Building a successful startup is tough, but it doesn’t have to be complicated. Too many founders waste time on the wrong things - polishing pitch decks, perfecting products, and chasing investors - when the real keys to success are much simpler.
Michael Seibel: YC Proven Playbook - How to Build a Startup!
Michael Seibel, a partner at Y Combinator, has helped 1000s of startups grow. The truth? The startups that succeed all follow a few core principles. If you focus on these, you’ll avoid the biggest pitfalls and set yourself up for success.
This guide breaks down everything you really need to know, in the simplest way possible.
Startups fail for a lot of reasons, but most of them boil down to one thing: founders overcomplicate the process. Michael Seibel, a Y Combinator partner, has spent years helping startups succeed, and he breaks down the key lessons into simple truths. If you follow these, you’ll avoid the biggest mistakes and put yourself on the best path to success.
1. The Team Test: Do You Have the Right People?
Your team is everything. Investors know it, successful founders know it, and if you don’t get this part right, nothing else will save you. Here’s the formula that works:
2-4 Co-founders: More than one person is ideal. Going solo is risky. More than four, and it gets messy.
50%+ Engineers: Your team should be technical. If no one can build the product, that’s a huge red flag.
Everyone Full-time: No part-time side hustles. All-in or nothing.
12 Months Runway: You need at least a year’s worth of savings or funding. If you run out of money too soon, you’ll be forced to make bad decisions.
No Exceptions
If you don’t have this setup, fix it now. Investors care more about your team than your idea. If you’re not set up for success here, nothing else will matter.
2. The Problem Framework: Are You Solving a Real Problem?
A startup exists to solve a problem. The best problems to tackle are the ones that matter most. Use this framework:
Personal Pain Points: Solve problems you understand firsthand. If it’s your problem, you’ll have better insights.
Daily/Weekly Problems: If people only think about the problem once a year, they won’t care enough to pay for a solution.
Clear Market Need: Is there a burning demand? If you have to convince people they have the problem, it’s probably not a good startup idea.
Existing Spending: Are people already spending money to solve this problem? That’s a good sign.
Avoid Yearly Problems
Think about the last time you changed your internet provider. Probably not often. Now think about how often you order food, use software, or check your bank account. That’s the difference between a strong and weak startup idea.
3. The MVP Truth: Launch in 2 Months or Less
Your first version will not be perfect, and that’s okay. The only thing that matters is getting it in front of users as fast as possible.
No Perfect Product: If you wait for perfection, you’ll never launch.
Get User Feedback Fast: Your first users will tell you what’s broken and what’s working.
Iterate Based on Data: Make improvements based on real user feedback, not guesses.
Stop Overthinking
Set a deadline of 60 days max. If you don’t launch something in that time, you’re overcomplicating it.
4. The Growth Reality: What Investors Actually Care About
Investors don’t care about fancy pitch decks. They care about one thing: growth. Here’s what they really look at:
Weekly Growth Rate: How fast are your users or revenue growing?
Organic Sharing: Are people talking about and recommending your product?
Reference Customers: Are there real users who love your product?
Usage Patterns: Are people actually using it? Not just signing up, but really engaging?
Not Your Pitch Deck
A great pitch doesn’t matter if you don’t have growth. Focus on building something people love first.
5. The Money Rules: Start Lean
Most startups die because they run out of money. Here’s how to avoid that:
Track Monthly Spend: Know exactly how much you need to survive.
Grow Before Fundraising: Raise money when you have momentum, not when you’re desperate.
Create FOMO with Investors: Investors follow growth. Show traction, and they’ll come to you.
Money Follows Growth
Too many founders think raising money is the goal. It’s not. The goal is to grow. When you do that, investors will line up.
6. Fatal Mistakes to Avoid
Even great startups can fail if they make these common mistakes:
Hiring Too Fast: More people won’t fix a broken startup. Hire slow.
Spending Too Much: Keep expenses low until you have steady revenue.
Perfect Products: Done is better than perfect. Ship fast.
Serial Investor Meetings: Stop pitching and start building. Investors care about traction, not meetings.
Waiting To Launch: If you’re waiting, you’re losing.
Remember: Launch First, Grow Fast
Until you launch, your startup is just an idea. And after launch, only growth matters.
3 Actions for Monday:
Set a 60-day Launch Deadline: No excuses.
Talk to 5 Potential Users: Get real feedback now.
Cut 1 Planned Feature: Simplify and launch faster.
If you follow these steps, you’ll be ahead of 90% of founders.
Conclusion
Startups are hard, but they don’t have to be complicated. Success in startups isn’t about having the best idea or the perfect product - it’s about execution. The founders who win are the ones who move fast, launch early, and focus relentlessly on growth. If you’re stuck, simplify. If you’re waiting, launch. And if you’re chasing investors, stop. Build something people love, and the rest will follow. Focus on launching, learning, and growing and success will follow.
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