Given the state of our economy, it is a great time to build a business with a revolutionary product.
No, I’m not trying to scam you into investing in a Nigerian royal family. Your competitors will be thinking of cutting costs instead of innovating and since the cost of starting a website has gone down so drastically, you don’t need as much capital to launch a business. Lastly, you’re probably going to be tightening your belt anyway, so why not tighten it just a little bit more and start a business. LaunchBox and other early stage investment firms can help.
NOTE: This is the second in a two-part post about LaunchBox Digital.
You should take risks when you’re young. Usually you’re just going through the motions to signal that you’re a qualified individual during and after college. I, for one, was definitely doing a lot of that. So, doing LaunchBox immediately after Fantasy Congress was a logical extension of the “we want to stop talking about what we want to do and actually start doing it” mentality.
LaunchBox Digital saw potential in us. When we applied, we didn’t even really have an idea. We had a couple different ideas- no prototype- and just a detailed proposal (with photoshop image) of our mobile recommendation service. LaunchBox seemed a natural choice because we were local, we already had a free house to work out of (which cut our burn to just food and living), and all three of us had experience working and launching with each other.
Luckily, LaunchBox didn’t hold it against us and we settled on JamLegend. In general, LaunchBox is perfect for people who are new to startups and the test-driven culture of startups- Build, Launch, Check Assumptions, Make Decision to Continue or Do Something Else.
The real question for a lot of people is whether there is a value-add from LaunchBox (or any other early stage firm). Here was the list I came up with:
- Validation- Nothing beats getting traction in the market, but having the LaunchBox stamp was a great way to receive early validation. Since they were familiar with the ideas and execution, we had willing champions for our startup- an important first step to external market validation.
- PR- LaunchBox and a bunch of other early stage firms have similar relationships with technology press and it’s a great way to get some early adopters and get some early users.
- Community- In my opinion, the most useful part of the LB08 experience was the community. Working on a startup requires people who are working as hard or harder than you, holding each other accountable and pushing each other to do better. We developed great friendships with a bunch of great people. To this day, I can still call anyone who was previously involved with LaunchBox Digital and we’re always willing to help each other.
- Advice- Sean, John and Julius are great coaches. Instead of telling us what to do, they were very good at guiding us along to find our own path. Before we were even accepted into the program, Sean Greene and Julius Genachowski invited us to play in their local basketball game where we had the opportunity to see how Sean and Julius acted outside of a formal business settting. They were clearly good at basketball themselves, but they were definitely focused on coaching and assisting each other in gameplay. During the program, if there was something pressing, John McKinley would be willing to sit down and literally hash out for a full two hours on a particular problem. Advice at the initial stage is so important because it has far-reaching implications for the future (much like the early experiences a child receives).
I was most surprised in LaunchBox by the unparalleled access to world-class startup veterans (literally, as Eyal Geyer from Gizmoz flew in from Israel). Not only did they have some amazing presentations (part. Dan Simpkins demo was probably the most astounding), but we have still kept up conversations since then. From Haroon Mokhtarzada of Webs to serial entrepreneur Mike Cassidy (both the nicest badasses I have ever met), we have received amazing advice on how to run our company and how best to think strategically about our business.
To be fair, we were the first class and we were located in Washington D.C. so there were some obvious limitations. I would have liked a more technical cohort, weekly product demos, ways to create IP protection (and other competitive barriers), and someone who gave on-the-ground technical advice, but these are things that I know LaunchBox is aware of and will be providing in this next go-around. All in all, it was a good experience.
Since we did the LaunchBox08 program, we have launched our web startup - JamLegend – raised a small amount of funding and are now in San Francisco experiencing the startup dream with others just like us. We received some great advice on fundraising, what features to prioritize, strategy, and pitching. Ultimately, as with all experiences, you get what you make of it and we gained hands-on experience that you just cannot get anywhere else (making small amounts of money go very far and learning all aspects of running an organization).
So now, the ultimate question: Would I re-apply to and participate in LaunchBox08 with another idea?
Yes and No. LaunchBox taught me quite a lot and I’m confident that I could go out and start another startup without their help (especially here in the startup hub of the Bay Area). I’m far from being a Jedi Master, but I think they have taught me enough to understand the ways of the startup Force. Nevertheless, given the opportunity again, it would be my top choice. I think LaunchBox provides exactly what a bunch of guys with an idea need- guidance, a small bit of capital, and a way to make dreams come true.
