Everything Kevin Hale said on any show that made the record, most notable first. Each card names its show and opens the statement there.
Hale: Investors should figure out how non-obvious startups can win
“His job and the way he sees our work at YC is that it's not to figure out what's wrong with the company, but to figure out how it could possibly when. Cause our bets, the ones that when, are the ones that are non-obvious.”
Hale: Great investors imagine billion-dollar paths and pitch them back
“And so we have to, like, work on our imagination, we have to work on our optimism to figure out, Oh, what is the way that whatever story that they're telling me could become a billion dollar company? And then a great investor pitches that back to the founder.”
Kevin Hale: If you must ask if you have PMF, you don't
“If you have to ask the question, you definitely don't have it.”
Hale: Companies over-optimize for serendipitous chance encounters instead of focused execution
“I actually think a lot of companies or organizations, the group over optimize for serendipity. Like they're like, what about that chance moment? But to me, like serendipity, like we were like some random thing happened, all of a sudden we have a great idea. Li…”
Hale: Big Tech Experience Does Not Give Founders an Unfair Advantage
“And so if you think it's like, well, I'm a product manager at Google. There's a lot of product managers at Google. If you say you're an engineer at Microsoft, there's a lot of engineers at Microsoft. It's like, great, but it's not one that will make me think, …”
Hale: Founders should only give co-founder equity to actual co-founders
“And for us, we actually feel like the only people you should be giving equity, equity to for co-founder is two other co-founders.”
Hale: Video lectures are the least important part of Startup School
“Like, I actually think the lectures are the least important part. Of startup school. Like, it's a one thing that, like, it brings a lot of tension, it helps build up the brand. But those lectures are a way for people to understand and like get help. You know, …”
Hale: UX features and customer support improve retention, not conversion
“Customer support is actually a good one for improving retention. And it's something I also tell People about in terms of, like, that's a great, like, user experience, and most user experience features, like, a lot of people like to be forward on them, especial…”
Hale: Investors Cannot Accurately Predict Which Startups Reach $10B
“Part of the shotgun model is based on the fact that it's like, we actually can't accurately predict who's going to be a ten billion dollar company.”
Hale: Needing over 10% market share for $100M revenue is implausible
“If they need to capture more than 10% of the market just to get to that hundred million dollar revenue, that's probably not plausible.”
Hale: Freemium Business Models Require Very Large Addressable Markets
“Freemium won't work for every company. Mostly because, like, what it requires is a very, very large market.”
Hale: Founders work part-time due to lack of conviction, not resources
“It was the main reason why a lot of people are only able to work on their startup sometimes part-time. Yes, they might be stuck without resources, but they didn't have conviction.”
Hale: Startups are defined strictly by rapid growth
“For us at YC, the definition of a startup is a company that is designed or created to try to grow very quickly. So if you're not trying to build a company that grows very, very fast, ah, then you're just building a normal company. It's a small business.”
Kevin Hale never tells founders he dislikes their ideas at recruiting events
“If you ever meet me or talk to me about your startup and kind of recruiting or at one of these events, ah, I will never tell you that I do not like your idea.”
Kevin Hale: A startup idea is a hypothesis about rapid growth
“A startup idea is basically a hypothesis, and this is the way you should think about it. It's a hypothesis about why a company could grow quickly, and your job is to figure out how to construct your hypothesis, basically the pitch to the investor, so they unde…”
Hale: Frequent problems are vital because they provide more conversion opportunities
“The last one about frequency is super important because I like problems, and you'll find a lot of other YC partners like problems a lot that gives people a lot of opportunities to convert.”
Hale: Most Startups Struggle with Retention by Not Sending Enough Triggers
“And oftentimes most companies don't send enough, for example, email notifications, or triggers, or reminders, or figure out ways to come back into the app, or figure out ways to be back in front of the user at the right time.”
Kevin Hale: Startup Unfair Advantages Must Directly Explain Rapid Growth
“You have to have an unfair advantage that explains why you're gonna grow quickly. If it's not related to that, then it's not gonna be something that an investor is gonna find valuable.”
Hale: 99% of YC-Funded Founders Lack a True Founder Unfair Advantage
“And, 99% of the people we fund at YC do not fall into that category.”
Hale: Market growth is the weakest unfair advantage on its own
“If this is your only company advantage, then it's one of the weakest ones that you could have.”
Hale: Sole reliance on paid acquisition fails as scale attracts competitors
“If paid acquisition is the only way that you are able to grow your company, then I'm gonna discount that channel of growth greatly. That is because if you actually get really popular, you can actually start being someone significant, Let's say becoming a hundr…”
Hale: Blue Apron stalled after exhausting paid customer acquisition channels
“Blue Apron is a really good example of this. Almost all their acquisitions isn't paid, and then once they ate through that, there's almost nowhere else for them to sort of go.”
Kevin Hale: Enterprise startup success is determined by sales ability, not engineering
“So if you are heavy engineering team or doing a BDB or enterprise startup, again, the default is you have to build it. So if you can't even build it, then it's not even gonna work. So I don't spend actually a lot of time looking at that. For me, I'm trying to …”
Hale: Wufoo raised only $118k and returned over 30,000%
“For Wufoo, we only raised a 118,000 dollars for the whole life of the company, and our returns were over 30,000 percent.”