newsfilter.io
Conference Presentation, Lecture

How to Get Started, Doing Things that Don't Scale, and Press (How to Start a Startup 2014: 8)

  • Stanley Shao (DoorDash Founder)

    • DoorDash is an on-demand delivery network for local businesses, founded by Shao and Andy while they were Stanford CS students (Class of 2014).
    • The startup concept originated from a problem identified in a macaroon store (Chantal Guion) where the owner lacked delivery infrastructure and had to reject orders or deliver personally.
    • To validate demand without infrastructure, Shao launched "PaloAltodelivery.com" in one hour using a simple landing page, PDF menus, and a personal cell phone number.
    • The first customer ordered Thai food and was the author of the book Weed the People; subsequent orders grew from one to ten within three days.
    • The initial operating model relied on "doing things that don't scale": founders acted as drivers, customer support, and dispatchers using manual tools like Google Docs, Square, and Apple's "Find My Friends."
    • Rapid early growth caused Square to temporarily flag DoorDash's account for suspected money laundering due to high-frequency, small-dollar transactions.
    • DoorDash incorporated in January 2013 prior to joining Y Combinator in the summer of 2013.
    • DoorDash raised a $15 million Series A round from Sequoia Capital.
    • The core strategic insight was leveraging mobile technology and independent contractors to create an on-demand delivery model, avoiding the capital expenditure of owning vehicles or hiring full-time drivers.
    • The long-term vision extends beyond food delivery to serve any local merchant (e.g., furniture shops), though current focus remains on scaling restaurant delivery.
  • Walker Williams (Teespring CEO)

    • Teespring is an e-commerce platform enabling entrepreneurs to launch apparel brands with zero risk, cost, or inventory; the company processes tens of thousands of shipments daily with ~180 employees.
    • The company reached $100 million in annual revenue, having been initially rejected by Y Combinator before being accepted.
    • Williams defines "things that don't scale" as unsustainable early-stage tactics that founders should utilize as long as possible to gain competitive advantage over competitors.
    • Acquiring the first users requires intense personal effort from founders (e.g., sending 100 emails/day, cold calling), described as pushing a boulder up the steepest part of a hill.
    • Teespring avoided giving away products for free initially to ensure users perceived genuine value and to avoid false validation metrics.
    • Williams personally handles 12–20 customer service tickets daily and reads all community feedback to turn frustrated customers into champions.
    • Teespring's primary customer base is entrepreneurs and influencers (YouTubers, bloggers), though they also serve non-profits.
    • Early-stage development prioritized speed over scalability; for example, the engineering team duplicated codebases to serve enterprise clients in 3–4 days rather than the required 1 month.
    • The infrastructure frequently crashed daily due to high volume, but the team prioritized rapid iteration and market fit over technical debt management until scaling was necessary.
  • Justin Hunt (Kiko, Justin TV/Twitch Founder)

    • Press coverage is not a meritocracy; it requires a specific business goal (e.g., customer acquisition, investor perception, or industry positioning) to be effective.
    • For Twitch, the PR strategy targeted gaming industry trades and developer blogs to reach advertisers and developers, rather than general consumer press.
    • Effective stories often involve product launches, fundraising, milestones (e.g., $1M revenue), stunts, or significant hiring announcements.
    • A story does not need to be original but must be "original enough" relative to existing news (e.g., being the first in a specific category to raise funding).
    • The optimal acquisition method for journalists is a warm introduction from a peer who has already been covered, rather than cold emailing.
    • Founders should secure introductions at least one week in advance of a launch to allow reporters time to investigate.
    • Founders should prepare a structured "story outline" in bullet points and memorize it to guide interviews, ensuring critical details are captured by the reporter.
    • Hiring PR firms in the early stages is generally discouraged due to high costs ($5,000–$20,000/month) and the inability of firms to define the core story; founders should learn the process first.
    • Press is a relationship business; maintaining contact with reporters after coverage and helping other entrepreneurs gain coverage ("pay it forward") generates future leads.
    • The "Twitch Plays Pokemon" viral phenomenon originated from the community, but the company provided context and facilitated follow-up stories to extend the news cycle.
    • The primary goal of early-stage press is often to acquire the first 100–1,000 users or practice pitching, rather than achieving broad national recognition immediately.