Yesterday, I received a delightfully understated e-mail from Y Combinator: “Your application looks promising and we’d like to meet you in person.”
Until a few months ago, I wouldn’t have believed such a thing to be possible. I’d tinkered with software as a hobby, but I hadn’t thought of it as a career. I was 24 and on track to become an academic, studying algorithmic game theory. On September 19th, 2008, in the third week of my first semester as a doctoral student at the University of Michigan School of Information, I wasn’t thinking about startups; I was thinking about science. Specifically, I was thinking about how scientists share their work; or rather, how they don’t. If you want to replicate an analysis that you read in a scientific paper, you’re in for a tough slog: First, you need to track down the data. Even if the data is ostensibly public, it may be impossible to find and convert to a usable format. Second, you’ll need a computer program for the analysis. If you contact the original authors, they might share their code, but you’ll probably need some expensive software (not to mention hardware) to run it. If you don’t hear back from them, you’re in for some harrowing reverse-engineering. And after all of that, you may find that the paper omitted several critical details.
That’s the sort of problem we talk about a lot at SI. So I proposed a solution: A YouTube-like hub where people can upload theories, formulate hypotheses, and test them. On the off chance that I might want to turn this vague notion into a reality one day, I registered the lengthy but friendly domain Theoryville.com. And I sat on it. It got lost in a slew of other ideas (I would wind up turning one, a social bookmarking site called Quocial, into a rough but functional app over the summer) and my focus was on being a student, at any rate. Certainly, the startup life appealed to me, and I loved Founders at Work, but I didn’t see myself dropping out.
That started to change last semester. My research was going nowhere. I had lots of ideas, but they felt unsatisfyingly abstract and remote from real applications. I began to suspect that my comparative advantage wasn’t in the academic realm. When a local summer seed funding competition (RPM10) was announced, I thought I’d see if I could recruit some co-founders. On November 17, 2009, I sent an e-mail out to an SI e-mail list, asking if anyone was interested in joining me to form a startup based on this concept: “X is to STATA as Google Docs is to Microsoft Office.” Obviously this isn’t the best way to meet co-founders, but I was extremely lucky: Among the replies, two of them stood out as serious, and both prospective co-founders—Noah Liebman and Tom Haynes, both SI Master’s students—asked great questions that showed that they understood exactly what I wanted to achieve, how this small piece of software could have grand, world-changing implications. They were also talented, design-oriented coders with previous experience working for small software companies. I proposed that we step up our ambitions a notch: Let’s not just apply to RPM10. Let’s start acting like a real company—having regular meetings, exchanging ideas and code—and let’s apply to every seed accelerator we can to make sure that we’ve got a roof over our heads this summer and some connections to VCs after.
With each application we sent in, our ideas got better. The first interview we did, back in February, was for the Frankel Fund, a UMich investment competition run by MBA students. The one who interviewed us had a lot of great questions that we had no answers for. We waxed exuberant about the easy-to-use interface we planned, and he asked us: “Well, is that something researchers actually want?” Of course! we answered, it’s easy-to-use! “But isn’t there a lot of inertia in the academic software market?” Well, yes… but that’s why we’ll use a freemium model! “Have you actually talked to any potential users?” [Pause] Um… well, at SI, we’re trained to… we’re really good at… we will do that! We didn’t get a second interview.
When we met with Dug Song later that month, he raised the same concerns. We’d been talking with each other about the idea, but we hadn’t been talking to the people we were going to sell it to. We’d figured that customer feedback was something you waited to collect until after you had a working demo to show them. But investors are wary of aspiring entrepreneurs who spend all their time tinkering with untested ideas—and rightly so! When that clicked with us, everything changed. We started asking for input from every potential user we knew and sending cold e-mails by the dozen to UMich profs to ask them to talk with us about their software needs. Based on the feedback we were getting, our understanding of the market completely changed.
Meanwhile, we’d applied early to YC—just a couple of days after the application became available—and Harj asked us to Skype just a few days later. We had a great informal interview, much longer and chattier than the official one that’s been compared to Guantanamo Bay. We mentioned that we knew Ben Congleton, founder of Olark, whose footsteps I’m inadvertently following in. (He withdrew from the PhD program last year, his second year. He was even on the same fellowship.) I’d barely known Ben while he was at SI—I was focused on coursework, while he was already doing Olark—but it was still something. A little while later, Harj sent us an e-mail suggesting that we chat with Ben, with the clear subtext that he wanted to get Ben’s opinion on us. We had a fruitful conversation, and Ben connected us to the founders of Lingt, the only YC-funded company (to my knowledge) that has experience selling to classrooms. I don’t know what Ben told Harj, but I’m sure it worked in our favor.
We built a crude demo in the two weeks before the YC application deadline, in hopes of showing that we can execute. However, this was our first time coding together, we had a lot of other things going on at the time (courses, midterms, an Ultimate Frisbee tournament…), and the result was far from stunning. Still, it was worth it for two reasons: It gave us some momentum, which we’re using to build a much-improved demo now (essential to the YC interview, by all accounts); and it led us to grapple with some design decisions that weren’t apparent when we were just using whiteboards and static mockups. That, in turn, gave us a more specific notion of what our product’s advantages are.
Noah and I went to TS4AD where, despite our introversion, we got to make some great connections and collect novel feedback. (Two separate people suggested that we tailor our product to the needs of MBA students, who currently—and apparently unhappily—use Excel for everything.) While TS4AD is a non-essential event (we were repeatedly assured that there’s no statistical difference in TechStars acceptance rates between TS4AD attendees and those who stay home), it led to some unexpected benefits. For one, a Boulder entrepreneur who saw my tweets from the event connected us to some high school stats teachers, allowing us to explore another potential market.
Other factors: I had karma of about 500 as TrevorBurnham on Hacker News, most of it from being the first to submit the fantastic Wired story on the slow, agonizing death of Duke Nukem Forever. I’d like to think that I avoided “karma-whoring,” resisting the temptation to link to salacious fluff. I doubt that was a significant factor in YC’s decision, but it couldn’t have hurt. I also read HN voraciously, via the RSS feed. I watched a lot of the Mixergy interviews, and the recent Jessica Livingston interviews. I’m an outsider to the startup world, so I felt that it was important to absorb as many founder stories as I could. That appetite for knowledge has definitely paid off during the various interviews we’ve had so far, and I’m sure it’ll continue to pay off as we build our product and our business.
And that’s the story of Theoryville so far. No matter what happens after this, it is, as they say, an honor just to be nominated.
Tags: autobiography startup