Ask HN: What do you think about A.Rachlef's opinion on great startups?
https://www.podbean.com/media/share/dir-zamep-fe5d981 All the Hacks, 2021-09-08 Becoming a Better Investor with Andy Rachleff 10:24
“Contrary to what most people think, great companies are not started as a result of an entrepreneur saying: ‘I want to start a company, so I’m going go find the best opportunity I can and then do that.’ And typically it’s described as, the process is described as someone who looks for a market that has a problem and then you develop a solution for the problem, and that’s how you get started. Those kinds of businesses lead to very mundane and small outcomes. The really great successes in venture capital are the result of an entrepreneur recognizing an inflection point in technology that allows them to build a new kind of product, and then they try to find a market for that product. So it’s an exact opposite of what you think it is.”
https://www.podbean.com/media/share/dir-fgpey-10e08659 Bank On It 2021-11-02, Episode 457 Andy Rachleff from Wealthfront 30:52
“If you set out to solve a particular problem, you seldom create a really big win. The way that I describe it in my product-market fit class is, when you read about entrepreneurship, almost every article describes the process as looking at a market, trying to find a problem and then developing a solution to the problem. That leads to very mundane outcomes, very small companies, because of the incrementalism that is required and that anybody could do that. The truly great companies are the result of someone recognizing an inflection point in technology that allows them to build a new kind of product and then they try to find a market for that product. It’s the exact opposite of what everybody thinks. Now the reason everyone thinks that’s the proper process is that consumers want to believe that whoever they buy from always intended to serve them. So every successful company revises their history to make it sound like they started with the market to come up with the solution. Nothing could be further from the truth.”