Emmett Shear, co-founder of Twitch, shares the crazy story of how Twitch grew from one guy walking around with a camera on his head to one of the biggest communities on the internet. He discusses the challenges of live streaming, building infrastructure, and the financial struggles faced during the 2008 financial crisis. Shear also talks about the intensive nature of being a visiting partner at YC and the benefits of selling a company to Amazon.
Having a team of committed co-founders is crucial for startup success.
Transitioning to a profit-oriented mindset is essential for long-term sustainability.
Building and owning your own infrastructure can lead to significant growth and success.
Deep dives
The Birth of Justin TV
Justin TV started as an idea to live stream Justin wearing a camera 24/7, but it evolved into a new kind of reality TV. Paul Graham saw the potential and invested $50,000 in the startup. Kyle Vogt and Michael Seibel joined the team, and they started programming Justin's life to make it interesting. However, they soon realized that being interesting 24/7 was impossible. They built their own video streaming infrastructure, and the show became a series of ridiculous stunts to keep it entertaining. Justin TV was not financially successful, but it laid the foundation for Twitch, which acquired great popularity later on.
Selling Kiko on eBay
After Kiko, the team had various startup ideas but struggled to find the right one. At one point, they came up with the idea to turn any blog or Flickr page into a coffee table book, but it didn't gain traction. Then, they thought of live streaming their conversations on the internet and created Justin TV. They listed Kiko, a JavaScript calendar, on eBay as a marketing stunt. They received publicity, and the calendar was eventually sold to Two Cows for $258,000. The money became a catalyst for their next venture, Justin TV.
Key People in the Journey
Michael Seibel joined Justin and Emmett on their road trip to San Francisco after being convinced to become part of the startup. He brought stability to the team and eventually became the CEO of Twitch. Kyle Vogt, an MIT hacker, was recruited to build the video system for Justin TV. He became a co-founder and made significant contributions to the infrastructure. Their combined efforts and diverse skill sets propelled Justin TV forward and set the stage for its future success.
The Evolution of Justin TV
Justin TV started with the idea of streaming Justin's life, but it quickly became clear that being interesting all the time was a challenge. They discovered that interacting with the audience and playing video games garnered the most interest. The team also realized that the live streaming technology available at the time was not ideal, leading them to build their own video system. Despite the financial challenges and the need for continuous entertainment, Justin TV laid the groundwork for Twitch, which would later become a massive success.
The Importance of Having a Team of Committed Co-founders
One of the main insights from the podcast episode is the significance of having a team of co-founders who are fully committed to the startup. The speaker shares how their team of four co-founders, which was considered unconventional, remained stable and driven due to their strong belief and dedication to the venture. This critical mass of all-in co-founders created a strong foundation and served as a catalyst for the startup's success.
Transitioning to a Profit-Oriented Focus
Another key takeaway from the podcast episode is the importance of transitioning to a profit-oriented mindset. The speaker discusses how the company initially did not prioritize making money, but rather focused on growth and building a user base. However, when the 2008 financial crisis hit, they realized the need to shift their focus towards profitability. The team implemented a process-oriented approach, analyzing costs and revenue, setting goals, and making decisions to optimize the financial aspects of the business. This shift ultimately led to the company becoming profitable and provided the foundation for the creation of a new venture, Twitch.
Today we talk with Emmett Shear, who was in the very first YC batch in 2005 with a startup called Kiko. But you know him better as the co-founder of Twitch, which YC funded in 2007. Learn how Twitch grew from one guy walking around with a camera on his head to one of the biggest communities on the internet. It's a crazy story even by startup standards. Enjoy!
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