AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Startups have to be radical different - avoid comparisons
Startups cannot compete on a level playing field due to the inherent advantages of incumbents; they must embrace an 'unfair' approach to succeed. Traditional notions of 'better' fail for startups, as this concept merely suggests slight improvements to the existing market, which does not disrupt the status quo. Instead, startups should aim to be radically different, thereby creating an undeniable distinction from the competition. For instance, the launch of ride-sharing services like Lyft showcased a shift so significant that customers didn't compare it to traditional taxis but recognized it as an entirely new option. By focusing on this radical differentiation, startups compel consumers to make a choice based on the unique offering rather than comparing it to existing services.
Mike Maples, Jr. is a legendary early-stage startup investor and a co-founder and partner at Floodgate. He’s made early bets on transformative companies like Twitter, Lyft, Twitch, Okta, Rappi, and Applied Intuition and is one of the pioneers of seed-stage investing as a category. He’s been on the Forbes Midas List eight times and enjoys sharing the lessons he’s learned from his years studying iconic companies. In his new book, Pattern Breakers: Why Some Start-Ups Change the Future, co-authored with Peter Ziebelman, he discusses what he’s found separates startups and founders that break through and change the world from those that don’t. After spending years reviewing the notes and decks from the thousands of startups he’s known over the past two decades, he’s uncovered three ways that breakthrough founders think and act differently. In our conversation, Mike talks about:
• The three elements of breakthrough startup ideas
• Why you need to both think and act differently
• How to avoid the “comparison trap” and “conformity trap”
• The importance of movements, storytelling, and healthy disagreeableness in startup success
• How to apply pattern-breaking principles within large companies
• Mike’s one piece of advice for founders
• Much more
Pre-order Mike’s book here and get a second signed copy for free. Limited copies are available, so order ASAP: patternbreakers.com/lenny.
—
Brought to you by:
• Enterpret—Transform customer feedback into product growth
• Anvil—The fastest way to build software for documents
• Webflow—The web experience platform
—
Find the transcript at: https://www.lennysnewsletter.com/p/how-to-find-a-great-startup-idea-mike-maples-jr
—
Where to find Mike Maples, Jr.:
• X: https://x.com/m2jr
• LinkedIn: https://www.linkedin.com/in/maples/
• Substack: https://greatness.substack.com/
• Website: https://www.floodgate.com/
—
Where to find Lenny:
• Newsletter: https://www.lennysnewsletter.com
• X: https://twitter.com/lennysan
• LinkedIn: https://www.linkedin.com/in/lennyrachitsky/
—
In this episode, we cover:
(00:00) Mike’s background
(03:10) The inspiration behind Pattern Breakers
(08:09) Uncovering startup insights
(11:37) A quick summary of Pattern Breakers
(13:52) Coming up with an idea
(15:30) Inflections
(17:09) Examples of inflections
(28:10) Insights
(36:58) The power of surprises
(47:36) Founder-future fit
(55:33) Advice for aspiring founders
(56:41) Living in the future: valid opinions
(55:34) Case study: Maddie Hall and Living Carbon
(58:40) Identifying lighthouse customers
(01:00:53) The importance of desperation in customer needs
(01:03:57) Creating movements and storytelling
(01:24:22) The role of disagreeableness in startups
(01:34:42) Applying these principles within a company
(01:40:43) Lightning round
—
Referenced:
• Pattern Breakers: Why Some Start-Ups Change the Future: https://www.amazon.com/Pattern-Breakers-Start-Ups-Change-Future/dp/1541704355
• Justin.tv: https://en.wikipedia.org/wiki/Justin.tv
• Airbnb’s CEO says a $40 cereal box changed the course of the multibillion-dollar company: https://fortune.com/2023/04/19/airbnb-ceo-cereal-box-investors-changed-everything-billion-dollar-company/
• Brian Chesky’s new playbook: https://www.lennysnewsletter.com/p/brian-cheskys-contrarian-approach
• The Unconventional Exit: How Justin Kan Sold His First Startup on eBay: https://medium.datadriveninvestor.com/the-unconventional-exit-how-justin-kan-sold-his-first-startup-on-ebay-4d705afe1354
• Kyle Vogt on LinkedIn: https://www.linkedin.com/in/kylevogt/
• The State of Telehealth Before and After the COVID-19 Pandemic: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9035352/
• The Craigslist Killers: https://www.gq.com/story/craigslist-killers
• The social radar: Y Combinator’s secret weapon | Jessica Livingston (co-founder of Y Combinator, author, podcast host): https://www.lennysnewsletter.com/p/the-social-radar-jessica-livingston
• Michael Seibel on LinkedIn: https://www.linkedin.com/in/mwseibel/
• The Airbnb Story: How Three Ordinary Guys Disrupted an Industry, Made Billions ... and Created Plenty of Controversy: https://www.amazon.com/Airbnb-Story-Ordinary-Disrupted-Controversy/dp/0544952669
• Scott Cook: https://www.forbes.com/profile/scott-cook/
• Chegg: https://www.chegg.com/
• Aayush Phumbhra on LinkedIn: https://www.linkedin.com/in/aayush/
• Osman Rashid on LinkedIn: https://www.linkedin.com/in/osmanrashid/
• Okta: https://www.okta.com/
• The Man Who Makes the Future: Wired Icon Marc Andreessen: https://www.wired.com/2012/04/ff-andreessen/
• Peter Ludwig on LinkedIn: https://www.linkedin.com/in/peterwludwig/
• Qasar Younis on LinkedIn: https://www.linkedin.com/in/qasar/
• Paul Allen’s website: https://paulallen.com/
• Louis Pasteur quote: https://www.forbes.com/quotes/6145/
• What was Atrium and why did it fail? https://www.failory.com/cemetery/atrium
• Patrick Collison on LinkedIn: https://www.linkedin.com/in/patrickcollison/
• Drew Houston on LinkedIn: https://www.linkedin.com/in/drewhouston/
• William Gibson’s quote: https://www.goodreads.com/quotes/681-the-future-is-already-here-it-s-just-not-evenly
• Maddie Hall on LinkedIn: https://www.linkedin.com/in/maddie-hall-76293135/
• Living Carbon: https://www.livingcarbon.com
• Zenefits (now Trinet): https://connect.trinet.com/
• Sam Altman on X: https://x.com/sama
• Steve Wozniak on LinkedIn: https://www.linkedin.com/in/wozniaksteve/
• Horsley Bridge Partners: https://www.horsleybridge.com/
• David Swensen: https://en.wikipedia.org/wiki/David_F._Swensen
• Judith Elsea on LinkedIn: https://www.linkedin.com/in/judithelsea/
• 7 Powers: The Foundations of Business Strategy: https://www.amazon.com/7-Powers-Foundations-Business-Strategy/dp/0998116319
• Business strategy with Hamilton Helmer (author of 7 Powers): https://www.lennysnewsletter.com/p/business-strategy-with-hamilton-helmer
• Lyft’s Focus on Community and the Story Behind the Pink Mustache: https://techcrunch.com/2012/09/17/lyfts-focus-on-community-and-the-story-behind-the-pink-mustache/
• Logan Green on LinkedIn: https://www.linkedin.com/in/logangreen/
• John Zimmer on LinkedIn: https://www.linkedin.com/in/johnzimmer11/
• Storytelling with Nancy Duarte: How to craft compelling presentations and tell a story that sticks: https://www.lennysnewsletter.com/p/storytelling-with-nancy-duarte-how
• Steve Jobs Introducing the iPhone at MacWorld 2007: https://www.youtube.com/watch?v=x7qPAY9JqE4
• Jonathan Livingston Seagull: https://www.amazon.com/Jonathan-Livingston-Seagull-Richard-Bach/dp/0743278909
• The paths to power: How to grow your influence and advance your career | Jeffrey Pfeffer (author of 7 Rules of Power, professor at Stanford GSB): https://www.lennysnewsletter.com/p/the-paths-to-power-jeffrey-pfeffer
• Robin Roberts on LinkedIn: https://www.linkedin.com/in/robin-roberts-393a934b/
• Skunkworks: https://www.lockheedmartin.com/en-us/who-we-are/business-areas/aeronautics/skunkworks.html
• Vision, conviction, and hype: How to build 0 to 1 inside a company | Mihika Kapoor (Product at Figma): https://www.lennysnewsletter.com/p/vision-conviction-hype-mihika-kapoor
• Hard-won lessons building 0 to 1 inside Atlassian | Tanguy Crusson (Head of Jira Product Discovery): https://www.lennysnewsletter.com/p/building-0-to-1-inside-atlassian-tanguy-crusson
• Figma: https://www.figma.com/
• Atlassian: https://www.atlassian.com/
• Vinod Khosla: https://www.khoslaventures.com/team/vinod-khosla/
• Top Five Regrets of the Dying: A Life Transformed by the Dearly Departing: https://www.amazon.com/Top-Five-Regrets-Dying-Transformed-ebook/dp/B07KNRLY1L
• Chase, Chance, and Creativity: The Lucky Art of Novelty: https://www.amazon.com/Chase-Chance-Creativity-Lucky-Novelty/dp/0262511355
• Clay Christensen’s books: https://www.amazon.com/stores/Clayton-M.-Christensen/author/B000APPD3Y
• Resonate: Present Visual Stories That Transform: https://www.amazon.com/Resonate-Present-Stories-Transform-Audiences/dp/0470632011
• Ferrari on Prime: https://www.amazon.com/Ferrari-Adam-Driver/dp/B0CNDBN672
• Montblanc fountain pens: https://www.montblanc.com/en-us
—
Production and marketing by https://penname.co/. For inquiries about sponsoring the podcast, email podcast@lennyrachitsky.com.
—
Lenny may be an investor in the companies discussed.
Listen to all your favourite podcasts with AI-powered features
Listen to the best highlights from the podcasts you love and dive into the full episode
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
Listen to all your favourite podcasts with AI-powered features
Listen to the best highlights from the podcasts you love and dive into the full episode