Sean Mountcastle

Tonight I had the opportunity to attend a special Refresh DC meeting on the challenges of starting your own business. The format was a panel of folks from the DC startup scene moderated by Jackson Wilkinson of Viget Labs. The panel consisted of Brian Williams of Viget Labs, Andrew Lee of Publi.us, Eric Rupert from Odeo, Eddie Frederick of Hungry Machine, and Sean Greene of LaunchBox Digital.

These were the main points I took away:

1. Be passionate. The most important quality for startup founders is to be passionate about their product or service. Starting a company can be exhilarating but the setbacks can be really difficult. If you’re not passionate about what you’re doing each of these roadblocks will be an excuse for you to quit. Figure out what you’re passionate about and work on that.
2. Focus on your product. Don’t focus on the pie-in-the-sky potential valuations of your company or worry about leasing office space, hiring an attorney, finding an accountant, etc. Instead you should focus on the product or service you’re going to sell. Get something out there quickly — pick the most important feature and get it out there in front of your customers quickly.
3. Have your customers influence your product. If you follow the previous advice and get your product out there quickly you can use customer feedback to iterate your product. You may not know all of the difference ways customers will use your product, so this feedback is critical in charting your product roadmap.
4. Equity is control, don’t surrender it easily. One of the attendees asked about using equity to pay for services if money was tight. Brian said to avoid giving out equity as you make that person a partner in your business. While they may not have a controlling interest, they are still an owner and have some influence.
5. Don’t overfund. All of the panelists warned of the dangers of taking too much money as it does more than dilute the founders’ ownership. Venture capitalists are looking to make a large return o their capital for themselves and their limited partners. If you need to pay a vendor or contractor find another way — defer payment, use credit, etc.
6. Hire slow, fire fast. Early employees can make or break your company. You will be working long hours aside these folks so you must ensure they’re a good fit. If you make a bad hire, you need to resolve the situation quickly, don’t let emotion get in the way.

Some of the books recommended were: Art of the Start, Getting to Yes, and Founders at Work. Andrew also recommended Startup School run by Y Combinator (YC). I’ve been reading Paul Graham’s essays for around seven years now and following YC’s investments. I’m glad to see an early stage investor like YC in the DC area (LaunchBox Digital) and hope that the startup scene in DC and suburbs becomes more vibrant.

Thanks to Strategic Analysis for hosting this. It was a great venue and hope they’ll offer to host Refresh DC again.

I compiled this list several months ago when I was looking for work. In the end, I decided to join an established company. I did not get a chance to interview with each of the companies in the attached spreadsheet, but I’ll write separate posts about the ones that I did get a chance to speak with.

As a little bonus, here are the companies that I know of in Northern Virginia working with the Ruby programming language. Note that not all of them are startups in the traditional sense:

• InfoEther (www.infoether.com): This is Rich Kilmer’s current startup providing a secure and mobile digital vault on a USB drive. Tom Copeland also works at InfoEther.
• CustomInk (www.customink.com): They have an innovative web app for desigining logos, etc that can then be printed on shirts, mugs, golf balls, pens, etc. They are currently hiring.
• Bosatsu Consulting (www.bosatsu.net): Brian is working on some Ruby (non-Rails) projects and was looking for someone to assist with Rails work–I don’t know if he’s found anyone yet.
• Digital Focus (www.digitalfocus.com): This is a consulting company, primarily focusing on Agile development (training, team insertion, etc). They are looking for Ruby developers as the majority of their consultants are J2EE and .Net folks.
• Revolution Health Group (www.revolution.com): The Revolution suite of companies was founded in Washington, DC by Steve Case (of AOL fame). The team at RHG is looking to tie together several different healthcare acquisitions into a Ruby on Rails portal. They’ve been trying to hire Ruby developers for quite awhile now.

If you know of any more companies with a focus on Ruby in the DC metro area, please let me know about it via the comments.

Here’s the link to the Excel spreadsheet containing the list of startups I found nearby. I know for a fact that a few of the companies listed have already been acquired. Startups in Northern VA

Paul Graham has an interesting piece up at Y Combinator entitled The Top Internet VC Firms. This provides a bit more insight into some of the VC’s I mentioned in my previous post (many are definitely not top tier VCs–though I think this was obvious before).

I know, I know–this post has a really lame title. I had wanted to call it VC’s which actively invest in the DC metro area but I’ve included angels in this list as well. I’ve tried to be as thorough as possible, but this research was done several months ago when I was looking for a new job and desperately wanted to work at a startup. Unfortunately, I was not willing to relocate and the number of startups in Northern VA whose domains overlap with my interests and skills is rather low. So, without any further ado, here’s the list in no particular order:

Read the rest of this entry »

There’s a nice article in today’s New York Times regarding Paul Graham’s VC firm, YCombinator. You can read it here.

I wish PG had been doing this with YC ten years ago. I’ve always been interested in startups and have wanted to found my own company for quite a long time. Perhaps I’ll get the chance yet.

Read the rest of this entry »