Founding a startup isn’t the best option for everyone

March 12, 2024

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Welcome to Startup Strategist by stratup.ai. It's Tuesday, and today we have two news stories, one article, and three resources for you.

  • News: (1) Banking as a service startup raises $24M (TechCrunch), (2) This ag-tech startup helped save hundreds of millions of gallons of waters (Geekwire)

  • Creating a startup isn’t the best option for everyone

  • Resource: Sam Altman interview, idea generation, essay on wealth

  • StratupAI Generated Idea: green cement production

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News

‘Banking-as-a-Service’ startup raises $24M (TechCrunch)

According to TechCrunch, Griffin Bank, a U.K.-based BaaS platform founded by Silicon Valley engineers, recently secured a banking license after a year-long process. Griffin aims to offer fintech companies a full-stack platform for banking, payments, and wealth solutions.

Irigation tech startup revenue 4x year over year (Geekwire)

According to Geekwire, “last year, FarmHQ’s devices helped save approximately 365 million gallons of water over roughly 40,000 acres on customer farms.”

Creating a startup isn’t the best option for everyone

“For the startup world, you should not necessarily start your own company, even if you are extraordinarily talented. If anything, too many people are starting their own companies today. People who understand the power law will hesitate more than others when it comes to founding a new venture: they know how tremendously successful they could become by joining the very best company while it's still growing fast.” - pg. 91, Zero to One, Peter Theil

The perspective here is from that of billion dollar+ Silicon Valley companies, which is what many startup founders are seeking to achieve. For the purposes of this newsletter, though the name is Startup Strategist, goals/aims significantly below ‘unicorn’ level aren’t precluded from discussion.

As mentioned in Fridays edition, the philosophy of the community Smallbets is positioned somewhat against that of YC and Silicon Valley. Daniel Vassallo of Smallbets says, “what’s best for a group is not necessarily what’s best for the individuals who make up the group”.

A common question people face is whether they should, instead of starting a company, join one that appears promising. (recognizing this is a skill, and there is still significant risk, as noted below).

In one of Sam Altman’s Essays, on joining a rising startup rather than founding one, he writes, “In addition to the equity being a great deal (you might get 1/10th of the equity you’d get if you join a tiny new startup, but at 1/100th or 1/1000th of the risk), you will work with very good people, learn what success looks like, and get a W on your record (which turns out to be quite valuable).” (source)

3 Resources

“Traditional cement production is a major source of carbon emissions, contributing significantly to global greenhouse gas levels. This has raised concerns among environmentalists, regulators, and consumers about the negative impact of the construction industry on the environment. A compelling and viable startup business idea could be to develop and produce 'green cement' or sustainable alternatives to traditional cement that are environmentally friendly, lower in carbon emissions, and have comparable or improved performance characteristics. By providing a sustainable solution to an industry with a significant environmental footprint, this startup could attract environmentally-conscious contractors, developers, and governments looking to reduce their carbon footprint.”

Disclaimer: The startup ideas shared in this forum are offered for general discussion and information purposes only. Individuals utilizing these concepts are encouraged to exercise independent judgment and undertake due diligence per legal and regulatory requirements.

Meme

That’s all for today, thanks for reading. See you on Friday.

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The startup ideas, strategies, and suggestions shared are provided for general discussion and informational purposes only. Any individual or entity considering implementing these concepts should exercise independent judgment and conduct thorough due diligence in accordance with legal, regulatory, and industry-specific requirements. Startup Strategist does not guarantee the accuracy, completeness, or suitability of any information shared. It is recommended to consult with legal, financial, and other relevant professionals before proceeding with any business ventures or decisions.