When I graduated and was considering pursuing startups, an alum from my fraternity gave me some advice. He was a successful entrepreneur and sent me a message about pursuing technology-oriented startups. He presented a maxim about an MIT company and a Stanford company building products for the same market. The Stanford company gets a product out quickly, they make money, iterate and then raise money. They use network effects to lock-in customers or viral growth tactics to get super-linear returns on marketing investment. The MIT company seeks to develop an unassailable technical advantage, optimizing their product or process in terms of kilojoules, units per second, and dollars. They either find a market-fit or sell their technology to a Stanford company.
Nov 12, 13