Startups, Open Water Swimming, and Ventures

• It’s interesting how a lack of resources can reveal who truly has what it takes.
  • When capital is plentiful, it’s easy to mistake luck for skill, or to think a solid business model is the reason behind success when it’s just favorable conditions.
  • The startups that endure are led by founders who not only survive but thrive amid adversity.
    • Providing too much early funding is like handing out boats—it speeds up the journey but hides who’s actually steering.
      • They might reach the next milestone faster, but we lose sight of who’s navigating. Is it a resourceful leader making wise decisions, or someone who would struggle the moment they have to swim on their own?
      • The path for startups, especially those seeking significant venture returns, demands more than a quick ride over calm waters.
        • Boats are helpful for short distances; most of the journey requires genuine swimming.

Becoming a Better Swimmer (Founder)

• This involves:
  • Training: Mastering the techniques, understanding the currents.
  • Mentality: Having the courage to dive in, even when the waters are rough.
  • Experience: Building resilience from overcoming previous challenges.
  • Gear: While sometimes necessary, often it’s the mindset and endurance that matter most.

Evaluating Founders and Investments

• Founders need to ask themselves honestly: Am I ready for this? Who will support me when the seas get rough? A VC like Benchmark isn’t just providing capital; they’re willing to swim alongside you if needed.
• For investors, the challenge is to discern whether this person can “swim” through their specific market, considering the competition and potential hazards.
  • It takes deep knowledge of the “waters” to make the right judgment.

Testing in Calm Waters Before Facing the Open Sea

• We look for founders who have proven they can swim in smaller, controlled environments—a local lake—before venturing into the vast ocean with them.
• Programs like YC act as training grounds, transitioning founders from the safety of a pool to the unpredictability of open waters, but the real sea is a different realm entirely.
  • Some adapt seamlessly to the larger challenges, while others find themselves unprepared.

Cofounders: The Essential Crew

• A cofounder with technical expertise is like having a seasoned swimmer who knows when to adjust their stroke and how to navigate changing tides.
• While it’s possible to go it alone, a cofounder who understands your strengths and weaknesses from the start is invaluable.
  • They know when to shed unnecessary weight, hold onto what’s essential, and keep you afloat when the waves become overwhelming.
    • In the end, survival hinges on wisdom, skill, and time—lessons that only experience can teach.