Learning From Failure: One Startup’s Story of What Went Wrong
Devver , maker of developer coding tools and TechStars 2008 graduate, announced last Monday that it would be shutting down after being active for nearly two years. News of a startup closing up shop is never a fun thing to hear about, but fortunately many lessons can be gleaned from the experiences of the entrepreneurs. Today, co-founder Ben Brinckerhoff provided just such lessons with an insightful blog on the Devver journey and why he and co-founder Dan Mayer are choosing to move on. Sponsor An unfortunate truth about startup culture is that a lot of the most valuable lessons are learned when entrepreneurs fail to heed them. Some notice their mistakes early on and can pivot their products and business toward a more successful future, but sometimes they don’t realize their mistakes until its too late and there is nothing that can be done. This was the case with Brinckerhoff, Mayer and their startup, Devver, which they say failed to focus enough on one of the most important parts of building a startup: customer development. As Brinckerhoff points out in Monday’s blog post, the company assumed they had found their minimum viable product (MVP), and as a result focused more on product development than listening to customers’ needs. “You can teach a hacker business, but you can’t make him or her get excited about it, which means it may not get the time or attention it deserves.” – Ben Brinckerhoff “Our mistake at that point was to go ‘heads down’ and focus on building the accelerator while minimizing our contact with users and customers (after all, we knew how great it was and time spent talking to customers was time we could be hacking!),” writes Brinckerhoff. “We should have [been] asking, ‘Is there an even simpler version of this product that we can deliver sooner to learn more about pricing, market size, and technical challenges?’.” Both Brinckerhoff and his co-founder are “technical founders,” which means their specialities are on the development side, not the business side. The only other person the pair hired to help out, a fellow software developer, also fits into the technical side of the startup. Brinckerhoff says this may have been one of the hurdles that led to the downfall of the company. “Looking back, it would have been to our advantage to have a third founder who really loved the business aspect of running a startup,” writes Brinckerhoff. “Having solely technical founders is non-optimal. You can teach a hacker business, but you can’t make him or her get excited about it, which means it may not get the time or attention it deserves.” Brinckerhoff also adds that having a split team located in different states contributed to the company’s struggles, but it seems to me it was more of a hassle than a reason for failure. Split teams are actually growing in popularity and probability for success, as we discussed earlier in the year with companies like Blank Label and chocri . Devver undoubtedly had issues with its split setup, but its likely that it didn’t contribute toward its closing as significantly as the other errors. Regardless of this issue, its clear that the Devver team learned and shared some valuable lessons about the importance of customer development. As Steve Blank noted during his presentation at last week’s Startup Lessons Learned conference, startups shouldn’t be too eager to product management before customer development. Devver may have jumped the gun a bit in terms of over developing their product, so learn from their mistake and remember to develop your customers before throwing the kitchen sink at them. Discuss
ReadWriteWeb Events Guide, 24 April 2010
Time is running out to register for the ReadWriteWeb Mobile Summit 2010 ! It’s going to be the premier place to explore the latest mobile development trends – both the technology and the emerging business applications. And since it’s an unconference, you’ll be able to analyze, think and create the future of mobile with the brightest in the industry, your peers! Sign up now. How do you like your events guide? You can import individual events into Google Calendar using the link beside each entry, or download the entire thing as an iCal (and Google Calendar-importable) file, or even view it as a world map . Know of something cool taking place that should appear here? Let us know in the comments below or contact us . Sponsor 29 April 2010: San Francisco, California Green:Net 2010 Calling Internet entrepreneurs! A Greentech conference for you. From Vinod Khosla and Steve Jurvetson to Jerry Brown and Bill Gross, our speakers at Green:Net 2010 will be focused on one thing: how the Internet and IT can be leveraged to save the planet. Could this be the theme of your next startup? Attendees will gain insight into the huge new technology markets that are about to be unleashed. What is Green:Net ? Green:Net is where green and IT meet. While alternative energy gets a lot of attention at most green conferences, only the The GigaOM Network’s Green:Net offers a specific point of view on how the computing and Internet technologies will provide the tools needed to fight climate change. Subscribers of ReadWriteWeb click here to buy your limited supply $150-off ticket. 26 April 2010: San Francisco, California Future of Money and Technology Summit The Future of Money & Technology Summit will bring together the best and brightest thinkers around money, including visionaries, entrepreneurial business people, developers, press, investors, authors, solution/service providers, and organizations who work where cash and commerce collide. We meet to discuss the evolving ecosystem around money in a proactive, conducive to dealmaking environment. Featured speakers include Jolie O’Dell, formerly of ReadWriteWeb, as well as representatives from Wells Fargo Bank, Kiva, SharesPost, Jambool, Founders Fund, Outright.com, SoftTech VC, and many more. Use discount code “rww” to get 10% off registration . 3 – 6 May 2010: San Francisco, California Web 2.0 Expo San Francisco Web 2.0 Expo San Francisco brings together the designers, developers, entrepreneurs, VCs, marketing professionals, product managers, and business strategists – from startups to enterprises – that are building the next-generation Web. Along with a vibrant Expo Hall and plenty of networking opportunities, four main conference tracks cover a spectrum of Web 2.0 topics from business strategy to Web design, user experience, developer hacks, community building, real-time, mobile, cloud computing, user-generated content, and more. Featured speakers include Chris Anderson, Ben Huh, Charlene Li, Kevin Lynch, Hilary Mason, and Brad Stone. Register today . 6 – 7 2010: San Francisco, California Social Gaming Summit
Top 10 Mobile Trends of 2010, Part 3: Emerging Markets
In preparation for the upcoming ReadWriteWeb Mobile Summit , we’re outlining the 10 leading trends of the Mobile Web in a 3-part series of posts. In this the final instalment, we look at three markets for mobile which promise to be hugely valuable: commerce , cloud computing and health . As a reminder, in Part 1 we covered design and development issues and in Part 2 we looked at trending mobile apps such as geo-location and AR. We’ll explore these and other trends with you at the ReadWriteWeb Mobile Summit , a 1-day event we’re running on Friday 7 May, in Mountain View, California. That’s the day after Web 2.0 Expo (2-6 May), so we hope you’ll extend your trip to the West Coast to help us define the future of mobile! To be certain of getting a ticket, we invite you to register now . Sponsor Commerce As more and more consumers use smart phones, how can businesses utilize this channel? That’s one question we will analyze at the RWW Mobile Summit. Consider these statistics: nearly one quarter of the mobile web, according to a recent report from mobile search engine Taptu , is made up of shopping and services . Taptu surveyed about 326,000 sites that are optimized for touch-screen browsing and found that the largest concentration of these sites falls into Taptu’s “shopping and services” category. In total, Taptu found 83,000 mobile-enabled commerce sites, ranging from mobile shopping assistants to banks and mobile real estate sites. According to Taptu, mobile shopping and services sites make up close to 25% of all mobile-friendly sites in the company’s index, followed by sites in the “photo and design” category (17.7%). Social sites rank third with 9.2%. Top 10 Mobile Trends of 2010: – Part 1: Design & Development – Part 2: Apps, Apps, Apps In a recent report , Morgan Stanley analyst Mary Meeker Meeker claimed that mobile will revolutionize e-commerce. She cited location-based services, push notifications, transparent pricing, and instant mobile delivery as four potential areas where this will occur. Mobile advertising is also a growing segment. In November, Google acquired AdMob , a mobile display ad serving platform, for $750 million. In January Apple acquired Quattro , a relatively unknown mobile advertising network, for an estimated $275 million. Later in January, Opera bought AdMarvel . In April, Apple announced an advertising platform called iAd . Cloud Computing According to a recent study from Juniper Research , the market for cloud-based mobile applications will grow 88% from 2009 to 2014. The market was just over $400 million this past year, says Juniper, but by 2014 it will reach $9.5 billion. Driving this growth will be the adoption of the new web standard HTML5, increased mobile broadband coverage and the need for always-on collaborative services for the enterprise. Explained ReadWriteWeb’s Sarah Perez in February, “there are already a few well-known mobile cloud apps out there including Google’s Gmail and Google Voice for iPhone. When launched via iPhone homescreen shortcuts, these apps perform just like any other app on the iPhone, but all of their processing power comes from the cloud.” Health Mobile health applications will play a large and important role in shaping the future of the health care system, wrote Mike Kirkwood at the mHealth initiative conference in February. He wrote that mobile and wireless health applications “directly impact the individual’s health and have the promise of ensuring that when a patient leaves a doctor visit, they don’t become “lost” in the system. It allows consumers to be engaged with health and wellness in their daily lives and connect back to their health care provider.” It’s not just from within the health system where mobile services will change health care, it’s also in the applications that consumers are downloading to their smart phones. In February I surveyed the latest health and fitness apps on the iPhone platform . For example, an iPhone app called Diamedic allows diabetics to record their blood sugar levels and insulin doses. Top 10 Mobile Trends of 2010: – Part 1: Design & Development – Part 2: Apps, Apps, Apps We’d love to discuss these and other mobile topics with you at our ReadWriteWeb Mobile Summit 2010 . See our announcement post for more details. If you’re a company in the Mobile Internet market, you may be interested in becoming a sponsor for this event. Please contact our COO Sean Ammirati for more information about sponsor packages. And a big thank-you to our current event sponsors: CallFire , WorldMate , Alcatel-Lucent and Ipevo . Discuss
What Can Startups Learn from Last Week’s Twitter Announcements?
Last week brought two major announcements from Twitter. On Thursday, the company announced an official application for BlackBerry. On Friday, Twitter announced that it had purchased Atebits, the makers of the iPhone app Tweetie . Over the weekend, there was substantial discussion and a fair amount of hand-wringing by third-party developers, many expressing their frustrations about the company’s direction. Attempting to reassure developers in advance of next week’s Chirp conference, Twitter API lead Ryan Sarver responded by email to some of these concerns. Sponsor Certainly Twitter isn’t the only company at the center of debates about control of a platform (Apple, Google, and Microsoft come to mind), but in light of the flurry of responses to Twitter’s moves, it is worth considering some of the (perhaps contradictory) lessons for startups that can be gleaned from the past week’s events. Find your niche : Much of the third-party development on Twitter has served to address gaps in the original product: mobile clients, URL shorteners, photo sharing, and search for example. As VC and Twitter investor Fred Wilson argued in a blog post early last week that tipped the hand, perhaps, to where Twitter was headed, there is still room for the development of “killer apps” in social gaming, enterprise, and analytics. Innovate and adapt : Find your niche, but then be prepared to innovate and adapt. Some have suggested that Twitter’s acquisition of Tweetie might not bode well for other Twitter clients like Seesmic and Tweetdeck , unless the two can continue to innovate. By adding new features unavailable via the Twitter website, and by linking streams from Facebook and LinkedIn, they have established themselves as more than just a Twitter client – but the pressure is certainly on for these to continue to distinguish themselves from the official Twitter applications. “Of course we’re hole fillers,” Seesmic founder Loic Le Meur admits , explaining that while that’s a good place to start, it isn’t the right place to end. Look beyond the platform : As Mark Suster writes of both Twitter and the iPhone, it is important to think beyond the platform, contending that startups should not think of Twitter “as a business but rather as a channel.” In other words, a platform like Twitter should be a used as a way to reach customers but, unless you’re Twitter, should not be the vehicle itself. If this is the ” inflection point ” for Twitter, the tasks for startups will be to learn the lessons from this critical juncture in the platform’s history, balancing the sometimes contradictory needs for specificity and flexibility and innovation and stability. Discuss
Flash Now Importable to HTML5 Canvas
Adobe will soon introduce its Creative Suite 5 to the public. A tool in the new suite will allow for easy import of Flash animations into HTML5 Canvas code. Once IE9 launches, all major browsers will support Canvas. At that point, any Flash creation can be viewable by just about anyone without downloading the Flash plugin. It also means, clearly, that devices that cannot accept the plugin can nonetheless run the animations built on it. Those who are excited about this probably think of Flash is a space hog. As ReadWriteWeb has discovered, it sometimes is, though not always. Sponsor One of the points of interest regarding this development is the fact that Apple products block flash from “access to the required APIs.” HTML5 may prove a way around for Flash users and the users of Apple devices, like the iPhone and iPad who wish to use the content. On the video below, “Adobe Flash Platform Evangelist” Michael Chaize compares performance of Flash 10.1 and HTML5 on mobile devices. Comparison of performance of Flash Player 10.1 and HTML 5 on Mobile Devices from michael chaize on Vimeo . Discuss