20VC: Startups Fail Because They Do Not Take Enough Risk, Why A/B Testing is Inefficient and Slows You Down, Why It is Impossible To Hire Good PMs so Stop Trying & 3 Key Signals The Best Engineers Present with Grant LaFontaine, Founder & CEO @ Whatnot
In this discussion, Grant LaFontaine, Founder and CEO of Whatnot, shares insights from his journey in tech and entrepreneurship. He argues that startups often falter due to a lack of risk-taking and criticizes the inefficiency of A/B testing in driving innovation. LaFontaine also addresses the challenges of hiring product managers and highlights the traits of exceptional engineers. His experiences at Facebook have shaped his approach to building a culture of adaptability and empowerment within Whatnot.
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Whatnot's Pivot
Whatnot's initial concept was a full-service Craigslist.
Two weeks into validating the model, Grant LaFontaine realized it was unprofitable and pivoted to collectibles.
volunteer_activism ADVICE
Empower Engineers
Empower engineers and let them drive product decisions.
Whatnot has 50 engineers and one product manager, prioritizing speed and ownership.
insights INSIGHT
Hiring PMs
Hiring good product managers is difficult because many from established tech companies focus on strategy and numbers over user empathy.
Early-stage companies benefit from user-centric PMs who understand user needs deeply.
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The Foundation Trilogy, written by Isaac Asimov, is a seminal work in science fiction that explores the collapse of the Galactic Empire and the subsequent efforts to preserve human civilization. The series, inspired by Edward Gibbon's 'The History of the Decline and Fall of the Roman Empire,' introduces the concept of psychohistory, a mathematical science that predicts the future behavior of large populations. The trilogy consists of 'Foundation' (1951), 'Foundation and Empire' (1952), and 'Second Foundation' (1953). It follows the establishment of the Foundation by Hari Seldon, who aims to shorten the dark age that will follow the empire's collapse from 30,000 years to just 1,000 years. The series is known for its intricate plot, clever resolutions to seemingly impossible situations, and its exploration of themes such as governance, warfare, and the rise and fall of empires[1][2][4].
Grant LaFontaine is the Founder & CEO @ Whatnot, the fastest-growing marketplace in the US, empowering people to make a living off their passion. To date, Grant has raised over $225M for Whatnot from the likes of CapitalG, a16z, YC, Scribble Ventures and Wonder Ventures to name a few. Prior to Whatnot, Grant was a PM @ Facebook working on the Oculus App Store and before that was the founder of Kit.com, ultimately acquired by Patreon.
In Today’s Episode with Grant LaFontaine You Will Learn:
1.) The Founding of Whatnot:
How did Grant make his way into the world of tech and startups?
What were some of his biggest lessons from Facebook? How did that impact how he has built Whatnot?
2.) Impossible To Hire Product Managers:
Why does Grant believe it is impossible to hire product managers today?
How does this impact the decision-making powers of engineers?
How does Grant test for this product knowledge in all engineers he adds to the team?
What are clear signals of 10x engineers in hiring processes?
3.) A/B Testing and Risk Mindset:
Why does Grant not believe in the effectiveness of A/B testing? Why does it not work?
Why does Grant believe one of the biggest reasons for startups failing is they do not take enough risk?
How does Grant try to ensure that his team takes as much risk as possible with everything that they do?
How does mindset to risk change with scale of company and with leadership?
4.) AMA:
Why does Grant disagree with founders angel investing?
What are the biggest challenges Whatnot has faced in scaling?
CEO coach? Who? When? What is the biggest lesson?
What is the single driving metric of Whatnot? How does Grant advise founders to determine their North Star metric?
Item’s Mentioned In Today’s Episode with Grant LaFontaine
The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 