What are the key considerations when choosing a co-founder?

It's crucial to align upfront on important factors like whether the goal is to build a long-term company or exit, defining acceptable financial outcomes, and establishing shared company values and culture.

What are the most important lessons learned from fundraising at Evite?

Evite raised $37 million, which was learned to be perhaps too much capital for an online invitations business. Tobaccowala advises focusing on revenue generation and being mindful of how funding impacts control and long-term strategy.

What advice does Selina Tobaccowala have for scaling a company, especially internationally?

Consider global and international aspects from the beginning, designing the engineering stack and user experience with flexibility for different languages and markets. Building a culture of data-driven decisions through A/B testing is also critical.

How should founders approach building an advisory board or board of directors?

Founders often assemble boards too late, limiting them to just VCs. It's important to seek independent members who offer mentorship and advice, not just capital. Resources like the 'board list' can help find strong candidates, especially women leaders.

What is key to leading technical teams effectively?

Engineers need to understand the 'why' behind their work and its business impact. Empowering them with business metrics, embedding analysts within teams, and providing regular feedback on launches' impact are crucial for innovation and engagement.

What criteria does Selina Tobaccowala use when deciding on career opportunities?

She prioritizes three things: the people she will work with, the product and its mission, and the learning opportunities. The culture of the company, particularly its family-friendliness, is also a significant factor.

What makes a company culture successful, especially when starting from scratch?

Key elements include fair compensation plans (performance-based or market-based with a collaborative view), flexible vacation policies, thoughtful benefits, and hiring based on behavioral interviewing to assess how candidates handle real-world situations.

How can founders build a family-friendly startup that also scales quickly?

It requires establishing a trusting environment with clear goals and milestones, then trusting employees to manage their time effectively. Leading by example with work-life balance and offering flexibility is essential, as demonstrated by Dave Goldberg and Tobaccowala herself.

Key Moments

Selina Tobaccowala at the Female Founders Conference 2016

Y Combinator

Science & Technology5 min read27 min video

May 31, 2016|3,200 views|21

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Key Moments

TL;DR

Selina Tobaccowala discusses founding Evite, scaling SurveyMonkey, and launching a new startup, emphasizing co-founder alignment, global thinking, and company culture.

Key Insights

Align with co-founders early on regarding exit strategies, company values, and desired financial outcomes.

Consider global and international aspects from the outset when designing products and technology stacks.

Integrate quantitative and qualitative data into company culture for continuous improvement through A/B testing.

Build a diverse and experienced board of directors or advisory board early to gain mentorship and strategic input.

Empower engineers by clearly communicating the 'why' behind their work and its business impact.

When choosing to join or start a company, prioritize people, product, and learning opportunities.

Foster a family-friendly culture by trusting employees, setting clear goals, and leading by example.

FOUNDING EVITE AND EARLY VENTURES

Selina Tobaccowala's entrepreneurial journey began with Evite, a company she co-founded in 1997. Her early interest in technology stemmed from a childhood immersed in computers, influenced by a technologist father. The Stanford campus ethos of 1997 encouraged computer science students to start companies. After exploring initial ideas, she and her co-founder landed on Evite, which became a lasting consumer internet brand. The success of Evite provided valuable lessons that informed her subsequent ventures.

THE IMPORTANCE OF CO-FOUNDER ALIGNMENT

A critical lesson Tobaccowala learned, which is now guiding her new startup, is the paramount importance of aligning with a co-founder from the very beginning. This alignment should cover fundamental aspects such as the ultimate goal (building for the long term versus exiting), the desired financial outcome of an exit, and the core values that will shape the company culture. Defining these prerequisites upfront prevents potential conflicts and ensures a shared vision, especially when bringing technology to consumers to make a real difference.

LEARNINGS FROM SCALING COMPANIES

Tobaccowala shared insights from her extensive experience scaling companies, notably SurveyMonkey, which grew from 20 to 600 employees and significantly increased revenue. Key advice for early-stage founders includes thinking globally from the initial product design and engineering stack, as retrofitting later is complex and costly. She also stressed the vital role of integrating quantitative and qualitative data into the company culture, advocating for constant A/B testing to drive improvements in conversion and engagement rates, a practice deeply ingrained at SurveyMonkey.

STRATEGIC ADVICE ON BOARDS AND MENTORSHIP

Regarding company governance, Tobaccowala advised founders to assemble their boards of directors and advisory boards thoughtfully and early, rather than solely relying on venture capitalists. She emphasized the need for independent board members who can provide mentorship and diverse perspectives. For female founders seeking mentors, she recommended exploring resources like the 'board list' and leveraging networks built through events and professional connections, stressing the importance of finding individuals who offer candid advice and substantial experience.

LEADING TECHNICAL TEAMS EFFECTIVELY

As a former CTO, Tobaccowala highlighted the necessity of keeping engineers connected to the company's mission. She explained that as companies scale, the direct communication that links individual contributions to business impact can be lost. To counter this, she advocates for empowering engineers by sharing business metrics and the 'why' behind their work. Embedding business analysts within teams and conducting regular impact readouts helps engineers understand their contribution, fostering innovation and dedication.

DECISION-MAKING FRAMEWORK FOR CAREER MOVES

Tobaccowala outlined a three-part decision-making framework for choosing career paths: people, product, and learning. When she joined SurveyMonkey, the exceptional leadership of CEO Dave Goldberg was a primary factor. The product's mission to help people make data-driven decisions resonated deeply, akin to her passion for Evite's goal of connecting people. Equally important is the continuous opportunity for personal and professional growth, a factor she deliberately tracks each year.

NAVIGATING CHALLENGING TIMES AND COMPANY CULTURE

Reflecting on the unexpected passing of Dave Goldberg and its impact on SurveyMonkey, Tobaccowala underscored the crucial role of leadership and a strong company culture in navigating profound grief. She emphasized hiring individuals aligned with the company's mission and fostering internal growth, principles that helped the team persevere. This experience reinforced the importance of promoting from within and hiring individuals who genuinely understand and embody the company's culture, especially during difficult periods.

THE CURRENT STARTUP LANDSCAPE AND IDEA VALIDATION

Returning to entrepreneurship, Tobaccowala noted that a tightened capital market can be beneficial, ensuring that funded startups have strong ideas. She advocates against stealth mode, encouraging founders to share their ideas openly to gather feedback from customers, investors, and industry peers. The core of success, she believes, lies in execution and the ability to build and iterate on a product, rather than the fear of ideas being stolen. The process involves prototyping, learning, and achieving product-market fit by constantly engaging with consumers.

BUILDING A HIGH-PERFORMING AND FAMILY-FRIENDLY CULTURE

When building a startup, culture is paramount. Tobaccowala stressed that details like compensation plans (performance-based vs. market-based), vacation policies, and benefits significantly shape the work environment. She advocates for trust-oriented policies and emphasizes that hiring the right people, assessed through behavioral interviewing, is critical. Furthermore, she champions building a family-friendly culture not by just offering perks, but by trusting employees to manage their time effectively, setting clear goals, and leading by example from the top.

BALANCING CAREER AND FAMILY LIFE

Finding a personal balance between a demanding career and family life involves identifying non-negotiables. Tobaccowala shared her approach, which prioritizes evening family time over other traditions. She stressed that setting clear boundaries and communicating them to one's team is essential for managing expectations and maintaining personal commitments. This deliberate focus allows for both professional success and meaningful family engagement, demonstrating that a demanding career does not have to preclude personal life priorities.

FUNDING AND BASIC BUSINESS PRINCIPLES

Looking back at the early days of Evite, Tobaccowala advised her younger self to be more mindful of funding strategies and the implications of taking on excessive investment. She cautioned against unnecessary large funding rounds simply because capital is available, citing the temptation to overspend on marketing without a strong revenue focus. Her core advice is to always adhere to basic business principles, ensuring positive gross margins and a fundamentally sound business model, regardless of external advice or market trends.

Mentioned in This Episode

●Software & Apps

●Companies

●People Referenced

Founding and Scaling a Startup: Key Takeaways

Practical takeaways from this episode

Do This

Align upfront with co-founders on company goals, exit strategy, and values.

Consider global and international markets from the beginning of the product design.

Build a culture of A/B testing and use both quantitative and qualitative data.

Assemble a diverse board with independent members and mentors early on.

Empower engineers by connecting their work to business metrics and impact.

Prioritize people, product, and learning when choosing opportunities.

Focus on having positive gross margin and a working business model.

Develop a clear company culture from compensation plans to vacation policies.

Use behavioral interviewing to ensure you hire the right people.

Establish clear goals and milestones, then trust employees to achieve them.

Lead by example in balancing work and family life.

Identify your non-negotiables for work-life balance and communicate them.

Prototype and learn quickly, getting products in front of customers early.

Talk to customers and market experts to validate ideas and market size.

Avoid This

Don't try to make co-founder decisions in the heat of the moment; plan upfront.

Don't wait too long to assemble a board; you might end up with only VCs.

Don't lose sight of communicating the 'why' behind engineering tasks as the company scales.

Don't overfund early on, especially if it leads to losing control or neglecting revenue generation.

Don't assume your idea is secret; focus on execution and vision.

Don't neglect the importance of understanding customer needs and market viability.

Don't rely solely on investors for mentorship; build your own network.

Don't offer superficial benefits (like free lunches) without considering long-term sustainability.

Common Questions

Selina Tobaccowala is a seasoned entrepreneur and former CTO of SurveyMonkey. She previously co-founded Evite and is now teaming up with her original co-founder to launch a new venture, leveraging her extensive experience.

Topics

Business & Entrepreneurship Leadership & Management Company Culture Work-life Balance Startup Founding Career & Skills Team Leadership Co-founder Relationships Company Scaling Board Advisory Technical Teams

Mentioned in this video

Companies

Yahoo

Mentioned as one of the companies existing during the time Selina Tobaccowala was graduating from Stanford and considering starting a company.

Excite

Mentioned as one of the companies existing during the time Selina Tobaccowala was graduating from Stanford and considering starting a company.

Evite

An enduring brand in consumer internet that Selina Tobaccowala co-founded, which she is now re-teaming with her co-founder to start something new.

Ticketmaster

Evite was sold to Ticketmaster, and Selina Tobaccowala worked for Ticketmaster in Europe for four years prior to joining SurveyMonkey.

Redfin

Selina Tobaccowala is on the board of directors for Redfin.

Software & Apps

Android

Mentioned in the context of mobile device ecosystems, noting its global dominance with over 75% of mobile devices and a different ecosystem than iOS.

SurveyMonkey

Selina Tobaccowala was the CTO and president of SurveyMonkey for six and a half years, overseeing significant growth.

iOS

Mentioned in the context of mobile device ecosystems, noting that while iOS is larger in the US market, Android dominates globally.

People

Dave Goldberg

The former CEO of SurveyMonkey, described as one of the most phenomenal inspirational leaders, who valued family and supported Selina Tobaccowala's pregnancy announcement.

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