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patio11's profile
Patrick McKenzie
Patrick McKenzie
Patrick McKenzie
@patio11

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Patrick McKenzie

@patio11

I work for the Internet, at @stripe, mostly on accelerating startups. Opinions here are my own.

東京都 Tokyo
kalzumeus.com
Joined February 2009

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    Patrick McKenzie‏ @patio11 2 Jul 2019
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    There are an awful lot of small software companies which didn't need much more than "capable of writing software" and "at least as much sales skill as a clerk at Nordstrom's" to get started. Many of them don't sound like particularly "good ideas."

    2:45 AM - 2 Jul 2019
    • 25 Retweets
    • 185 Likes
    • moz Diego Henrique Florian Heinisch Jacob Dudzinski no LoganFrederick Tweet News 🐍 Ƥşץ𝕔𝔥𝕠Ⓟόϻᵖ___Đ𝔦o̷͝ηуรǗ丂 ඏ Lincoln Maddox
    7 replies 25 retweets 185 likes
      1. New conversation
      2. Patrick McKenzie‏ @patio11 2 Jul 2019
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        Nobody asks a dentist or a landlord to come up with a "good idea" but software entrepreneurs for various reasons are socialized into believing that it is a necessary part of successful software companies and more prestigious than e.g. meat-and-potatoes sales execution.

        3 replies 17 retweets 102 likes
        Show this thread
      3. Patrick McKenzie‏ @patio11 2 Jul 2019
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        "What do these companies *do*, Patrick?" Mostly, verticalized workflow web-and-or-mobile applications. Workflow: there's a business process which is managed now by humans. Your job: make them more efficient. Verticalized: Your customers are very similar to each other.

        1 reply 3 retweets 104 likes
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      4. Patrick McKenzie‏ @patio11 2 Jul 2019
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        That's not the traditional definition of "vertical" but it's operationally the important thing for small software companies; customers being similar makes your product challenges more tractable, helps bootstrap marketing and sales by reducing it to "Find everyone like X", etc.

        1 reply 0 retweets 48 likes
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      5. End of conversation
      1. New conversation
      2. amy nguyen‏ @amyngyn 2 Jul 2019
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        Replying to @patio11

        what funding models do you see small companies tending to take? VCs tend to want outsized returns (though there's @tinyseedfund!!) so I'm not sure what other options there are

        1 reply 0 retweets 2 likes
      3. Patrick McKenzie‏ @patio11 2 Jul 2019
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        Replying to @amyngyn @tinyseedfund

        I'm so pumped for TinySeed (disclaimer: tiny LP) and similar things, as I think there are few good scaled options here. Overwhelmingly founders use personal savings, family funds, sometimes moonlighting or consulting, and credit cards (!) then grow from revenues.

        1 reply 0 retweets 11 likes
      4. 6 more replies
      1. New conversation
      2. JD Long‏ @CMastication 2 Jul 2019
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        Replying to @patio11

        Are you thinking like the middle market single solution type shop? $20m in revenue solving two specific problems in one industry? Asking because I’ve been reflecting on non-unicorn startups in tech. Seems under appreciated.

        3 replies 1 retweet 15 likes
      3. Patrick McKenzie‏ @patio11 2 Jul 2019
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        Replying to @CMastication

        Yep, basically.

        0 replies 0 retweets 3 likes
      4. End of conversation
      1. New conversation
      2. Alex Rudenko‏ @orKoN 2 Jul 2019
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        Replying to @patio11

        I think I qualify😂 But how do you define small? Up to 50 employees?

        1 reply 0 retweets 1 like
      3. Patrick McKenzie‏ @patio11 2 Jul 2019
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        Replying to @orKoN

        Call it "less than $50M in revenue."

        0 replies 0 retweets 11 likes
      4. End of conversation
      1. New conversation
      2. Josh Smith‏ @joshsmith 2 Jul 2019
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        Replying to @patio11

        This is why it kills me whenever I hear people in SaaS say that all the "easy" and "obvious" ideas have been done. Really? I see so much fruit that's not just low-hanging but lying on the ground rotting for lack of love.

        1 reply 2 retweets 15 likes
      3. gordon‏ @gorafle 2 Jul 2019
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        Replying to @joshsmith @patio11

        Would you mind giving a few examples?

        3 replies 0 retweets 5 likes
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