Thanks for the insightful post! Question for Gus - what are some early signs (e.g. LT, market, traction, culture) that could signal if a startup is set on long-term success vs failure and what are some tactics that potential employees could use to notice and interpret those signs?
Hey Narek - thanks for the great question! In The Startup Lottery book I discuss a 7-step framework I call The Proof Continuum. It's a series of milestones companies have to meet from founding through exit. If you consider that the typical VC-backed company is expected to achieve an exit within 5-7 years, they have to move pretty quickly through the milestones. One good way to tell if a company is not bound for success is if it's taking too long for it to move through the milestones. Failing to progress through the Proof Continuum also tends to correlate with being unable to raise capital on regular timeframes (say each 18-24 months) at escalating valuations as investors become more skeptical about the company's future.
Here's an article I wrote previewing the chapter in the book on the Proof Continuum, which will give you a good idea of what I'm talking about.
Thanks for the insightful post! Question for Gus - what are some early signs (e.g. LT, market, traction, culture) that could signal if a startup is set on long-term success vs failure and what are some tactics that potential employees could use to notice and interpret those signs?
Hey Narek - thanks for the great question! In The Startup Lottery book I discuss a 7-step framework I call The Proof Continuum. It's a series of milestones companies have to meet from founding through exit. If you consider that the typical VC-backed company is expected to achieve an exit within 5-7 years, they have to move pretty quickly through the milestones. One good way to tell if a company is not bound for success is if it's taking too long for it to move through the milestones. Failing to progress through the Proof Continuum also tends to correlate with being unable to raise capital on regular timeframes (say each 18-24 months) at escalating valuations as investors become more skeptical about the company's future.
Here's an article I wrote previewing the chapter in the book on the Proof Continuum, which will give you a good idea of what I'm talking about.
https://www.linkedin.com/pulse/proof-continuum-7-steps-startup-success-gus-bessalel/?trackingId=7IXBTh9HSC2F6l%2FVaFEA7A%3D%3D
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All fixed. Thanks for the callout!
Want to ask Gus a question? Comment here and we will answer some in the upcoming interview.