Startup School Radio: Bannerman CEO Johnny Chin On Getting Into The Minds Of Your Users

In Episode 7 of YC's Startup School Radio, our host Aaron Harris first sat down with Kevin Hale, the YC partner and co-founder of Wufoo (W06), the online form building platform that was acquired by SurveyMonkey in 2011. In the second half, he talked to Johnny Chin, the co-founder and CEO of Bannerman, the company that provides on-demand security staff and bouncers.

You can listen to the full hour-long episode on SoundCloud here or on iTunes here, and read the full transcript on Genius here.

One piece of startup advice we often give at Y Combinator is to build something that people want and that solves a problem -- ideally, one that you personally have. One interesting part of Chin's interview is when he talked about building Bannerman, even though he personally did not have experience with hiring security services. So get into the minds of his potential users, Chin tried to meet in person with as many of them as he could, knocking on the doors of bars and restaurants and talking to the owners about their needs:

Aaron: So on the one hand, it sounds like you followed this core precept, which is so important, of talking to your users and finding out what they need. On the other hand, you weren't really building something for yourself anymore. Was that hard to reconcile or hard to get around? Or did it just make so much sense that, okay, of course that's what we go and do?

Johnny: That's a great question. I tried to, I guess I would consider myself a "method actor." I really wanted to get into the mind of the user. I used to go, it's a funny story actually, friends of mine who knew me before Bannerman called me Jonathan. And then I started going by Johnny. And I took on this sort of pseudo name of Johnny: He's the general manager of the bar, he's too busy to sit down at his computer, he's always on the go, he doesn't have time to book security. And so I tried to really get into this mindset, of Johnny, Johnny, Johnny. What does Johnny need, where does Johnny want that call to action button? And so that, I guess that kinda...

Aaron: Did you start dressing differently, talking differently, you know, all that?

Johnny: Oh no, I very much dress like a techie. I'm in a hoodie every single day of the week.

Aaron: So you kind of inhabit this mindset of someone who will need to hire a security professional, and you start talking to them all the time. What were these features that you started adding, that you realized that people really needed?

Johnny: Surprisingly, it's actually taking away features. That is really the most important thing. To take away features, and when a user doesn't complain, then you're on to something. Earlier on, with my four failed companies, it was always about adding more, adding more, adding more. 'Let's add this social hook' or 'Let's add this button here.' But it turns out with Bannerman, we did the exact opposite. And that proved to be quite interesting.

YC Digest - August 21-August 27

Top Stories from the YC World - August 21-August 27, 2015

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YC Alum



Lugg (YC S15) Is Like Uber But For Moving Stuff, Not People, Around Town

When you decide to buy a larger item such as a couch or a table, you also have to think about how you're going to get it back home. Unless you personally own a truck or van (and have the muscles to load and unload it), you have to track down a friend who does -- or search for a local mover or specialized delivery service to help out. The whole process can add just enough complexity and extra cost to make the entire experience a drag.

Lugg is a company that launched this month out of our Summer 2015 class that wants to take away that pain, with an on-demand platform for easily moving larger items, such as furniture, around town. As Drew Prindle at Digital Trends wrote, it's like Uber, but for moving stuff.

This week, Sarah Perez wrote about Lugg and its new $3.8 million seed funding round in an article published in TechCrunch:

"First launched in the San Francisco Bay Area in early 2015, the idea for Lugg came from Jordan Brown, who previously worked at a healthcare startup, but found himself facing the problem Lugg aims to solve first-hand. Many of us, both with and without cars, can also relate. We often have to make special, and sometimes expensive, delivery arrangements for our bigger purchases that don’t fit in standard-sized vehicles, or we have to hunt down someone who has a truck and convince them to help us.

Other times, we simply miss out on deals – such as in the case of larger, secondhand items like those you find at garage sales or in classified ads, for example.

Lugg offers an alternative by connecting you with local movers who will meet you at a pick-up site in around 20 minutes with their own vehicle equipped to handle your item. To use Lugg, consumers simply snap a photo of the item with the Lugg mobile app, enter their location and the destination. Similar to Uber, payment is handled in the app itself."

Read the full story here.

YC Startup School Radio: Thumbtack's Marco Zappacosta On The Always-Changing Job Of A CEO



In the sixth episode of YC's Startup School Radio, YC partner Aaron Harris sat down with Marco Zappacosta, the co-founder and CEO of services marketplace Thumbtack, and Sanjay Dastoor, the co-founder and CEO of electric skateboard company and YC W12 alum Boosted Boards.

You can listen to the full hour-long episode on SoundCloud here or on iTunes here, and read the full transcript on Genius here.

In one salient bit of Zappacosta's interview, he talked about how his job as CEO has continually changed as Thumbtack has grown since it was founded in 2009 to have hundreds of staff around the world:

Aaron: Has your job shifted from being focused on the supply and demand to being CEO of how many people you have working for you now?

Marco: So in the U.S., we have 300 people and...

Aaron: That's wild.

Marco: And so, I think my job has always been to focus on whatever is existential, whatever risk or problem is existential to us. And in the early days, it was absolutely building the network. If we couldn't do that, nothing else mattered. Then, there came a day where we had to really refine the product experience to make sure that we were the best way to hire, and that took us a while to us to figure out and that was my focus. And then, we had to think about and figure out how to make money. And so I was very focused, and worked with the team to sort of put the business model in place that we now have.

And today, the biggest challenge is scaling the organization. We have a ton of tactical and strategic sort of issues to solve, but the way that we're going to solve those is hiring more great people and organizing and empowering them, and so that takes the bulk of my time today.

Aaron: I don't think I've ever heard it framed quite that way: The CEO's job is to focus on the existential threat right to the business. I think the way most people have sort of framed the CEO's job is, to hire, set vision, and make sure there's money in the bank, or something like that. And that's kind of true, but it's an approximation. And really, what that's saying is, it's [to focus on] the thing that could kill your company at each stage.

Marco: I think that's what deserves your attention. That's what scares me in the morning when I wake up. So it's naturally what I'm sort of thinking about, and trying to help with and work on.

BlackRock, The World's Largest Asset Management Firm, Acquires FutureAdvisor (YC S10)

FutureAdvisor, the automated wealth management and financial advisory platform, announced today that it has been acquired by global asset management firm BlackRock. FutureAdvisor, which was co-founded by CEO Bo Lu and CTO Jon Xu, launched out of YC's Summer 2010 class. FutureAdvisor currently has more than $600 million in assets under management.

In an interview with the Financial Times about the acquisition, Frank Porcelli, the head of BlackRock's US wealth advisory unit, said that technology like FutureAdvisor's could represent the future of asset management:

"I have two 20-something boys and I don’t know, in an age of texts and chat, that they are going to sit down with a financial adviser. They might prefer digital advice.
 
Wherever the advice market goes, BlackRock wants to be there, and one thing we know is that five and 10 years from now, there will be more people using digital advice platforms than do today."

In a company blog post announcing the deal, Lu wrote:

"The entire FutureAdvisor team and I are extraordinarily excited to bring BlackRock’s world-class institutional investment and risk management capabilities to bear in helping you reach your unique financial goals. BlackRock has dedicated enormous effort over the years to improving financial outcomes through its leading active and passive investment offerings as well as innovative retirement planning tools including their CoRI Retirement Indexes. We look forward to integrating and delivering this expertise both directly to clients such as you as we’ve done to date, as well as in partnership with financial institutions in the months to come.

There will be no change in the mission of the FutureAdvisor you trust today. Our brand, our culture, and our people will work to serve you and improve your digital experience every day just as we all did before the acquisition. We will keep our independent offices in the heart of San Francisco. The knowledgeable and caring staff you’ve interacted with to date will remain, and become more numerous with time."

Congratulations to Bo and Jon, and the whole FutureAdvisor team!



YC stats

We get asked (a lot) for statistics on the YC portfolio about valuation and fundraising.  Although these are very imperfect indicators of success, here they are.

All of these companies actually went through a YC batch and got their start with us (e.g. we do not include Quora).

Also, the YC application for the next batch opens tomorrow! :)


Total "valuation" of all YC companies: >$65 billion

Total money raised by all YC companies: >$7 billion

Number of YC companies worth more than $1 billion: 8 [1]

Number of YC companies worth more than $100 million: >40

Number of companies funded by YC so far: ~940

Number of companies funded by YC that have dissolved: 177

Number of companies in the last batch: 107

Number of hardware + biotech + healthcare companies in the last batch: 32

Number of companies we offered to fund yesterday for the first YC Fellowship: 33


[1] This includes Twitch, which Amazon bought for ~970MM plus an earn-out.

A new role for Qasar

I'm delighted to announce that Qasar Younis will be YC's first COO. Qasar will help scale our organization and operations as we tackle bigger and more ambitious projects--we've grown quite a bit in the past few years and now have a lot to do on the operations side. Along with his new responsibilities as COO, Qasar will primarily continue to invest in and advise companies.

Qasar first joined YC as a founder and CEO of TalkBin, which was part of the Winter 2011 class. TalkBin was acquired by Google where he went on to lead business-facing products inside of Google Maps including google.com/business. He joined YC as a part-time partner in 2013 and full time in the 2014. Qasar has been in operational roles most of his career and we are all excited to see what he can do at YC.

Fortune wrote about this here.

Circle Medical (YC S15) Sends A Primary Care Doctor To You At Home Or At Work, On Demand

In an ideal world, everyone would get a full physical with a primary care physician every year. But for many people, life gets in the way -- they get busy with work or their families, and making an appointment and carving out time to go to the doctor seems like too much of a hassle. The next thing they know, years have gone by without a checkup.

Circle Medical is a company that's launched out of our Summer 2015 class that wants to make it easy for patients to get the routine primary care they need in a way that fits in with their lives. A patient simply downloads the Circle Medical app, scans their insurance card, picks a doctor and books an appointment the doctor to visit them at home or at work.

TechCrunch's Fitz Tepper wrote about Circle Medical in a story published earlier this month:

"While other doctor-on-demand startups have existed for a while, Circle Medical’s goal is to provide a service that can used as a regular part of your life, not just in emergencies or last-minute situations.

To achieve this, the startup focuses on two pain points that traditionally keep patients tied town to a physical practice.

First, Circle Medical is considered in-network for over 97 percent of patients in California who have private insurance. This means a visit normally costs no more than your regular doctor, and often less.

The second unique aspect of Circle Medical is that all of its doctors are full time. This means you can pick a doctor and have them become your new primary care physician."

Read the full story here, and see the Hacker News discussion here.

jEugene (YC S15) Automatically Combs Through Legal Documents And Finds Mistakes

When it comes to legal documents, you can never be too careful -- any small mistake or oversight could result in hefty costs. And at the moment, numerous legal documents involving hundreds of billions of dollars are created each year and subjected to only human review.

jEugene is a startup that launched this month out of our Summer 2015 class that automatically scans legal documents and detects difficult-to-spot errors. Notably, jEugene detects definitional errors, which are among the most common yet hardest to catch drafting mistakes lawyers make.

TechCrunch's Mike Butcher wrote about jEugene in a story published earlier this month:

"For years, software engineers have enjoyed the assistance of quality assurance software when writing computer code. Lawyers, however, are generally stuck with Microsoft Word. Yikes! So automated, intelligent reviewing of legal contracts by software should be the future. That’s where jEugene, a new YC startup as part of this summer’s batch, comes in.

This startup helps the drafters of legal documents catch mistakes that could be fatal to such documents’ validity or enforceability.

The original idea of Harry Zhou, who, as a first-year lawyer, was tasked with proofing a 250-page contract and wanted more than his supervising lawyer’s assurance that 'you did great,' jEugene scans through a legal document and highlights in text potential drafting mistakes in the document."

Read the full story on TechCrunch here.