The Official SaaStr Podcast: SaaS | Founders | Investors SaaStr 251: Y Combinator Michael Seibel on a Decade of Learnings from Y Combinator
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Jul 18, 2019 
Michael Seibel, CEO and partner at Y Combinator, shares valuable insights drawn from his decade of experience in the startup world. He emphasizes the importance of aligning hiring with achieving product-market fit, warning against premature scaling. Seibel discusses when to sell a startup and the misconception that raising funds guarantees success. He also highlights best practices for hiring and stresses the need for transparency within teams. Tune in for actionable advice on navigating the tricky waters of early-stage entrepreneurship!
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Money Isn’t Proof Of Product-Market Fit
- Raising seed money does not prove you have product-market fit or a viable unit economics model.
- Michael Seibel warns founders not to let investor interest convince them they are further along than they really are.
Hire Slowly Until Traction Is Clear
- Avoid hiring aggressively after a seed raise; stay small until traction punches you in the face.
- Keep the CEO focused on finding product-market fit instead of shifting too early into management.
Business Model Dictates GTM Strategy
- Founders often misunderstand their business model versus their go-to-market cost.
- Seibel points out pricing and customer type largely determine whether you should pursue enterprise or low-touch SaaS strategies.