Founder Fridays No. 177
IKEA! -- Bet Bigger Always -- Find your Screaming Fans
Happy Friday.
This week in my other newsletter, Acquired Briefing, I'm covering one of my favorite companies of all time. It's also, in my opinion, Acquired's best episode ever. I've been looking forward to sharing this one with you for months. If you aren't subscribed yet and you love business deep dives, join our rapidly growing community and subscribe below to get these directly to your inbox every Thursday.
IKEA!
IKEA may be the most singular company in business history. A globally scaled, $50B revenue business with no direct competitors, yet only ~5% market share. One of the world's largest retailers, yet selling only their own products. Generating billions in free cash flow annually, yet having no shareholders. Ingvar Kamprad's vision and discipline are extraordinary. He had a clear mission to bring well-designed furniture to the masses and executed flawlessly, building a $50 billion empire purely off profitability without ever taking external capital beyond an initial 500-krona loan. The evolution from matches and pens to global furniture dominance is remarkable. Kamprad's strategic frugality and long-term thinking created a company that defies conventional business logic at every turn. This folksy Swedish mail order business ended up in living rooms, bedrooms, kitchens, and garages around the globe. And yes, they even sell hot dogs cheaper than Costco. IKEA is a masterclass in counterintuitive strategy executed with relentless consistency. Check out my briefing on the Acquired episode that covers this enigmatic company. Acquired Briefing (23 minutes)
Bet Bigger Always
When Databricks asked a16z for $200k, Ben Horowitz said no—then wrote a $10M check instead, reasoning that if you’re going to build, actually build. Critics have called a16z too loud, too political, too big since 2009, yet Fund III just hit 11.3x net returns and the firm now holds positions in 10 of the top 15 private companies globally. This week, pick your highest-conviction opportunity and ask yourself: are you giving it the resources it actually needs to dominate, or are you hedging with half-measures that guarantee mediocrity? When you believe something will work, over-resourcing it—more capital, more attention, more support—turns conviction into competitive advantage that compounds faster than cautious competitors can match. A16Z News (12 minutes)
Find your screaming fans
Canva launched to 15,000 waitlist signups but only got 500 users on day one—then discovered social media managers were using it obsessively and evangelizing it everywhere, turning lukewarm traction into a word-of-mouth engine that hit 20,000 users in 30 days. This matters because one hyper-engaged cohort that naturally talks about your product online will outperform ten diffuse user groups who like it but don’t care enough to recruit for you—early evangelists aren’t just users, they’re your unpaid growth team. This week, pull your usage data and find the segment with the highest retention and most active sharing behavior, then build one feature or template specifically for them and directly tell them you built it for them—make them feel like insiders. If you nail this, you’ll convert quiet users into loud advocates who recruit your next thousand customers for free, because people who feel seen become your most effective marketing channel. Firstround Review (9 minutes)
Founder FAQ: How Important Licensing Is for A Startup?
Most founders treat licensing as a quick cash grab with big upfront fees, but the smartest deals stack ongoing royalties that turn a single agreement into recurring revenue that compounds as your licensee scales their business using your IP. The structure matters because upfront fees feel safe but cap your upside at exactly the moment your technology proves valuable—royalties align incentives so you win bigger when your licensee wins, creating a revenue stream that funds operations without diluting equity. This week, if you’re negotiating a license, model both scenarios: calculate what 3-5% royalties would generate over 24 months versus a one-time payment, then push for a hybrid structure with a smaller upfront fee plus royalties tied to their revenue or usage metrics. Get this right and you’ll turn IP that’s sitting idle into a funding source that extends your runway by 12+ months without touching your cap table, buying you time to hit the milestones that unlock your next round at a higher valuation. Westaway (6 minutes)
Startup Funding Guides
I’ve put together a series of guides to equip founders to excel at fundraising. These guides break down the deal term-by-term and give you negotiation tips so that you can speak to investors with confidence.
Convertible Note: Guide / Video
An Innovative Law Firm?
Being listed among Fast Company’s “Most Innovative Companies” is an honor for our law firm, yet we believe innovation matters if it actually produces better outcomes for startups. Here’s how we’ve innovated to better serve startups:
Clear Pricing. Traditional billable hours can lead to misaligned objectives and unexpected fees. We’ve replaced this with straightforward, flat-rate pricing.
General Counsel. Most entrepreneurs want a trusted legal partner, but they hate surprise legal bills. At Westaway, we take care of your startup’s legal needs for a fixed, monthly fee so you can control your costs and focus on scaling your business.
Automation and Artificial Intelligence (AI). We’ve streamlined our operations through automation and AI (where appropriate), ensuring efficient, high-caliber results.
If you’re an innovative startup looking for an innovative law firm, let’s talk.