What are the two main stages of technology innovation cycles, and where does AR currently fit?

According to economist Carlota Perez, the two stages are 'installation' (building infrastructure, tooling, and solving core problems) and 'deployment' (proliferation of applications and explosion of use). AR is currently in the installation phase, with significant groundwork still needed before widespread application.

What technological trends are making AR viable now?

Three key trends are enabling AR: leveraging the mobile world's infrastructure (supply chains for components), advancements in computing power (like variations of Moore's Law and power efficiency) enabling complex algorithms on small devices, and improved network bandwidth (like 5G) to handle data-intensive AR applications.

What advice does Diana Hu have for founders starting companies in new markets like AR/VR?

She advises focusing on the 'installation phase' by building core technology, as these companies may have better long-term chances than pure application-focused ones in nascent markets. It's also crucial to find investors who are 'independent thinkers' and truly believe in the long-term vision.

How did Diana Hu and her co-founders convince investors for their AR startup?

They leveraged the YC brand and showcased one of the earliest AR multiplayer cross-platform demos, which generated buzz. They focused on proving the technology was doable, using a playable AR demo of 'Pong' with visual effects to connect with potential believers.

What is Diana Hu's advice for founders once their startup is acquired and they are now part of a larger company?

She suggests looking for acquisitions where the original vision aligns with the acquiring company's roadmap, allowing continued work on the project. Reframing the experience as a chance to learn new skills in a hyper-growth environment and focusing on building relationships and mutual respect between cultures is also key.

What were the challenges Diana Hu faced when immigrating from Chile to the US for high school?

Diana faced significant challenges, including a much more compressed and less advanced curriculum in Chile, requiring her to catch up rapidly in subjects like calculus and physics in the US. She also had to overcome language barriers as an ESL student and felt the pressure to graduate early to ease her parents' financial burden.

What advice does Diana Hu offer to immigrants looking to start a company in the US?

She highlights the 'positive determinism' and 'intrapreneurial' mentality often found in immigrants, driven by a desire for a better life. The US offers an environment of abundance and stability, which psychologically frees individuals to explore and take risks. She also notes that many successful tech companies were founded by immigrants.

Key Moments

Diana Hu on Augmented Reality and Building a Startup in a New Market

Y Combinator

Science & Technology4 min read36 min video

Aug 28, 2019|13,938 views|261|14

YC Y Combinator Diana Hu Escher Reality AR Augmented Reality Niantic Pokemon Go VR Gaming Podcast Interview

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Key Moments

TL;DR

AR pioneer Diana Hu discusses building startups in new markets, AR's evolution, and lessons learned from her journey.

Key Insights

AR development requires a convergence of computer vision, graphics, systems engineering, and hardware expertise.

AR is in its 'installation phase,' focusing on building foundational tools and infrastructure before widespread application.

Technological advancements in mobile infrastructure, processing power, and network bandwidth are critical enablers for AR.

Starting a company in emerging tech like AR requires betting on core technology during the installation phase.

Founders in new markets should seek investors who believe in the long-term vision and are patient with development timelines.

Acquired founders can find satisfaction by continuing to build their vision within a larger company, focusing on learning and adapting to new scales.

THE MULTIFACETED REALM OF AUGMENTED REALITY

Diana Hu explains that Augmented Reality (AR) is not a single discipline but a complex integration of various fields. To create compelling AR experiences, one needs expertise in computer vision to interpret sensor data, graphics for rendering, and systems engineering for real-time operation. The field also involves hardware, optics, and distributed systems to ensure seamless integration. Hu's diverse background, spanning cloud television, recommender systems, and semiconductor work, provided a unique foundation for tackling the multidisciplinary challenges of AR, which she views as the next frontier in how information is represented and interacted with.

AR THROUGH THE LENS OF TECHNOLOGICAL CYCLES

Hu situates AR within a framework of technological innovation cycles, akin to those described by Carlota Perez. She identifies two primary stages: installation and deployment. The current phase for AR is the 'installation phase,' characterized by the development of essential tooling, infrastructure, and operating systems. This is analogous to the early days of the internet, where foundational technologies like network infrastructure and programming languages were being built. Only after these abstractions are robust can the 'deployment phase' commence, leading to an explosion of applications across various industries.

THE CRITICAL ENABLERS FOR AR'S ASCENSION

Several technological trends are converging to make AR a reality. Hu highlights the leverage gained from the mobile world's infrastructure, including readily available components like sensors and cameras. She also points to exponential advancements in computing power, with modern mobile devices rivaling older laptops in performance at a fraction of the power. Equally important is the improvement in power efficiency (Kumis's Law) and network bandwidth (Edmund's Law), with 5G promising speeds that will support data-hungry AR applications. These evolving technologies are bringing AR closer to consumer viability.

FOUNDING A STARTUP IN A NASCENT MARKET

Starting a company in a new market like AR presents unique challenges. Hu advises founders to consider betting on the 'installation phase,' focusing on core technology and developer tools rather than solely on end-user applications. This approach often involves building foundational infrastructure that enables future applications. While this can be attractive to investors interested in long-term potential, it can also be difficult to demonstrate immediate traction when customers are primarily developers, requiring founders to find patient, visionary investors.

THE QUEST FOR INVESTOR ALIGNMENT

Securing investment in emerging technologies requires finding the right partners. Hu emphasizes the importance of timing and obtaining backing from investors who genuinely believe in the long-term vision. For Escher Reality, a combination of the Y Combinator brand, demonstrable technological breakthroughs like a multiplayer AR demo, and investors like Jeff Clavier from SoftTech VC, who understood the potential and lengthy development cycle, proved crucial. She notes that while rejections are common, persistent focus on the technology and finding aligned individuals is key.

TRANSITIONING TO A LARGER CORPORATE STRUCTURE

Upon acquisition by Niantic, Hu found satisfaction by continuing to build her vision within a larger, albeit still startup-like, environment. The key was that Niantic shared a similar vision and allowed her team some freedom and trust. She reframes the experience as learning hyper-growth dynamics and leadership at scale. Adapting to a new company culture requires patience, mutual respect, and a focus on shared goals, ultimately fostering a sense of belonging and shared excitement for the future direction.

THE IMMIGRANT MINDSET AND ENTREPRENEURSHIP

Hu draws a parallel between her immigrant experience and the entrepreneurial journey, seeing both as series of 'transitions.' Her personal story of emigrating from Chile to the U.S. at 16 highlights resilience, adaptability, and a drive to seize opportunities. She believes the immigrant mindset, often characterized by determination and a willingness to start from scratch, aligns well with entrepreneurship, particularly in the U.S. where, in many environments, there is a sense of abundance and stability that fosters exploration and risk-taking.

MAXIMIZING THE Y COMBINATOR EXPERIENCE

For founders currently in Y Combinator, Hu stresses the importance of leveraging the program's intense focus and incubation stage. She advises embracing 'high-leverage activities' that larger companies might not undertake, such as building brittle demos or engaging directly with early users. YC provides a crucial opportunity for fundraising and networking with batchmates, who can become future collaborators or even customers. The experience is a process, and resilience in the face of challenges, both during and after YC, is paramount.

Mentioned in This Episode

●Products

●Companies

●Organizations

●Concepts

●People Referenced

Common Questions

Diana Hu stumbled into AR due to its nature as a culmination of many fields like computer vision, graphics, and systems engineering. She was also personally curious about its potential to blend digital information with the real world, seeing it as the next evolution after smartphones.

Topics

AI & Machine Learning Technology & Innovation Business & Entrepreneurship Startup Strategy Venture Capital Augmented Reality Immigrant Experience Innovation Cycles Emerging Technology Acquisition Integration

Mentioned in this video

Concepts

The next generation of mobile network technology, expected to offer significantly higher speeds for data-hungry AR applications.

Computer Vision

A key discipline required for augmented reality, involving understanding the world through sensor image data.

A mobile network generation mentioned in the context of nomadic internet connections and their exponential growth.

Kumys Law

A proposed law similar to Moore's Law, stating that computation power halves in energy efficiency every 18 months.

Moore's Law

The observation that the number of transistors on integrated circuits doubles approximately every two years, leading to increased computing power.

Distributed Systems

Engineering systems needed to make augmented reality experiences function smoothly in real-time.

graphics

A field necessary for rendering digital information in augmented reality experiences.

Edmunds Law

A law discussed by the former CTO of Nortel, relating to the speed and bandwidth of wireline technologies.

Products

Sword of Damocles

An early VR headset from the 1960s described as a 'monster thing' that explored displaying information directly to retinas.

Oculus

A virtual reality company whose acquisition by Facebook (now Meta) significantly hyped the VR space.

iPhone 7

A smartphone model whose CPU and GPU performance is compared to a MacBook Air when considering power efficiency.

MacBook Air

A laptop model whose computing power is benchmarked against mobile devices like the iPhone 7 in terms of efficiency.

Companies

Intel

A company where Diana Hu previously worked, gaining experience in semiconductors and hardware.

Asha Reality

Diana Hu's acquired company, whose vision for augmented reality is still being built at Niantic.

Niantic

Diana Hu is currently working at Niantic, a company focused on real-world augmented reality games and platforms.

Y Combinator

A startup accelerator that Diana Hu and her team participated in, which she describes as crucial for navigating the early, brittle stage of companies.

Encore Capital

The firm of investor Jeff Claire, who provided seed funding for Diana Hu's startup.

Media

Pong

A classic arcade game used as a demo by Diana Hu's team to showcase AR capabilities, featuring a scorch effect.

Pokemon Go

An augmented reality game by Niantic, cited as one of the few significantly profitable AR games.

Star Wars

A film franchise referenced for its iconic holographic technology, inspiring early AR concepts.

People

Carlota Perez

An economist whose work on innovation cycles is referenced to explain technology adoption phases.

Locations

United States

The United States, where Diana Hu emigrated to, started her company, and where she advises immigrants to leverage the environment for entrepreneurship.

Chile

Diana Hu's home country, from which she emigrated to the US during high school.