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A Former Tesla Staffer Became an Internet Millionaire in His Spare Time

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Re: A Former Tesla Staffer Became an Internet Millionaire in His Spare Time

#11
post #3

Seems like this guy hedged his bets every step of the way: - kept his day job while working on startup - did fake campaign on FB to gauge demand - got friends to try product - croudfunded the first batch This is a really risk averse guy who is making it big. Sort of the opposite of the bombastic risk-it-all founder we often see in SV hero stories.

One thing that Adam Grant writes about in his book, "Originals", is how it's a bit of a fallacy that founders often dive head first and risk it all when starting their companies. Could be somewhat of a confirmation bias but he gives some great examples of how risk averse many founders actually are when starting their companies (Warby Parker was the main example if I remember correctly).

http://www.adamgrant.net/originals

Re: A Former Tesla Staffer Became an Internet Millionaire in His Spare Time

#13
post #2

Perhaps the most fascinating part (to me at least) in the article was his second step - he knowingly and purposefully created a vaporware product and took orders for it. He refunded the money from the customers, but used this as a validation step. I'm not sure if there's a moral judgement to be made here that's meaningful, but it's an interesting approach to product validation. I feel like we see this approach with K…

It's called "dry testing", and the FTC might come after you if you're not clear about what you're doing https://www.ftc.gov/tips-advice/business-center/guidance/adv...

Re: A Former Tesla Staffer Became an Internet Millionaire in His Spare Time

#14

This is one of my most favourite "start up" stories ever. It almost feels like the "millennial" way of starting any business nowadays. Quitting your day-job, sitting in a co-op space, risking thousands of personal funds, building, and building, and building, and building, and then finally releasing something with no real idea of it's potential is an almost sure-fire way of failing, and risking your well being at the…

This method is how many small businesses are started. It's just not glamorous so we don't hear stories about it.

Re: A Former Tesla Staffer Became an Internet Millionaire in His Spare Time

#15
post #10
post #6

Headline is rather misleading as neither 1) hitting a $1M in sales or 2) raising $8M in venture funding necessarily means he actually became a millionaire.

Both of those things make a company worth more than $1 million. It's only wealth on paper, but it's legitimate to call a person a millionaire who owns a company who's done one of those.

Well, he has to own above a certain percentage (about 3.04%) of the company, which to be fair he almost certainly does ;)

Re: A Former Tesla Staffer Became an Internet Millionaire in His Spare Time

#16
post #10
post #6

Headline is rather misleading as neither 1) hitting a $1M in sales or 2) raising $8M in venture funding necessarily means he actually became a millionaire.

Both of those things make a company worth more than $1 million. It's only wealth on paper, but it's legitimate to call a person a millionaire who owns a company who's done one of those.

I would disagree, and I believe that others would as well. A 'millionaire' in my mind is someone with liquid assets of at least one million dollars.

The company isn't worth more than $1 million until someone else exchanges shares or money for it for over a million dollars. VC funding does not make someone a millionaire, except in rare cases where founders are allowed to sell shares to 'take money off the table'. VC money is the hope that the company will be worth $X in the future.

Re: A Former Tesla Staffer Became an Internet Millionaire in His Spare Time

#17
Kudos to Tesla for not only being OK with this guy having a sidegig but also not trying to be a jerk in demanding a cut. I know that seems like status quo for companies not to demand control over what employees create outside of work, but seems like that line can be blurred when there's enough money involved.

(edit: not just having a sidegig, but being able to launch and run his startup for ~1 year while employed at Tesla)

I also have a low bar after reading "Bad Blood", the book about Theranos. One of Theranos's chief engineers, on his own time, came up with a cool idea for bike lights and ran a successful KickStarter [0]. Elizabeth Holmes' response:

> Kent told Elizabeth about his successful Kickstarter campaign, thinking she wouldn’t mind. But he badly miscalculated: she and Sunny were furious. They viewed it as a major conflict of interest and asked him to transfer his bike-lights patent to Theranos. The paperwork Kent had signed when he joined the company entitled them to any intellectual property he produced while employed there, they contended. Kent disagreed. He’d worked on his little venture during his free time and felt he had done nothing wrong. He also failed to see how a new type of bicycle light posed a threat to a maker of blood-testing equipment. But Elizabeth and Sunny wouldn’t let it go. In meeting after meeting, they tried to get him to turn over the patent. They ratcheted up the pressure by bringing Theranos’s new senior counsel, David Doyle, to some of the meetings.

Eventually Kent, the engineer, was allowed to go on leave of absence to work on his bike-light. I don't think he ever came back, and he was the guy who was the chief architect of the piece of crap that Holmes would later describe as "the most important thing humanity has ever built".

[0] https://www.kickstarter.com/projects/revolights/revolights-j...

Re: A Former Tesla Staffer Became an Internet Millionaire in His Spare Time

#18
post #17

Kudos to Tesla for not only being OK with this guy having a sidegig but also not trying to be a jerk in demanding a cut. I know that seems like status quo for companies not to demand control over what employees create outside of work, but seems like that line can be blurred when there's enough money involved. (edit: not just having a sidegig, but being able to launch and run his startup for ~1 year while employed at…

What could have motivated them to waste so much time on that? Ego?

Re: A Former Tesla Staffer Became an Internet Millionaire in His Spare Time

#19
post #17

Kudos to Tesla for not only being OK with this guy having a sidegig but also not trying to be a jerk in demanding a cut. I know that seems like status quo for companies not to demand control over what employees create outside of work, but seems like that line can be blurred when there's enough money involved. (edit: not just having a sidegig, but being able to launch and run his startup for ~1 year while employed at…

Man, don't be giving a corporation kudos for NOT doing shit they OUGHT NOT do in the first place.

Re: A Former Tesla Staffer Became an Internet Millionaire in His Spare Time

#20

This is one of my most favourite "start up" stories ever. It almost feels like the "millennial" way of starting any business nowadays. Quitting your day-job, sitting in a co-op space, risking thousands of personal funds, building, and building, and building, and building, and then finally releasing something with no real idea of it's potential is an almost sure-fire way of failing, and risking your well being at the…

Yup, and the process has been crystallized in a book called The Lean Startup.
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