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Re:A story about pivots by wpietri on Friday January 22, 2021 @10:29AM (#25872437)
I really appreciate when people are transparent. There's a lot of good wisdom here.

A decade back I co-founded a startup. My cofounder, a brilliant product manager, had what seemed like a great idea. Great enough that he quickly got a fat check for the whole seed round. We could have just started building, but both of us were big fans of using user testing to guide product development, so we instead did a lot of user tests.

Six or eight weeks later, we were down at Sand Hill Road for our first board meeting. At this point, according to our VCs, normally they'd just hear about plans. But my co-founder got up and explained that of the 6 key assumptions in our product, 2 and maybe 3 were false. The thing they'd given us money to build was a bust. The room was very quiet. Then he went on to explain the next idea we'd come up with and got them excited about that.

Something we learned later is at the same time we'd raised a seed round, two other companies raised large A rounds to go after basically the same idea. They spent the next 18 months (and north of $10m) trying to make it work.

Not only did that make us feel a lot better about having pivoted, but it was an important lesson to me: the best failures are those with the smallest craters. We bought the same knowledge for less than 1% of the money spent.

Re:A story about pivots by dillondoyle on Friday January 22, 2021 @12:18PM (#25873677)
Would you be willing to expand a bit on the user tests? surveys? Counting signups for interest? I'm wondering about other ways to test without a MVP
Re:A story about pivots by wpietri on Friday January 22, 2021 @05:13PM (#25876945)
Sure! It depends a lot on the product. But in our case, a key interaction was on Facebook. So we pretended to be doing market research on social media and brought a lot of people in for user tests. Eventually we'd have them log in to Facebook on our test computer, asking them what they though of various posts.

What they didn't know was that we used Greasemonkey to alter the Facebook page, inserting fake feed items using their real friends. (We told them at the end if they didn't figure it out.) Some people liked what we were doing, but a lot hated it. So many that it was clear we'd never get the market penetration we wanted.

My cofounder did a 5-minute video talk about it if you'd like more details. https://vimeo.com/24749599

As an aside, surveys are worse than useless for this. Look for things that let you understand live user reactions in circumstances that are as real as possible. Signups are a good metric, especially if they'll give you a credit card number up front. But if you can, always back the metric with live user tests and discussion with real users. If you're patient and ask good questions, you can learn a ton.

Re:A story about pivots by dillondoyle on Saturday January 23, 2021 @03:05AM (#25880570)
cool thanks for sharing!

(i think from that video this is your market) it seems like influencer marketing is a thing now, though I might guess you were looking at more 1:1 not social media celebrity:many

Re:A story about pivots by wpietri on Saturday January 23, 2021 @11:34PM (#25889287)
Yes, our goal was to help people make better buying decisions. In the real world, this is frequently a social process. Influencer marketing is sort of the opposite of what we were aiming for.
Re:A story about pivots by exdeve on Friday January 22, 2021 @12:31PM (#25873860)
I bet they just talk to people, show them the app and watch how they use it. This is the quicker and meaningful user testing I know
Re:A story about pivots by wongarsu on Friday January 22, 2021 @01:05PM (#25874245)
It also doesn't require actually building the app, the user can just tell you which action they take and you draw the next app state on a piece of paper
Re:A story about pivots by Winterflow3r on Friday January 22, 2021 @10:57AM (#25872727)
Would you be open to discuss points 2 and 3 - the key assumptions that were wrong - a bit more?
Re:A story about pivots by wpietri on Friday January 22, 2021 @05:16PM (#25876985)
I honestly no longer recall. My cofounder gives a short talk here that will give you an idea, though: https://vimeo.com/24749599
Re:A story about pivots by baxtr on Friday January 22, 2021 @11:13AM (#25872895)
Great story! What happened to the two other companies? Did they fail?
Re:A story about pivots by wpietri on Friday January 22, 2021 @05:06PM (#25876887)
They did fail. For what it's worth, we did as well. I think our eventual product idea was much better than our first one, though, and I think our fatal mistake was not about lack of user demand, but on building too much on the theory that we could use Facebook for viral growth. As we were about to go for our A round Facebook changed a lot of things to de-emphasize apps and posting to people's feeds, so our growth numbers fell off a cliff. Turns out investors only like hockey sticks when they go up.
Re:A story about pivots by zhoujianfu on Friday January 22, 2021 @02:51PM (#25875512)
One is Uber and the other is Lyft.
Re:A story about pivots by keithwhor on Friday January 22, 2021 @12:02PM (#25873466)
One is Dropbox and the other is Box.
Re:A story about pivots by jjtheblunt on Friday January 22, 2021 @02:49PM (#25875493)
> the best failures are those with the smallest craters.

what a fantastic quote!