Sol Rashidi’s Post

There are two religions about venture-backed, outlier startups. Neither matters, initially. The market + timing folks believe that to have an outlier great founders must tap into a special market at the right time with the right product. The number of outliers is fixed. The groundswell folks believe the ecosystem needs enough capable founders tinkering with enough impactful technologies to reveal the outlier opportunities. The number of outliers is a function of the global founder funnel. More can be more. Neither really matter because so many startups fail. For the first 1000 days, everyone agrees that only one thing matters: finding product/market fit. Why do we accept such a high failure rate? With startup failure rates so high despite lots of capable, ambitious founders and plenty of capital, isn't it time for a new gospel?

Every post-P/M fit startup should do this right now regardless of size and/or funding.   I’ve worked on high-growth bootstrapped startups, others doing $1M+ rev/employee, and others with mid-8 figure rev and $100m+ funding.   This applies to all of them:   Figure out how much of slowing growth is in your control vs. out of your control.   In other words, acknowledge the headwinds.   This isn’t an excuse to throw up your hands up and waive the white flag.   I’m not telling anyone to use a tough macro as a crutch for not going hard and hitting your potential.   But...   Now is NOT the time for the team to get demoralized. You can't afford it.   Acknowledging the headwinds will go a long way here.   Then go do the work of your life on what’s in your control now that everyone’s aligned it's tough as heck out there.   If you do this, when things turn (and they 100% will), you’ll have a way stronger business.

Becoming a unicorn 🦄 ($1 Billion Valuation) doesn't require 20 years or hiring 5000 people. What's essential is having the DNA of a tech startup and fostering an entrepreneurial mindset. Your impact will be profoundly significant. Keep in mind, startups are fundamentally different from other types of businesses

After multiple startups, I've learned a few things to share... Building a company requires lots of cash to burn. This continues until profits grow to cover expenses. Many startups fail, because they are undercapitalized. Start-ups develop slower than projected, increasing the burn cycle. Conservative projections, with several scenarios, are needed. Q: If you can't afford cash burn until breakeven, should you even start? My best decisions were made with people who had domain experience. Most leaders know what to do, but may need confirmation. A sounding board, a second set of eyes, another opinion. Nothing will prepare you better then lessons learned. Both what to do, and what NOT to do.

Startups are built on lots of hopes & euphoria but most die a very slow & painful death! And ones who survive & prosper need to have lots of luck too on their side! Most business models are good, execution too is sincere but factors like founders not getting along, not getting to access to capital on time, team troubles & legal issues hamper the growth of most startups! Hence, for most founders, a slow & steady approach, ensuring abundant cash flows, recording good traction & constant interactions with right VCs is the way to go, especially in today’s tight scenario! Even if winter is dark, long & cold, sunshine days cannot be held back for long! Just somehow survive & keep growing till that time! #startups #business

I've been an operator at 4 different early-stage companies before they got to $1m in revenue. This was both before I was investing and in parallel to investing in early-stage startups. As an early-stage operator this has always been the most exciting stage. The chase to find Product Market Fit (PMF) is a massive challenge, but damn, it’s a fun one. It’s not for most as there is a serious lack of structure & certainty, w/endless chaos. The future is not promised and chances are stacked against you. Every win feels unbelievable.. Every loss is absolutely crushing. This is something you can’t really feel unless you are truly living & breathing it. These experiences have been amazing and helped me: 1) become a better early-stage investor 2) be more helpful to portfolio founders (and founders in general) 3) learn how to sell a vision before it is a product 4) embrace/understand the chaos at startups 5) value the role founders & leaders of companies play at this stage Cheers to everyone grinding at the earliest stages of the next big businesses being built! Just keep going!

Only 46% of seed-funded companies raise another round. Series A is the drop-off for the majority of early-stage startups. How do you know if your startup is ready for Series A funding? 1. You can demonstrate product-market fit. Judge a product-market fit from the noise around your company—media presence, glowing customer feedback, and testimonials. 2. You can prove scalability and unit economics. At the series A stage and later, investors are looking for a clear path to growth and scale. 3. You have built a clear, compelling narrative. The key is to frame the problem, describe how to solve it, and explain why the time is ideal for your solution. 4. You have built your team. A big signal to investors is that you’ve plugged gaps in key areas of your founding team through either employees or advisors. 5. You have crafted a path to defensibility. Investors want to see if you can show why you’re the category leader in a winner-take-all market. So, are you ready?

Train your mind to thrive on uncertainty. Starting a company did this for me & many founders. Startups embrace this because there is no other way. The more you lean into uncertainty early in your journey, the faster you'll grow. Push through the discomfort of ambiguity and the potential upside is 10x what you might expect.

Big companies have it easy. They just throw money at a problem and hope for the best. But for us scrappy startups, that's not an option. Why I, as the CEO, need to be shoulder-to-shoulder with my team: → My team is incredible, but they haven't lived and breathed this idea like I have. I gotta steer the ship and make sure we're all heading towards that big, awesome future. → Forget rigid departments. My team tackles whatever fires erupt, because that's how we stay ahead! → There's no magic rulebook for what we're doing. We gotta figure it out together, step by crazy step. So, how do I make it work? → Lead by Example → Find My A-Team → Learn by Doing → From Mess to Manual → Empowering My Champions Startups win because we're agile and our CEOs are all in. Forget waiting to delegate everything. #startuplife #startupceo #foundermindset

The Wiz exit to Google is an incredible testament to why we hustle in the startup world. But while the allure of that 1-in-100,000 exit is tempting, remember that 82% of startups, even post-Series A, go to zero. With Aption, you don't have to risk it all – we help you build a diversified portfolio with your equity, giving you safety nets (just like when playing who wants to be a millionaire) - as your valuation rises and maybe even a position in the next "Wiz." #StartupSuccess #EquityDiversification #Aption #TechExit #StartupRisk #FounderLife