What is the '5 Whys' exercise for finding your startup's 'why'?

The '5 Whys' exercise involves repeatedly asking 'why' to a stated goal (like starting a company) until you reach a deeply held, often irrational belief. This process helps uncover the authentic core motivation behind your venture.

How important is company culture in a startup?

Company culture is crucial and should be a top priority, not an afterthought. It defines who you are as a team and how you operate daily, significantly impacting success.

What are the key values Danae Ringelmann identified for Indiegogo's culture?

Indiegogo's core values are Fearlessness (ruthlessly prioritizing and being opportunistic), Authenticity (bringing your whole self to work and respecting diverse viewpoints), Collaboration (working together where 2+2=5), and Empowerment (helping people who want to be helped).

Is technology the ultimate goal for a startup?

No, technology is a means to an end, not the end goal itself. The focus should be on the 'why' – the problem you are solving. Technology is simply the best tool to achieve that purpose.

What advice does Danae Ringelmann give about building a successful company?

She advises focusing on building something meaningful and important that the world truly needs, rather than solely focusing on rapid growth. This approach attracts meaningful customers, talent, and ultimately leads to significant impact and success.

Key Moments

Danae Ringelmann at Startup School SV 2014

Y Combinator

Science & Technology6 min read29 min video

Oct 14, 2014|19,093 views|129|2

YC Y Combinator Startup School SV 2014 SUS2014 Danae Ringelmann Startup School

Save to Pod

Key Moments

On this page

TL;DR

Indiegogo founder Danae Ringelmann stresses focusing on 'why' and culture for startup success.

Key Insights

Identify a core 'why' or problem to solve, as it drives motivation and attracts talent.

Your 'why' should guide strategy and pivot opportunities, not just the initial solution.

Build a strong, intentional company culture based on shared values and diverse perspectives.

Diversity in teams drives innovation and better decision-making.

Technology is a tool, not the end goal; focus on solving meaningful problems.

Attract customers and investors by building something of genuine value and importance to the world.

THE ORIGINS OF INDIEGOGO AND A DEEPER MISSION

Danae Ringelmann shares her personal journey, rooted in her parents' struggles as small business owners who lacked access to capital. This fundamental problem of inaccessible funding sparked her awareness and ultimately led to the founding of Indiegogo in 2008. She emphasizes that a startup's story begins long before its launch, with a deeper mission that transcends simply learning entrepreneurial tips and tricks. Indiegogo has since become a global funding platform, empowering diverse individuals and causes to achieve their dreams.

THE IMPERATIVE OF KNOWING YOUR 'WHY'

A crucial lesson for entrepreneurs is to deeply understand their 'why' – the authentic problem they aim to solve and their personal connection to it. This core motivation not only fuels perseverance through difficult times but also attracts co-founders and team members who share the same passion. Ringelmann's own 'why' to democratize access to capital was instrumental in finding her co-founders and enabled flexibility to pivot from an initial offline concept to the internet-based Indiegogo. Focusing on the 'why' ensures that the solution, rather than the initial idea, remains paramount.

NAVIGATING DARK PERIODS WITH A POWERFUL 'WHY'

Entrepreneurship is fraught with challenges, and the strength of one's 'why' is critical for enduring these inevitable 'dark periods.' Ringelmann illustrates this with Indiegogo's delayed venture funding, which took three and a half years longer than planned, forcing founders to survive on minimal salaries for extended periods. A powerful and meaningful 'why' is what keeps entrepreneurs resilient, driving them to stick with their mission despite overwhelming odds. This unwavering passion is what allows a company to persevere and eventually achieve significant growth.

STRATEGY AND PRODUCT DEVELOPMENT INFORMED BY 'WHY'

The mission to democratize capital directly shapes Indiegogo's strategic decisions and product development. Its open platform approach, which avoids acting as a gatekeeper or requiring an extensive application system, stems from the desire to empower everyone. This commitment also necessitated a global infrastructure from inception, enabling service to customers worldwide. Furthermore, focusing on customer happiness became a key differentiator, as many users are first-time fundraisers, and offering diverse funding options ensures users can optimize for their specific needs.

ATTRACTING TALENT AND CUSTOMERS THROUGH MISSION

A compelling 'why' acts as a powerful magnet for both exceptional talent and loyal customers. Top-tier professionals are drawn to companies that align with their personal values and allow them to contribute to meaningful work. Indiegogo has attracted individuals with impressive skills and equally strong hearts, motivated by the mission to democratize capital. Similarly, the platform attracts customers with innovative ideas, like engineers developing solar-powered roads or a team crowdsourcing biome data, who might otherwise be overlooked by traditional funding channels.

THE 5 WHYS EXERCISE FOR CLARIFYING PURPOSE

To help entrepreneurs find their core 'why,' Ringelmann recommends the '5 Whys' exercise, a simple yet profound method of repeatedly asking 'why' until an irrational, belief-driven reason emerges. Her own journey led to the belief that life should be fair, which underscored her commitment to democratizing funding. This exercise encourages deep self-reflection, revealing the fundamental values and motivations that form the bedrock of a startup and guide its long-term vision.

BUILDING AN INTENTIONAL AND DIVERSE COMPANY CULTURE

Ringelmann stresses the importance of being intentional about company culture, which she defines as the collective identity and daily behavior of the team. Many entrepreneurs overlook culture, placing it low on their priority list. However, a strong culture, where exhibited values align with company needs, is essential for success. Prioritizing diversity, encompassing varied backgrounds and perspectives, is crucial for driving innovation and avoiding groupthink. This inclusive approach helps generate the best ideas and sets the foundation for a robust and adaptable organization.

DEFINING AND OPERATIONALIZING COMPANY VALUES

Identifying core company values requires self-reflection, distinguishing between strong and weak cultures. Ringelmann and her co-founders identified four key values through an exercise: fearlessness (driven by changing an industry), authenticity (bringing one's whole self to work), collaboration (liking to work with others to create synergy), and empowerment (helping people who want to be helped). These values are not static but evolve, with specific behaviors being defined over time to operationalize them through hiring, daily actions, and reinforcement mechanisms like awards.

OPERATIONALIZING CULTURE THROUGH HIRING AND REINFORCEMENT

To embed culture, companies must operationalize their values by integrating them into the hiring process. This involves both skill-based and culture interviews to ensure alignment. Furthermore, reinforcing these values through recognition and reward systems is critical. Indiegogo's 'Iggy' awards celebrate embodying company values, while 'Wiggies' offer lighthearted recognition. This democratic and authentic approach to reinforcing culture ensures it's not just a top-down directive but a shared responsibility that energizes the team and sustains mission alignment.

MEASURING CULTURE AND ITS IMPACT ON PERFORMANCE

Measuring cultural intentionality is vital for any successful startup. Indiegogo uses tools like employee Net Promoter Score (eNPS) surveys to gauge engagement and happiness, similar to customer NPS. They also employ Objectives and Key Results (OKRs) to track productivity and performance metrics. A strong culture, where individuals embody values naturally, leads to increased productivity and happiness, which should ultimately reflect positively in the company's execution and overall results, demonstrating the tangible benefits of a well-cultivated environment.

TECHNOLOGY AS A MEANS, NOT AN END

Ringelmann emphasizes that technology is merely a tool or a mechanism for achieving a larger goal, not the ultimate objective itself. Her entrepreneurial journey began with a deep-seated problem and a desire to fix it, with 'starting a company' being the most effective solution. Technology then emerged as the best means to that end. This perspective allows for the creation of truly meaningful ventures that can change the world, make money, and impact the future of industries, as Indiegogo has done in finance.

BUILDING MEANINGFUL COMPANIES FOR WORLDLY IMPACT

When focusing on building something meaningful and important that the world genuinely needs, rapid growth and success often follow organically. Instead of prioritizing speed, entrepreneurs should concentrate on creating value. Ringelmann highlights examples like Indiegogo's inclusion in White House events due to the substance of what they built, not just hustle. Investors like John Doerr recognize the world-changing importance of such companies. This focus on impact ensures a legacy that extends beyond financial returns and contributes positively to society.

THE CALL TO ACTION: REFLECT AND EMPOWER

Ringelmann concludes by urging the audience to reflect on their own 'why,' how they attract individuals who think differently, and to view technology as a tool for change rather than the end goal. She points to initiatives like 'An Hour of Code' as examples of campaigns that leverage funding platforms to democratize access to knowledge and empower more people globally. By embracing these principles, aspiring entrepreneurs can build ventures that are not only successful but also profoundly impactful, shaping a better future.

Mentioned in This Episode

●Companies

●Organizations

●People Referenced

Startup Success Principles

Practical takeaways from this episode

Do This

Know your authentic 'why' – the core problem you want to solve.

Focus on your 'why' to attract co-founders and navigate challenges.

Be intentional about building a strong, diverse company culture.

Identify and embody core company values and behaviors.

Operationalize values through hiring, rewards, and recognition.

Treat technology as a tool to achieve your 'why', not the end goal.

Prioritize building something meaningful and important over rapid growth.

Avoid This

Don't start a company without an authentic and deeply felt reason.

Don't neglect culture; it's fundamental to success and happens whether you're intentional or not.

Don't assume a strong culture will build itself; prioritize it.

Don't aim for quick success; focus on building something the world truly needs.

Don't let technology become the primary focus; ensure it serves your core mission.

Common Questions

Indiegogo is the largest global online funding platform, co-founded by Danae Ringelmann. It started in January 2008 with the mission to democratize access to capital, inspired by Ringelmann's parents' struggles with small business financing.