Welcome to Daivik’s Newsletter!

If you are new around here, this is a bi-weekly newsletter about IRL events, startups and building products! If you find this useful, feel free to refer a friend or subscribe for future newsletters using this link: Subscribe

Featured Events

Events that I host, will be at or think might be worthwhile to check out

👋 - I plan to be there, feel free to say hi!

🎊 - I am hosting! Please feel free to swing by!

Toronto

01/09 - Founders Poker - Register

01/18 - XRPL x Aceocial // Web3 Party - Register

01/22 - Founders Mixer 🎊- Register

San Francisco

01/09 - The AI Hustle -  Register

01/11 - Demo Day: Techstars Oakland -  Register

01/11 - Demo Day: Techstars Future of Ecommerce-  Register

New York

01/09 - Go To Market in the AI Age - Register

01/24 - Junto: Builder Series - Register

Want to see your event here? Is there something going on that I should be highlighting? Feel free to reach out and I would be happy to feature them!

The Three Little Pigs

A couple of days ago, I was reading ‘The Three Little Pigs’ to my nephew, a tale I’ve heard ad nauseam, just like many of you. But this time, at the age of 25, this story had me critically thinking about my own startup journey. Not ‘The Hard Thing About Hard Things’ or ‘Zero to One’, but somehow ‘The Three Little Pigs’. So, putting aside that I might be going a little crazy, if you’ve made it this far, stick with me here.

In the world of startups, founders often face dilemmas similar to those of the three little pigs, who built their houses out of different materials — straw, sticks, and bricks. You can see these materials are metaphors for the foundations and mindset on which founders build their startups.

The first little pig, who built his house of straw, represents founders who rush into the market without a solid plan or robust infrastructure. They prioritize speed over stability, focusing on rapid launch and growth hacking, but often lack a sustainable business model. While this approach can lead to quick gains, it risks crumbling under market pressures, akin to the straw house unable to withstand the wolf’s breath. I see a lot of founders who experience the problem but don’t necessarily evaluate it as a viable business or lack the expertise to build out a solution in this camp. 

The second pig, who chose sticks for his house, represents founders with more fundamental business and technology experience. They might conduct market research, develop a business plan, and create their product on more solid infrastructure, possibly even securing funding. However, their execution often lacks depth in customer engagement, product development, or competitive differentiation. Like the stick house, they may initially withstand challenges but are vulnerable to stronger market forces and competition. I see this group often including people like engineers, consultants, business people, and many “AI” companies, who dive into startups without a deep understanding of the problem and the initial customer.

Then there’s the third pig, the one who built his house with bricks. This pig is the embodiment of startups built on solid foundations: a well-researched market, a unique value proposition, strong operational processes, and a clear vision for growth. These startups, prepared for challenges and adaptable, are the ones that thrive, standing tall like the brick house against the wolf. Founders in this category are like the Avatar, masters of product-market fit, building sustainable products and deeply understanding their customers. This is the ideal that we should all strive for.

So why did this children’s story about three pigs resonate with me so much to the point I wrote an article on it? It’s because I see my own journey being in each of these houses. 

The first startup I built was a two sided marketplace and we rushed to market without assessing business viability. Although it was a big problem that I faced during University, the reality was that I neither had the connections nor the correct business model to make this particular idea work. 

My second venture was built in an industry I had zero experience in but was ripe for technological intervention. Despite this I struggled a lot due to a lack of founder-market fit and not knowing anything about the customer. Despite my best efforts, that issue eventually caught up to me.

So now, we come to my third startup, the one I am actively working on right now. I feel like we’re in the brick house phase, with a solid product in a well-researched market, a unique value proposition, and a clear growth vision. But the true test of its resilience is yet to come.

In the tale, the pigs whose houses were blown down ran to their brother’s brick house, learned from their mistakes, and eventually built their own sturdy houses. However, unlike the story’s optimistic ending, many startups remain trapped in the first two phases. And if we continue with the metaphor, we haven’t even mentioned the brother who wanders endlessly, seeking the perfect spot to build without ever taking action. Some founders will just never learn to build a brick house and succumb to the ‘big bad wolf’ of the market. 

But perhaps, we can continue to learn and evolve, eventually transforming into the very force that tests the strength of new ventures. On this journey, you either fail a pig or live long enough to become the big bad wolf. 

With that said, it’s time I leave fairy tales behind and go back to reading “The Hard Things About Hard Things.” More on some of my takeaways from that soon.

Check out this Podcast Episode!

You can also listen on Spotify, Apple Music, and Google Podcasts

Join us as we sit down with Charles Gellman, CEO of Hido Health, to explore the groundbreaking work being done by his startup in using AI & robotics for patients. Discover how these cutting-edge technologies are transforming the way we deliver healthcare, empowering individuals to take charge of their own well-being. We explore the potential of AI robotics to revolutionize the healthcare landscape!

Thanks for reading,

Daivik Goel