Postmortem of a Venture-backed

StartupLessons learned from the rise and fall of @ Sonar

via @brett1211

Quick introBrett Martin, @brett1211

Three time founder: “NewCo”, @Sonar, Dataowl…Getting less bad each time

Went to Dartmouth, worked on Wall Street, won a Fulbright, published by HBR and a bunch of other things that don’t matter

Not actually 103

@Sonar by the #s~2,000,000 users

100+ countries

~$2,000,000 in Venture Capital

+300 press mentions (NYT, Time, CNN etc)

Dozens of awards (e.g. Ad:Tech best mobile startup)

Value today = $0

AgendaProduct/Market Fit

False positivesFalse negativesMetrics that matter

Time WastersEventsBrandsSide ProjectsCompetitionSelling

PeopleMisalignmentBe practicalCulture is your cofounder

OnwardWhat kills startupsWhen to move onNext steps

P/M Fit: False positivesLesson Learned:

“I would use your product if only you had X feature” is a dangerous signal to follow.

P/M Fit: False negativesLesson Learned:

Removing friction from existing user behaviors almost always has a higher ROI than building castles in the sky.

P/M Fit: Metrics that matter

Lesson Learned:

Know what metrics will be required to raise your next round.

Time Wasters: Events Lesson Learned:

Events are for research, business development, and hiring; NOT for getting to 10,000,000 downloads.

Time Wasters: BrandsLesson Learned:

Be polite, but postpone brand and agency “intros” until you’ve built your own audience. If you build it, they will come (and pay).

Time Wasters: Side projects

Lesson Learned:

You do not have 20% time. Identify your top three priorities. Throw away numbers two and three.

Time Wasters: Competition

Lesson Learned:

Be steady at the wheel. The only way one startup can kill another startup is by getting into the other’s head and leading them off a cliff.

Time Wasters: Selling the company

Lesson Learned:

Companies don’t get sold, they get bought. The best way to get bought is to build something of value. That’s hard to do when you are trying to sell.

People: MisalignmentLesson Learned:

Avoid bad relationships like the plague but when you inevitably find yourself in a difficult partnership, don’t waste precious energy wailing against it. Make it work or move on quickly.

People: Be practicalLesson Learned:

Prove yourself by finding diamonds in the rough, like yourself.

People: Culture is your cofounder

Lesson Learned:

Think of culture as a cofounder that is present when you are not.

Onward: What really kills startups

Lesson Learned:

Startups don’t die when they run out of money, they die when their founders let go.

Onward: When to move on

Lesson Learned:

Startups take 7-10 years. Life is short so choose wisely.

Onward: ResilienceLesson Learned:

You ain’t beat if you don’t quit.

Thanks for listening!

If you are savvy, hardworking, and honest and want to kick @$$ and learn how to make sausage this spring and/or summer, ping me:

Brettlucasmartin@gmail.com

Thanks. Peace.