Marc Andreessen co-founded both Netscape and Opsware, so he’s one of the few people to found not one but two billion dollar companies. Recently, he launched his new venture fund, Andreessen-Horowitz. (That is actually their website. I kinda like it.) So he knows a thing or two about startups. I found a video where he shares his thoughts on iteration and agile business for technology startups. The relevant section starts at the two-minute mark, but the video is good.
“If you look at the history of the major technology franchises, most of them started off doing something very different from what they were ultimately successful in doing. So Intel started out doing memory chips, and ended up doing CPUs. Microsoft started doing programming tools and ended up doing operating systems. Apple started out doing the Apple II, and ended up being most successful with the Mac, which had no bearing, no relationship to the Apple II. Silicon Graphics, my partner Jim’s company, started out making graphics cards for mainframes and ended up making supercomputers. Somebody the other day said that trying to understand what is going to happen – how a tech startup is going to be successful – is a little bit like looking at a sonogram and then trying to predict the baby’s hair color. It’s incredibly hard to tell.
The idea really matters, and the products really matter, and that all matters, but you know so little about the adventure you’re undertaking when you’re starting a new tech company that you, in our view, have to assume that things are gonna change.
- Marc Andreessen, October 2009 Interview
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