The last one might be the most important. The low points ina startup are so low that few could bear them alone. Whenyou have multiple founders, esprit de corps binds themtogether in a way that seems to violate conservation laws.Each thinks "I can't let my friends down." This is one of themost powerful forces in human nature, and it's missingwhen there's just one founder.
2. Bad Location
Startups prosper in some places and not others. SiliconValley dominates, then Boston, then Seattle, Austin,Denver, and New York. After that there's not much. Even inNew York the number of startups per capita is probably a20th of what it is in Silicon Valley. In towns like Houston andChicago and Detroit it's too small to measure.Why is the falloff so sharp? Probably for the same reason itis in other industries. What's the sixth largest fashion centerin the US? The sixth largest center for oil, or finance, orpublishing? Whatever they are they're probably so far fromthe top that it would be misleading even to call themcenters.It's an interesting question why citiesbecomestartup hubs,but the reason startups prosper in them is probably thesame as it is for any industry: that's where the experts are.Standards are higher; people are more sympathetic to whatyou're doing; the kind of people you want to hire want tolive there; supporting industries are there; the people yourun into in chance meetings are in the same business. Whoknows exactly how these factors combine to boost startupsin Silicon Valley and squish them in Detroit, but it's clearthey do from the number of startups per capita in each.
3. Marginal Niche
Most of the groups that apply to Y Combinator suffer from acommon problem: choosing a small, obscure niche in thehope of avoiding competition.If you watch little kids playing sports, you notice that belowa certain age they're afraid of the ball. When the ball comesnear them their instinct is to avoid it. I didn't make a lot of catches as an eight year old outfielder, because whenever afly ball came my way, I used to close my eyes and hold myglove up more for protection than in the hope of catching it.Choosing a marginal project is the startup equivalent of myeight year old strategy for dealing with fly balls. If you makeanything good, you're going to have competitors, so youmay as well face that. You can only avoid competition byavoiding good ideas.I think this shrinking from big problems is mostlyunconscious. It's not that people think of grand ideas but
Page 2 of 14The 18 Mistakes That Kill Startups10/18/2006http://paulgraham.com/startupmistakes.html