Founder Fridays No. 21
Practical tips to help founders scale smartly.
This week the briefing will focus on building great products.
Did a savvy founder share this with you?
Turn Users Into Fanatics
We’ve all heard that product/market fit drives startup success—and that the lack thereof is what’s lurking behind almost every failure. For founders, it’s both the hefty hurdle we’re racing to clear and the festering fear keeping us up at night, worried that we’ll never make it. But when it comes to understanding what product/market fit really is and how to get there, here’s what we should be doing: 1) Find supporters, and paint a picture of high-expectation customers. 2) Analyze feedback to convert on-the-fence users into fanatics. 3) Build your roadmap on what users love and what holds others back. 4) Repeat. Make the product/market fit score the most important metric. First Round Review (25 minutes)
Deeply Delightful, Deeply Dependent
At Delightful Slot Machines Inc., they had one simple mission: to create “the most damn delightful slot machines in the industry.” Even on a crowded casino floor lined with blinking pachinko machines and video poker, Delightful Slots call to gamblers of every ilk. Lead Game Designer Aaron Walter learned more about the delight pyramid, a fascinating concept built on the notion that great user experiences are functionally sound, reliable and usable. But does creating “deeply delightful” technology walk a fine line between delight and dependency? UX Collective (10 minutes)
Founder FAQ: Can my startup raise money from people who are not accredited investors?
Though it’s technically possible to raise funds from a non-accredited investor, the legal and regulatory costs almost always outweigh the benefits. If you sell shares of stock in a company, you either need to register the offering with the Securities and Exchange Commission (SEC), which is onerous and expensive for an early-stage startup, or the sale of stock must fall within a specified exemption from registration. The most common startup exemption requires companies to raise capital from “accredited investors.” Founder Fridays FAQ No. 21 (4 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.
Should We Work Together?
Hi! I’m Kyle. This newsletter is my passion project. When I’m not writing, I run a law firm that helps startups move fast without breaking things. Most founders want a trusted legal partner, but they hate surprise legal bills. At Westaway, we take care of your startup’s legal needs for a flat, monthly fee so you can control your costs and focus on scaling your business. If you’re interested, let’s jump on a call to see if you’re a good fit for the firm. Click here to schedule a 1-on-1 call with me.