I had never seen a startup ship this fast. Almost every day, these guys were releasing a new feature. Now, their hard work was beginning to pay off…
Product Velocity in Action
This summer, I invested in a company called Micro1. They connect companies with top engineers using AI.
Founder Ali Ansari and his team ship new features faster than anyone else I've ever seen. One of the latest: GPT vetting, or the ability to evaluate job candidates using AI.
One awesome new feature after another has delighted Micro1's customers. And it didn't take long for the team's hard work to pay off.
Hard Work Pays Off
Ali decided to start building in public recently. So I can share what I already knew from the company's confidential update: Micro1's revenue is going through the roof:
When I invested this summer, those April numbers were the last ones I had to go on. In just 4 months since, they've doubled revenue.
I've never seen that happen in my portfolio of 26 companies.
But it's not just customers who are recognizing their hard work. Shortly after I invested, Micro1 got a new term sheet at a much higher valuation.
The faster you move, the further you go.
What Happens When Startups Don't Move Fast
At some of my portfolio companies that are struggling, you see a very different picture.
They take a long time to ship even a simple feature. That means they don't have enough shots at finding a product that customers love.
The company languishes, unable to find product-market fit.
What Gives a Startup Product Velocity?
What determines product velocity? From what I've seen, it comes down to two things: technical teams working like crazy.
Micro1's team is largely builders. And they work insane hours.
People who can build software working late nights means lots of stuff gets built. That's product velocity.
That's why I invest in builders. They can get the job done themselves, instead of relying on others.
As an investor, product velocity isn't hard to spot.
When I meet a founder for the second time, I ask what's changed in the product. If there are no changes or only minor ones, that's a bad sign.
You can even look at app updates in the App Store to see for yourself how often a product is updated. Daily or weekly is good. Less than that is a red flag.
Wrap-Up
Every startup faces the same problem: how do we build something people care about?
It takes countless iterations to find a winning formula. The more shots on goal you can take before your cash runs out, the better.
That's why you have to move fast.
Fast moving companies win. The rest die.
If you're an investor, look for builder founders who ship fast. If you're a founder, learn to code and ship like crazy.
What startups do you know that are moving fast? Leave a comment and let us know!
Have a great weekend, everyone!
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