “and they usually stumble in the beginning.”

Both Cold start problem And Failure to predict Several failed companies offer autopsies, but it’s still a reader getting their heads around them. Chen noted that some startups achieve network effects because they provide a free, convenient, and easy-to-use service. Other startups succeed for the exact opposite reason: their products are exclusive, invite-only and difficult to find. Infinity, in its case study, identifies problems at various startups without making a useful prediction to avoid those problems in the future.

Another book from 2021 tries to give a more comprehensive account of startup failure. Tom Eisenman, who has taught entrepreneurship at Harvard Business School for the past 20 years, surveyed 470 failed startup founders about why their ventures have moved south. Their response made his book, Why startups fail.

Eisenman rejects the notion that most failures come from the founders, and even criticizes enterprising capitalists who have the determination, determination, and ingenuity to focus too much on finding the “right people.” Instead, he suggests, failures often come down to misconceptions about market needs, growing too fast, and overly idealistic attitudes (all things, significantly, VCs encourage). Like any good business school professor, Eisenman is prepared with an armload of case studies. He pays special attention to startups founded by his students – where the postmortem seems almost private.

Why startups fail There are six reasons why things go wrong, including ignoring customer research, finding the wrong stakeholders and falling into a “speed trap” of growth at any cost. Eisenman emphasizes that these mistakes can be avoided. More importantly, like Infinity, he advises founders to understand that failure is often part of the package. Towards the end of his book, he advises managing how failure will inevitably happen.

In today’s startup environment, raising money can be easy it can be difficult. Will these books help startup founders or investors avoid frustration? Perhaps, but similarly millions of health books have helped people avoid disease. Determining the common cause of death is one thing. Learning to live healthier is another thing.

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