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How I Created a $350M Software Company Knowing Nothing About Software

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Re: How I Created a $350M Software Company Knowing Nothing About Software

#71

Post by vitd »

woah wrote: post #60
6stringmerc wrote: post #53

Earlier quoted context omitted.

Um, he may have made a significant "observation" as you call it, but it wasn't his idea to research VOIP, to go out and get a device, or even how to implement it in a functional way to enact the advances in technology in a meaningful cost-savings avenue. It's right there in the article: > And I had the good fortune of Tooter, The Machine and my former boss eventually rallying around my vision with their considerable…

Your understanding of music is obviously poor, and detracts from your analogy.

Not really. This is exactly what happened in the 80s and 90s with Vanilla Ice stealing from David Bowie and Freddie Mercury[1], and MC Hammer stealing from Rick James[2]. It even happened outside of rap with The Verve's Bittersweet Symphony stealing from "The Last Time"[0].

[0] https://en.wikipedia.org/wiki/Bitter_Sweet_Symphony [1] https://en.wikipedia.org/wiki/Ice_Ice_Baby [2] https://en.wikipedia.org/wiki/U_Can%27t_Touch_This

Re: How I Created a $350M Software Company Knowing Nothing About Software

#72

Post by corkill »

dookahku wrote: post #48
6stringmerc wrote: post #4

Interesting article and impressive to see that kind of tenacity. Truly that's a take-away from the full perspective. The other take aways, for me, aren't nearly as complimentary. 1. Want to make a lot of money? Find an out-dated system where grunt labor is worth a lot less than the technology the grunt labor uses, and target this gap mercilessly (call centers) 2. Act like every other shady, fly-by-night, asshole sale…

So how do I find these opportunities? I imagine I have to leave the house and talk to people but where do I go? To whom do I speak?

People with problems and money to solve those problems aka business owners.

Re: How I Created a $350M Software Company Knowing Nothing About Software

#73

Post by cubano »

scottlocklin wrote: post #31
cubano wrote: post #29

Earlier quoted context omitted.

> ...or, you can study up on something called "survivorship bias" and realize most of the "wisdom" in the article is utterly useless. So true...I was thinking more along the lines of "How I Created A $200 Million Retirement Account By Buying the Right Powerball Lottery Ticket" but I like yours as well.

He did go on to found another successful startup. https://doctorbase.com/about/our-team/

I never meant to imply the guy wasn't driven and had serious business skils...that much is beyond obvious.

Just his ability to cold call so many people and secure a $40k angel investment over the phone shows he is miles above most when it comes to dedication and drive.

My point was..even with all that, it's still a total crapshoot to strike 9-digit gold.

Re: How I Created a $350M Software Company Knowing Nothing About Software

#74

Post by trhway »

danieltillett wrote: post #37
Animats wrote: post #30

Earlier quoted context omitted.

No, he made a significant observation - the industry was operating at a high price point which was no longer justified due to advances in technology. That's a classic opportunity. The incumbents in the field won't want to drop their prices by an order of magnitude, even if the technology allows it. Especially if they have an expensive in-house sales force. This is a huge advantage for a startup. This happened to copi…

John you make a very good point. Look for industries where the current market has not kept up with advances in technology due to the business structures of the incumbents. Even if they want to change they can't (e.g Kodak). Hearing aids might fall into this category, but unlike the others on your list you need to deal with the FDA. The FDA should really be called the IPA - Incumbent Protection Agency.

>The FDA should really be called the IPA - Incumbent Protection Agency.

the Theranos story i think clearly shows one more time why such protection from "disruptors" is necessary. Unfortunately we still don't know how to do it more efficiently though.

My personal favorite here is FAA - who basically stalled to the complete halt the aircraft development for the last half of century, yet even here i understand the rationale behind it.

Re: How I Created a $350M Software Company Knowing Nothing About Software

#75

Post by Nimitz14 »

Animats wrote: post #30
6stringmerc wrote: post #4

Interesting article and impressive to see that kind of tenacity. Truly that's a take-away from the full perspective. The other take aways, for me, aren't nearly as complimentary. 1. Want to make a lot of money? Find an out-dated system where grunt labor is worth a lot less than the technology the grunt labor uses, and target this gap mercilessly (call centers) 2. Act like every other shady, fly-by-night, asshole sale…

No, he made a significant observation - the industry was operating at a high price point which was no longer justified due to advances in technology. That's a classic opportunity. The incumbents in the field won't want to drop their prices by an order of magnitude, even if the technology allows it. Especially if they have an expensive in-house sales force. This is a huge advantage for a startup. This happened to copi…

I'm curious, what do you think is new in hearing aids?

edit: Just looked at iHear. I'm skeptical: There's a reason pretty much all hearing aid researchers advocate outside-of-ear hearing aids. But I didn't look into it much so maybe there's something I missed.

Re: How I Created a $350M Software Company Knowing Nothing About Software

#76

Post by marincounty »

danieltillett wrote: post #37
Animats wrote: post #30

Earlier quoted context omitted.

No, he made a significant observation - the industry was operating at a high price point which was no longer justified due to advances in technology. That's a classic opportunity. The incumbents in the field won't want to drop their prices by an order of magnitude, even if the technology allows it. Especially if they have an expensive in-house sales force. This is a huge advantage for a startup. This happened to copi…

John you make a very good point. Look for industries where the current market has not kept up with advances in technology due to the business structures of the incumbents. Even if they want to change they can't (e.g Kodak). Hearing aids might fall into this category, but unlike the others on your list you need to deal with the FDA. The FDA should really be called the IPA - Incumbent Protection Agency.

To be honest, I wish the FDA was tougher. They're so many drugs, we are currently taking, that are just slightly better than placebo--and that's with fuzzy statistics, and a bunch of questionable studies.

I took so many pointless medications over the years. When I was younger, I just figured if the drug/devise was FDA approved; it must be efficient? I was wrong!

Re: How I Created a $350M Software Company Knowing Nothing About Software

#77

Post by wheaties »

trhway wrote: post #74
danieltillett wrote: post #37

Earlier quoted context omitted.

John you make a very good point. Look for industries where the current market has not kept up with advances in technology due to the business structures of the incumbents. Even if they want to change they can't (e.g Kodak). Hearing aids might fall into this category, but unlike the others on your list you need to deal with the FDA. The FDA should really be called the IPA - Incumbent Protection Agency.

>The FDA should really be called the IPA - Incumbent Protection Agency. the Theranos story i think clearly shows one more time why such protection from "disruptors" is necessary. Unfortunately we still don't know how to do it more efficiently though. My personal favorite here is FAA - who basically stalled to the complete halt the aircraft development for the last half of century, yet even here i understand the ratio…

It wasn't the FAA. It was all the lawsuits that made the liability of general aviation airplanes completely unprofitable. Aircraft development is still going strong in other countries around the world.

Re: How I Created a $350M Software Company Knowing Nothing About Software

#78

Post by maxerickson »

marincounty wrote: post #76
danieltillett wrote: post #37

Earlier quoted context omitted.

John you make a very good point. Look for industries where the current market has not kept up with advances in technology due to the business structures of the incumbents. Even if they want to change they can't (e.g Kodak). Hearing aids might fall into this category, but unlike the others on your list you need to deal with the FDA. The FDA should really be called the IPA - Incumbent Protection Agency.

To be honest, I wish the FDA was tougher. They're so many drugs, we are currently taking, that are just slightly better than placebo--and that's with fuzzy statistics, and a bunch of questionable studies. I took so many pointless medications over the years. When I was younger, I just figured if the drug/devise was FDA approved; it must be efficient? I was wrong!

Phase III drug trials compare new drugs to the best available treatment, not just placebo.

There are also huge classes of drugs that are obviously effective and beneficial (pain killers/nsaids, antihistamines, blood pressure medications, antibiotics,).

Re: How I Created a $350M Software Company Knowing Nothing About Software

#79

Post by dookahku »

corkill wrote: post #72
dookahku wrote: post #48

Earlier quoted context omitted.

So how do I find these opportunities? I imagine I have to leave the house and talk to people but where do I go? To whom do I speak?

People with problems and money to solve those problems aka business owners.

> People with problems and money to solve those problems aka business owners.

I figure as much. But how do I find them?

Re: How I Created a $350M Software Company Knowing Nothing About Software

#80

Post by Terretta »

juanrossi wrote: post #68

Does anyone knows why his name doesn't appear even once in the SEC S1 filing [1] for the IPO? He could have sold all his shares before the IPO, but thought it was weird. [1] https://www.sec.gov/Archives/edgar/data/1288847/000119312514...

The truth was, the company ... didn’t need him anymore.
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