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My 5 Lessons from 2 Failed Startups (attempt to post No. 2)

Yesterday I made a post here, and even though the comments and reception were overwhelmingly positive, the mods decided to remove it. I tried to get in touch to ask why and didn't get a reply, but I assume it's because I linked to my Medium blog post.
So, because I don't care about the Medium traffic that much and because my main goal was to share my personal experience with likeminded people, I'll post again today with the whole gargantuan text copied here.
(I'll still give the original link at the very bottom because the sub doesn't allow pics in the text post, and I specifically made comic strips to make the post easier to read and hopefully funnier (and there are a couple of screenshots). Feel free to ignore it.)
- - -

5 Lessons from 2 Failed Startups

7years ago, on my last year in university, I unwittingly embarked on a startup journey. Here are the five most important lessons that I picked up the hard way.
(comic 1)
The main reason I wrote this piece is so that I don’t repeat the mistakes I list below, but I’m publishing it in hopes that my experience will have a positive externality — that someone out there will internalize these lessons without paying the cost of money, time, and tears.
FIRST STARTUP What it was: the first premium educational platform for a popular competitive video game (Dota 2); My role: main content guy — I wrote most of the content and worked directly with our influencer partners, but with time got more and more involved; Timeline: created platform and developed content; launched successfully and found decent traction; slowly faded into obscurity due to lack of sufficient funding; 

LESSON 1: Be prepared for different levels of success

Naturally, when we started the project we had great expectations for its future financial performance. We also kept in mind that it could crash and burn, as we knew most innovative products fail.
The two options in our heads were either:
  1. great success — the business supports itself just fine and grows
  2. or total failure — we close down and search for “real” jobs.
What we failed to anticipate is the vast land in between those two extremes. That’s where we ended up. When we launched we started making enough money to indicate we are onto something, but not enough to fully support and grow the business.
(comic 2)
When you hear something along the line of “90% of startups fail”, you imagine that 10% of startups hit the jackpot while the other 90% lose their money and close their doors instantly. However, this statement lacks a time dimension and a grayscale between the whiteness of success and the blackness of failure. It could be useful to investors, but it is misleading if you are a founder.
I’m sure some startups lose their money very fast and are left with no choice but to close operations. Yet, I’d wager a big chunk of the unsuccessful 90% spend a long time trying to navigate mixed signals from the market. The problem is that in such conditions decision-making is not straightforward. Are you wasting your time, or are you on the brink of something worthwhile? Not an easy call to make.
When faced with such decisions, pessimists quit too early, while optimists tend to believe success is just behind the corner perpetually. Both mindsets are wrong.
If you quit too early, you are cutting short the chances that you’ll hit a lucky breakthrough.
But if you fight for too long, it could get you stuck in a terrible limbo people in the startup community call “the land of the living dead”. You make ends meet, barely, but in reality, you are just wasting your time, potential, and testing the patience of all the people with a stake in your success or failure (people in both your personal and professional life). A business is, generally speaking, not a worthy cause for martyrdom.
In our case, we ended up in the second option. We had over-promised so our investors and business partners were unhappy with the performance, yet we were not ready to give up yet because we still saw a lot of potential.
At the same time, without the full support of the inventors and partners, we had no chances to succeed. We spend over a year in this state. You need to be realistic about these things, and in startups, the business of selling dreams, this is harder than it sounds.
Plan for success, plan for failure, plan for everything in between.
Retrospectively, what we had was a successful proof of concept which required further funding to grow and become a real business. Our failure to anticipate this outcome meant that neither we nor our partners or investors were prepared, which spelled the slow and agonizing death of the project.
If you’re a founder, you need to be granular in defining success and failure. You need to have a timeline everyone agrees upon (not only the founders but all stakeholders) and a definition of different levels of success so that nobody quits too early or leads a lost war for too long.
For example: Great outcome: X months after launch, we’re making enough money to support the business. We agree to reinvest and grow it slowly to avoid dilution (lifestyle business route) or to fundraise to grow fast and search for an exit (startup route). Good outcome: X months after launch, we’re making money, but not enough to support the business. This is expected — proof of concept. We’re in the process of fundraising. If we succeed to fundraise until month Y (money runs out) — great. If not — we close the business. Bad outcome: X months after launch we’re making very little (if any) money. We pivot if we still have resources, if not — we close the business. 

LESSON 2: Find a mentor

The three main components people talk about when evaluating startups are usually the team, the product, and the market.
It’s hard to argue if any of the three is more important than the others. Usually, you need all three to be good enough to reach success.
In our case, we were lucky enough to have a favorable market — demand for what we were offering and lack of any real competition.
The product was so-so: it could have been much, much better considering our lack of experience & resources, but it was good enough to attract the early adopters and with time it could have evolved.
The team, however, had 0 experience.
We did this straight out of university (I worked on the project part-time until I finished my masters). The founder was the technical guy and he was a junior developer at best. I was the content marketing guy and even though I had some marketing courses in uni (which mostly focus on traditional, big businesses), I had 0 real-world experience.
Our lack of technical/marketing experience proved not to be fatal — we were learning on the go and managed to push out a working product and to reach our customers. We had vision, passion, some domain knowledge, and the willingness to work hard.
What was fatal, however, was that we had 0 experience running a business. Honestly, we had close to no knowledge about startups and what to expect of these kinds of projects. Doing the actual work takes thousands of hours, and the minutes spent making a bad decision can easily invalidate all your efforts.
If present-day-me could advise and mentor this startup, I’m certain it would have become a successful business.
(comic 3)
If you are a young entrepreneur, you need a mentor. An official one, with a small share in the business in order to have skin in the game. Ideally — an entrepreneur who has some startup experience behind his back or at least someone who has been deeply involved in such businesses. Turn to your local startup community and it won’t be that hard finding someone interested: after all, most people like giving advice as well as getting free shares in companies.
[If you don’t have an official mentor, at least make sure you’re getting mentorship from other places intimately familiar with your business (investors, startup groups or communities, etc.).]
Embarking on your first startup journey without a mentor is like trying to become an MBA star without ever having a basketball coach. Unless you are incredibly lucky, you will simply fail. You’ll make fatal mistakes like the one above (and many more I can list, but it would take forever). Frankly, even nowadays, being much more experienced, I doubt I’ll ever work on anything innovative without a mentor.
SECOND STARTUP What it is was: a monetization platform for video game influencers and content creators in the same niche My role in it: founder Timeline: fundraised (a bit more ambitiously this time, $90k); created platform and developed content; launched and found 0 traction; turned the website into a profitable gaming blog for a year; tried to pivot in the meantime, unsuccessfully; 

LESSON 3: Market expertise doesn’t trump startup common sense

As you’ve probably noticed, startup one and startup two are connected. What happened is that the founder of startup one finally had enough and bailed. I still had a chip on my shoulder, however, and managed to convince one of the old investors (and a few new ones) that there is merit in having another go at the market with a new (more ambitious) concept. Naturally, things didn’t turn out as planned.
“Fail fast, fail cheap, and leave yourself time to pivot.”
That’s probably the most frequently repeated startup advice. And probably the most valuable one you can get. The one that you need tattooed on your forehead if you’re a founder.
So, even though I was aware that the biggest startup mistake is to spend all your resources developing something no one needs, I made exactly that mistake. Like many a startup, I burned through 90% of our bank to acquire the validated learning that there’s no demand for the product we’re making.
What led me astray was the belief that I was an expert on this particular market niche and knew intimately its needs.
(comic 4)
The confidence I had, obviously, was false.
What’s true is that the previous startup validated that the market actually exists, which is a good start.
What’s not true is that the previous startup validated in any meaningful way the new product we’re developing. We had a new concept, a new marketing approach, etc. Equally importantly, the market had changed since the first project — competition was starting to pop up, etc. I was probably one of a handful of people on the planet intimately familiar with this small market niche, and yet my ideas weren’t bulletproof anyway.
After we launched and saw 0 traction, I tried to pivot with a new idea based on the market feedback. The problem was that I had to validate it on my own with no budget and no team. I couldn’t do it properly, and I still don’t know to this day if this idea would have worked out if I had more resources to test it.
Looking back, if I had focused on being an expert on running a startup as much as I did on being an expert on the market, things could have turned out quite differently. I could have tested the waters for plan A with 20% of the budget. That would have left me with enough resources to try out at least three more different approaches. We were working from Eastern Europe (Sofia, Bulgaria) and mainly with freelancers, which meant that our burn rate was quite low.
Failing fast and cheap would have made the company four or five times more likely to succeed. I suspect that this number is even higher because the accumulated expertise by smashing your head into the wall (market) repeatedly means that plan B is usually better than plan A, plan C would probably be better than plan B, and so on.
Every startup needs to be lean (test your assumptions with minimal resource investment) and agile (be ready to continually change your concept/priorities base on market feedback). This is simply not negotiable if you want to succeed no matter how much of an expert you believe yourself to be.
“Startups almost never get it right the first time. Much more commonly you launch something, and no one cares. Don’t assume when this happens that you’ve failed. That’s normal for startups. But don’t sit around doing nothing. Iterate.” — Paul Graham

LESSON 4: Don’t regret correct decisions that didn’t turn out your way

After launching and finding 0 traction with almost no money left in the bank the realization where things are headed hit me hard. I wasn’t ready for a second failure just yet, however, so I poured all my efforts into finding a source of income for the business to give us some breathing room.
Content marketing was my biggest strength, so I made a content strategy and started churning out articles. I managed to grow the traffic of the website significantly (reached 240k unique monthly visitors at its peak), and at the same time, I was doing cold outreach to any viable business that might want to advertise with us long-term.
(Google Analytics Screenshot)
I deliberately made some of the content well suited to advertise a certain type of business in our niche. Eventually, I managed to close a deal with such a business, which gave us just enough income to keep our head above water.
During this time, an unexpected opportunity presented itself. A new game closely related to the one I was writing about pupped up and started gaining popularity (Auto Chess, which later turned into Dota Underlords). I was in a great situation to start writing about it and to turn our website into the main authority site on the subject, and slowly but surely I managed to rank our website in the first place in Google SERPs for most relevant keywords.
(SERP screenshot)
The hope was that the game was going to continue to grow (and our traffic along with it). This, in turn, would allow me to land bigger advertising contracts, giving me the needed funds to bootstrap a team and continue the validation experiments related to this new market and our newly acquired audience (I was trying to get the business into a positive feedback loop).
Then this happened:
(steam charts screenshot, player base falls)
Dota Underlords (the game we attached ourselves to, our market) fell from over 200k to about 10k concurrent players. Naturally, as I had invested most of my time into Dota Underlords content, our traffic started falling as well, which invalidated the authority site plans and made new advertising sales much, much harder.
You could argue I should have diversified our content to avoid this situation, but the reality is that you have limited resources and you need to plan how to use them. The business was created as a startup, it had investors, which by definition demands at least some level of ambition. Surviving as a niche gaming blog wasn’t going to cut it for the people involved, so I decided to go all-in on the opportunity I saw.
It didn’t work out, but that’s OK. As mentioned, most startups fail. Sometimes they fail because of avoidable mistakes (as demonstrated above), but sometimes they fail because the educated bets they make don’t work out.
Making educated but risky bets is what startups do, so don’t regret the second kind of failure when the risk is anticipated.

LESSON 5: Accept full responsibility

(comic 5, this one's not that funny :( )
It’s quite easy to blame the circumstances when you’re looking back at past failures. It’s a great way to protect your ego. Going back to my own journey as an example:
  • Startup environment: access to mentorship, funding, and know-how would have been much better if I was located in Silicon Valley. Yet, I tried to play the game of startups in Eastern Europe. Paul Graham sometimes mentions the concept of the Milanese Leonardo. In two words — there is no such thing, all great 15th century painters come from Florence, not Milan. So where are the Milanese painters? The theory is that the environment in which you develop trumps any kind of talent and probably even hard work. Maybe I’m a hardworking genius, but simply failed because of the unfavorable environment half-a-planet away from the Valley.
  • Influencer partners: our two key influencer partners for the 2nd startup project bailed just before we launched. Surely they are to blame for the failure at launch, not me?
  • Crisis in Ukraine: speaking of partners, our main business partners for the first startup were a Ukrainian esports organization. Shortly after launch, the political crisis in Ukraine happened and naturally, they were unable to fulfill all of their promises related to our project (they had bigger problems of their own). Surely we couldn’t have predicted geopolitical events while managing an esports startup?
I could go on, we’re all masters at making excuses. However, this is a fool’s game. Analyzing your past circumstances is important, but only in the light of taking valuable lessons into the future. An excuse means you learned nothing from an important event.
All of the above seems like it’s something I don’t have control over, but I’d argue that’s not true.
  • Environment: I didn’t want to move to SV, but there are other ways to solve this problem at least partially. E.g. I could have reached out to people to ask for remote mentorship. “We have funding, we’re building this product, we want mentorship (weekly/monthly Skype calls) and we’re ready to give you a small share in the company to commit.” That’s not a bad offer and a viable way to make a connection to the real startup world.
  • Partners: I could have done a thousand things to keep them more interested or involved in the project to minimize the chance they’ll quit. Even that aside, I could have made sure we’re not as reliant just on those two and involved more partners in advance.
  • Crisis: sure, I couldn’t have predicted the geopolitical events, but I could have prepared for potential problems with our partners (same point as above). If someone is so important for your business that you fail if they underperform, you better have some plan to mitigate this risk. As a startup founder, you constantly operate in a high-risk environment. It’s your job to protect the project against the most critical and most likely of those risks.
Past failures are a blessing — put them on your shoulders and they will make you stronger.
Future failures are the ones you want to avoid, and your past failures are the best tool for the job.
- - -
If you were crazy enough to read all of it, I hope it was useful.
(Here's the original Medium link if you want to see the images, feel free to ignore it.)
submitted by dotahaven_MrNiceGuy to Entrepreneur

Applying to Amsterdam University with anxiety

Originally this text was supposed to be published only on LinkedIn but I think you guys might find it interesting. So please enjoy my story.
tl;dr at the end
Storytime
The story is quite personal, so if you feel uncomfortable reading stories of strangers and their struggles… You could still try reading this one, eh? I have heard we should push ourselves and leave our comfort zones once in a while.
So here it goes. My story starts, as any aspiring student’s story would, in December, when I applied to my dream university - The University of Amsterdam. (As a side note, it was quite a fresh dream, but as valid as if it was the oldest of them all). Amsterdam University College, to be exact
.The application process was simple, writing a motivation letter, creating a study plan, and winning the university over during an interview. The first two parts went smoothly. Almost. I tend to procrastinate, especially when I’m writing something that might have a huge impact on my future. This is why I submitted my application just before the deadline.Writing the last words I could feel the clock peeking over my shoulder as if it wanted to say: write faster, little girl or you’re not gonna make it.
But I made it. Just Before Deadline. And I was proud of myself. Of my application. It was honest. I don’t like lying about who I am and what I went through. So I told the admissions committee about my procrastinative nature coming from my perfectionist(not in a good way) past, I told them about my anxiety disorder and how, to get it under control, I decided to leave my previous university
.While waiting for the possibility to present my awesome self during the interview I applied for a scholarship. The internet said that getting a scholarship in UvA is hard. But I needed it. I was determined. And guess what? I got the scholarship!
The internet also said that if you get the scholarship it shouldn’t be a problem to get into the uni. So I was full of hope. But trying to keep it chill so I don’t disappoint myself.
A few months have passed and I got invited to the interview. Oh, I was so happy. And I mean: screaming and jumping happy.
Before I tell you the most important part of my story, let me spoiler a bit, dear reader. The spoiler is here not to play a trick on you, or to have a laugh, it is so that you don’t get the wrong idea about what I’m about to tell you.
So the spoiler is: I didn’t get in. And what you’re about to read is not a rant because the university didn’t take me.
My application could have been shit. Or maybe I scared them off by admitting to being a procrastinator. It’s fine. I ended up in Tilburg (Hi Tilburg Uni College and thanks once again) and I am happy here. I feel at home. I feel safe.
So now, that you know that my story has a happy ending, just not the one you might have been expecting at the beginning… Here comes the most important part.
The interview.
It was Friday, May 8th. I have no clue what was the weather or what did I eat that day. Probably not much. I was stressed. Properly stressed.So the time comes, I get the call. It’s not a university skype account but it doesn’t matter, I guess? There is only one interviewer, but… I don’t think anyone promised two? I mean they are the university. They know what they do.
So the interview starts, and it goes and goes.
(Ah, right, I think I forgot to mention what was supposed to be the subject of the interview? It is: my application, my motivations, my plans. I enjoy talking about myself so it sounds quite like fun.)
  • “Are you sure it’s a good idea to apply to the university with an anxiety disorder?”
  • “Our program is quite competitive, you know”
  • “I had some other applicant, who had the same struggles as you, and she was even dutch! And she listened to my advice and postponed”
  • “We have a very low drop out rate”
Oh, and my ABSOLUTE FAVOURITE:
  • “Don’t you think that applying to university with anxiety is like going to the bar from an AA meeting?”
So yeah, the interview ends, I hang up and start crying. I don’t know how I did. I mean I defended myself perfectly, so good, I guess? I even tried to sneak some of my motivations between the anxiety defense line.
I feel angry and sad. And disappointed. Very disappointed.So with still high dopamine rush I sit down and start typing an email. I’ll cite only a part of it here, so you get my vibe:
“I must admit that I felt reduced to my disorder. I understand that the university perceives it as an important case as it may affect my performance while studying however reducing someone to their anxiety disorder (especially while they put so much effort into learning how to cope with it, as it cannot be healed) is truly hurtful and unfair.
According to WHO 25% of the population is or will be affected by a mental disorder of some kind. Mental health problems are still stigmatized around the world and people suffering from them are treated differently (in a negative way) than "regular" people. Universities should be role models in showing the world that this stigmatization needs to end and that those people deserve the same amount of respect and the same chances as people not struggling with them. I cannot imagine anyone asking a person with a missing limb if they will be able to type fast enough in classes.
I'm writing this email because I want to make sure that no one else struggling with a mental health issue will feel the way I did. I'm way more than my disorder, I have ambitions, passions, goals, I keep on learning and developing. I refuse to be reduced to an anxiety disorder that originated in the emotional abuse and toxic environment I was exposed to in my childhood. “
Damn, that’s a statement, I think. They have to do something now.
Ehmmm, they don’t. I mean... they replied. That’s something.
“Having been a tutor at AUC from the very beginning, Dr. XXX is very well aware of what it is like to be an AUC student and the pressures that come with that. Things like this are discussed not as a way to deter people from studying at AUC, but more to find out how we can best accommodate students who possibly might struggle in any way. There would be no stigma involved, more a wish to give the best support possible. Your anxiety issues are not even discussed in the feedback we received from Dr. XXX.
You might want to read some articles on The Herring, our online student newspaper:
https://theherring.org/2019/06/26/half-of-uc-students-with-mental-health-condition/
https://theherring.org/2019/11/03/tackling-mental-health-and-well-being-at-auc/
Do note that we have a support network at AUC for anyone with any kind of issues (mental, physical, practical). Feel free to contact our Student Life Officer if there is anything.”
So yeah, he didn’t mean it. He knows his shit. Read an article or sth, girl.
I was still hoping (even though the chances were vague) they will take me in. I didn’t want to make a big deal out of it. Ok, I WANTED to make a big deal out of it. I was just afraid to burn this bridge.
But I’m here, and I’m safe and I’m happy. I feel at home and the people that surround me, they are already family. And I finally don’t feel afraid to tell this story. So here it is. Or was.
And I’ll leave it to you dear reader to decide, what’s the moral.
Mine was, though, that no matter how noble the university, it might still be biased or judgemental. And that the fight for the understanding of mental health importance is not over nor will it be any time soon.
Tl;dr
I applied to Amsterdam University mentioning in my application that I have an anxiety disorder. My interview was mostly about the disorder, barely about my motivations or plans. I got asked, “Don’t you think that applying to the university with an anxiety disorder is like going to a bar from an AA meeting?”. I don’t think this is how you’re supposed to treat applicants and I disagree to be reduced this way.
submitted by Martynkajp to mentalhealth

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