Startup Mindsets with Earl Valencia

Hi, I'm Scott Hansel and this is another Hi, I'm Scott Hansel and this is another episode of Hansel Minutes. Today I'm episode of Hansel Minutes. Today I'm episode of Hansel Minutes. Today I'm chatting with Earl Valencia. He's the chatting with Earl Valencia. He's the chatting with Earl Valencia. He's the author of Startup Mindsets along with author of Startup Mindsets along with author of Startup Mindsets along with Dan Gonzalez. This is a blueprint to Dan Gonzalez. This is a blueprint to Dan Gonzalez. This is a blueprint to thrive in an innovationdriven and thrive in an innovationdriven and thrive in an innovationdriven and globally connected world. How's it globally connected world. How's it globally connected world. How's it going, sir? I'm good, Scott. Thanks so going, sir? I'm good, Scott. Thanks so going, sir? I'm good, Scott. Thanks so much. uh excited to be here in your much. uh excited to be here in your much. uh excited to be here in your podcast. A big fan. Well, podcast. A big fan. Well, podcast. A big fan. Well, congratulations on on coming out with congratulations on on coming out with congratulations on on coming out with the book. You know, everyone is uh is the book. You know, everyone is uh is the book. You know, everyone is uh is talking about startups right now and I talking about startups right now and I talking about startups right now and I have to give you kudos that you didn't have to give you kudos that you didn't have to give you kudos that you didn't put AI all over the book nor did you put put AI all over the book nor did you put put AI all over the book nor did you put it in the title or the subtitle. Is that it in the title or the subtitle. Is that it in the title or the subtitle. Is that a conscious decision? Because not every a conscious decision? Because not every a conscious decision? Because not every startup, you know, has to be AI these startup, you know, has to be AI these startup, you know, has to be AI these days. Yeah, I think that's definitely a days. Yeah, I think that's definitely a days. Yeah, I think that's definitely a conscious decision. Actually the origin conscious decision. Actually the origin conscious decision. Actually the origin of this book really is there's a lot of of this book really is there's a lot of of this book really is there's a lot of books that talk about how to build a books that talk about how to build a books that talk about how to build a startup but we really struggle to find a startup but we really struggle to find a startup but we really struggle to find a book of why you should start one and our book of why you should start one and our book of why you should start one and our theory really is that not everybody theory really is that not everybody theory really is that not everybody should be a startup founder and you know should be a startup founder and you know should be a startup founder and you know if you talk actually to a lot of young if you talk actually to a lot of young if you talk actually to a lot of young people today their dream is to be a people today their dream is to be a people today their dream is to be a startup founder it actually is very startup founder it actually is very startup founder it actually is very difficult right so I want to be sure difficult right so I want to be sure difficult right so I want to be sure that we have a book to tell people like that we have a book to tell people like that we have a book to tell people like you know what what the questions they you know what what the questions they you know what what the questions they need to answer before they even think need to answer before they even think need to answer before they even think about starting a about starting a about starting a Mhm. Now, right now, that term startup Mhm. Now, right now, that term startup Mhm. Now, right now, that term startup and founder almost has become so much and founder almost has become so much and founder almost has become so much like a a meme almost. You say founder like a a meme almost. You say founder like a a meme almost. You say founder and you immediately think about some and you immediately think about some and you immediately think about some tech bro on the bus on Bart in the Bay, tech bro on the bus on Bart in the Bay, tech bro on the bus on Bart in the Bay, but your your experience and you grew up but your your experience and you grew up but your your experience and you grew up in in Southeast Asia in the Philippines.

in in Southeast Asia in the Philippines. in in Southeast Asia in the Philippines. Uh you now are in Seattle. Uh you're not Uh you now are in Seattle. Uh you're not Uh you now are in Seattle. Uh you're not really a Silicon Valley person, right? really a Silicon Valley person, right? really a Silicon Valley person, right? But you have experience kind of But you have experience kind of But you have experience kind of globally. Yeah. Yeah. you know how I globally. Yeah. Yeah. you know how I globally. Yeah. Yeah. you know how I ended up actually going to Silicon ended up actually going to Silicon ended up actually going to Silicon Valley is through business school. So I Valley is through business school. So I Valley is through business school. So I went to Stanford for business school but went to Stanford for business school but went to Stanford for business school but you know I grew up in in you know I was you know I grew up in in you know I was you know I grew up in in you know I was born in LA but I grew up in Southeast born in LA but I grew up in Southeast born in LA but I grew up in Southeast Asia most of my life and you know my Asia most of my life and you know my Asia most of my life and you know my parents basically said you know you only parents basically said you know you only parents basically said you know you only have a few careers that we really would have a few careers that we really would have a few careers that we really would support you you know doctor lawyer and support you you know doctor lawyer and support you you know doctor lawyer and engineer past the mustard right so you engineer past the mustard right so you engineer past the mustard right so you know when I was young when I was 12 um know when I was young when I was 12 um know when I was young when I was 12 um my parents brought me to the Johnson my parents brought me to the Johnson my parents brought me to the Johnson Space Center in Houston and I told my Space Center in Houston and I told my Space Center in Houston and I told my parents hey maybe someday I want to be parents hey maybe someday I want to be parents hey maybe someday I want to be an engineer and they're like yeah an engineer and they're like yeah an engineer and they're like yeah exactly that's exactly what we want you exactly that's exactly what we want you exactly that's exactly what we want you to do. So I ended up going to to do. So I ended up going to to do. So I ended up going to engineering um first in the Philippines engineering um first in the Philippines engineering um first in the Philippines and then ended up finishing you know and then ended up finishing you know and then ended up finishing you know undergrad and graduate school uh in the undergrad and graduate school uh in the undergrad and graduate school uh in the east coast. I mean I took up aerospace east coast. I mean I took up aerospace east coast. I mean I took up aerospace engineering actually. So my dream was to engineering actually. So my dream was to engineering actually. So my dream was to become an astronaut and you know when become an astronaut and you know when become an astronaut and you know when you're in kind of hardcore aerospace you're in kind of hardcore aerospace you're in kind of hardcore aerospace engineer land like you don't really engineer land like you don't really engineer land like you don't really think about startups right and then um I think about startups right and then um I think about startups right and then um I ended up getting actually admission to ended up getting actually admission to ended up getting actually admission to Stanford kind of by accident. Um, at the Stanford kind of by accident. Um, at the Stanford kind of by accident. Um, at the time, uh, they were doing an exception time, uh, they were doing an exception time, uh, they were doing an exception for people who didn't take the GMAT, but for people who didn't take the GMAT, but for people who didn't take the GMAT, but only had GREs, and I had one. So, I only had GREs, and I had one. So, I only had GREs, and I had one. So, I recycled my score and lo and behold, I recycled my score and lo and behold, I recycled my score and lo and behold, I was one of the first admits of Stanford was one of the first admits of Stanford was one of the first admits of Stanford not to take the GMAT ever. So, that was not to take the GMAT ever. So, that was not to take the GMAT ever. So, that was a surprise. And in in Silicon Valley, at a surprise. And in in Silicon Valley, at a surprise. And in in Silicon Valley, at least in Stanford, I discovered like least in Stanford, I discovered like least in Stanford, I discovered like this really strange world of people this really strange world of people this really strange world of people talking about funding, talking about talking about funding, talking about talking about funding, talking about ideas to become unicorns and

ideas to become unicorns and ideas to become unicorns and billion-dollar companies. And I was billion-dollar companies. And I was billion-dollar companies. And I was like, what's going on? Right. So that like, what's going on? Right. So that like, what's going on? Right. So that really made me think about this whole really made me think about this whole really made me think about this whole notion of like building something from notion of like building something from notion of like building something from zero and how do you take literally an zero and how do you take literally an zero and how do you take literally an idea and dream to make it something big idea and dream to make it something big idea and dream to make it something big someday. And you know when I go all someday. And you know when I go all someday. And you know when I go all around the US or even go around the around the US or even go around the around the US or even go around the world I realize that that's not a normal world I realize that that's not a normal world I realize that that's not a normal way to think. It's just very unique to way to think. It's just very unique to way to think. It's just very unique to that place. And right now it's a meme, that place. And right now it's a meme, that place. And right now it's a meme, but I think it's also a notion of like but I think it's also a notion of like but I think it's also a notion of like how do we actually, you know, create how do we actually, you know, create how do we actually, you know, create value. And I think people miss that now, value. And I think people miss that now, value. And I think people miss that now, right? Like the reason of why you create right? Like the reason of why you create right? Like the reason of why you create companies is hopefully to kind of create companies is hopefully to kind of create companies is hopefully to kind of create value in the world and not just try to value in the world and not just try to value in the world and not just try to like IPO it. Right. Right. And I think like IPO it. Right. Right. And I think like IPO it. Right. Right. And I think that's a great point that you call out that's a great point that you call out that's a great point that you call out creating value and people have to ask creating value and people have to ask creating value and people have to ask themselves what is value. Right. There themselves what is value. Right. There themselves what is value. Right. There are those that make digital value and are those that make digital value and are those that make digital value and try to turn it into just money. Uh then try to turn it into just money. Uh then try to turn it into just money. Uh then value uh is is value helping human value uh is is value helping human value uh is is value helping human beings live better lives, live more beings live better lives, live more beings live better lives, live more satisfying lives, solving a problem. satisfying lives, solving a problem. satisfying lives, solving a problem. Exactly. Seems to me where value starts Exactly. Seems to me where value starts Exactly. Seems to me where value starts at least. Yeah. And I think that's at least. Yeah. And I think that's at least. Yeah. And I think that's really the the thought and that's really really the the thought and that's really really the the thought and that's really part also of how we want to frame the part also of how we want to frame the part also of how we want to frame the book, right? Like you know we never told book, right? Like you know we never told book, right? Like you know we never told people like you know our goal is to you people like you know our goal is to you people like you know our goal is to you know make you billionaires, right? But know make you billionaires, right? But know make you billionaires, right? But we even talked in the book is like what we even talked in the book is like what we even talked in the book is like what type of personal mission do you want to type of personal mission do you want to type of personal mission do you want to solve? And I think that's super solve? And I think that's super solve? And I think that's super important to start your journey, right?

important to start your journey, right? important to start your journey, right? Because you know when you start a Because you know when you start a Because you know when you start a business, it is never rosy. I think business, it is never rosy. I think business, it is never rosy. I think right now it's a bit um you know people right now it's a bit um you know people right now it's a bit um you know people are think making sure that it's it's are think making sure that it's it's are think making sure that it's it's kind of kind of Hollywood now, right? kind of kind of Hollywood now, right? kind of kind of Hollywood now, right? Like people think that it's normal, it's Like people think that it's normal, it's Like people think that it's normal, it's it's easy, but actually when you really it's easy, but actually when you really it's easy, but actually when you really talk to other founders, you realize very talk to other founders, you realize very talk to other founders, you realize very quickly that it's actually a grind. And quickly that it's actually a grind. And quickly that it's actually a grind. And the only way that you can go past the the only way that you can go past the the only way that you can go past the grind is to actually connect it to grind is to actually connect it to grind is to actually connect it to something bigger than yourself, right? something bigger than yourself, right? something bigger than yourself, right? And that's kind of where the the way And that's kind of where the the way And that's kind of where the the way that we want to kind of talk about it that we want to kind of talk about it that we want to kind of talk about it and we framed it in this book of what and we framed it in this book of what and we framed it in this book of what really is your you know impact really is your you know impact really is your you know impact statement, right? Because ultimately if statement, right? Because ultimately if statement, right? Because ultimately if you don't have one during the rough you don't have one during the rough you don't have one during the rough times it's just easy to stop and quit times it's just easy to stop and quit times it's just easy to stop and quit and that's you know we don't want that and that's you know we don't want that and that's you know we don't want that for at least for these founders. Right. for at least for these founders. Right. for at least for these founders. Right. Right. Because in the hard times you Right. Because in the hard times you Right. Because in the hard times you don't have anything to hold on to. Yeah. don't have anything to hold on to. Yeah. don't have anything to hold on to. Yeah. Exactly. And that's really the the Exactly. And that's really the the Exactly. And that's really the the thought, right? That's why, you know, thought, right? That's why, you know, thought, right? That's why, you know, it's funny in business school as an it's funny in business school as an it's funny in business school as an engineer, you know, when I was an engineer, you know, when I was an engineer, you know, when I was an engineer, I was like, why do you always engineer, I was like, why do you always engineer, I was like, why do you always talk about vision, mission, values? talk about vision, mission, values? talk about vision, mission, values? Like, I thought it was a waste of time.

Like, I thought it was a waste of time. Like, I thought it was a waste of time. But only when I started my own company, But only when I started my own company, But only when I started my own company, I realized that those statements I realized that those statements I realized that those statements actually are the ones who will get you actually are the ones who will get you actually are the ones who will get you through the difficult times because you through the difficult times because you through the difficult times because you will anchor on should you hire this will anchor on should you hire this will anchor on should you hire this person, they're good, but not aligned to person, they're good, but not aligned to person, they're good, but not aligned to your values. Should you get this your values. Should you get this your values. Should you get this investor? you know they keep on talking investor? you know they keep on talking investor? you know they keep on talking about returns but they actually don't about returns but they actually don't about returns but they actually don't believe in what you're trying to achieve believe in what you're trying to achieve believe in what you're trying to achieve right or maybe the technology like are right or maybe the technology like are right or maybe the technology like are technology actually like good for technology actually like good for technology actually like good for humanity or destructive and how do you humanity or destructive and how do you humanity or destructive and how do you balance those two so those types of balance those two so those types of balance those two so those types of statements will guide you during these statements will guide you during these statements will guide you during these like really periods of uncertainty um as like really periods of uncertainty um as like really periods of uncertainty um as you build your company now you open the you build your company now you open the you build your company now you open the book and you compare traditional book and you compare traditional book and you compare traditional leadership mindsets with a startup leadership mindsets with a startup leadership mindsets with a startup mindset y um then this term mindset is mindset y um then this term mindset is mindset y um then this term mindset is so important because you really it's not so important because you really it's not so important because you really it's not something you can really put your finger something you can really put your finger something you can really put your finger on. It's not something physical, but on. It's not something physical, but on. It's not something physical, but you're saying if your mindset is you're saying if your mindset is you're saying if your mindset is different then your experience as a different then your experience as a different then your experience as a leader is going to be different. What is leader is going to be different. What is leader is going to be different. What is the traditional leadership mindset as it the traditional leadership mindset as it the traditional leadership mindset as it relates to or compared to a startup relates to or compared to a startup relates to or compared to a startup mindset? Yeah, I think the the thought mindset? Yeah, I think the the thought mindset? Yeah, I think the the thought there um is you know we we we have an there um is you know we we we have an there um is you know we we we have an analogy of like a traditional business analogy of like a traditional business analogy of like a traditional business or we call it an curve or a startup or we call it an curve or a startup or we call it an curve or a startup curve, right? An SN curve is like a curve, right? An SN curve is like a curve, right? An SN curve is like a linear, right? So basically you you at linear, right? So basically you you at linear, right? So basically you you at some point in steady state you can say some point in steady state you can say some point in steady state you can say that I want to put in $2 and I can that I want to put in $2 and I can that I want to put in $2 and I can output let's say $4, right? So maybe output let's say $4, right? So maybe output let's say $4, right? So maybe 100% profit or maybe less like $2, you 100% profit or maybe less like $2, you 100% profit or maybe less like $2, you get $3. But when you see and actually get $3. But when you see and actually get $3. But when you see and actually often times you see a startup there's

often times you see a startup there's often times you see a startup there's actually multiple months if not years actually multiple months if not years actually multiple months if not years that you will lose money and then that you will lose money and then that you will lose money and then hopefully in the future you'll actually hopefully in the future you'll actually hopefully in the future you'll actually have this exponential uh curve right so have this exponential uh curve right so have this exponential uh curve right so there's going to be a point in time there's going to be a point in time there's going to be a point in time where the you know traditional mindset where the you know traditional mindset where the you know traditional mindset um or traditional kind of curve orme um or traditional kind of curve orme um or traditional kind of curve orme will actually flatten out versus one will actually flatten out versus one will actually flatten out versus one that will just go exponential and kind that will just go exponential and kind that will just go exponential and kind of reach. So how does it apply to a of reach. So how does it apply to a of reach. So how does it apply to a person right? Um I think that's really person right? Um I think that's really person right? Um I think that's really the question and I think the the the the question and I think the the the the question and I think the the the thought here is two things like one is thought here is two things like one is thought here is two things like one is long-term thinking right how do you then long-term thinking right how do you then long-term thinking right how do you then think about it where if you are anchored think about it where if you are anchored think about it where if you are anchored on a a large vision and a really a solid on a a large vision and a really a solid on a a large vision and a really a solid mission then you can think what mission then you can think what mission then you can think what decisions do I do today that might not decisions do I do today that might not decisions do I do today that might not affect the next two or three months but affect the next two or three months but affect the next two or three months but then will be aligned to get me to that then will be aligned to get me to that then will be aligned to get me to that larger goal in the future right I think larger goal in the future right I think larger goal in the future right I think that's one one is long-term thinking that's one one is long-term thinking that's one one is long-term thinking And the other one really is in this And the other one really is in this And the other one really is in this notion of risk, right? Like how do I notion of risk, right? Like how do I notion of risk, right? Like how do I then tolerate risk to it today so that I then tolerate risk to it today so that I then tolerate risk to it today so that I can then get that scale in the future, can then get that scale in the future, can then get that scale in the future, right? Um, you know, I I think that's right? Um, you know, I I think that's right? Um, you know, I I think that's really the the way that I hope people really the the way that I hope people really the the way that I hope people would think of and it doesn't mean that would think of and it doesn't mean that would think of and it doesn't mean that let's say traditional business is bad.

let's say traditional business is bad. let's say traditional business is bad. Actually, very good traditional Actually, very good traditional Actually, very good traditional businesses make a lot more money than businesses make a lot more money than businesses make a lot more money than sometimes tech startups with even lower sometimes tech startups with even lower sometimes tech startups with even lower risk. But I think as a leader if you risk. But I think as a leader if you risk. But I think as a leader if you then apply those two principles right then apply those two principles right then apply those two principles right like one principle of like long-term like one principle of like long-term like one principle of like long-term thinking and then the principle of like thinking and then the principle of like thinking and then the principle of like how do I think about risk today and how do I think about risk today and how do I think about risk today and balance it out with like return in the balance it out with like return in the balance it out with like return in the future then maybe you can think about future then maybe you can think about future then maybe you can think about you know scenarios or ideas that you you know scenarios or ideas that you you know scenarios or ideas that you will then build your company towards will then build your company towards will then build your company towards right so these are at least some right so these are at least some right so these are at least some thoughts that we had and um you know thoughts that we had and um you know thoughts that we had and um you know it's funny I always thought that this it's funny I always thought that this it's funny I always thought that this you know J curve or this like you know J curve or this like you know J curve or this like exponential curve again is is something exponential curve again is is something exponential curve again is is something that a lot of people um you know can can that a lot of people um you know can can that a lot of people um you know can can relate to but I I realize that in the relate to but I I realize that in the relate to but I I realize that in the startup world people just realize that startup world people just realize that startup world people just realize that it is normal but actually not normal if it is normal but actually not normal if it is normal but actually not normal if you talk to any business person uh all you talk to any business person uh all you talk to any business person uh all over the world. Do you think that over the world. Do you think that over the world. Do you think that there's any things in your time that you there's any things in your time that you there's any things in your time that you spend in the bay that are for lack of a spend in the bay that are for lack of a spend in the bay that are for lack of a better word kind of problematic about better word kind of problematic about better word kind of problematic about startup thinking? Like there's the startup thinking? Like there's the startup thinking? Like there's the there's the joke if you're like a young there's the joke if you're like a young there's the joke if you're like a young person in your 20s and you're dating in person in your 20s and you're dating in person in your 20s and you're dating in the Bay, everyone has got a startup, the Bay, everyone has got a startup, the Bay, everyone has got a startup, everyone's a founder, you know, you're everyone's a founder, you know, you're everyone's a founder, you know, you're at a Panera Bread and you decide to, you at a Panera Bread and you decide to, you at a Panera Bread and you decide to, you know, register a domain and suddenly know, register a domain and suddenly know, register a domain and suddenly you're a startup founder. Is is is there you're a startup founder. Is is is there you're a startup founder. Is is is there a legitimacy that someone feels when a legitimacy that someone feels when a legitimacy that someone feels when they become a founder? And uh is it they become a founder? And uh is it they become a founder? And uh is it literally just I have a prototype and a literally just I have a prototype and a literally just I have a prototype and a domain? Is that enough to be a founder domain? Is that enough to be a founder domain? Is that enough to be a founder or do I need to go to business school or do I need to go to business school or do I need to go to business school and and and learn more? You don't need and and and learn more? You don't need and and and learn more? You don't need to go to business school in order to be

to go to business school in order to be to go to business school in order to be a founder, right? I think the most a founder, right? I think the most a founder, right? I think the most important thing really is, you know, why important thing really is, you know, why important thing really is, you know, why do you want to start a business and what do you want to start a business and what do you want to start a business and what are the tools for you to actually get are the tools for you to actually get are the tools for you to actually get there, right? I think right now um there, right? I think right now um there, right? I think right now um there's a little bit of a you know um there's a little bit of a you know um there's a little bit of a you know um making sure that that that this being a making sure that that that this being a making sure that that that this being a founder is kind of on vogue and what founder is kind of on vogue and what founder is kind of on vogue and what what's more important actually is making what's more important actually is making what's more important actually is making sure that you are you know true to your sure that you are you know true to your sure that you are you know true to your mission and actually figuring out why do mission and actually figuring out why do mission and actually figuring out why do you want to do this in the first place? you want to do this in the first place? you want to do this in the first place? Yeah. You said in the book one of your Yeah. You said in the book one of your Yeah. You said in the book one of your central questions is what problem are central questions is what problem are central questions is what problem are you so passionate about solving that you you so passionate about solving that you you so passionate about solving that you take it on even if it probably fails. take it on even if it probably fails. take it on even if it probably fails. you know, how was that the ultimate test you know, how was that the ultimate test you know, how was that the ultimate test for you as whether or not you should for you as whether or not you should for you as whether or not you should have the startup mindset? Yeah, this is have the startup mindset? Yeah, this is have the startup mindset? Yeah, this is one of the major actually thesis of the one of the major actually thesis of the one of the major actually thesis of the book, right? We we interviewed, you book, right? We we interviewed, you book, right? We we interviewed, you know, hundreds of founders that are know, hundreds of founders that are know, hundreds of founders that are series B and below. Um, you know, series B and below. Um, you know, series B and below. Um, you know, because there's a lot of actually books because there's a lot of actually books because there's a lot of actually books that talk about the successes, but no that talk about the successes, but no that talk about the successes, but no one really talks about this kind of one really talks about this kind of one really talks about this kind of grind phase, the phase of extreme grind phase, the phase of extreme grind phase, the phase of extreme uncertainty, right? So, we asked two c uncertainty, right? So, we asked two c uncertainty, right? So, we asked two c two interesting questions. First two interesting questions. First two interesting questions. First question is why did you start the question is why did you start the question is why did you start the company? And the second question is um company? And the second question is um company? And the second question is um if the company fails would you regret if the company fails would you regret if the company fails would you regret it? And the question to the first one is it? And the question to the first one is it? And the question to the first one is a little bit what we expected but a little bit what we expected but a little bit what we expected but actually a very deep question that most actually a very deep question that most actually a very deep question that most people really talked at length about.

people really talked at length about. people really talked at length about. It's really about something personal to It's really about something personal to It's really about something personal to them, some injustice they saw, something them, some injustice they saw, something them, some injustice they saw, something that relates to something so so deep to that relates to something so so deep to that relates to something so so deep to them, maybe from a family member, an them, maybe from a family member, an them, maybe from a family member, an experience in their lives, something experience in their lives, something experience in their lives, something that changed really their perspective. that changed really their perspective. that changed really their perspective. And then the second question was the And then the second question was the And then the second question was the biggest surprise. biggest surprise. biggest surprise. Why? What if it fails? Is that okay? And Why? What if it fails? Is that okay? And Why? What if it fails? Is that okay? And to be honest, most startups will fail. I to be honest, most startups will fail. I to be honest, most startups will fail. I think when you go to Techrunch, think when you go to Techrunch, think when you go to Techrunch, everybody thinks, "Wow, all these people everybody thinks, "Wow, all these people everybody thinks, "Wow, all these people are making lots of money. It's are making lots of money. It's are making lots of money. It's guaranteed if I go to the same train, guaranteed if I go to the same train, guaranteed if I go to the same train, I'm also going to be successful. But to I'm also going to be successful. But to I'm also going to be successful. But to be honest, out of probably like one be honest, out of probably like one be honest, out of probably like one story in Techrunch, there's 99 if not story in Techrunch, there's 99 if not story in Techrunch, there's 99 if not nine 99,000 other stories that is nine 99,000 other stories that is nine 99,000 other stories that is probably not published in TechCrunch probably not published in TechCrunch probably not published in TechCrunch that probably failed, right? But people that probably failed, right? But people that probably failed, right? But people who told people told us like even if who told people told us like even if who told people told us like even if even if it doesn't succeed, if they even if it doesn't succeed, if they even if it doesn't succeed, if they worked on something so meaningful to worked on something so meaningful to worked on something so meaningful to them, they will not regret it a single them, they will not regret it a single them, they will not regret it a single day. And that was the biggest surprise day. And that was the biggest surprise day. And that was the biggest surprise for us. That's really why we said that for us. That's really why we said that for us. That's really why we said that the having a startup mindset is so the having a startup mindset is so the having a startup mindset is so important in reflecting important in reflecting important in reflecting why you want to start this journey even why you want to start this journey even why you want to start this journey even in an extreme uncertainty. Right.

in an extreme uncertainty. Right. in an extreme uncertainty. Right. Hey friends, we're going to take a Hey friends, we're going to take a Hey friends, we're going to take a breather and thank our sponsor Sharegate breather and thank our sponsor Sharegate breather and thank our sponsor Sharegate by Work. I've got Shaylen Gimy here to by Work. I've got Shaylen Gimy here to by Work. I've got Shaylen Gimy here to chat with me about, you know, those M365 chat with me about, you know, those M365 chat with me about, you know, those M365 environment migrations. Sometimes I know environment migrations. Sometimes I know environment migrations. Sometimes I know you've been in one where the you've been in one where the you've been in one where the environment's out of control. It's it's environment's out of control. It's it's environment's out of control. It's it's crazy. You've got you random folders. crazy. You've got you random folders. crazy. You've got you random folders. You've got old SharePoints that you You've got old SharePoints that you You've got old SharePoints that you haven't looked at in a while. You've got haven't looked at in a while. You've got haven't looked at in a while. You've got empty teams. When is the moment that empty teams. When is the moment that empty teams. When is the moment that tells you that an M365 environment is tells you that an M365 environment is tells you that an M365 environment is completely out of control? Well, you're completely out of control? Well, you're completely out of control? Well, you're going to hear things like, "Why do we going to hear things like, "Why do we going to hear things like, "Why do we have 500 plus inactive teams?" or "Why have 500 plus inactive teams?" or "Why have 500 plus inactive teams?" or "Why does Bob and Marketing have access to does Bob and Marketing have access to does Bob and Marketing have access to legal documents?" Uh, and you'll even legal documents?" Uh, and you'll even legal documents?" Uh, and you'll even get the I'd like to pay for a specific get the I'd like to pay for a specific get the I'd like to pay for a specific video app, not realizing that they have video app, not realizing that they have video app, not realizing that they have Stream. You know, at that point, it Stream. You know, at that point, it Stream. You know, at that point, it knows they're not in control anymore. knows they're not in control anymore. knows they're not in control anymore. The environment is running them. And The environment is running them. And The environment is running them. And that's when security risks, compliance that's when security risks, compliance that's when security risks, compliance issues, and productivity roadblocks issues, and productivity roadblocks issues, and productivity roadblocks start piling up. That's exactly why we start piling up. That's exactly why we start piling up. That's exactly why we built Sharegate. We help IT teams take built Sharegate. We help IT teams take built Sharegate. We help IT teams take back control by detecting inactive back control by detecting inactive back control by detecting inactive teams, automating cleanup, and enforcing teams, automating cleanup, and enforcing teams, automating cleanup, and enforcing governance policies without forcing it governance policies without forcing it governance policies without forcing it to micromanage everything. You know, if to micromanage everything. You know, if to micromanage everything. You know, if you're constantly chasing ownership and you're constantly chasing ownership and you're constantly chasing ownership and permissions, it's time to rethink your permissions, it's time to rethink your permissions, it's time to rethink your approach. Time to rethink your approach.

approach. Time to rethink your approach. approach. Time to rethink your approach. No truer words. Check out ShareGate by No truer words. Check out ShareGate by No truer words. Check out ShareGate by workle at sharegate.com. It's one tool workle at sharegate.com. It's one tool workle at sharegate.com. It's one tool to migrate faster and secure your to migrate faster and secure your to migrate faster and secure your tenant. And big thanks to Sharegate for tenant. And big thanks to Sharegate for tenant. And big thanks to Sharegate for being a sponsor of Hansel minutes. being a sponsor of Hansel minutes. being a sponsor of Hansel minutes. Now you have a foot in Silicon Valley, a Now you have a foot in Silicon Valley, a Now you have a foot in Silicon Valley, a foot in the Northwest, a foot in foot in the Northwest, a foot in foot in the Northwest, a foot in Southeast Asia, and you kind of reframe Southeast Asia, and you kind of reframe Southeast Asia, and you kind of reframe Silicon Valley's advantage uh to be a Silicon Valley's advantage uh to be a Silicon Valley's advantage uh to be a different one rather than just they have different one rather than just they have different one rather than just they have more resources. So, can you help me more resources. So, can you help me more resources. So, can you help me understand your thinking about Silicon understand your thinking about Silicon understand your thinking about Silicon Valley and the the myths around Silicon Valley and the the myths around Silicon Valley and the the myths around Silicon Valley versus what you think maybe folks Valley versus what you think maybe folks Valley versus what you think maybe folks in emerging markets, especially in the in emerging markets, especially in the in emerging markets, especially in the Philippines or in the southern Philippines or in the southern Philippines or in the southern hemisphere, you know, should understand hemisphere, you know, should understand hemisphere, you know, should understand and take away from the Silicon Valley and take away from the Silicon Valley and take away from the Silicon Valley playbook. Yeah, I think there's playbook. Yeah, I think there's playbook. Yeah, I think there's so people people think that Silicon so people people think that Silicon so people people think that Silicon Valley is a place, right? So, that's Valley is a place, right? So, that's Valley is a place, right? So, that's that's for sure, right? Um but what the that's for sure, right? Um but what the that's for sure, right? Um but what the advantage actually of Silicon Valley is advantage actually of Silicon Valley is advantage actually of Silicon Valley is number one um there is talent. So to be number one um there is talent. So to be number one um there is talent. So to be honest like there is it's a talent honest like there is it's a talent honest like there is it's a talent magnet. So people from all over the magnet. So people from all over the magnet. So people from all over the world will come there because they think world will come there because they think world will come there because they think that they can get fame or fortune right that they can get fame or fortune right that they can get fame or fortune right especially in the technology field. Um especially in the technology field. Um especially in the technology field. Um the other one is actually this hyper the other one is actually this hyper the other one is actually this hyper um connectivity, right? So if you have um connectivity, right? So if you have um connectivity, right? So if you have an idea, you'll find people that might an idea, you'll find people that might an idea, you'll find people that might be interested in you uh and the idea be interested in you uh and the idea be interested in you uh and the idea that you're trying to build. But what's that you're trying to build. But what's that you're trying to build. But what's most important actually is this mindset most important actually is this mindset most important actually is this mindset that people have in order to succeed.

that people have in order to succeed. that people have in order to succeed. This notion of risk tolerance. If I work This notion of risk tolerance. If I work This notion of risk tolerance. If I work on something meaningful, um how do I on something meaningful, um how do I on something meaningful, um how do I then take equity which is more long-term then take equity which is more long-term then take equity which is more long-term but not necessarily have let's say cash but not necessarily have let's say cash but not necessarily have let's say cash to for compensation, how do I work with to for compensation, how do I work with to for compensation, how do I work with people that are different from you but people that are different from you but people that are different from you but then complement me because their skills then complement me because their skills then complement me because their skills are there? I think these are the things are there? I think these are the things are there? I think these are the things that if you go to other markets you that if you go to other markets you that if you go to other markets you won't be able to see and I think those won't be able to see and I think those won't be able to see and I think those ingredients alone is why this place or ingredients alone is why this place or ingredients alone is why this place or you can replicate it somewhere else but you can replicate it somewhere else but you can replicate it somewhere else but at least these ingredients are necessary at least these ingredients are necessary at least these ingredients are necessary for really an innovation ecosystem to for really an innovation ecosystem to for really an innovation ecosystem to thrive. thrive. thrive. Okay. Now you you've had interviews uh Okay. Now you you've had interviews uh Okay. Now you you've had interviews uh about the book Startup Mindsets all over about the book Startup Mindsets all over about the book Startup Mindsets all over including like uh newspapers in Asia and including like uh newspapers in Asia and including like uh newspapers in Asia and they've all taken different things uh they've all taken different things uh they've all taken different things uh away from them. Do do you feel that like away from them. Do do you feel that like away from them. Do do you feel that like I'm looking at an interview here with uh I'm looking at an interview here with uh I'm looking at an interview here with uh a uh a Tatlerasia.com? a uh a Tatlerasia.com? a uh a Tatlerasia.com? Uh are they taking different things away Uh are they taking different things away Uh are they taking different things away from the book than are in the northern from the book than are in the northern from the book than are in the northern hemisphere or in the west? I I think so.

hemisphere or in the west? I I think so. hemisphere or in the west? I I think so. Right. Like I think that's that's the Right. Like I think that's that's the Right. Like I think that's that's the the funny the funny thing, right? the funny the funny thing, right? the funny the funny thing, right? depending on who their audience is is depending on who their audience is is depending on who their audience is is what they they take out and what they they take out and what they they take out and I I I think when when you when you talk I I I think when when you when you talk I I I think when when you when you talk to um you know folks let's say in Asia to um you know folks let's say in Asia to um you know folks let's say in Asia they always want to highlight you know they always want to highlight you know they always want to highlight you know what is what is success right like for what is what is success right like for what is what is success right like for example success is writing a book um you example success is writing a book um you example success is writing a book um you know from a top publisher like Penguin know from a top publisher like Penguin know from a top publisher like Penguin uh success could be that you know you uh success could be that you know you uh success could be that you know you built a company you raised venture built a company you raised venture built a company you raised venture funding success could be you working in funding success could be you working in funding success could be you working in a big tech company right like so they a big tech company right like so they a big tech company right like so they want to highlight the success want to highlight the success want to highlight the success Even if actually we highlight you know Even if actually we highlight you know Even if actually we highlight you know what let's not focus on the success but what let's not focus on the success but what let's not focus on the success but let's focus on the journey let's focus let's focus on the journey let's focus let's focus on the journey let's focus on how actually you know what are the on how actually you know what are the on how actually you know what are the lessons you need to do and not let's not lessons you need to do and not let's not lessons you need to do and not let's not glamorize this right but I think what's glamorize this right but I think what's glamorize this right but I think what's happening uh and and again tatler is not happening uh and and again tatler is not happening uh and and again tatler is not not one of that many uh publication is not one of that many uh publication is not one of that many uh publication is like how do we think about this uh as as like how do we think about this uh as as like how do we think about this uh as as a you know a way for people to to get a you know a way for people to to get a you know a way for people to to get excited about this but what I want to excited about this but what I want to excited about this but what I want to frame is that not about people to get frame is that not about people to get frame is that not about people to get excited but hopefully people to ask the excited but hopefully people to ask the excited but hopefully people to ask the right questions as they go towards this right questions as they go towards this right questions as they go towards this journey. I think that's really the way journey. I think that's really the way journey. I think that's really the way that we want to frame and that's why that we want to frame and that's why that we want to frame and that's why this book was also created right now.

this book was also created right now. this book was also created right now. Yeah. Well, to your credit, one of the Yeah. Well, to your credit, one of the Yeah. Well, to your credit, one of the reasons that I wanted to talk to you is reasons that I wanted to talk to you is reasons that I wanted to talk to you is that I honestly was like I don't want to that I honestly was like I don't want to that I honestly was like I don't want to read another startup book. Yeah. Uh but read another startup book. Yeah. Uh but read another startup book. Yeah. Uh but you are rather than talking at length you are rather than talking at length you are rather than talking at length about startup success, you're talking about startup success, you're talking about startup success, you're talking about resilience, you're talking about about resilience, you're talking about about resilience, you're talking about failure, you're talking about timing. failure, you're talking about timing. failure, you're talking about timing. And that's why I think it's so And that's why I think it's so And that's why I think it's so interesting that you're bridging uh a interesting that you're bridging uh a interesting that you're bridging uh a worldwide audience, you know, an worldwide audience, you know, an worldwide audience, you know, an audience that is east and west, north, audience that is east and west, north, audience that is east and west, north, north and south because you said that north and south because you said that north and south because you said that startup mindset people, founders will startup mindset people, founders will startup mindset people, founders will look at the failure as being in itself look at the failure as being in itself look at the failure as being in itself meaningful. How do you cultivate that meaningful. How do you cultivate that meaningful. How do you cultivate that mindset on a team that has like a we can mindset on a team that has like a we can mindset on a team that has like a we can never fail, we cannot fail, we have to never fail, we cannot fail, we have to never fail, we cannot fail, we have to succeed. Yeah, I think succeed. Yeah, I think succeed. Yeah, I think you know um as I talk to other founders you know um as I talk to other founders you know um as I talk to other founders right um you know you know that failure right um you know you know that failure right um you know you know that failure is always around the corner right and is always around the corner right and is always around the corner right and and you know I joked I actually talked and you know I joked I actually talked and you know I joked I actually talked to a number of of founders um you know to a number of of founders um you know to a number of of founders um you know the other week and we joked around to the other week and we joked around to the other week and we joked around to say that in all honesty most of these say that in all honesty most of these say that in all honesty most of these successes we see are really about luck successes we see are really about luck successes we see are really about luck right like imagine that you have you right like imagine that you have you right like imagine that you have you know all these top founders like they know all these top founders like they know all these top founders like they just had the right connection or the just had the right connection or the just had the right connection or the right introduction or the right right introduction or the right right introduction or the right technology or the right market timing technology or the right market timing technology or the right market timing even right or the right idea at the even right or the right idea at the even right or the right idea at the right time and you know Silicon Valley right time and you know Silicon Valley right time and you know Silicon Valley in particular is littered with ideas in particular is littered with ideas in particular is littered with ideas that just didn't have was the best team that just didn't have was the best team that just didn't have was the best team the best idea but just wrong timing or

the best idea but just wrong timing or the best idea but just wrong timing or good timing just happened to be like a good timing just happened to be like a good timing just happened to be like a little bit you know technology just got little bit you know technology just got little bit you know technology just got over over you know took book by one over over you know took book by one over over you know took book by one technology that was like one or two% technology that was like one or two% technology that was like one or two% better right so all of these thing better right so all of these thing better right so all of these thing happen so as a founder I think the most happen so as a founder I think the most happen so as a founder I think the most important thing is to be honest I call important thing is to be honest I call important thing is to be honest I call it I call it intellectual humility right it I call it intellectual humility right it I call it intellectual humility right this notion of knowing that you're this notion of knowing that you're this notion of knowing that you're working on it but also understanding working on it but also understanding working on it but also understanding that you are going into a area which has that you are going into a area which has that you are going into a area which has just like extreme high risk right and just like extreme high risk right and just like extreme high risk right and that's kind of why to be honest people that's kind of why to be honest people that's kind of why to be honest people get rewarded because you're going to get rewarded because you're going to get rewarded because you're going to extreme risk extreme risk extreme risk And maybe you have this small And maybe you have this small And maybe you have this small percentage, you get an extreme reward. percentage, you get an extreme reward. percentage, you get an extreme reward. But the I think the most the biggest But the I think the most the biggest But the I think the most the biggest thing really to reflect on is how do you thing really to reflect on is how do you thing really to reflect on is how do you then control that risk and how do you be then control that risk and how do you be then control that risk and how do you be sure that you are going in with open sure that you are going in with open sure that you are going in with open eyes and not this idealistic blinded way eyes and not this idealistic blinded way eyes and not this idealistic blinded way because you think that it's you know a because you think that it's you know a because you think that it's you know a lottery ticket just waiting to happen.

lottery ticket just waiting to happen. lottery ticket just waiting to happen. Yeah. Uh, speaking of that lottery Yeah. Uh, speaking of that lottery Yeah. Uh, speaking of that lottery ticket waiting to happen, you have this ticket waiting to happen, you have this ticket waiting to happen, you have this term wannreneur if you're a wannabreneur term wannreneur if you're a wannabreneur term wannreneur if you're a wannabreneur as opposed to an entrepreneur. Uh, you as opposed to an entrepreneur. Uh, you as opposed to an entrepreneur. Uh, you know, what is a mistake that someone know, what is a mistake that someone know, what is a mistake that someone makes and how do you tell the makes and how do you tell the makes and how do you tell the difference? Because I'm sure that difference? Because I'm sure that difference? Because I'm sure that everyone in the Bay Area right now and everyone in the Bay Area right now and everyone in the Bay Area right now and all over the world is looking for a all over the world is looking for a all over the world is looking for a co-founder, right? They're having coffee co-founder, right? They're having coffee co-founder, right? They're having coffee and someone is someone is texting and someone is someone is texting and someone is someone is texting someone right now on LinkedIn to pick someone right now on LinkedIn to pick someone right now on LinkedIn to pick their brain about a startup. How do you their brain about a startup. How do you their brain about a startup. How do you avoid wopreneurs? Yeah. Uh and and I avoid wopreneurs? Yeah. Uh and and I avoid wopreneurs? Yeah. Uh and and I think that's you know it is actually the think that's you know it is actually the think that's you know it is actually the most cited or the most ones that every most cited or the most ones that every most cited or the most ones that every uh press wanted to talk to me about this uh press wanted to talk to me about this uh press wanted to talk to me about this specific chapter right because right now specific chapter right because right now specific chapter right because right now many people not just in Silicon Valley many people not just in Silicon Valley many people not just in Silicon Valley not here in the Northwest not even in not here in the Northwest not even in not here in the Northwest not even in New York but literally every city in the New York but literally every city in the New York but literally every city in the world you'll have a lot of young people world you'll have a lot of young people world you'll have a lot of young people and they say that I I want to be a and they say that I I want to be a and they say that I I want to be a founder right it is really a a founder right it is really a a founder right it is really a a phenomenon that wasn't here even maybe phenomenon that wasn't here even maybe phenomenon that wasn't here even maybe 15, 20 years ago, right? Um, but I think 15, 20 years ago, right? Um, but I think 15, 20 years ago, right? Um, but I think the key really is the key really is the key really is are you really an entrepreneur are you really an entrepreneur are you really an entrepreneur or do you just want to be an or do you just want to be an or do you just want to be an entrepreneur?

See, that's something that that requires See, that's something that that requires I love that you had a pause there I love that you had a pause there I love that you had a pause there because it does have to have a pause because it does have to have a pause because it does have to have a pause when you say something like that. The, when you say something like that. The, when you say something like that. The, you know, the the listener and the you know, the the listener and the you know, the the listener and the reader has to go, is it the glamour or reader has to go, is it the glamour or reader has to go, is it the glamour or is it the building of the thing? Is it is it the building of the thing? Is it is it the building of the thing? Is it the making of the thing and the people the making of the thing and the people the making of the thing and the people you're going to help or is it just that you're going to help or is it just that you're going to help or is it just that it's fun to say entrepreneur? Yeah. And it's fun to say entrepreneur? Yeah. And it's fun to say entrepreneur? Yeah. And and and and it it is something that is, and and and it it is something that is, and and and it it is something that is, you know, I think needed to be asked you know, I think needed to be asked you know, I think needed to be asked today today today because I don't want someone to leave, because I don't want someone to leave, because I don't want someone to leave, let's say, you know, their job, put let's say, you know, their job, put let's say, you know, their job, put their family at risk, right? Like do their family at risk, right? Like do their family at risk, right? Like do something and and change their lives, something and and change their lives, something and and change their lives, but ultimately inside of them, that's but ultimately inside of them, that's but ultimately inside of them, that's not who they are or who they want to not who they are or who they want to not who they are or who they want to become. become. become. Right. Um and and that's why it's it's Right. Um and and that's why it's it's Right. Um and and that's why it's it's important. And the other one too is um important. And the other one too is um important. And the other one too is um entrepreneurs are a entrepreneurs are a entrepreneurs are a are are people that just have a bias for are are people that just have a bias for are are people that just have a bias for action. action. action. And I've met so many people I don't call And I've met so many people I don't call And I've met so many people I don't call them wopreneurs but so many people that them wopreneurs but so many people that them wopreneurs but so many people that pitch me an idea, pitch me an idea, pitch me an idea, right? Hey, I have this idea. Let's right? Hey, I have this idea. Let's right? Hey, I have this idea. Let's talk. Maybe can you invest in me? blah talk. Maybe can you invest in me? blah talk. Maybe can you invest in me? blah blah blah blah. And then I see them blah blah blah. And then I see them blah blah blah. And then I see them again in 3 months and they're like, "Oh, again in 3 months and they're like, "Oh, again in 3 months and they're like, "Oh, by the way, I have this idea." They by the way, I have this idea." They by the way, I have this idea." They asked them, "What happened?" Oh, I'm asked them, "What happened?" Oh, I'm asked them, "What happened?" Oh, I'm still working on it. Right? But I'm still working on it. Right? But I'm still working on it. Right? But I'm like, "Can I see something?"

like, "Can I see something?" like, "Can I see something?" That's when you know that you have the That's when you know that you have the That's when you know that you have the entrepreneurs DNA entrepreneurs DNA entrepreneurs DNA is when you don't let time pass by. is when you don't let time pass by. is when you don't let time pass by. Yeah. because the problem that you're Yeah. because the problem that you're Yeah. because the problem that you're solving is so important to you that you solving is so important to you that you solving is so important to you that you need to try to solve it as quickly as need to try to solve it as quickly as need to try to solve it as quickly as you can. you can. you can. And that's that's the type of thing that And that's that's the type of thing that And that's that's the type of thing that I I want to share because everybody I I want to share because everybody I I want to share because everybody thinks that they have an idea. In fact, thinks that they have an idea. In fact, thinks that they have an idea. In fact, people come to me and tell me, hey, that people come to me and tell me, hey, that people come to me and tell me, hey, that idea right like that product that was my idea right like that product that was my idea right like that product that was my idea 15 years ago, idea 15 years ago, idea 15 years ago, you know, but I said, did you act on it? you know, but I said, did you act on it? you know, but I said, did you act on it? And they're like, I didn't. So, you And they're like, I didn't. So, you And they're like, I didn't. So, you know, that's a type of discussion that I know, that's a type of discussion that I know, that's a type of discussion that I always like to have. Yeah, that's a always like to have. Yeah, that's a always like to have. Yeah, that's a great point. And there's so many people great point. And there's so many people great point. And there's so many people out there that are like, "Oh, I had that out there that are like, "Oh, I had that out there that are like, "Oh, I had that idea." It doesn't matter, right? It idea." It doesn't matter, right? It idea." It doesn't matter, right? It doesn't matter that you had that idea doesn't matter that you had that idea doesn't matter that you had that idea cuz ideas are, you know, there's always cuz ideas are, you know, there's always cuz ideas are, you know, there's always an idea. I've got lots of ideas. I've an idea. I've got lots of ideas. I've an idea. I've got lots of ideas. I've got 30 plus domains that are all failed got 30 plus domains that are all failed got 30 plus domains that are all failed failed startups that I never cared failed startups that I never cared failed startups that I never cared enough about. And that's really the enough about. And that's really the enough about. And that's really the thing, right? If you're going to launch thing, right? If you're going to launch thing, right? If you're going to launch a startup today, what is the problem a startup today, what is the problem a startup today, what is the problem that you're going to tackle? What's the that you're going to tackle? What's the that you're going to tackle? What's the thing you care the most about that you thing you care the most about that you thing you care the most about that you you can't sleep until you make it? Yeah.

you can't sleep until you make it? Yeah. you can't sleep until you make it? Yeah. And and this is something too is a And and this is something too is a And and this is something too is a misconception, right? Which is venture misconception, right? Which is venture misconception, right? Which is venture funding. funding. funding. So people think that venture funding is So people think that venture funding is So people think that venture funding is like again another lottery ticket, like again another lottery ticket, like again another lottery ticket, right? Like I got money to work on this. right? Like I got money to work on this. right? Like I got money to work on this. But for people who are experienced But for people who are experienced But for people who are experienced entrepreneurs or startup founders, they entrepreneurs or startup founders, they entrepreneurs or startup founders, they realize that getting someone else's realize that getting someone else's realize that getting someone else's money is a responsibility. money is a responsibility. money is a responsibility. M ultimately when you get even if you M ultimately when you get even if you M ultimately when you get even if you give 1% of your company to investor it's give 1% of your company to investor it's give 1% of your company to investor it's not your company anymore not your company anymore not your company anymore right it is the company of you and you right it is the company of you and you right it is the company of you and you have the duty to investors to try to have the duty to investors to try to have the duty to investors to try to make it and work the hardest. So once make it and work the hardest. So once make it and work the hardest. So once you get money it's actually like a at you get money it's actually like a at you get money it's actually like a at least a 3 to 5 year commitment right least a 3 to 5 year commitment right least a 3 to 5 year commitment right away. away. away. So you have to be sure that you are So you have to be sure that you are So you have to be sure that you are ready, you're willing and you want to ready, you're willing and you want to ready, you're willing and you want to solve that especially once you go to solve that especially once you go to solve that especially once you go to venture raise uh venture funding raising venture raise uh venture funding raising venture raise uh venture funding raising right. Yeah. Now you had mentioned a right. Yeah. Now you had mentioned a right. Yeah. Now you had mentioned a couple things I wanted to get clarity on couple things I wanted to get clarity on couple things I wanted to get clarity on because I think not everyone knows what because I think not everyone knows what because I think not everyone knows what a series A and a series B and these a series A and a series B and these a series A and a series B and these different things are. Could you briefly different things are. Could you briefly different things are. Could you briefly just give us a startup 101 so we can just give us a startup 101 so we can just give us a startup 101 so we can speak that same language? Yeah, of speak that same language? Yeah, of speak that same language? Yeah, of course. Right. So you know typically course. Right. So you know typically course. Right. So you know typically when you start a business there's like when you start a business there's like when you start a business there's like an idea stage, right? So you know you an idea stage, right? So you know you an idea stage, right? So you know you maybe a co-founder and you build a maybe a co-founder and you build a maybe a co-founder and you build a prototype and you get some traction prototype and you get some traction prototype and you get some traction right so that's really what it is that right so that's really what it is that right so that's really what it is that you can call it the the idea to preede you can call it the the idea to preede you can call it the the idea to preede stage right because seed is like a it's stage right because seed is like a it's stage right because seed is like a it's like a you know like a plant right like like a you know like a plant right like like a you know like a plant right like it's a seed okay and then once you go it's a seed okay and then once you go it's a seed okay and then once you go towards getting some customers some

towards getting some customers some towards getting some customers some traction some people maybe paying you or traction some people maybe paying you or traction some people maybe paying you or you're getting users to use it then you you're getting users to use it then you you're getting users to use it then you can go to the next stage which is a seed can go to the next stage which is a seed can go to the next stage which is a seed stage right um and after that so people stage right um and after that so people stage right um and after that so people could give you money just in the basis could give you money just in the basis could give you money just in the basis of that right there maybe the business of that right there maybe the business of that right there maybe the business model isn't perfect perfect yet you're model isn't perfect perfect yet you're model isn't perfect perfect yet you're not necessarily growing yet right etc not necessarily growing yet right etc not necessarily growing yet right etc but then when you go to like the next but then when you go to like the next but then when you go to like the next stages which is you know series A and B stages which is you know series A and B stages which is you know series A and B uh A to be the first one that really uh A to be the first one that really uh A to be the first one that really says I see that your business model is says I see that your business model is says I see that your business model is working you have a product and a market working you have a product and a market working you have a product and a market that's growing and typically right now that's growing and typically right now that's growing and typically right now um the bar is a bit high actually so you um the bar is a bit high actually so you um the bar is a bit high actually so you need to be like a million dollars need to be like a million dollars need to be like a million dollars projected run rate per year and maybe projected run rate per year and maybe projected run rate per year and maybe growing doing about 10 to 15% per month. growing doing about 10 to 15% per month. growing doing about 10 to 15% per month. Per month. Per month. Wow. So that's Per month. Per month. Wow. So that's Per month. Per month. Wow. So that's something that you have to go. So you something that you have to go. So you something that you have to go. So you have to start the series A with like a have to start the series A with like a have to start the series A with like a hockey stick or a remnant of a hockey hockey stick or a remnant of a hockey hockey stick or a remnant of a hockey stick and then you go to the later stick and then you go to the later stick and then you go to the later rounds which is like B and C which is rounds which is like B and C which is rounds which is like B and C which is they call it growth rounds, right? they call it growth rounds, right? they call it growth rounds, right? Because you realize you perfect the Because you realize you perfect the Because you realize you perfect the model, you have the market and you just model, you have the market and you just model, you have the market and you just need fuel to the fire to start growing need fuel to the fire to start growing need fuel to the fire to start growing and scaling and try to reach your full and scaling and try to reach your full and scaling and try to reach your full potential, right? So this is like the potential, right? So this is like the potential, right? So this is like the hardest part. But this preede and seed hardest part. But this preede and seed hardest part. But this preede and seed stage is what we call as a valley of stage is what we call as a valley of stage is what we call as a valley of death in the startup world because this death in the startup world because this death in the startup world because this is where ideas get launched. You have is where ideas get launched. You have is where ideas get launched. You have some conviction. Some investors that some conviction. Some investors that some conviction. Some investors that believe in you but they bet on the team believe in you but they bet on the team believe in you but they bet on the team maybe the idea but the market still maybe the idea but the market still maybe the idea but the market still hasn't said that that's the right idea hasn't said that that's the right idea hasn't said that that's the right idea for the market. Right. You say they bet

for the market. Right. You say they bet for the market. Right. You say they bet on the team. That's where I think on the team. That's where I think on the team. That's where I think sometimes people outside that bubble see sometimes people outside that bubble see sometimes people outside that bubble see uh maybe a failed project but the person uh maybe a failed project but the person uh maybe a failed project but the person keeps getting bet on. Is it personality keeps getting bet on. Is it personality keeps getting bet on. Is it personality driven or ide? Because there's this driven or ide? Because there's this driven or ide? Because there's this possible myth of the meritocracy where a possible myth of the meritocracy where a possible myth of the meritocracy where a good idea will always be bet on but then good idea will always be bet on but then good idea will always be bet on but then we see the same person getting raising we see the same person getting raising we see the same person getting raising money whether it be friends and family money whether it be friends and family money whether it be friends and family or so how much is it the value of the or so how much is it the value of the or so how much is it the value of the idea versus you know Earl's a a known idea versus you know Earl's a a known idea versus you know Earl's a a known startup person in the community we'll startup person in the community we'll startup person in the community we'll give him money. Yeah. ultimately give him money. Yeah. ultimately give him money. Yeah. ultimately investors. Um you know when I took my investors. Um you know when I took my investors. Um you know when I took my venture capital class at Stanford um and venture capital class at Stanford um and venture capital class at Stanford um and and uh the professor uh was Eric Schmidt and uh the professor uh was Eric Schmidt and uh the professor uh was Eric Schmidt who was the first CEO of Google and he who was the first CEO of Google and he who was the first CEO of Google and he told us like the point of investing is told us like the point of investing is told us like the point of investing is when um greed overcomes fear when um greed overcomes fear when um greed overcomes fear right greed overcomes fear which is right greed overcomes fear which is right greed overcomes fear which is means that you know you need to take out means that you know you need to take out means that you know you need to take out and derisk yourself before you give and derisk yourself before you give and derisk yourself before you give someone a money right and the risking someone a money right and the risking someone a money right and the risking could come from I know the person I could come from I know the person I could come from I know the person I trust the person I believe in the trust the person I believe in the trust the person I believe in the And the other way also believe in the And the other way also believe in the And the other way also believe in the person or team is competence right like person or team is competence right like person or team is competence right like are you the only team in the world can are you the only team in the world can are you the only team in the world can address this problem which I call address this problem which I call address this problem which I call founder market fit right so those are founder market fit right so those are founder market fit right so those are areas that we have to think about right areas that we have to think about right areas that we have to think about right when people get money so you might have when people get money so you might have when people get money so you might have you know the best idea in the world but you know the best idea in the world but you know the best idea in the world but in order to get investment if you want in order to get investment if you want in order to get investment if you want to call that and that's your goal you to call that and that's your goal you to call that and that's your goal you either have to figure out how can these

either have to figure out how can these either have to figure out how can these investors ers trust me um as a person um investors ers trust me um as a person um investors ers trust me um as a person um that they you know that I will do the that they you know that I will do the that they you know that I will do the right thing and be stewards of their right thing and be stewards of their right thing and be stewards of their money. So that's one question and the money. So that's one question and the money. So that's one question and the next question is am I the right team to next question is am I the right team to next question is am I the right team to address this problem that we're trying address this problem that we're trying address this problem that we're trying to solve in pitching to you. Okay. to solve in pitching to you. Okay. to solve in pitching to you. Okay. Typically those two will work out. So Typically those two will work out. So Typically those two will work out. So that is where things go beyond passion. that is where things go beyond passion. that is where things go beyond passion. Like you can be very passionate but have Like you can be very passionate but have Like you can be very passionate but have no background in I don't know medical no background in I don't know medical no background in I don't know medical software design. Exactly. Yeah. And so software design. Exactly. Yeah. And so software design. Exactly. Yeah. And so what you need is an alignment between what you need is an alignment between what you need is an alignment between the founders's background, their the founders's background, their the founders's background, their motivation, their insight, the problem motivation, their insight, the problem motivation, their insight, the problem space because the the venture capitalist space because the the venture capitalist space because the the venture capitalist is going to bet on a founder who fits is going to bet on a founder who fits is going to bet on a founder who fits the market. But so again, it's fits the the market. But so again, it's fits the the market. But so again, it's fits the market, but typically it's also mission, market, but typically it's also mission, market, but typically it's also mission, right? mission, market, founder, fit right? mission, market, founder, fit right? mission, market, founder, fit because ultimately if they're addressing because ultimately if they're addressing because ultimately if they're addressing the market and market typically is a the market and market typically is a the market and market typically is a problem, right? A market is just a problem, right? A market is just a problem, right? A market is just a reflection of the needs of x amount of reflection of the needs of x amount of reflection of the needs of x amount of people. It could be thousands of people. It could be thousands of people. It could be thousands of companies or billions of users, right?

companies or billions of users, right? companies or billions of users, right? But it's a reflection of the need. So if But it's a reflection of the need. So if But it's a reflection of the need. So if you if if I was an investor and I can you if if I was an investor and I can you if if I was an investor and I can sense that you really want to solve this sense that you really want to solve this sense that you really want to solve this need then that aligns and I know that need then that aligns and I know that need then that aligns and I know that during hard times you will push through during hard times you will push through during hard times you will push through right so that's why I you know it's it's right so that's why I you know it's it's right so that's why I you know it's it's important to call that thing that we important to call that thing that we important to call that thing that we talked about in the beginning of this talked about in the beginning of this talked about in the beginning of this podcast is what is your mission and then podcast is what is your mission and then podcast is what is your mission and then you can address the market and then is you can address the market and then is you can address the market and then is your team the right team also to address your team the right team also to address your team the right team also to address this mission and the market right per this mission and the market right per this mission and the market right per and also personal experience with the and also personal experience with the and also personal experience with the Like if you're a nurse building health Like if you're a nurse building health Like if you're a nurse building health tech, insider knowledge of a niche tech, insider knowledge of a niche tech, insider knowledge of a niche market, are you are you just chasing a market, are you are you just chasing a market, are you are you just chasing a meme or are you solving a problem that meme or are you solving a problem that meme or are you solving a problem that you care deeply about? Yeah. And it's you care deeply about? Yeah. And it's you care deeply about? Yeah. And it's hard, right? Because technology um hard, right? Because technology um hard, right? Because technology um you know there is an advantage also with you know there is an advantage also with you know there is an advantage also with technology but you know people technology but you know people technology but you know people underestimate the domain expertise in underestimate the domain expertise in underestimate the domain expertise in certain industries and I think you certain industries and I think you certain industries and I think you mirror the two together. If you have a mirror the two together. If you have a mirror the two together. If you have a good technology with good domain good technology with good domain good technology with good domain expertise that that's typically a expertise that that's typically a expertise that that's typically a betable company. Yeah. And you talk in betable company. Yeah. And you talk in betable company. Yeah. And you talk in per in chapter 15 to remind people that per in chapter 15 to remind people that per in chapter 15 to remind people that it is a marathon not a sprint. People it is a marathon not a sprint. People it is a marathon not a sprint. People seem to think that they can sprint to a seem to think that they can sprint to a seem to think that they can sprint to a billion dollars. Uh this is not the it's billion dollars. Uh this is not the it's billion dollars. Uh this is not the it's not the case. It it is never the case.

not the case. It it is never the case. not the case. It it is never the case. It is typically a grind and you cannot It is typically a grind and you cannot It is typically a grind and you cannot make it quick. You know, there was a make it quick. You know, there was a make it quick. You know, there was a time before um and we hear this all the time before um and we hear this all the time before um and we hear this all the time of like a acquires or like I'm time of like a acquires or like I'm time of like a acquires or like I'm going to build something and I might get going to build something and I might get going to build something and I might get acquired really fast. I think the market acquired really fast. I think the market acquired really fast. I think the market corrected a bit of really saying are you corrected a bit of really saying are you corrected a bit of really saying are you building a sustainable business that building a sustainable business that building a sustainable business that then has potential to grow bigger and then has potential to grow bigger and then has potential to grow bigger and and I think that is that is the thought and I think that is that is the thought and I think that is that is the thought process and that's why it's a marathon, process and that's why it's a marathon, process and that's why it's a marathon, right? Because if you're addressing right? Because if you're addressing right? Because if you're addressing really a large market, it just takes really a large market, it just takes really a large market, it just takes time. time. time. a lot of failures, a lot of hard cakes, a lot of failures, a lot of hard cakes, a lot of failures, a lot of hard cakes, a lot of experiments a lot of experiments a lot of experiments before you get it right. So, it takes before you get it right. So, it takes before you get it right. So, it takes time and it it you know, if you're time and it it you know, if you're time and it it you know, if you're addressing a a a problem worth solving, addressing a a a problem worth solving, addressing a a a problem worth solving, then you have to tell yourself to be then you have to tell yourself to be then you have to tell yourself to be patient um and maybe tell your team to patient um and maybe tell your team to patient um and maybe tell your team to be patient and I think that's the be patient and I think that's the be patient and I think that's the hardest part actually to be a leader in hardest part actually to be a leader in hardest part actually to be a leader in these situations. Yep. And getting the these situations. Yep. And getting the these situations. Yep. And getting the start having the startup mindset.

start having the startup mindset. start having the startup mindset. Indeed. Thanks so much for hanging out Indeed. Thanks so much for hanging out Indeed. Thanks so much for hanging out with me today. Hey, thank you, Scott. with me today. Hey, thank you, Scott. with me today. Hey, thank you, Scott. Uh, always humble and ordered, uh, you Uh, always humble and ordered, uh, you Uh, always humble and ordered, uh, you know, to talk to you and, uh, you know, know, to talk to you and, uh, you know, know, to talk to you and, uh, you know, looking forward to have more looking forward to have more looking forward to have more conversations. Appreciate it. I conversations. Appreciate it. I conversations. Appreciate it. I appreciate you. So, the book is Startup appreciate you. So, the book is Startup appreciate you. So, the book is Startup Mindsets, a blueprint to thrive in an Mindsets, a blueprint to thrive in an Mindsets, a blueprint to thrive in an innovation-driven and globally connected innovation-driven and globally connected innovation-driven and globally connected world by Earl Valencia and Dan Gonzalez. world by Earl Valencia and Dan Gonzalez. world by Earl Valencia and Dan Gonzalez. And this has been another episode of And this has been another episode of And this has been another episode of Hansel Minutes, and we'll see you again Hansel Minutes, and we'll see you again Hansel Minutes, and we'll see you again next week. next week. next week. [Music]