
34 segments available
Ryan Hoover is the founder of Product Hunt which was in the Summer 2014 YC batch and was acquired by AngelList. He also invests in startups through his Weekend Fund. https://twitter.com/rrhoover https://www.producthunt.com/ https://angel.co/ https://weekend.fund/ Dalton Caldwell is a Partner at YC where he runs admissions. https://twitter.com/daltonc The YC podcast is hosted by Craig Cannon. https://twitter.com/craigcannon *** Topics 00:00 - Ryan's intro 00:25 - Dalton's intro 1:00 - Forming Product Hunt and applying to YC 4:50 - Product Hunt's growth rate when they applied to YC 6:00 - Raising money for the right reasons 9:15 - Maker communities 11:00 - Why raise money for Product Hunt? 12:45 - Having buzz during the batch 17:45 - Brex changing their idea during YC 19:50 - Pivoting into something you know well 21:15 - In retrospect, how would Ryan have advised himself around monetization? 28:00 - Trying to build out other verticals 34:00 - Don't act like you have infinite runway 35:30 - Creating urgency and developing products within AngelList 39:50 - Tips to launch on Product Hunt 44:40 - What Dalton looks for in applications 46:30 - Giving people the opportunity to start 48:20 - What motivated Ryan to leave his job before Product Hunt
Ryan Hoover introduces Product Hunt, a platform for discovering new products, and shares his journey of starting the company. He discusses how it began as a side project and evolved into a community-driven platform similar to Reddit and Hacker News.
"welcome to the podcast guys how's it going doing well how are you good good um all right Ryan so for those of our listeners who don't know who you are what do you work on so started a company uh 5 yea..."
Ryan Hoover recounts the formation of Product Hunt and the pivotal moment when he decided to apply to Y Combinator (YC). He shares insights on the initial traction and the importance of connecting with influential figures in the startup community.
"because I remember it so well um from being there walk me through from the formation of product hunt into applying to YC and getting into that interview that is already a blur you you're not sure who'..."
Ryan discusses Product Hunt's impressive growth rate of 50% month-over-month when they applied to YC. He explains how manual outreach to makers and founders contributed to this growth and the confidence it gave him going into the YC interview.
"mistaken I think we were like 50% month over month um and that's not counting like with 100 users in month one but it was like over the course of a few months with some some users and so it was and ac..."
Ryan emphasizes the importance of raising money for the right reasons. He reflects on the freedom of having a successful side project and the potential pitfalls of seeking venture capital without a clear vision or necessity.
"doing Venture financing um if they have a side project working especially if they're making money and they never will have like they can support themselves on it and they can basically have the job fo..."
Ryan and Dalton discuss the distinction between startups and small businesses, highlighting that not all successful projects need to fit the traditional startup mold. They explore the value of bootstrapping and the freedom it can provide.
"equals software right so like because I'm making profitable software therefore it is a startup but it can equally be a small business yeah semantically you can call it a startup too I just maybe it's ..."
Ryan shares his thoughts on the emergence of maker communities, including Indie Hackers and other niche platforms. He discusses how these communities foster innovation and support for bootstrapped entrepreneurs.
"I describe it as like maker communities and I would put um you know prant in that category Indie hackers lpath um is certainly one of those and a bunch of others and these are sort of communities that..."
Ryan explains the strategic decisions behind raising funds during YC, including the importance of having notable investors involved. He reflects on the timing and the benefits of securing capital early to support Product Hunt's growth.
"um okay but but not all companies that go through YC ultimately raise money afterward right like zappier is a good example that is correct yeah right and so and they predated product hunt right so I t..."
Ryan reflects on the unique buzz surrounding Product Hunt during its YC batch, contrasting it with the experiences of most startups. He notes that while excitement can attract investors, it is not always indicative of long-term success, as many companies lack that initial hype.
"raising with maybe not as good of a firm with maybe not as strong of numbers and that money when would allow us to continue for several years you know building the company and hiring and and building ..."
Ryan Hoover draws parallels between Product Hunt and Coinbase, discussing how even successful companies like Coinbase faced challenges in raising funds initially. He emphasizes that investor excitement can be misleading and that long-term metrics like retention and revenue are more predictive of success.
"sometimes when there's social products that take off um everyone is on them all the time I mean I'm not going to yeah I can think of where there was like big things that were hot and then everyone got..."
In this segment, Ryan and Dalton Caldwell discuss the nature of contrarian investments, using Coinbase as an example. They highlight how the best investments often come from recognizing potential in areas that may not be currently popular or 'hot,' and the importance of conviction in the future of a startup.
"super predictive at demo day so so anyway I just like I remember that too when you were everyone was like so excited about product hunt and everyone wanted to work with you and they put tons of work i..."
Ryan Hoover explains the misconception that Y Combinator primarily funds consumer companies. He shares insights on the diversity of startups in the YC ecosystem, noting that a significant portion is actually B2B and hard tech, which often goes unnoticed despite their potential.
"uh and I've seen you know there's some I'm trying to think back on the batch in who's who's yeah who what what were you summer 14 summer 14 yeah yeah so I think uh genko is Extreme like they probably ..."
Dalton Caldwell reflects on the unpredictability of startup applications and the surprises that come with them. He shares anecdotes about companies that pivoted successfully during their YC experience, emphasizing the importance of founders leveraging their strengths in their ventures.
"just don't maybe like I don't understand biotech like I it's it's less exciting for me simply for that reason because I just don't understand it and you don't know where the Market's going right where..."
Ryan Hoover recounts the story of Brex, a startup that pivoted from a VR headset idea to a fintech solution. He discusses how the founders recognized their strengths and shifted focus, leading to a successful outcome, illustrating the importance of adaptability in the startup journey.
"successful um well there's a lot of famous cases of people that we fund and then that end up pivoting into something wildly different and that ends up being pretty good and so my my example that I had..."
Ryan Hoover reflects on his past decisions regarding monetization at Product Hunt. He discusses the importance of focusing on revenue early on and shares insights on how he could have approached monetization differently, emphasizing the balance between community engagement and financial sustainability.
"have been a struggle do you remember what that conversation was like cuz I think this is a it's a super common question we get for the podcast people who change their ideas what were those conversatio..."
In this closing segment, Ryan Hoover encourages aspiring founders to adopt an experimental mindset when starting a business. He suggests viewing their ventures as side projects rather than overwhelming commitments, which can lead to more authentic and innovative product development.
"personally so do you think there's a way to play it over again where you could have should have would have monetized or expanded faster cuz again this is especially if we're talking about non-venture ..."
In this segment, Ryan Hoover discusses the complexities of generating revenue while trying to attract venture capital. He shares his experiences with job ads and the potential for easy revenue generation, emphasizing the strategic challenges that arise when VCs start to evaluate a startup based on its revenue. This insight is crucial for entrepreneurs navigating funding and growth.
"totally fair so the things that I I I think we made a mistake on that I I take responsibility for are a few different things one of them one of them is we should have dedicated a little bit of time an..."
Ryan Hoover elaborates on the expectations of investors regarding revenue generation. He explains how early revenue can influence investor perception and the importance of balancing revenue generation with long-term growth strategies. This segment provides valuable insights for startups on managing investor relationships while focusing on sustainable growth.
"yeah I mean I'm trying to think of a scenario where that would be hurting their company like maybe if it was affecting growth negatively somehow right like giant banner ads for jobs I feel like in a l..."
Ryan Hoover discusses the potential for Product Hunt to expand into new verticals, such as gaming and music. He reflects on the challenges of replicating community engagement across different categories and the lessons learned from their attempts to diversify. This segment highlights the importance of understanding community dynamics when exploring new business opportunities.
"on this again I'm just picturing back in the batch you kind of could have gone deeper on products like really deep on just Tech products and done like I don't know partnership there's ways you could g..."
In this segment, Ryan Hoover shares his vision for expanding Product Hunt beyond tech products. He discusses the idea of creating separate platforms for different verticals and the excitement around building communities for gaming and music. This insight emphasizes the potential for innovation in community-driven platforms.
"I do remember the slide that presented at demo day actually with sort of the long I think it might have been the last slide which was like the Future Vision which was okay we're starting with tech tha..."
Ryan Hoover reflects on the lessons learned from building communities around different product categories. He discusses the challenges faced when trying to engage users in non-tech verticals and the importance of establishing a strong core community before expanding. This segment provides valuable takeaways for entrepreneurs looking to build successful communities.
"and like being like this is yeah like well there's I don't foret I forget what I exactly said but it was like I too but I remember seeing you in the Green Room yeah and and everyone has like you can i..."
Ryan Hoover discusses the strategic direction of Product Hunt, focusing on deepening their commitment to technology rather than spreading too thin across multiple verticals. He emphasizes the growing influence of technology and the opportunity to cater to a broad audience. This segment highlights the importance of strategic focus in a startup's growth journey.
"unsuccessful in getting them spun up to be like their own Standalone like Community where people could you know find the best games or or really visit on a daily basis for that type of content do you ..."
In this segment, Ryan Hoover shares insights from investors who suggested creating a fund based on Product Hunt's data. He reflects on the potential impact of such a decision on the company's direction and discusses the balance between exploring new opportunities and staying true to the original vision. This segment provides a thoughtful perspective on the intersection of investment and entrepreneurship.
"somebody should build it um what we're now focusing on is actually doubling so that was one horizontal approach go really wide build you know a network of properties potentially uh instead what we foc..."
Ryan Hoover reflects on early suggestions from investors to create a fund based on Product Hunt. He discusses the allure of this idea and why he ultimately decided against it, emphasizing that pursuing this path could have drastically changed the nature of Product Hunt, potentially aligning it more with AngelList rather than its original vision.
"just thinking through you know back in the day when you had everything lined up and ready were there things that you could have been excited about that were not selling out your vision of what it coul..."
Hoover shares insights on how small decisions can lead to significant outcomes in the tech industry. He compares the evolution of successful platforms like Facebook to those that faded away, highlighting the importance of strategic choices in shaping a company's trajectory.
"one there's also like Kickstarter you could have been like oh let's help people like you know imagine that you could remember those experiments people did where if enough people took an action it woul..."
Ryan discusses the misconception of having infinite runway when raising funds. He stresses the importance of treating resources as limited and reflects on prioritizing design work that may not significantly impact user engagement, illustrating the need for urgency in product development.
"like super fascinated on thinking through just what a great thing you had and all the ways like like I've been in silon Valley a long time and it's just like these little micro decisions that is a dif..."
Hoover talks about the challenges of managing community expectations during redesigns. He shares experiences of how changes can upset users and the delicate balance between innovation and maintaining user satisfaction in community-driven platforms.
"with something like what we built where we have a community of people like people really don't care if the upot button looks a little bit shinier like they're going to use it or not because of the con..."
Ryan outlines the key performance indicators (KPIs) that Product Hunt focuses on, including revenue, user growth, and community contributions. He explains how these metrics guide their strategy and the shift in priorities for the upcoming year.
"year we have three kpis actually that we measure uh revenue is one of them that was our number one priority last year not because we are running out of money it's because we just want to build a model..."
Hoover discusses the vision for Product Hunt's future, emphasizing the need to help users discover the best products tailored to their needs. He introduces the concept of a 'product graph' to enhance user experience and product discovery.
"process down where we'll have usually one engineer to start with on it and they they drive the project forward alongside like Julie or Dan on the design side and so we're able to like do a lot of proj..."
Ryan highlights the growing trend of remote work and the need for tools that facilitate collaboration among remote teams. He expresses the desire to create a supportive ecosystem for makers and freelancers who often work in isolation.
"ecosystem going forward yeah I see uh y see applications along those lines of basically remote work is a big Trend and people are trying to think about tools and like any there's a bunch of ways to at..."
Hoover shares the significance of feedback in the product development process. He recounts the story of a young maker who gained recognition through Product Hunt, illustrating how community feedback can empower creators and foster innovation.
"yeah so I was curious about this so there are a bunch of questions basically people asking for advice on like what makes a su a successful product on product hunt and like did you guys ever consider g..."
Ryan reflects on successful product launches on Product Hunt, using the example of the app Meerkat. He discusses the factors that contributed to its initial success and the challenges it faced, emphasizing the need for a sustainable product experience beyond the launch hype.
"come to mind uh one more recent actually and this isn't a startup actually it's not a company but it's there there's a number of um kind of self-described like Indie makers or or people who are just e..."
Dalton Caldwell explains what he looks for in startup applications, emphasizing the importance of founders demonstrating commitment and seriousness. He discusses how having a prototype or initial user engagement can signal a founder's dedication. This segment provides insights into the evaluation process at Y Combinator and the traits that make applicants stand out.
"immediately and and uh yet at the same time it required Ben and the team to be thoughtful and like honest with themselves like they could have run they could have run out of money and run the company ..."
Ryan Hoover reflects on his journey of transitioning to Product Hunt while working part-time. He discusses the challenges many face in finding time to build their startups and the importance of utilizing weekends for progress. This segment highlights the potential for innovation outside of traditional work hours and encourages aspiring founders to take initiative.
"again I would put you in you did it like no one like no one told you hey you should go make product hunt you should make this email list like you weren't trying I don't think trying to please investor..."
In the closing segment, Ryan emphasizes the significance of progress in startups, sharing how small, consistent advancements can build investor confidence. He discusses the value of day-to-day interactions with users and how they contribute to a startup's growth. This segment wraps up the conversation with a focus on the importance of taking action and making strides in the entrepreneurial journey.
"lot of people tend to now I don't want to uh uh some people have family some people have Financial burdens there's like things like that that certainly are debilitating but I think for a lot of people..."