Where Do The Great Startup Ideas Come From - Stripe & Airbnb Case?| OpenAI Saga Explained | VC Remote Jobs & More
Where Do The Great Startup Ideas Come From? | Open AI Saga | VC Remote Jobs
📢 Today At A Glance
Focus On: Where Do The Great Startup Ideas Come From - Stripe & Airbnb Case Study?
Featured Tweet: OpenAI Saga Explained - 3 CEOs In 3 Days
Major News In Startups: Microsoft Hire Sam Altman & Other Open Ai Employees, Peter Thiel's Backed Fintech Startup In Urge Of Closure & More
Weekday’s Must Reading on Startups, Venture Capital & Technology
Venture Capital Remote Jobs & Internships: From Scout to Partner
🤝 In Partnership With Levy
Don’t Let Tax Compliance Ruin A Good Year 💡
As 2023 comes to an end, it’s time to tackle those tedious yet critical end-of-year tasks: Health Insurance for your employees, tax forms and filings, and adjusting payroll for the holiday season, are all tasks that distract you from the main goal - growth.
👉 Let Levy's top-notch compliance, HR and admin services do the rounds for you.
Explore Levy Today and Say Goodbye to Year-End Chaos!
🤝 Advertise in The Venture Crew’s Newsletters
Want to promote your startup to my community of 19,000+ entrepreneurs and investors? Check out our media kit here!
Where Do The Great Startup Ideas Come From - Stripe & Airbnb Case Study?
As founders, we're always on this quest – where do those killer startup ideas come from? Is it from solving our problems, fixing someone else's issues, or just scouting for a hot market and then figuring out the problem later? Well, surprise – it's none of the above. Yeah, you heard it right.
Now, check out the cool stories of Stripe, Airbnb, and Coinbase. They're not just great startups; they share some key vibes that set them apart. It's not just about building a killer product; it's about the unique journeys they took, from crafting their product to scoring big from top-notch venture capitalists. That's what makes them the real deal.
And the first thing that you find common between this startup is -
TIMING:
Airbnb, Coinbase, and Stripe didn't have it easy when they started.
There were already big players in the game, kind of like the cool kids on the block. But what made these startups stand out was that they didn't chicken out just because there were competitors.
See, the thing is, these founders didn't look at the existing products and say, "Oh well, someone's already doing this. Let's find something else." No way.
They saw an opportunity to do it way, way better – like 10 times better. It's like going from a flip phone to the latest smartphone – a whole different level.
Now, here's the funny part. A lot of wannabe founders, when they see a competitor, get all scared and think, "Oh, they're already doing it. Let's not bother." But these guys, they looked at the competition and said,
"We can do this way better. Let's go for it."
And you know what? That's the secret sauce. Instead of giving up, they saw a chance to make something amazing, something that would blow the existing stuff out of the water. So, the next time someone tells you there's already a big player in the game, just remember – that's not a roadblock; it's a challenge to make something 10 times cooler. It's like turning competition into inspiration.
IDEAS:
So, these founders had these wild ideas, right? And pretty much everyone – including some big-shot investors – thought these ideas were terrible. Why? Either they seemed impossible to pull off or just sounded bad.
But here's the twist – the founders didn't give a second thought to all the naysayers. Why? Because they were on a mission to make something 10 times better than what was already out there. So, when the experts said, "This won't work," the founders just shrugged and said, "Watch us make it awesome."
It's like turning doubt into a challenge. They knew they were onto something big, and expert opinions weren't gonna stop them
MARKET:
So, when the brains behind Stripe, Airbnb, and Coinbase first looked at their opportunities, they thought, "Meh, it's kinda small." But here's the kicker – these opportunities ended up being way, way bigger than they ever imagined. Like, surprise!
Now, let's dive into Stripe and Airbnb, and see how these genius ideas came to life.
Let's Start With Airbnb
So, before Airbnb became the big thing, there were already some similar platforms like VRBO and Couchsurfing around.
VRBO was cool for vacation rentals, but it had this annoying issue – paying for your stay was like a whole ordeal. You had to figure out cash, checks, or wire transfers. Not the smoothest process. Plus, they charged hosts to list their places, which wasn't making it easy for people to join in.
Then there was Couchsurfing, the freebie in the group. You could crash at someone's place for free. Sounds good, right? Well, not for everyone. Staying in a stranger's house, especially if they were there, didn't sit well with everyone. Couchsurfing had this whole vibe of being non-commercial, so making money from it wasn't the cool thing to do.
Both of these exisitng startup in the same industry had the major issue and that’s where Airbnb entre to make this experince 10X better……
Now, enter Joe and Nate, the brains behind Airbnb. They stumbled upon this idea when they needed rent money and rented out part of their place during a conference. Lightbulb moment!
They realized there was a way to help others make money from their spaces.
They noticed two big problems with the existing players.
First, the payment system was a mess. Airbnb fixed that by making payments easy and secure. No more awkward cash exchanges.
Second, VRBO was charging hosts upfront, which didn't make sense to Airbnb. They decided not to charge hosts to list, making it way more attractive for people to jump on board.
The timing was on Airbnb's side too. They kicked off when folks were looking for extra cash after the economy took a hit. And get this, the founders were solving their problem – not being able to pay rent. Real-life stuff.
But, convincing people wasn't a walk in the park. Staying at someone's house, especially with them there, didn't sound like a vacation to many. And were they making money from a community-driven thing? Nah, not cool, said the general vibe.
Looking back, Airbnb's success is like a mix of challenging the norm, fixing actual problems, and creating a platform that just worked better. They didn't follow the usual "get big first, make money later" advice, and well, it paid off. Airbnb became this global disruptor in how we think about finding a place to crash.
And if you look carefully, you will find that - Airbnb matches with the above three themes - timing, idea & market.
And What About The Stripe?
So, before Stripe came along, dealing with online payments was a bit of a headache, Like - setting up credit card payments for companies back in the early 2000s, and it was like applying for a mortgage. Lots of paperwork, faxing, and personal guarantees. Not a walk in the park, to say the least.
The cool thing about Stripe was that it solved a real problem. Stripe’s Founders saw their friends in Y Combinator struggling with other payment systems, and they decided to make something better. And boy, did they!
What set Stripe apart was how it treated developers.
Most payment systems were built for business people, not the folks writing the code. But Stripe went all out to make their documentation and website super developer-friendly.
It was like the Apple of payment processing. They even made it the most expensive option in the market, and people still wanted it.
But of course, not everyone was on board initially. People were sceptical. Why - Two teenagers, 19 years old wanting to dive into the banking space? That sounded like a crazy idea. And there were questions about regulations and getting a deal with a big bank like Wells Fargo. Plus, PayPal was already a big player, making it seem like a crowded market.
But here's the thing – all these founders, whether it's Airbnb, Stripe, or others, had real problems they were solving. They had experience and insights that most people didn't get. And yeah, most folks thought they were a bit nuts. But they executed. They built products that handled tons of money, and they did it well.
So, the takeaway? Don't be scared of existing products in the market.
“If people hate it and you know how to make it better, go for it. Don't worry if the so-called experts tell you it's a dumb idea. And be careful about sizing up your market too early – sometimes you discover new possibilities once you've got a killer product out there.”
In a nutshell, just because everyone else thinks you're crazy doesn't mean you can't build something amazing.
𝕏 Featured Tweet: OpenAI Saga Explained - 3 CEOs In 3 Days
Are you enjoying - OpenAI’s Story? Within 3 days, Open AI got 3 CEOs & Microsoft Hired Sam Altman as CEO of their AI research team.
But wait - there is one more piece of news that Sam Altman might return to Open AI. Is it true?
Recently, we shared a tweet explaining the OpenAI Saga! Check it out here 👇
📰 This Week’s Major News: Venture Capital, Funding & Tech
Microsoft hired Sam Altman and other employees Read Here
Peter Thiel's Backed Fintech Startup In Urge Of Closure Read Here
Lowest Startup Exits Since 2013 Read Here
Female Founders Fund to raise $75M for new fund Read Here
The venture capital landscape has witnessed a significant decline in median growth-stage valuations Read Here
Want to receive Daily Morning Venture Insights, Funding Updates And Startup Stories In Your Inbox? - Subscribed To VC Daily Digest Newsletter and join 7500+ Avid Readers🚀
🗞️ Weekday’s Read On: Startup, Technology & VC
This Is Where Brilliant Startup Ideas Go To Die Read More (startups)
Tech Valuations Q3’23 Report Read More (startups)
How Does Adding Investors Change Your Startup’s Exit? Read More (Startups)
Hidden Trap Of Convertible Note and Liquidation Preference Multiples Read More (Startups)
If You Want To Build A Big Company, Start A Hard Company. Read More (Tweet: Startups)
Join 12,300+ Founders, VCs and startup Enthusiasts Getting Tactical To Build, Learn and Implement Startups, Technology and Venture Capital.
💼 Venture Capital Remote Jobs & Internships
Finance Director - Antler | Remote - Apply Here
Head of Investors Relationships - Sina Capital Partner | USA - Apply Here
Venture Partner - Sinai Capital Parntner | USA - Apply Here
VC Analyst - J& J Venture | USA - Apply Here
VC Intern - elev8.vc | Singapore - Email Here
Office Event Manager - First Round Capital | USA - Apply Here
VC Analyst - Trust Venture | Remote, USA - Apply Here
VC Associate - Trust Venture | Remote, USA - Apply Here
VC Associate - UTA Venture | USA - Apply Here
Venture Associate - Launch Factory | USA - Apply Here
Join our 100+ VC Enthusiast Community - VC Crafters - To Access the VC Network, Job Opportunities, and Weekly events on understanding the VC Industry!
👉 Streamline year-end tasks with Levy's top-notch compliance, HR, and admin services, allowing you to focus on business growth.