11 Things I Wish I Knew Before Starting a Venture

The entrepreneurial journey is rich with invaluable lessons. To guide aspiring student entrepreneurs as they embark on their own ventures, we sought wisdom from founders who participated in this year's Tsai CITY Summer Fellowship Program. We asked them to share what they wish they'd known before launching their startups. Here are 11 key insights:

1. Product-Market Fit is crucial.

Mauricio Chiong (SOM '24), Rhys Hamilton-Davies (SOM '24), and Jacopo Lazzarin (SOM '24) of Replica AI emphasized the importance of understanding how to look for Product-Market Fit (PMF). PMF occurs when a product meets the needs and desires of a specific market segment effectively, leading to strong customer demand and satisfaction. This crucial step can make or break a startup, highlighting the need for founders to validate their ideas early on. Achieving PMF involves a deep grasp of customer needs, iterative product development, and continuous feedback loops to ensure alignment between what you’re offering and what the market demands. With a solid understanding of PMF, entrepreneurs can confidently move to the next stage of product development, knowing that their product or service adds real value to its target market. 

2. Perfection isn't necessary for launch—quality is.

Madhav Lavakare (YC ’25) learned that while you don't need to ship a perfect product, it’s crucial to maintain quality standards. This insight encourages founders to embrace iteration and get their products to market faster, but not at the expense of the functionality or user experience. The key is to launch with a viable product that solves the core problem, then improve based on user feedback. This approach allows for quicker market entry and real-world testing, leading to more refined products. 

3. Product alone isn't enough.

Guideli’s co-founder Oyebade Adepegba (SOM '24) discovered that a great product alone doesn't guarantee success. This highlights the need for effective marketing, strong customer relationships, and sound business strategies to complement product development. By focusing on these additional aspects, entrepreneurs can create a more successful and sustainable business model.

4. Explore various funding options. 

Matcha Scrubs founder MiChaela Barker (SOM '24, SPH '24) (and Nicole of Win Number) wished for better knowledge about different fundraising options. Understanding the pros and cons of grants, business loans, and venture capital can significantly impact a startup's trajectory. This knowledge empowers entrepreneurs to make informed decisions about how to strategically finance their ventures.  

5. Ensure investor readiness. 

Ziv Levi (SOM '24) of LeanCon shared valuable insights about approaching investors. He emphasized that early-stage startups should focus on demonstrating the real need for their product in the market, rather than presenting elaborate business plans. Ziv noted that “investors at this stage are more concerned with the product’s necessity and potential”, which can be effectively demonstrated through cooperation agreements with potential customers. This advice highlights the importance of validating your product’s market fit before seeking investment. By focusing on demonstrating real market need and projected success, entrepreneurs can more effectively attract investor interest and support.

6. Lay the foundation: team, legal, funding, and vision. 

Jinqiang Ning (SOM '25) of EVident Battery, Inc. emphasized that the most important startup steps are: team formation, incorporation, fundraising, and pitch deck creation. These essentials lay the groundwork for venture success. By establishing a strong organizational structure, legal legitimacy, financial backing, and a clear vision, startups can better attract co-founders, investors, partners, and customers. Having these fundamentals in place provides a solid foundation for growth and success.

7. Embrace diverse perspectives. 

Benjamin Barkoff (YC '27) of Whiskey Bravo emphasized the value of being open to others' ideas. He shared, “Building a team you trust empowers you to rely on decisions and perspectives, even when they differ from your own. Trusting your team fosters an environment where diverse ideas can flourish, leading to more innovative solutions.” This insight highlights how embracing team diversity can enhance adaptability and drive innovation in startups.  By cultivating an inclusive environment, entrepreneurs can tap into a wealth of diverse perspectives and ideas, ultimately strengthening their venture's potential for success. 

8. Embrace agility. 

Griffin Wilson (YC '25), Skyler Wilson (YC ‘23), and Marisa Shorrock (YC '24) of PartsMatch emphasized the need for agility. In the dynamic world of startups, flexibility and quick adaptation are crucial skills for founders. This adaptability allows entrepreneurs to pivot when necessary and seize new opportunities as they arise. 

9. Anticipate and prepare for business regulatory challenges. 

Nicole Morrison (SOM '25) of Win Number discovered that starting a business involves more paperwork and rules than expected. While necessary, these processes can impede new companies. New ventures often face hurdles like business registration, tax compliance, and industry regulations.”It is necessary for us as founders to do research on the current institutions and laws in place that will be relevant to our work,” Nicole shares.. These time-consuming and costly processes, while crucial for legitimacy, can be daunting for startups. By anticipating these challenges, entrepreneurs can better prepare and allocate resources to address them effectively.  

10. Leverage the power of a supportive startup ecosystem. 

Chandra Fincke (YC '24) of TaeSun discovered the incredible support within the startup community at Tsai CITY and the Yale entrepreneurship and innovation ecosystem. Networking with fellow entrepreneurs allows for greater information sharing and can provide helpful encouragement to founders on their journey. This supportive environment can be a crucial factor in overcoming challenges and finding new opportunities for growth. 

11. Embrace the excitement of creation. 

Constantine Polychronopoulos (YC '25) of Crew Dog shared a positive message: starting a business is fun! This reminder that creating something new can be exciting and rewarding helps founders stay motivated during tough times. While there are many aspects to consider when launching a startup, it's crucial to remember that the entrepreneurial journey should be an exhilarating adventure filled with learning, growth, and the thrill of bringing your vision to life. 

Not having any prior business knowledge doesn’t have to be a barrier to launching a startup. These insights offer useful guidance for new and aspiring entrepreneurs. By learning from these experiences, new founders can better prepare for the ups and downs of entrepreneurship. Remember every successful entrepreneur started somewhere, and with the right mindset and resources, you too can embark on this rewarding journey.