Key Takeways from Zero to One

Biggest mistake of a start up is to describe your market so narrowly so that you dominate by definition.  Every startup should start with a very small market. It's easier to dominate a small market than a large one. It's much easier to reach a few thousand people who really  need our product than to try to compete for the attention of millions of scattered individuals.

Characteristics of a Monopoly Proprietary technology - A rule of thumb - The technology must be at least 10x better than its closest substitute. The clearest way to make a 10x improvement is to invent something completely new or radically improve an existing solution.

Network effects - Network effects business must start with especially small market.

Economic of scale - Many business gain only limited advantages as they grow to large scale. Service business are especially difficult to make monopolies. A good startup should have the potential for great scale built into its first design.

Branding - No tech company can be built base on branding alone.



Difference between a biotech start up and software startup.




The biggest secret in venture capital is that the best investment in a successful fund equals or outperforms the entire rest of the fund combined. Only invest in companies that have the potential to return the value of the entire fund.

When considering investing in a startup, study the founding team. Technical abilities and complementary skills set matters, but how well the founders know each other and how well they work together matter just as well. Founders should share a prehistory before starting a company.

How much does the CEO intends to pay himself. A company does better the lesser it pays the CEO.

These are the 7 questions every business should ought to be able to answer.