What is the most important decision a founder can make?

According to Laura Behrens Wu, the most important decision a founder can make is simply deciding to get started. This involves having the courage and confidence to begin working on something, anything, rather than overthinking or waiting for the perfect idea.

How did Laura Behrens Wu get her start in entrepreneurship?

Laura initially pursued a master's program she didn't enjoy. By chance, she met a YC alumnus who helped her find an internship at Lendeth. The fast-paced culture there inspired her to drop out of her studies and pursue entrepreneurship in Silicon Valley.

What advice did Laura receive about choosing a business idea?

Laura was advised to work on 'killers' rather than 'vitamins.' This means finding a product or service that solves a critical pain point people cannot live without, as opposed to something that is merely 'nice to have.'

What were some challenges Laura faced during fundraising?

Laura faced significant rejection, applying to Y Combinator multiple times before acceptance and hearing 150 'no's' while pitching for her seed round. She also dealt with co-founder departures and a lawsuit during due diligence.

What is Shippo's primary Key Performance Indicator (KPI)?

Early in Shippo's growth, the primary KPI was shipping volume. Focusing on this single metric helped the company grow 40% week-over-week and avoid getting overwhelmed by other performance indicators.

How should founders approach failure according to Laura?

Laura suggests treating failure as a piece of a large puzzle. By taking a step back and looking at the big picture, entrepreneurs can see how setbacks lead to new opportunities that wouldn't have existed otherwise.

What is the advice for female founders in male-dominated industries?

Laura advises being unapologetically yourself and building inclusive company cultures. She emphasizes that it's not always on women to prove themselves; the system needs change, and founders can drive this by building successful companies and offering strong returns.

Key Moments

The Most Important Decision is Getting Started – Laura Behrens Wu

Y Combinator

Science & Technology3 min read24 min video

Nov 1, 2017|34,037 views|729|15

YC Y Combinator Laura Behrens Wu Shippo FFC Female Founders Conference Startup Tech Logistics Shipping Female Founder

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Key Moments

TL;DR

Laura Behrens Wu shares her journey founding Shippo, emphasizing perseverance, authenticity, and the courage to start.

Key Insights

The most crucial step in entrepreneurship is making the decision to start, rather than waiting for a perfect idea.

Focus on solving real problems ('painkillers') rather than just nice-to-haves ('vitamins').

Fundraising is a journey of resilience; rejection is common, but persistence and learning from each pitch are key.

Transparency and honesty with investors, especially during challenging times like co-founder departures or lawsuits, build trust.

Authenticity is vital; embrace your unique strengths and weaknesses, and build a company culture that reflects your values.

Self-care is not a luxury but a necessity for founders, as personal well-being directly impacts company success.

THE DECISION TO START: EMBRACING THE UNKNOWN

Laura Behrens Wu emphasizes that the most critical step for aspiring entrepreneurs is simply to start. She shares her personal journey, which began not with a grand entrepreneurial vision, but with a chance encounter leading to an internship at a Y Combinator alumni company. This experience revealed the fast-paced startup culture, prompting her to drop out of graduate studies and pursue her own venture. Her advice is not to overthink or wait for a perfect idea, but to begin working on something, anything, as the right problem to solve will often emerge through the process of doing.

IDENTIFYING A PAIN POINT: FROM VITAMINS TO PAINKILLERS

Wu advises entrepreneurs to focus on building products that address significant needs, likening them to 'painkillers' rather than 'vitamins.' Her initial e-commerce venture with a co-founder was a 'vitamin' – nice to have but not essential. However, this project illuminated a major pain point in the e-commerce industry: shipping. The complexity, lack of transparency in rates, and outdated technology presented a clear problem. This realization led to the founding of Shippo, an API designed to simplify and optimize shipping for e-commerce businesses by connecting them to a network of providers.

THE GRIND OF FUNDRAISING: RESILIENCE THROUGH REJECTION

The path to securing funding for Shippo was fraught with rejection. Both founders were new to the startup world and lacked personal savings, necessitating reliance on external capital. Despite applying to accelerators like Y Combinator and 500 Startups and facing numerous rejections, they persisted. Wu highlights learning to pitch effectively through volume, noting that even rejected pitches honed their communication skills and prepared them for meetings with the right investors. This arduous process ultimately led to raising their seed round of $2 million from ten investors.

TRANSPARENCY AND TRUST IN INVESTOR RELATIONS

Throughout the fundraising process, challenging situations arose, including co-founder departures and even a lawsuit during due diligence for their Series A. Wu stresses the importance of transparency and direct communication with potential investors during such times. By addressing issues upfront, honestly, and explaining how they would be handled, Shippo managed to build trust and maintain investor confidence. This approach also set expectations for future communication, reinforcing integrity in their relationships with investors, who are long-term partners.

BUILDING SHIPPPO: FOCUS, CULTURE, AND SELF-CARE

Shippo's growth was fueled by a laser focus on a single Key Performance Indicator (KPI)—shipping volume—during their early stages, a strategy that helped them triple their business yearly. Wu also emphasizes the importance of authenticity and building a company culture that founders genuinely want to be a part of. This includes knowing one's strengths and weaknesses, hiring complementary talent, and being willing to 'fire fast' to maintain organizational health. Crucially, she advocates for founder self-care, recognizing that personal well-being is essential for sustained company success and that founders must manage their energy and seek support.

NAVIGATING GENDER DYNAMICS IN TECH

Wu discusses the challenges of being a female founder in a male-dominated industry, from being underestimated by investors to facing societal expectations about leadership. While initially disliking being boxed into 'female founder' categories, she evolved her perspective. She acknowledges that discrimination exists and that it's not solely on women to overcome it. Instead, she advocates for systemic change through building inclusive company cultures, serving as role models for future generations, and delivering outstanding returns to prove the business's merit, irrespective of the founder's gender.

Mentioned in This Episode

●Companies

●Organizations

●People Referenced

Startup Founder's Handbook: Key Takeaways

Practical takeaways from this episode

Do This

Make the decision to get started, even without a grand idea.

Focus on solving real pain points ('painkillers') rather than nice-to-haves ('vitamins').

Be authentic, passionate, and honest in your pitches and communications.

Focus on one Key Performance Indicator (KPI) to drive growth.

Build trust with investors through clear, direct, and honest communication.

Be persistent about goals, but creative and flexible about tactics.

Treat failures as pieces of a larger puzzle to find new opportunities.

Know your strengths and weaknesses and hire complementary skills.

Prioritize self-care; taking care of yourself is taking care of your company.

Ask for help from investors, coaches, friends, and fellow founders.

Find a co-founder or partner who is 100% complementary to your skills.

Build company culture deliberately and hire slow, fire fast.

Always perform due diligence on prospective investors.

Be a role model and build inclusive company cultures for women.

Focus on delivering outstanding returns for investors.

Avoid This

Overthink the idea or wait for the perfect moment to start.

Build something that is merely 'nice to have'.

Try to be someone you're not; emulate other founders' personas.

Be stubborn; be flexible with tactics while staying goal-oriented.

Let company success or failure define your self-worth.

Hire just to fill a spot; ensure new hires complement existing skills.

Sacrifice your well-being entirely for your company.

Be afraid to admit what drains your energy.

Avoid asking for help when you need it.

Work with people who are not a good fit for the team or culture.

End up building a company culture you'll hate working at.

Be naive about potential discrimination; address systemic issues.

Believe that hard work alone guarantees you won't face discrimination.

Common Questions

Shippo is an API that connects e-commerce stores and marketplaces to a network of shipping providers. It solves the pain points of shipping by making rates transparent, simplifying comparisons, integrating technology, and turning shipping from a cost center into a competitive advantage.

Topics

Business & Entrepreneurship Career & Skills Leadership & Management Startup Funding Founder Journey Company Culture Venture Capital Female Founders

Mentioned in this video

Companies

Stripe

Mentioned as a company with modern technology, inspiring the idea of creating a 'Stripe for shipping'.

Union Square Ventures

The lead investor in Shippo's Series A funding round.

Y Combinator

An organization that Laura Behrens Wu applied to and was eventually accepted into, which helped her gain access to investors.

Shippo

A company founded by Laura Behrens Wu that powers shipping for e-commerce businesses by connecting them to a network of shipping providers.

Shopify

Mentioned as a company with advanced technologies, contrasting with the outdated shipping technologies Shippo aimed to improve.

Kleiner Perkins

A venture capital firm where Laura Behrens Wu had a memorable partner meeting where she was asked to draw her team.

People

Laura Behrens Wu

The founder and CEO of Shippo, sharing her entrepreneurial journey and insights.

Steve Jobs

Mentioned as an example of a founder archetype that Laura Behrens Wu realized she should not try to emulate.

Mark Zuckerberg

Mentioned as another founder archetype that Laura Behrens Wu realized was impossible and counterproductive to emulate.

Organizations

500 Startups

An accelerator program that Shippo applied to and eventually got into, providing access to investors.

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