The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC: Retool Founder, David Hsu on Why YC Is Helpful Pre Product-Market Fit but Not Post and Why VCs Are Not Helpful Pre-Product Market-Fit but are Post, Why it is Difficult to Become Unprofitable if You Set Yourself Up For Profitability Early & Why VC Th
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Dec 17, 2020 
David Hsu, founder and CEO of Retool, discusses his journey from studying philosophy to leading a groundbreaking internal tools platform. He explains why Y Combinator is beneficial before product-market fit but not afterward, and shares valuable insights on pivoting and the role of venture capital pre- and post-product-market fit. Hsu emphasizes the importance of profitability and strategic hiring while balancing vision and realism in startup growth. His experiences shed light on navigating the complexities of fundraising and mentorship in the entrepreneurial landscape.
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Retool's Origin Story
- David Hsu studied philosophy and computer science at Oxford, initially aiming to build a Venmo clone for the UK.
- This venture, while initially successful in gaining users, proved unprofitable, leading to a pivot and the creation of Retool.
Pivotal Advice from John Collison
- David Hsu recalls a pivotal meeting with John Collison during YC, where Collison critiqued their Venmo clone idea.
- This direct feedback ultimately led to Retool's creation, highlighting the importance of candid mentorship.
YC's Value Proposition
- David Hsu believes YC is valuable pre-product-market fit for its network, but less so post-product-market fit.
- He suggests established companies may sometimes benefit from deviating from standard YC advice, citing Retool's split Series A as an example.
