Teaches

The Startup Playbook

TABLE OF
CONTENTS
03
MEET YOUR INSTRUCTOR
How Alexis Ohanian evolved from
startup insurgent to high-profile
investor to tech-fueled activist

06
THE FOUNDER’S JOURNEY
A timeline of key companies that
Alexis has started and backed

1
08
HOW TO SPEAK STARTUP
19
THE GOLDEN AGE OF
33
FINDING FUNDING:
59 terms from the worlds of ENTREPRENEURSHIP A WEALTH OF OPTIONS
entrepreneurship and investment Founders come in all shapes and There are more ways than ever to
sizes—and hit it big at all ages meet investors; here are 7 of them

14
THE ENTREPRENEUR’S BRAIN
22
Assignment
34
Assignment
Ideas are just the beginning: 13 traits COMMUNITY-BUILDING MATCH THE FOUNDER
that founders should possess BRAINSTORM TO THE FAILURE
7 questions that can help you identify Pair 8 major entrepreneurs with their
and grow your audience early disappointments

16
Assignment
23
HOW TO CREATE A
GREAT PITCH DECK
36
9 TIPS FOR THE
TURN IRRITATION INTO IDEAS ENTERPRISING INTROVERT
Start a list of things that frustrate you, Tips on selling your idea to investors, If networking makes you cringe,
and look for hidden opportunities plus a pitch deck checklist and a check out these simple suggestions
section on the art of the memo

17
CAN’T CODE? NO PROBLEM
28
A ROUGH GUIDE TO
37
HOW YOU CAN USE THE
With these 7 resources, entrepreneurs MODERN FUNDRAISING INTERNET TO DO GOOD
can leave the bytes to the bots Angel investors, accelerators, crypto, Anyone with a smartphone or laptop
crowdfunding, and much more can effect positive change

2
 Meet Your Instructor
Alexis
Ohanian
Want to build a company, make the world a better
place, and have a lot of fun while you’re at it? Let this
lifelong entrepreneur show you how
Alexis Ohanian is a founder, investor,
and activist whose defense of a free
and open internet has helped legions
of aspiring entrepreneurs—and no
doubt many “intrapreneurs,” who
create and innovate within existing
companies—turn dreams into reality.
Born in Brooklyn, New York, on
April 24, 1983, and raised in Colum-
bia, Maryland, Alexis launched his
first business soon after completing
degrees in commerce and history at
the University of Virginia. Ditching
his plan to become a lawyer, he part-
3
nered with a friend, Steve Huffman,
and pitched a mobile food-delivery
app to the American startup acceler-
ator Y Combinator in 2005. YC
rejected the concept but accepted
Alexis and Huffman, agreeing to
back their idea for a user-driven
online media aggregator and discus-
sion forum called Reddit; the follow-
ing year, it was sold to publishing
conglomerate Condé Nast for a sum
that, according to a 2020 tweet from
Alexis’s personal account, exceeded
his parents’ lifetime earnings.
4
 But that was just the beginning: In
2007 Alexis and Huffman launched
Breadpig, which offers business aid
to creators and donates proceeds
from merchandise sales to nonprof-
its; Hipmunk, a travel website, arrived
in 2010.
Building on knowledge gained
while persuading investors to fund
his ideas, Alexis decided to start
funding the ideas of others. He
launched two companies—Das Kapi-
tal Capital and Initialized Capital, the
latter in partnership with Canadian
American designer and engineer
Garry Tan—before founding Seven
Seven Six, which provides seed fund-
ing with a focus on empathy, equity,
and inclusion, in 2020. Through
these companies he has invested in
hundreds of successful startups,
from the meat-substitute brand
Impossible Foods to the crowdfund-
ing platform Patreon.
As Alexis’s career grew, so did his
urge to protect the digital ecosystem
that had nurtured him. He joined the
fight against the U.S. Congress’s Stop
Online Piracy Act (SOPA) and the U.S.
Top: Alexis at a New York City protest in 2012. Bottom: Alexis and his wife, fellow
Senate’s Protect IP Act (PIPA)—legis- MasterClass instructor Serena Williams, at the 2012 Oscars
lation that was intended to combat
copyright infringement and counter-
feiting but could have curbed free claimed “business dad” to his daugh- lessons—like how to ideate products
speech and crippled many web busi- ter with tennis superstar Serena Wil- and services, get funding, compete
nesses. By dialoguing with Reddit liams, he is again pushing U.S. in a crowded marketplace, and adjust
users, leading digital protests, and lawmakers—this time to pass nation- to ever-shifting conditions. But he
voicing his concerns to members of wide paid family-leave legislation. also wants to provide broader
Congress, Alexis helped stymie both And in March 2022 he announced insights, like how to think creatively,
bills. He detailed that fight in his the 776 Fellowship, an offshoot of collaborate effectively, and use the
bestselling 2013 book, Without Their Seven Seven Six that will provide internet as a force for good.
Permission: How the 21st Century mentorship and $100,000 grants to Whatever the nature and scale of
Will Be Made, Not Managed. young people with big ideas on fight- your ambitions, this class can help
Today, Alexis continues to fund ing climate change. you grow. And as Alexis says, “There
progressive startups in a general Alexis hopes that, by taking this is no greater gift to yourself than to
partner role at Seven Seven Six. (He class, you’ll learn to think like an know that, when confronted with
resigned from Reddit’s board of entrepreneur. Of course, he wants to those hard decisions...you did the
directors in 2020.) As a self-pro- pass along many founder-specific absolute best you could.”

5
 The Founder’s Journey
A timeline of key companies that Alexis has started and backed

LEGEND REDDIT
FOUNDED/CO-FOUNDED 2005 News and
INVESTED/CO-INVESTED content forum

BREADPIG
HIPMUNK
Travel-booking
2007 Company helping cre-
ators and supporting
site charities via mer-
chandise sales

DAS KAPITAL CAPITAL 2010 INITIALIZED

Investment, advising, and CAPITAL
consulting company
Investment firm

2011
INTERNET
GRUBWITHUS DEFENSE LEAGUE
Social dining platform With American nonprofit
(through Das Kapital) Fight for the Future

2012

INSTACART SOYLENT
Mobile grocery-shop-
ping app ($2.3M 2013 Meal-replacement
company ($1.5M
through Initialized) through Initialized)

6
 VICARIOUS
Artificial intelligence GUSTO
researcher
($40M through 2014 Payroll, benefits, and
Initialized) HR platform
($20M individual
investment)

PATREON
Crowdfunding
platform 2017 ROMAN
($60M through
Initialized) Telehealth company
($3.1M through
Initialized)

IMPOSSIBLE FOODS 2019 ATOMS

Meat-substitute brand Specialist shoe
($300M through brand ($8.1M
Das Kapital) through
Initialized)

2020
ANGEL CITY FC
SEVEN SEVEN SIX
National Women's
Venture capital firm Soccer League
franchise

2021
LOLLI
PEARPOP
Bitcoin rewards
“Creator collabora- app ($5M through
tion marketplace” Seven Seven Six)
($10M through
Seven Seven Six)
2022

DRONESEED 776 FELLOWSHIP

Wildfire-recovery Climate-focused grant

company ($36M program for young
through Seven creators
Seven Six)

7
HOW TO
SPEAK
STARTUP
Jargon is everywhere in the worlds of entrepreneurship and
investment. Get acquainted with the 59 terms defined here—
but keep in mind the vital importance of plain language
ACQUI-HIRE
A company’s acquisition
of another company pri-
marily for the skills and
expertise of its staff, typi-
cally with little to no inter-
est in the acquired com-
pany’s business model.
Frequently, the goal is to
enter a new business
space and have the
human resources neces-
sary to do it quickly.
ACQUISITION
A more generic term indi-
cating one company’s
purchase of another. This
tactic is often used by
larger companies to gain
the market share, cus-
tomer base, or key innova-
tions of a smaller compet-
itor; Facebook’s 2012
acquisition of Instagram,
for example.
ADVERTORIAL
A portmanteau of adver-
tisement and editorial;
paid content that looks like
a legitimate article or blog
post, as opposed to tradi-
tional display advertising.
ALPHA RELEASE
In software and app de-
velopment, when a small
group of users within
an organization tests a
product to find bugs and
stability problems or col-
lects user data that can
help developers refine
the product.
ANGEL INVESTOR
An investor who puts their
own money behind prom-
ising early-stage startups.
They typically invest less
money for greater equity
than investors who get
involved later, when the
company is more estab-
lished and less risky.
BETA RELEASE
When a small sample of re-
al-world users (nonemploy-
ees) tests a product with
the goal of generating feed-
back and assessing stabili-
ty issues. This typically fol-
lows the alpha release.
BLOCKCHAIN
A shared database that
stores records of transac-
tions, typically made with
cryptocurrencies, along
with other types of informa-
tion. This information is dis-
tributed across multiple
computers linked in a peer-
to-peer network and
secured by protective code.
BOOTSTRAPPING
Funding a business with-
out taking money from
outside investors.
BURN RATE
(OR RUN RATE)
A measurement of the
time it takes to deplete
startup funds. Dividing
capital amount by burn
rate (sometimes factoring
in any existing income)
determines how much
time a company has left
to become profitable or
get an additional round
of funding.
8
BUSINESS TO
BUSINESS (B2B)
The offering of a product
or service to other compa-
nies, typically online.
BUSINESS TO
CONSUMER (B2C)
The offering of a product
or service directly to con-
sumers. The advent of
e-commerce opened up
new B2C horizons.
CHURN RATE
The percentage of cus-
tomers who stop using a
product or service after
a given time frame.
CLIFF
The date on a vesting
schedule (see page 11)
when employees who
have been given certain
perks, like company stock
shares or retirement con-
tributions, receive their
payouts. The cliff date for
shares is often set at one
year in order to keep new
employees motivated. If
an employee quits or is
fired beforehand, they
receive nothing.
CONVERTIBLE NOTE
A bond, offered to inves-
tors, that converts into
equity later on. When an
investor provides seed
financing, instead of get-
ting their money back with
interest they receive pre-
ferred stock once addi-
tional investors provide
further rounds of funding.
9
CROWDSOURCING
The process of collecting
information or content
from people via internet
platforms.
CRYPTOCURRENCY
A decentralized, digital
currency that is ex-
changed over the inter-
net. Cryptocurrency
transactions are recorded
on blockchains (see page
8). Their integrity is main-
tained by cryptography (a
coding system that pro-
tects information and
communication), which
makes cheating the sys-
tem through counterfeit-
ing or double-spending
nearly impossible. The
first major cryptocurrency
was Bitcoin, conceived by
a mysterious character
named Satoshi Nakamoto
and launched in 2009.
CUSTOMER
ACQUISITION COST
(CAC)
The measure of how much
a company needs to
spend in order to gain a
customer. This metric ties
into the marketing bud-
get; the goal is to keep it
as low as possible.
DECK
Also known as a pitch
deck; a slide presentation
that lays out key aspects
of a business. Entrepre-
neurs use decks to sell
potential investors on
their ideas. (See p. 21 for
advice on building a good
pitch deck.)
DISRUPTIVE
TECHNOLOGY
Any tech that changes the
way a segment of com-
merce—or society—oper-
ates. Examples include
the file-sharing platform
Napster, which disrupted
the music industry, and
the ride-sharing mobile
app Uber, which disrupted
the taxicab trade.
EARLY ADOPTERS
The first users of a prod-
uct. Typically they seek
out new offerings and are
vocal critics and influenc-
ers on social media. Com-
panies often court these
consumers in the hope of
creating free buzz.
EQUITY
A piece of ownership in a
company. Investors typi-
cally fund startups in
exchange for equity, hop-
ing the business will suc-
ceed and the value of their
equity shares will increase.
EXIT STRATEGY
A plan to sell part or all of
one’s company or invest-
ment, be acquired or aqui-
hired, merge with another
company, go public with
stock, or otherwise ex-
change equity for cash.
FIRST MOVER
ADVANTAGE (FMA)
A benefit gained by
being the first signifi-
cant player in a market
through technological
advancements, early
purchase of resources, or
the release of a product
or service that is ahead
of its time.
FREEMIUM
A pricing strategy
whereby users are given a
complimentary product or
service and then enticed
to purchase additional fea-
tures, such as improved
audiovisual quality or
community connectivity
GROWTH HACKING
A marketing technique
to quickly acquire users
or customers through
nontraditional and inex-
pensive means, such as
social media.
HOCKEY STICK
GROWTH
The curve many investors
want to see as their busi-
nesses develop, where a
brief, relatively stable
period hits an “inflection
point” followed by drastic
growth; on a graph, the
resulting line looks like a
hockey stick.
INCUBATOR
A program that provides
entrepreneurs with men-
torship, consulting, net-
working, capital, and/or
physical space—often in
exchange for an equity
stake—to aid in the suc-
cess of chosen startups.
(Similar programs known
as accelerators provide
services to more estab-
lished startups.)
INITIAL PUBLIC
OFFERING (IPO)
The process of a business
first making its stock avail-
able to the public. Also
known as “going public.”
INTELLECTUAL
PROPERTY (IP)
An original creation or in-
vention, the use of which
requires the permission
of its creators. Creators
and businesspeople pro-
tect their IP using patents
(design), trademarks
(brand), and copyrights
(creative content, such as
a film, piece of music, or
work of art).
ITERATE
To release successive
versions of a product
or service with modifi-
cations made based on
previous versions.
LAGGARDS
People who use a product
or service later than other
customers. They are the
opposite of early adopters.
LAUNCH
To introduce a new com-
pany, product, website, or
app to the marketplace. A
“hard launch” is when a
company releases a com-
pleted product in its
entire target area. A “soft
launch” is when a com-
pany releases a product in
a limited area, seeks mini-
mal press exposure, and
monitors performance
and feedback to improve
its product before releas-
ing more widely.
LEVERAGE
The act of using a technol-
ogy, business relationship,
or opportunity to acceler-
ate growth or success.
LOSS-LEADER
PRICING
The act of selling some-
thing for less than its pro-
duction cost as a form of
marketing expense to
attract customers.
MARKET
PENETRATION
A measure of the sales,
adoption, and presence of
a product compared with
its total market. Market
penetration also refers to
methods used to increase
the market share (the per-
centage of sales a compa-
ny can claim within its in-
dustry) of a product.
MICRO-TARGETING
A marketing strategy that
uses detailed consumer
data and demographics
to create consumer sub-
sets, predict like-minded
buying behavior, and
tailor advertising.
MONETIZE
The act of converting a
non-revenue-generating
asset into a revenue
source—say, by running
ads on a YouTube channel.
MINIMUM VIABLE
PRODUCT (MVP)
An early, basic iteration of
a product, released with
the goal of attracting beta
users and early adopters.
A successful MVP pro-
vides proof of concept to
potential investors and
elicits feedback that can
inform future product de-
velopment. (Learn more
about MVPs on page 24.)
NONDISCLOSURE
AGREEMENT (NDA)
A legal document that
protects a company’s
sensitive information—
such as proprietary code,
formulas, and customer
information—by holding
signatories liable for
damages that could arise
from a leak.
NON-FUNGIBLE
TOKENS (NFTs)
Digital assets on a block-
chain (see page 8) that
have unique identification
codes and metadata
(data that provides infor-
mation about other data).
Unlike cryptocurrencies,
which are “fungible”
(identical and mutually
interchangeable) and can
be used for commercial
transactions, NFTs can’t
be exchanged as cur-
rency, because they are
unique and unreplicable.
The tokens can, howev-
er, represent real-world
items like artwork and
real estate and also can
be bought, sold, and trad-
ed. Their uniqueness is
meant to prevent fraud.
PIVOT
The act of course correct-
ing a company with a new
business strategy to
achieve greater success.
Businesspeople often
pivot to new ideas when
user feedback on their
product or service is over-
whelmingly negative and
the future of the business
is in doubt.
PRODUCT-MARKET FIT
The degree to which a
product or service reso-
nates with a population; in
Alexis’s words, “a good fit
between the product
you’ve built and the market
that wants it. That is: People
like what you’re building.”
10
RETURN ON
INVESTMENT (ROI)
A metric of profitability,
compared with money
invested, that expresses
how much investors stand
to gain based on their
monetary contributions.
RUNWAY
The amount of time that a
business can operate
before it runs out of funds.
Founders typically priori-
tize calculating their run-
way so they can seek addi-
tional investment before
their business goes broke.
SCALABILITY
A measure of how big a
company can get, how
much demand it can
accommodate, and which
markets it can grow into.
Investors want to know
that a business can main-
tain or even increase its
level of performance as
larger operational
demands arise.
SEED
A startup’s first round of
funding, often bestowed
by an angel investor (see
page 8), so that it can
start its operations.
SERIES A, B, AND C
Rounds of funding fol-
lowing seed that allow
a startup to continue
developing its products.
Series are also known as
stages: startup, formative,
and mezzanine. Addition-
11 
al funding rounds, also founders have secured.
represented by sequen- Valuation occurs at every
tial letters, may follow. round of funding.
STARTUP VENTURE CAPITALIST
A nascent company that (VC)
typically aims to disrupt A private-equity investor
its market via investment who invests their firm’s
and large-scale growth UNICORN money in companies in
and sales. Startups differ The rare startup that has a exchange for equity
from small businesses, value of $1 billion or more. stakes. They typically
many of which are intend- invest larger amounts of
ed to generate revenue UNIQUE SELLING money than angel inves-
immediately and focused PROPOSITION (USP) tors, and because they
on smaller sales. The key The most distinctive fea- invest on behalf of insur-
to a successful startup? ture of a product or ser- ance companies, pension
“Relentless resourceful- vice; also known as unique funds, foundations, corpo-
ness,” says Alexis. selling point or unique rate pension funds, and
value proposition. wealthy individuals, they
SWEAT EQUITY are primarily focused on
Labor performed by USER ACTIVATION later-stage startups.
founders or employees The process of convert-
without immediate ing a prospective user VESTING
monetary compensation. into an active one on a Access to benefits or
In these cases, compen- website or app. This can financial perks that
sation often comes in be measured by number employees gain after
the form of shares or a of clicks, time spent on being at a company for a
stake in the company; if your product, pages certain amount of time.
the company succeeds, viewed, upgrades to Vesting is used to keep
share value can increase higher-tier accounts, employees passionate
dramatically, so sweat and more. Activation and loyal to the company.
equity can be used as rate is the numerical
both a recruitment and a measurement of this WEB3 (OR WEB 3.0)
motivational tool. next-level engagement. A largely theoretical ver-
sion of the internet that is
TERM SHEET USER EXPERIENCE (UX) decentralized and runs on
A document that outlines The way a user feels while public blockchains. Users
what an investor gets in interacting with a website, would own portions of the
exchange for the money app, product, or company. internet and, according to
they put into a company, some theorists, would not
such as ownership per- VALUATION have to access it through
centage and voting rights. A measure of a compa- services provided by large
ny’s worth. “Pre-money” private corporations.
TRACTION valuation is its value prior
Proof that people are to taking on investment,
using your product or and “post-money” is that
services. value plus the funding its
 Alexis at the Robin
Hood Benefit 2022,
where he pledged $25
million through his 776
Foundation to fight
poverty in New York

12
 SELF-MOTIVATION

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13 
The
Entrepreneur’s
Brain
Ideas are just the beginning
Entrepreneurship, with its high stakes
and higher hurdles, is not for every-
one. More often than not, success
requires a certain set of mental traits.
Check out the following pages and
ask yourself: Where do I excel? Where
could I grow? Which of these traits
could a collaborator add to the mix?
DILIGENCE
If something needs doing, you
need to do it—period. “You cannot
leave the job at the end of the day,”
says Alexis. “You’re going to have
decisions where you decide to forgo
time with friends, time with family,
time with your partner, time for
yourself.” That said, it’s also import-
ant to avoid burnout: “You will not
be your best self for others unless
you are taking care of yourself.”
PASSION
Deep belief and a sense of purpose
can fuel hard work and convert
strangers into evangelists. If you’re
one of those who “just know in their
bones [that] this is what they have to
do,” as Alexis puts it, every win will be
extra sweet because of the sweat
(and love) you’ve put in.
CREATIVITY
The marketplace is full of competi-
tors; you need to be an original
thinker to differentiate your com-
pany. The ability to see how seem-
ingly unrelated things can be com-
bined to solve problems—and to
dream up new systems or novel ways
of using existing ones—will take you
places. As Alexis says at the top of
the class, “It starts with an idea.”
CONFIDENCE
Entrepreneurship will test you
constantly, and you must believe
wholeheartedly in your ideas,
knowledge base, and skills in order
to succeed. Well-grounded con-
fidence also protects you against
defensiveness, which is a red flag
for Alexis: “It’s a bad indication if a
founder is so insecure about their
ideas that they get defensive and
combative in a pitch meeting.”
SELF-MOTIVATION
As an entrepreneur, you can’t expect
anyone to encourage you or even
particularly care if you succeed.
You’re chasing your dream, poten-
tially blazing a trail in the process.
You need to greet challenges instead
of backing down from them. “So
14
many of the best resources for exe-
cution are very accessible,” says
Alexis. “It’s up to you to actually take
advantage of them.”

FLEXIBILITY

Things will inevitably go awry. When

the time comes to iterate or pivot
(two common startup terms; find
their definitions in the glossary
starting on page 8), you need to
be willing to fail, adapt, and move
forward. “There is no blueprint,”
Alexis says of the founder’s journey.
“Resilience and [the] ability to adapt
is what really separates successful
founders from ones who aren’t.”

CURIOSITY

Like everyone else, you could fill a

library with what you don’t know.
What matters is that you’re con-
stantly learning. Building a business
forces you to handle jobs that you
might know little about. “Early on, you
have to be willing to wear all the hats,”
says Alexis. “That scrappiness needs
to infect not just the founding team
but even those early employees.”

SELF-AWARENESS
Knowing your strengths and weak-
nesses will help you direct your
curiosity and delegate effectively.
As a founder, it’s your responsibility
to hire people who are better than
you at key jobs within your business.
Finally, resist the urge to bluff your
way through meetings: “It’s much
better as a founder to just say ‘I don’t
know’ in that situation.”
COURAGE
It is, of course, crucial to think
clearly and carefully, especially in
risky situations. But ultimately you
need to be able to move forward,
even when there’s a chance you’ll
fail. “You have to have a solution
mindset: ‘Okay, I see a problem and
I have an idea for what could be a
solution, and now I’m gonna try it,’
” says Alexis. When you fail, chalk it
up as another opportunity to learn.
SOCIABILITY
Not every founder is a social
butterfly, and that’s fine. Neverthe-
less, a good network of mentors,
partners, and peers is essential.
According to Alexis, “The work that
you’re doing to build these net-
works and surround yourself with
people who are additive to your
life will have a huge impact on
your outcomes, both professionally
and personally.”

15 

COMPETITIVENESS
Business is cutthroat. You need to be
up for the constant struggle and be
driven to win. That said, you don’t
need to fight dirty. And make sure
that healthy competitive streak
doesn’t turn into obsession. Alexis
puts it more bluntly: “Pay attention to
your competitors’ customers; don’t
pay attention to your competitors.”
PRUDENCE
You’ve got to be good at managing
money; if that’s not your strength,
partner with someone who can mind
the books. The long-term health of
your business relies on sensible
overhead management and judi-
cious accounting. Alexis suggests
you have a smart and well-reasoned
answer to the question he or any
investor will ask: What are you going
to do with the money?
INTEGRITY
It’s more important than ever to think
beyond your company’s bottom line.
Corporate responsibility is a huge
factor in the health of our society and
planet; young people, especially, are
demanding that business leaders act
accordingly. Alexis: “The very best
founders, the most successful CEOs
are going to have to think about, ‘How
will my company fit into the broader
society that it’s going to shape?’ ”
ASSIGNMENT
TURN IRRITATION
INTO IDEAS
Using a notepad or note-taking
app, start a record of everyday
things that annoy or frustrate
you. They could be digital (my
phone plan is a rip-off) or
analog (my dog’s harness
keeps falling off). Keep your
eyes open and remember what
Alexis says: “Chances are if
you’re upset by something,
there is a good business oppor-
tunity there.” After you’ve done
this for a week, pick one item
and spend ten minutes brain-
storming solutions. How could
your fix be realized as a new
product or service?
BONUS
Use your most robust social
media account to ask your fol-
lowers a simple question:
“What’s bothering you?” Add the
responses you get to your list.
16
CAN’T CODE?
NO PROBLEM
With these 7 resources, entrepreneurs
can leave the bytes to the bots
One common misconception in
entrepreneurship is that founders
must know how to write computer
code. In reality, there’s an ev-
er-growing array of low-code and
no-code platforms designed to
save aspiring founders both time
and money. While low-code plat-
forms require familiarity with docu-
mentation (images and written
descriptions that explain how your
code works) and some understand-
ing of the code’s syntax, no-code
platforms typically feature intuitive,
visually focused designs. Check
out the platforms available to
nontechnical entrepreneurs and
teams—and remember to research
the latest offerings when you’re
building your business. This indus-
try moves fast.
WEBSITE BUILDERS
Basic e-commerce websites no lon-
ger require an expensive team of
designers and engineers. Tools like
Webflow, Wix, and Squarespace
help you design, build, and launch
responsive marketing sites (that au-
tomatically react to your audience
and customers) using templates and
customization features.
17 
MOBILE APP BUILDERS
Got an idea for a simple app? Tools
like Bubble, Flutter, Glide, Draftbit,
and AppSheet will let you develop it
using a visual editor. You can also
connect your user interface to dif-
ferent data sources like Salesforce
and Excel.
ADVANCED SPREADSHEETS
For businesses requiring spread-
sheets or project trackers with
serious functionality, products
like, Airtable, Smartsheet, and Coda
allow you to map your basic business
processes using live data, plug-ins,
and other components. They offer an
array of cell types and formatting op-
tions to suit your project and they’re
“Creating something online today is
as low-cost as it has ever been, and
it’s only getting cheaper. So when we
talk about the cost of you starting
something today, it’s really time.”
great for ensuring data consistency
across multiple forms.
BACK END
If your website or app has a relatively
simple back end—the part of your
system, invisible to users, that stores
and manages data—tools like Xano
and Backendless might be a boon.
These products create data struc-
tures (through which data is orga-
nized for processing, retrieval, and
storage) and application program-
ming interfaces (programs that allow
apps to communicate with each oth-
er) without coding. If you’re creating
a mobile game, for example, this will
allow you to save and manage user
settings in the cloud without exten-
sive coding know-how.
— ALEXIS
E2E PLATFORMS
Exchange-to-exchange, or E2E, re-
fers to the “exchange” between web-
sites or apps, such as an e-commerce
site that links to another site to pro-
cess payments. In lieu of hiring a
development team to support client
relationships or internal operations,
you can try no-code app builders like
Mendix, OutSystems, and Betty
Blocks that have E2E features. They’ll
help you build web and mobile apps
with user interfaces and back-end
business logic for tasks like onboard-
ing and order management.
INTEGRATION SERVICES
With services like Zapier and Make
(formerly Integromat), you can auto-
mate repetitive tasks between two or
more apps, such as entering infor-
mation into spreadsheets or sending
a message from all your social plat-
forms at once. Their visual workflow
builders let you connect two or more
data sources and map different kinds
of data using an intuitive interface.
INTERNAL TOOL BUILDERS
Instruments like Retool and Internal
automate business processes by
pulling data from different sources
(something even small businesses
need nowadays), displaying it all in
a single place, and submitting it to
other sources. Instead of collecting
information from one system, validat-
ing it in another, then writing it into
additional systems, you’re free to fo-
cus on perfecting your product.
WANT TO LEARN
CODING ANYWAY?
START HERE WHICH LANGUAGE
TO LEARN?
Consider enrolling in an
online bootcamp, look- There are hundreds of
ing for beginner classes programming languages;
or books at your library choosing the best one for
or community center, you depends on your
searching for a local goals. If you want to work
tutor, subscribing to on projects related to
YouTube channels Apple’s mobile operating
focused on coding, or system, iOS, Objective-C
scrolling through rele- might work for you; Java
vant message boards. is a popular choice for
You might also explore Google’s Android system.
certain demograph- JavaScript (which is not
ic-specific opportunities: part of the Java platform)
Dozens of organizations allows you to code
offer coding-school user-facing web pages,
scholarships and grants while Ruby and Python
for women, racial minori- are options if you want to
ties, veterans, and write back-end code for a
LGBTQ+ people. What- server or data process-
ever you do, practice ing. Many programmers
regularly, use a debug- recommend Python and
ger (a tool designed to JavaScript for beginners
locate errors) so you can because they’re relatively
learn from your mis- easy to learn and provide
takes, and share your a solid foundation in pro-
work with other coders gramming logic and syn-
on platforms like Stack tax. Do a little research
Overflow to get con- based on the product you
structive criticism. want to build.
18
The Golden Age of
Entrepreneurship
Founders come in all shapes and sizes—
and hit it big at all ages

Alexis was twenty-two years old when Reddit

launched, so his story might make it seem
like you have to be closer to the womb than
the tomb to launch a successful company.
Not true. Founders of all ages have achieved
great things; in fact, California-based investor
Ali Tamaseb, in his 2021 book Super Found-
ers: What Data Reveals About Billion-Dollar
Startups, shows that half the founders of
billion-dollar startups are at least thirty-four
years old. Check out these founders and re-
member that time is, in this sense at least, on
your side.

Age
22
ALEXIS OHANIAN
FOUNDED: Reddit

19 
Age Age
19 29
BILL GATES EMILY WEISS
FOUNDED: Microsoft FOUNDED: Glossier

The American entre-

preneur’s e-commerce
platform for user-friendly
Age
and affordable skincare
21 and beauty products grew
STEVE JOBS out of Into the Gloss, a
FOUNDED: Apple beauty and lifestyle blog
she launched while work-
ing as an assistant at the
American fashion maga-
zine Vogue. She ran the site
Age
in the early morning hours for a year before its growing
25 traffic allowed her to quit Vogue and focus on the blog.
WHITNEY WOLFE
HERD THE TAKEAWAY: You can turn side projects into your
FOUNDED: Bumble main hustle, but you’ll have to sacrifice your time and
energy to make it happen.

Age
28
Age
LEAH BUSQUE
FOUNDED: TaskRabbit
30
JEFF BEZOS
The simple need to FOUNDED: Amazon
buy dog food one
night sparked the After leaving his job at a
Massachusetts-bred hedge fund in 1994, this
software engineer’s American businessman
idea for an online founded Amazon.com
marketplace that as an online bookseller
pairs freelance labor before diversifying the
with local demand— company’s product
proving that ideas can offerings in 1998 and go-
come from the most ing on to become one of the world’s wealthiest people.
mundane places. Many founders (Alexis among them) have made their
fortunes on companies that look nothing like what was
THE TAKEAWAY: initially envisioned.
Always be on the look-
out for problems that THE TAKEAWAY: Be flexible and prepared to pivot to
you could solve with a a new business model if the need arises.
new product.

[Continued]

20
 Age Age
32 47
JAN KOUM BOB PARSONS
FOUNDED: WhatsApp FOUNDED: GoDaddy

At age sixteen, Koum and his In 1984, thirteen years

mother moved to California from before he founded his
their native Ukraine. Following a web-hosting giant, Par-
nine-year stint at American web sons, an American
services provider Yahoo, he con- entrepreneur and mili-
ceived an app that would allow tary veteran, taught him-
users to share status updates. self to code and founded
This simple idea morphed into a tax software company
one for a free global messaging from his basement. He
app, which social media giant Facebook acquired in 2014 for eventually grew the
$19 billion. It took Facebook founder Mark Zuckerberg some business to employ
two years to secure the deal; Koum wanted to make absolutely more than a thousand
sure he and his cofounder could maintain a measure of inde- people and, in 1994, sold
pendence. He signed the Facebook deal at a building where, it for $64 million.
years before, he had collected food stamps.
THE TAKEAWAY: You’re
THE TAKEAWAY: Most big ideas need time to evolve. And it’s never too old to learn the
vitally important to be clear on what parts of your business you skills that will get your
value the most—and fight for them if you need to. business off the ground.

Age Age
32 41
ELON MUSK ERIC YUAN
FOUNDED: Tesla FOUNDED: Zoom

In 2011 Yuan left a

plum job with Ameri-
can tech giant Cisco,
Age
frustrated by the
34 clunkiness of its video
JACK MA conferencing soft-
FOUNDED: Alibaba ware. Then he made
his own, and in 2020
Zoom cleared 300 mil-
lion daily participants. Age
Age
THE TAKEAWAY:
55
38 Simply improving a ARIANNA
CHER WANG familiar type of product HUFFINGTON
FOUNDED: HTC can be revolutionary. FOUNDED: HuffPost

21 
ASSIGNMENT
COMMUNITY-BUILDING BRAINSTORM
When it comes to rallying people around your company, Alexis has three words: “Give a damn.”
Caring for your present and future customers is paramount, whether you’re courting them on
social media or winning their loyalty after a purchase. The following questions will help you
identify how you can catch the attention of strangers and engage them in broad, open-ended,
and even profitable conversations.

WHO ARE MY PEOPLE?
Lean on friends, family,
coworkers, and acquain-
tances to try your product,
follow your company’s social
media accounts, and provide
feedback. You might be sur-
prised at the community you
already have. And your inner
circle’s activity can help
attract strangers.
WHAT CAN I OFFER?
This is about more than your
product; in order to build a
community you need to cre-
ate content—articles, visuals,
memes—that has intrinsic
value. Let the interests and
concerns of your desired
users inform the pieces you
develop, and be sure to post
frequently and consistently.
HOW WILL I SURPRISE
AND DELIGHT?
Virtually every facet of your
brand can be customized.
Alexis is a believer in fun graph-
ics, quirky web copy (even the
error pages), and other details
that make users feel like they’re
in a unique space created by
people who actually care about
their experience.
WHO’S OUT THERE?
Once people start engaging
with your product or content,
get in touch with them.
Respond to their comments
with gratitude and curiosity.
The rewards are twofold:
You’re building customer loy-
alty while gaining ground-level
information about your brand.
WHAT’S MY SWAG?
Think about merchandise that
your community might like.
Basic offerings include stick-
ers, mugs, and T-shirts, but
other options might be partic-
ularly well suited to your
brand. The email marketing
platform Mailchimp, for exam-
ple, generated excitement
and media coverage by offer-
ing stuffed animals modeled
after their simian mascot.
WHOM WILL I FOLLOW?
Pick ten social media
accounts run by people or
organizations in your target
industry. Whenever a post
catches your eye, retweet
and/or reply to it. Depending
on the platform, you might
also benefit from the use of
relevant and robust hashtags.
WHERE WILL I WEIGH IN?
Pick five media outlets where
your background and opin-
ions are the most relevant and
leave comments on one story
in each. Remember Alexis’s
remark that, for budding
founders, small publications
can be just as important as
major “incumbents” (such as
newspapers of record and
well-established magazines).

22
How to Create a
Great Pitch Deck
Selling your idea, one slide at a time

Unless you’re wealthy or have very generous friends and family, you’ll
need to convince investors to back your business. This is often done
through an in-person pitch, which is typically delivered along with a
deck—a slide presentation that highlights essential information about
your product, business plan, fundraising needs, and key metrics. To
ensure that your pitch deck is impressive and effective, use the following
tips and remember what Alexis says about the investor’s perspective:
“What we’re looking for is that you’re compelling.”

RE EMPHASIZE STORY, NOT STATS

HE
RT Metrics are crucial, but narrative is much more
STUDY UP
A

engaging and memorable. Paint a picture of

ST

your company and how customers will use your

Before you start building your product or service to improve their lives. That
deck, look at existing examples way, investors can personally relate to your
prepared by successful companies. business and share in your vision.
Facebook, LinkedIn, and Airbnb are
among the major companies that
have posted decks online. Refer
back to these as you develop
your own presentation.

BE STRAIGHTFORWARD

Fight the urge to bury investors under an

avalanche of information; when it comes to a
deck, less truly is more. The best way to engage
investors is with clear, uncomplicated content
that’s formatted in bullet points and paired with
eye-catching graphics. Alexis also advises
against using industry jargon. “I want to
hear something explained to me in as
plain English as possible,” he says.

23 
 LOOK SHARP

Consider hiring a graphic designer to make

your deck aesthetically pleasing, or check out
some simple presentation software; chances
are you already have at least one such applica- SEND AHEAD
tion on your computer. Use complementary font
sizes, colors, and header styles throughout. If Some experts recommend
your nascent company has a logo, put it front that you provide investors with
and center and make sure the deck design your deck in Portable Document
follows its visual cues. Format (PDF) form before your
presentation; that way, they can
read it and have it for reference
later. For your presentation,
supply everyone with
printouts.

SHOW AND TELL

If you have already launched your

product or have a prototype, offer a
brief demonstration. This will give
investors a better understanding of
what they would be funding and
why they should.

PROTECT YOURSELF

At the bottom left of your pitch deck’s

cover page, include a short statement
to safeguard your work. This is usually a
few short sentences in a standard format,
and can be easily found online. (In the U.S.,
UPDATE REGULARLY
you use the following: “Confidential and
Proprietary. Copyright (c) by [Name of
You’ll probably need to pitch multiple
Company]. All Rights Reserved.”)
investors before you secure funding.
Prior to each presentation, ensure your
deck has the latest information, includ-
ing industry-wide changes and shifting
metrics within your company, to avoid
presenting out-of-date information
and appearing unprofessional.

24
CHECK YOUR DECK
No two decks are alike, and the precise order of your slides
will depend to a large extent on your product and brand identity.
But make sure you at least touch upon every item below.
INTRODUCTION
Present your company’s
name (and logo, ideally)
and explain your business
in simple terms.
MISSION
This is the most concise
expression of your com-
pany’s main goal. It should
include your unique value
proposition: the feature
that will make your prod-
uct or service stand out
from the competition. This
slide can also provide a
frame of reference by
comparing your company
with existing products
(e.g., “It’s Google Translate
for pet owners”).
PROBLEM
Identify a pain point in
your industry to tee up
your product and the rea-
sons it’s needed in the
marketplace (points that
you’ll cover in subsequent
slides).
SOLUTION
Illustrate how your busi-
ness solves the problems
of your target market. Con-
sider doing this narratively,
with relatable stories of
customers and how your
product improves their
lives, using visual elements
such as photographs,
screenshots, and videos.
25 
PRODUCT
In addition to lending a
crystal-clear sense of
what you’re building, your
deck should answer the
question, “What makes it
unique?” Use a range of
media, and ideally a demo,
to show off your product.
TECHNOLOGY
If your product features
new technology, highlight
it for investors. Explain
how it works and why it’s
better than what’s out
there now.
TARGET MARKET
Every product is aimed at
a specific group of people
who share common char-
acteristics. Identify yours
and provide information
on the competitive land-
scape for your business
and the opportunity to
succeed within it, includ-
ing the market size for
products like yours.
COMPETITION
Demonstrate a deep
knowledge of who your
competitors are, what they
do, and how they represent
the market. Never under-
estimate or belittle them;
draw from competitive
analysis to provide infor-
mation about what makes
your product superior.
TRACTION
Already have a product or
prototype? Reassure risk-
averse investors with a
slide to show that people
are actually buying and
using it. Provide any
month-over-month
growth with a simple bul-
leted list of milestones
such as web traffic, annual
revenue return rate, profit
margins, press, and any
testimonials. (See the note
about minimum viable
product on the next page.)
 USINESS MODEL
B your company could sub-
Let investors know how
you intend to generate
revenue, how you will price
your product, and how
much it will cost to win
over each new customer.
TEAM
Instill confidence in your
company’s ability to mar-
ket and sell your product
by listing key team mem-
bers and detailing how
their expertise, experi-
ence, and connections
give your company a com-
petitive advantage.
MARKETING AND
SALES STRATEGY
Detail how you’ll advertise
and sell your product to
your target market. Show
investors that you under-
stand your market size,
that you’re equipped to
reach potential customers,
and that your marketing
approach differs from that
of your competitors.
FINANCIALS
Use infographics to illus-
trate your company’s
financial health, which
investors typically want to
see over a three- to five-
year period. Share your
income statements, pro-
jected growth, and burn
rate (the amount of time
sist on a given amount of
investment), and be realis-
tic about growth; other-
wise, investors might sus-
pect you don’t know what
you’re talking about.
I NVESTMENTS
AND FUNDING
Clearly state the amount
of money you need to fund
your business. Entrepre-
neurs sometimes forget
this step, despite fundrais-
ing being the entire point
of a pitch deck. Explain
how you’ll spend funds to
achieve your company’s
goals so investors know
they can trust you with
their money—but don’t
provide excessive financial
details. Those can be
shared during a follow-up.
 DECK OR MEMO?

A memo can be an effective alternative to a

deck. But what is a memo, exactly? And is it
the better option for you?

In his class, Alexis reveals that he’s been receiving a

lot of memos—text-centric documents that lay out
a startup’s vital information without relying on
in-person presentations—from founders seeking
investment. “The memo format actually works real-
ly well,” he says, adding that it can be “a really nice
alternative to a PowerPoint presentation.”
Memos come with a key advantage—and a steep
challenge: They can stand alone, but they require
exceptional language skills. (Y Combinator, the incu-
bator that once provided seed money to Reddit, is
one of several startup-related entities offering
memo templates.) When the time comes to contact
investors, do an honest self-appraisal to determine
the best format for your pitch.

IS MY PRODUCT HOW MUCH

I WANT MY MVP
It’s ideal to have a minimum
viable product, or MVP—your
product in its simplest form, with just
enough features to attract users and
elicit feedback—on the market.
It doesn’t need to be perfect;
a good start is good
enough.
DESIGN-HEAVY?
If you intend to offer a
product whose appeal
is largely aesthetic,
prove your design
savvy with a visually
arresting deck.
AM I A STRONG
WRITER?
A good memo tells a
startup’s story in clear,
vivid, and compelling
language. It’s an op-
portunity to showcase
your intelligence and
present a unique voice.
AM I A STRONG
PRESENTER?
If one of your main
strengths is the ability
to command a room,
opt for a deck and use
the presentation to
make an indelible
impression.
TIME DO I HAVE?
If you’re pitching widely
while scrambling to
build your business,
you might not have
time to present to
every investor on your
list. A memo can excite
them—or allow them
to decline without the
additional step of a
pitch meeting, saving
time for both parties.
ARE MY STAKE-
HOLDERS 100
PERCENT ALIGNED
ON THE COMPA-
NY’S VISION?
If not, a memo can
double as a definitive
resource for your team
and a way to update
any investors you’ve
already secured. And
the process of writing
it might even make you
clearer on your goals
and challenges.

26
27 
A Rough Guide to
Modern Fundraising
Every brilliant idea needs smart money behind it. Once you have
your pitch deck (and, ideally, your minimum viable product), it’s
time to secure funding. Fortunately, there are more ways than ever
to do so. Familiarize yourself with the different methods available,
then consider which are best for your business and ambitions.
BOOTSTRAPPING
Using only your existing
resources—like savings
accounts, personal or
small-business credit cards,
or the selling of personal as-
sets—to fund your business.
PROS: This can be a simple
and quick way to get started.
You don’t need to pitch a
parade of investors, give up
equity in your business, or,
depending on where you live,
pay compliance costs to
ensure you’ve adhered to
regulations for raising capi-
tal. Plus, betting your own
money on your idea could be
a source of motivation.
CONS: The financial risk to
you is significant. The
related pressure and stress
might affect your ability to
focus on your product.
FRIENDS AND FAMILY
People close to you fund your
business with informal loans.
PROS: Like bootstrapping,
this option can save you
time and money. Loved
ones will likely be more flex-
ible and forgiving about
repayment and interest,
and, if you succeed, they’ll
benefit financially. (Be sure
you have a written agree-
ment that outlines how the
money will be repaid.)
CONS: You could end up
losing your loved ones’
money and trust, souring
those relationships. Your
business—no matter how
confident you are in its
potential—may not be
worth that risk.
28
 SMALL-BUSINESS LOANS
A lender such as a local
or community bank funds
your business.
PROS: While these types of
loans can vary depending
on the country, community
banks in the U.S. are more
likely to support local busi-
nesses (especially brick-
and-mortar establishments
that boost the local econ-
omy) than are national
banks. Typically the lender
doesn’t have a say in how
you manage your business
and won’t be entitled to the
profits you generate. Also,
the U.S. Small Business
Administration connects
small businesses with lend-
ers; SBA loans are backed
by the federal government
and offer more flexible
repayment terms than stan-
dard bank loans.
CONS: If your credit is bad
and you can’t secure credit
approval, you may not quali-
fy for a loan—or only qualify
for high-interest loans or
ones that require you to put
up personal assets, such as
your car or home, as collat-
eral. Repayment of your debt
may burden you while you’re
getting established and ulti-
mately tank your business.
29 
CROWDFUNDING
Raising money from early
adopters and fans through
online platforms, typically in
exchange for special products
and services.
PROS: A crowdfunding
campaign can help you
assess your business
model, gauge interest in
your product, and build
both marketing buzz and a
community, all of which can
attract additional invest-
ment in your project. And
unlike traditional investors,
the crowd that funds you
doesn’t necessarily get
equity in your company.
(Every crowdfunding plat-
form works a little differ-
ently, so make sure you
understand the rules and
fees before choosing one.)
CONS: Securing funding in
small increments from a
number of people in the
competitive crowdfunding
space can take time. Most
crowdfunding sites are
geared more toward fund-
ing individual projects, like
video games and gadgets,
than entire businesses.
ANGEL INVESTORS
Individual investors who put
their own money behind prom-
ising early-stage startups,
often in exchange for equity.
PROS: Unlike the many
investors who won’t provide
financial backing until your
business is at least
somewhat established,
angel investors are often
willing to take risks on
promising companies that
are still gestating. They also
tend to be successful
businesspeople whose
experience and contacts
can be invaluable. Make
sure all parties are clear on
what level of involvement
you want from them.
CONS: In exchange for early
support, angel investors
often take greater equity for
less money than venture
capital firms might be able
to offer. And not all angel
investors want to be heavily
involved in the businesses
they fund.
STARTUP ACCELERATORS
Organizations that provide
entrepreneurs with mentor-
ship, consulting, networking,
physical space, and sometimes
even financial investment in
exchange for an equity stake.
PROS: While helping you
further develop your startup
through a rigorous process
of honing your idea, accel-
erators like Y Combinator,
500 Startups, and Techstars
(the first two based in Cali-
fornia and the last in Colo-
rado) connect you with
other would-be entrepre-
neurs in your class, as well
as potential mentors and
investors. Some accelerator
programs culminate in a
pitch day, when participants
can share their ideas with
multiple investors and firms.
CONS: There’s a lot of com-
petition to get into accelera-
tors, and the application
process can be lengthy.
You’ll need to have a rock-
solid business plan and a
strong pitch ready before
you apply.
VENTURE CAPITAL
Financing by firms that invest
money on behalf of individu-
als, insurance companies,
foundations, and other organi-
zations into companies with
high growth potential in
exchange for an equity stake.
PROS: Of all the financing
options available, VCs tend
to place the largest bets on
businesses—sometimes
tens of millions of dollars. If
your business is larger and
requires that level of invest-
ment, venture capital may
be your best option.
CONS: Securing VC fund-
ing is quite difficult. Since
VCs invest large amounts
of money, they tend to be
highly selective and priori-
tize businesses they
believe will generate huge
returns and successfully go
public on the stock market.
They often look for lat-
er-stage startups that
already have proof of large
revenue growth, so yours
may not qualify.
STARTUP PITCH
COMPETITIONS
Contests in which entrepre-
neurs build products or pre-
pare business plans and pitch
them to groups of investors.
PROS: In competitions like
Y Combinator Demo Day,
TechCrunch Disrupt, and
Collision, you can get
expert feedback, expand
your network, and build
momentum for your busi-
ness. If you win, you could
receive a cash prize or capi-
tal from interested inves-
tors in the audience, as well
as business resources and
media coverage.
CONS: Pitching to investors
can be stressful in any cir-
cumstances, but putting
your product and business
plan up against other peo-
ple’s and pitching on stage
in front of an auditorium of
angel investors, venture
capitalists, and competitors
can be terrifying. It’s not for
the fainthearted or those
suffering from stage fright.
30

PARTNERSHIP AND
LICENSING DEALS
A startup symbiotically links up
with an established company.
PROS: Partnerships and
licensing deals can save you
the hassle, risk, and expense
of trying to market your
product independently. They
can also reduce the amount
of funding you need by cut-
ting the costs of establishing
your own supply chain and
marketing strategy.
CONS: Funding might be
limited to an advance on a
first order to help you scale
up your manufacturing, and
it may stall any plans you
have to be independent and
grow your brand.
INITIAL COIN
OFFERINGS (ICOs)
A means to raise money by
creating and selling cryptocur-
rency—a digital and decentral-
ized money system secured by
cryptography. Instead of issu-
ing debt or equity, you create a
new digital token or coin and
“sell” it through ICO trading
platforms in exchange for cash
(or other cryptocurrencies, or
goods and services).
PROS: Service providers
help you handle every step
of releasing a new crypto-
currency. You can tap into
existing networks used by
index funds or incubators
for their own ICOs, so you
don’t have to develop your
own blockchain network (a
ledger that records the
provenance of digital
assets). This frees you up to
focus on your product.
BARTERING
Trading your services to
another business or person in
exchange for something you
need, such as office space.
PROS: Cash in hand is
great, but bartering can be
a solid way to save money
so you can stretch your
existing resources further.
CONS: Most people prefer
to be paid in cash for their
goods and services, so find-
ing a business that’s willing
to swap with you could be
difficult. And any time you
spend on services in trade is
time you can’t spend on
your primary focus: devel-
oping your business.

CONS: If your product

doesn’t deliver as promised,
the value of your cryptocur-
rency can tank. Govern-
ments and regulatory bod-
ies in the U.S. likely will pay
more attention to ICOs in
the future, which could
result in rules and fees for
you. Finally, cryptocurrency
is flat-out confusing to
many people. If the concept
is beyond you, you’re proba-
bly better off sticking to
more traditional methods.

31 
 FUNDRAISING DOS

Build a pitch deck Explain money

with a business model needs, timelines, and
ready as soon as you milestones clearly.
possibly can. Vagueness suggests
an unclear vision.
Have proof that your
business model Strike a balance be-
works—and, if possi- tween product features
ble, a minimum viable and business concerns
product (MVP)—be- when presenting.
fore you seek funding.
Follow up after each
Research investors promising pitch meet-
to ensure they’re a ing. Investors will for-
good fit for you and get about you if you
your business. let them.

FUNDRAISING DON’TS

Pay to pitch. The care about the prob- them in the loop, but
people behind such lem you’re solving. own the process.
setups are likely Most just want a big
“charlatans,” accord- return on investment. Raise more than you
ing to Alexis. need. The long-term
Overuse jargon. risks outweigh the
Omit potential Investors and laypeo- immediate benefits.
problems from your ple should easily
deck. Doing so understand your idea. Take rejection per-
makes you look ill sonally. It is an inevi-
prepared and Ask VCs to sign table—and healthy—
untrustworthy. nondisclosure part of the process.
agreements.
Assume investors
know your market Let a lawyer negoti-
space, or that they ate for you. Keep

32
FINDING FUNDING:
A WEALTH OF
OPTIONS
There are more ways than ever to start
relationships with potential investors, from
reaching out directly to telling your story
online and attracting investors to you
EQUITY
CROWDFUNDING
PLATFORMS
Websites or apps where backers
contribute money in exchange for
shares of ownership in a company
EXAMPLES: AngelList, SeedInvest,
StartEngine, CircleUp, Wefunder,
Microventures, EquityNet
STARTUP
ACCELERATORS
Programs that provide entrepre-
neurs with mentorship, consulting,
networking, physical space, funding,
and access to investors
EXAMPLES: Y Combinator, 500
Startups, TechStars
33 
SOCIAL MEDIA
AND NETWORKING
PLATFORMS
Websites or apps where users
share information, ideas, messages,
and other content with fellow users
EXAMPLES: LinkedIn Premium,
Forbes Councils, Twitter, Instagram,
Facebook
ONLINE COMMUNITIES
Spaces where users with com-
mon interests interact
EXAMPLES: Product Hunt, Stack
Exchange, Hacker News, Dribbble
CROWDFUNDING
PLATFORMS
Websites or apps where backers
contribute small amounts of money
in exchange for product or service
rewards
EXAMPLES: Kickstarter, Indiegogo,
GoFundMe, Patreon
EVENTS AND
COMPETITIONS
Gatherings where people in a
shared industry connect with each
other and vie for prizes and exposure
EXAMPLES: WebSummit, SXSW,
Money20/20, TechCrunch Disrupt
BLOGS
Online journals where people
and businesses publish pieces about
their activities and views
EXAMPLES: Medium, LinkedIn,
Blogger, HubPages
ASSIGNMENT
MATCH THE FOUNDER TO THE FAILURE!
Many successful founders failed at least once—but that didn’t stop them. Try to match these
entrepreneurs with their disappointments, then check the answer key on the next page

A
1 DATING SITE 5
SocialNet

B
E-COMMERCE STOREFRONT
JA SE
CK r) zShops AN es

)
DOR i t te PARKER (Caus
S E Y ( Tw

2 GAMING AND MARKETING 6

PLATFORM
Funbug

e)
SOFTWARE COMPANY KA

us
EI H
)

T
R

D RY
In

M
HO ed DNet NM Th
e
F F M A N (L ink IN SHE W (

E
3 PEER-TO-PEER 7
FILE-SHARING SERVICE
Napster

F
BI IC
Pr
o)

ft COMMUNITY PLATFORM
N

LL KW
)

o o
GAT
E S (Mic ros PYP Media OO D MAN (G

G
4 8
PODCAST PUBLISHER/
AGGREGATOR
Odeo

H
VA J​ E
t te
r)

n)
E

TRAFFIC-DATA ANALYZER FF
N WIL wi B EZ zo
LIAM S ( T Traf-O-Data O S (Ama

34
 ASSIGNMENT
MATCH THE FOUNDER TO THE FAILURE!
(ANSWER KEY)
1. (D) Dorsey was a decade
early selling same-day deliv-
ery of e-commerce pur-
chases (DNet launched in
1999), a service now offered
by Amazon and others.
2. (A) Hoffman, too, was
ahead of his time; he mis-
read people’s readiness for
social networking when he
founded SocialNet in 1997.
3. (H) Gates’s business
model was flawed (to be fair,
he and cofounder Paul Allen
were high schoolers when
they launched Traf-O-Data
in 1972) and hamstrung by
prospective customers
unwilling to shell out the
cash for the service.
4. (G) Williams didn’t fore-
see Apple’s crushing launch
of the iTunes podcast sec-
tion when he introduced the
podcasting platform Odeo
in 2005.
35 
5. (E) Parker, who
cofounded the audio-shar-
ing site Napster in 1999, had
a successful business—
more than eighty million
users!—but it relied on
copyright infringement.
6. (F) Minshew’s Pretty
Young Professionals (PYP)
got off to a good start but
was hobbled by disagree-
ments between the founders.
7. (C) Woodman, who
launched the gaming and
marketing platform Funbug
in 1999, never developed a
community big enough to
support his well-funded
startup.
8. (B) Bezos initially tried
targeting eBay with Amazon
Auctions in 1999, leading to
the zShops storefront sev-
eral months later, but he
didn’t differentiate his busi-
ness models enough to win
market share.
9 Tips for the
Enterprising Introvert
Speaking to strangers can be daunting, especially when the future
of your business is on the line. If you find yourself struggling in these
situations, try out the following suggestions
1. COMMIT TO CHANGE
Believe that, with hard work and per-
sistence, it is within your power to be
more outgoing: “I see personality
evolution happen in the span of just a
few months,” Alexis writes in his
book Without Their Permission.
2. NETWORK ONLINE
There are myriad social platforms,
online groups, and webinars for pro-
fessionals looking to make connec-
tions. The better you get to know
peers and investors, the stronger
your network will be and the easier
it will be to meet face-to-face when
the time comes.
3. START SMALL
Like any other goal, the journey to so-
cial confidence begins with a single
step. Push yourself to leave your com-
fort zone and talk to people as you go
about your day. Try not to get hung up
on awkward moments, and be sure to
revel in your incremental progress.
4. P RACTICE, PRACTICE,
PRACTICE
Run through your presentations in
front of a mirror and it’s almost like
someone is standing there opposite
you—which you should also try, with
the help of a roommate, friend, or
family member. (In his book, Alexis
suggests that you pitch your cat:
“They’re notoriously hard to impress.”)
5. STUDY BODY LANGUAGE
Search online for articles (published
by reputable outlets) on nonverbal
communication. When socializing,
consciously adopt some of the tech-
niques you’ve learned, and avoid
postures and gestures that might
suggest discomfort.
6. SHAKE HANDS
Deciding quickly between a hand-
shake, a wave, and a hug can be an
ordeal. Give a decisive handshake—
or offer a fist or elbow if you feel safer
doing so.
7. ACKNOWLEDGE
AWKWARDNESS
If a situation feels icy and stilted,
don’t try to ignore it; call it out with
a friendly remark and a laugh. More
often than not you’ll ease tensions
and gain control of the moment.
8. BE EARLY
Arriving late to a meeting or presen-
tation may leave you flustered. Allow
yourself time to settle into the space.
You can also check out your meeting
location online beforehand; being
able to visualize the setting will re-
duce anxiety.
9. EXERCISE AND MEDITATE
Taking care of your mind and body
is a crucial way to increase clarity
and confidence. Make time each day
to boost your heart rate, slow your
breathing, or, ideally, both.
36
How You Can
Use the Internet
to Do Good
Anyone with a networked device can
make the world a better place

37 

With all the negativity found online,
it’s easy to forget that the internet
can be a marvelous tool for people
seeking to help others. As an individ-
ual or leader of a company, you can
effect positive change—locally and
globally—without leaving your desk.
DONATE
WISELY
Whatever cause you want to sup-
port, the simplest way to do so is
through a one-time or recurring
financial contribution. Give with
confidence by studying up on
organizations you’re interested
in and checking their ratings on
nonprofit watchdog sites like
Charity Navigator, Charity Watch,
and GiveWell. That way, you can
rest easy knowing your donation
is being used efficiently.
BECOME
A BACKER
Many nonprofit organizations
use crowdfunding platforms
like Kickstarter, Indiegogo, and
GoFundMe to finance their causes
and projects. Typically they post
descriptions and pictures detail-
ing their goals, and backers
pledge funds to support them.
Do a little digging and don’t hesi-
tate to send questions through
the platforms. (Extra tip: Reverse
image search the photos they
use to ensure you don’t acciden-
tally back a scam.) Crowdfunding
is also a great way to support
artists and makers who come
from historically marginalized
communities.
“If there’s an aspiring CEO out
there...I would want her to know that
starting a company is one of the
highest leveraged ways to change
the world.”
VOLUNTEER
If you want to go a step further than
giving money, think about offering
your time and energy. If you’re not
sure where to volunteer, the website
VolunteerMatch can help you locate
local organizations in your area of
interest that could use your help.
Keep in mind that a lot of volunteer
work (think data entry, phone bank-
ing, and social media maintenance)
can be done online.
WIELD YOUR
PURCHASING POWER
When you buy a product or service,
you’re indirectly supporting the
values of a brand and its leaders.
To ensure those values align with
your own, look into where the brand
donates or invests its money. Con-
sider supporting companies that
have charitable giving built into
their business. And when it’s time
to “add to cart,” try to purchase
directly from brands (especially if
they’re small businesses) instead
of from third-party distributors so
that your money goes straight to
the company.
SPREAD THE WORD
Use your social media platforms to
build awareness of causes you care
about, organizations you admire, and
actions other people can take to get
— ALEXIS
involved. Whether you start a major
campaign like Swedish climate activ-
ist Greta Thunberg or simply use
your voice to amplify other people’s,
speaking out online is a powerful way
to push movements forward.
PARTNER UP
If you’re an entrepreneur, consider
the issues that matter to you when
forming your business model. Build
giving into your operations and cre-
ate partnerships with charities to
which you donate a percentage of
your proceeds. In addition to posi-
tively impacting the world, standing
for something in the business arena
is important to socially aware con-
sumers and users, many of whom
now expect more from companies
than goods and services.
START YOUR OWN
ORGANIZATION
If there isn’t currently a group ad-
dressing an issue you care about,
be the change and start your own!
Step one: Read up on the origins of
nonprofits you admire. As you do,
keep in mind this line from Without
Their Permission: “An open internet
connects the once-invisible dots
between donors and communities
in need, allowing donors and recipi-
ents to build strong, transparent
connections.” The platforms exist to
support you at every step, so what’s
stopping you?
38
39 
“Have a great idea.
Start building it.
Build your community.
Build your minimum
viable product.
Get it started.
And then come pitch me.”

— ALEXIS

40
 CREDITS
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