This book just came out and I loved it. If you are starting a company, or thinking of it, you need to read this book. Period.
Dan covered a whole range of topics very succinctly, and in easy-to-follow language. When and how to raise funds. What all those terms mean. Who should (and should not!) be on your board, and why. How to allocate shares and ownership between co-founders. Where to incorporate your company (Dan has strong opinions on this!). How to create (and then also maintain) company culture. A great section on decision making. A section on “Hiring” in the context of the Manhattan project vs the moon shot Apollo project that I think every engineering hiring manager should read before building a team. Several true stories about startups where co-founders mismatches caused company threatening problems (trivia: 6 of 10 startups lose a co-founder in early days). And some good (and bad!) stories of how important trust was.
Some great quotes that resonated with me:
“You have limited resources of time and money. When they run out, you go bankrupt. The important thing is not cost/benefit: it’s opportunity cost.”
(in the context of how much travel was needed for all the in-person meetings with investors when raising funding) “…Alaska Airlines gave me MVP status for my efforts. In January.”
“Entrepreneurship is the pursuit of opportunity without regard to the resources currently controlled”. Prof Stevenson, Harvard.
In a variation of the “fail fast” mantra in developer circles, Dan notes that “…while it might seem like cold comfort now, the sooner you fail, the sooner you can try again.” Oh, and he’s not just saying it – that was the ending of a chapter where he detailed the failure of one of his startups.
His tolerance for large volumes of coffee and pointer to suggested reading “Coffee, CYP1A2 Genotype, and Risk of Myocardial Infarction” was a great and unexpected tangent for me personally. (More info here Journal of American Medical Association)
“Startups don’t out think their competitors; they out-execute them.”
“If leadership is the forest, then management is the trees. Day to day, it’s what consumes your time, and its imperative that you get it right.”
It takes skill and seasoned-experience-in-the-field to have one person cover all these different topics. Even more skill to do so clearly, and concisely. Putting them all together in a way that makes sense was great. Just great. If you are starting a company, or thinking of it, you need to read this book. Period.
Aside: Having this on my kindle app, on my trusty nexus5 phone was quite a good reading experience. The book was written in short, digestible chapters, which I could quickly complete standing a store line, or in the back of a taxi between meetings. It also encouraged me to think more about the chapter I just finished in the time before I got to stop and read some more. A nice way to digest the many lessons in here. I’m still experimenting with what books I find do work best on phone+kindle vs ink-on-paper, but at least for this book, reading on kindle worked for me.
(Disclaimer: I bought this book because I’m starting my own company, and that is the basis of the above review. As this book is published by O’Reilly Press, it feels important to disclose that I am also currently doing some work with O’Reilly… which did not influence anything I wrote here.)