Eastside incubator - Startup in Seattle

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Startup in Seattle

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Eastside incubator - Startup in Seattle

  1. 1. How$I$learned$to$stop$worrying$and$love$uncertainty$
  2. 2. !  Damon&Danieli&(@damondanieli)&!  Microsoft&for&14&years& !  Senior&Developer&in&the&Hardware&Group& !  Lead&Program&Manager&of&Xbox&Live& ▪  Gamertag&‘d’& !  Technical&Lead&of&Xbox&Entertainment&Network&!  Got&married&on&December&6th,&1994& !  Went&back&to&work&at&Microsoft&that&day& !  I&LOVED&Microsoft!&!  Left&Microsoft&in&2008&to&start&a&company…&
  3. 3. !  Leaving&Microsoft& !  Getting&your&ducks&in&a&row&!  Founding&a&Company& !  Types&of&funding&and&Risk&Model& !  Building&the&Founding&Team&!  Life&on&the&“Outside”& !  Lean&Startup&Principles& !  Fun&Technologies& !  Running&Services&in&the&Cloud&&
  4. 4. !  Sharpen&your&saw& !  Buy&a&laptop&(you’ll&need&one&for&demos,&meetings,&coffeeshops,&etc)& ▪  A&Mac&will&interoperate&with&a&lot&more&open&source&than&a&PC& ▪  SSH,&homebrew,&“./configure&&&&make&&&&make&install”& !  Research&what&is&out&there&(there&is&a&LOT&to&learn)& ▪  Clients&(iOS,&Android,&PC,&Mac)&and&frameworks&(Cocoa&Touch,&Twitter& bootstrap,&backbone.js)& ▪  OS&and&Servers&(Lion,&Ubuntu,&CentOS,&etc)&deployment&(cap,&ssh,&git,&etc)& ▪  Server&Application&stacks&(NodeJS,&Rails)& ▪  Standards&(HTML5)& ▪  Amazon&Web&Services&!  Boring&stuff& !  You&have&it&GOOD&at&Microsoft!& !  No&Startup&can&match&your&paycheck&or&benefits,&but…$ ▪  Every$startup$that$has$a$successful$liquidity$event$will$beat$your$stock$awards!$ !  COBRA,&401k,&etc.&
  5. 5. Booth strapping& Angel& VC& Profitable&Independent& Usually&“hands&off”& “Capitalized”& Independent&& & & &Nobody&has&leverage& Minor&leverage&via&& Stock&option&pool& Nobody&has&leverage&on&your&company& convertible&notes& 83b&Elections& on&your&company&& & Preferred&shares& &Hiring&very&HARD& Hiring&easier&but&still& Board&of&Directors& Investors’&frowns&turn&&& hard& Leverage& upsidehdown&Portion&large&for&coh& & & &Founders:& Common&stock& Equity&comes&out& Hiring&easier&The&only&“wrong”& Equity&large&for&early& of&option&pool&for& &Answer&is&50/50& Employees& all&future&employees& Equity&small&for&new& employees&
  6. 6. Booth strapping& Angel& VC& Profitable&Independent& Usually&“hands&off”& “Capitalized”& Independent&& & & & When*you*become*profitable,*(in*your*investors’*eyes)*you**Nobody&has&leverage& Minor&leverage&via&& Stock&option&pool& Nobody&has&leverage&on&your&company& convertible&notes& 83b&Elections& instantly*become*smarter,*more*handsome*and*your** on&your&company&& & Preferred&shares& & children*are*of*better@than@average*intelligence*Hiring&very&HARD& Hiring&easier&but&still& Board&of&Directors& Investors’&frowns&turn&&& hard& Leverage& upsidehdown&Portion&large&for&coh& & & &Founders:& Common&stock& Equity&comes&out& Hiring&easier&The&only&“wrong”& Equity&large&for&early& of&option&pool&for& &Answer&is&50/50& Employees& all&future&employees& Equity&small&for&new& employees&
  7. 7. !  2008 !  Client& !  Madrona&$1M& !  iPhone& investment& !  ObjectivehC& !  I&had& ▪  No&PowerPoint&slides& !  Mac&+&Xcode& ▪  No&business&plan& ▪  No&Clue!!!& !  Server& Goal:*Find*the* !  Ruby&on&Rails&+&MySQL& opportunity*in*the* iPhone*Space* !  Morph.labs&hosting&
  8. 8. !  I&built&several&initial&MVPs&(Minimum&Viable& Products)&to&test&if&there&was&a&market&!  User&Generated&Content&on&Mobile& !  PhotoFeedd,&CarFeedd,&TravelFeedd&!  Kids&game&to&test&out&“storybook”&market& !  Spell&Flyer&!  Bluetooth&proximity&based&games& !  Showdown&Poker,&Gunslinger,&Psst!&!  iOS&3.0&had&GameKit&and&Push&Notifications& !  These&were&the&initial&ingredients&of&a&Xbox&Live…&
  9. 9. !  Server&!  2009-2010 !  Ruby&on&Rails&+&MySQL& !  Idea:&& ▪  ▪  Client&"&REST+&JSON& Marketing&website& “Xbox&Live&for&Mobile”& ▪  Developer&website& ▪  Admin&interface& ▪  Friends,&Invitations& !  XMPP&server& ▪  Multiplayer&Networking& ▪  ejabberd& !  STUN/TURN& ▪  Voice&Chat& ▪  Chlanguage& !  Madrona&$3M& !  Hosting& additional&investment& !  EngineYard&hosting&(Rails)& !  AWS&(XMPP)& !  CEO&+&8&employees& !  NTT&(Global&STUN/TURN)&
  10. 10. !  First real-time multiplayer game platform for mobile!!  First title was Big Fish Games’s Big City Adventure!  Activision licensed our SDK for Call of Duty!  +++ The$toughest$technical$challenge$I’ve$ever$had$as$a$professional$
  11. 11. !  Pivoted into Freemium Social Games
  12. 12. !  What Eric Ries calls a lean startup pivot, I call a business iteration!  Pivots can be much more devastating !  You get to tell all those people (friends, investors, family, employees, ex- coworkers, press, etc) whom you sold on your original vision that you were wrong !  You get to fire staff that are not suitable for your new direction and lose the rest of the staff that feel your vision is not suitable for them ▪  We lost a great developer who said we were “arranging the deck chairs on the Titanic”!  Q: Were we going to explode from internal pressure or implode from a vacuum?!  Standing at the doorway… The$toughest$emotional$challenge$I’ve$ever$had$as$a$professional$
  13. 13. !  And&our&servers&immediately&collapses&!  In&our&rush&to&get&product&in&market&before&we&ran&out&of& money…& !  We&knowingly&launched&before&we&had&the&full&server&infrastructure&in&place& but$did$not$estimate$the$success$of$the$title$ !  We&unknowingly&build&a&relational&structure&in&our&database&but$did$not$test$ the$write@load$ !  We&unwittingly&had&a&clienthside&bug&that&would&sent&thousands&of& messages&if$the$user$tapped$quickly$enough$ !  We&unintentionally&exercised&“lean&startup”&principles$because$we$wanted$ to$stay$in$business$!  The&dev&team&and&I&hunker&down&in&a&windowhless&closet&for&5& months&and&rewrite&the&servers&several&times&as&our&userbase& grew,&and&grew&and$grew$
  14. 14. !  Trade&Nations&is&a&huge&success& !  Over&a&year&later&it&is&in&the&Top&100&Grossing&Games&!  We&launch&MetalStorm&Online&a&few&months&later& !  It&becomes&a&huge&success& ▪  It&has&one&of&the&largest&leaderboards&(>5M&players)&of&games&on&iOS& !  We&heard&that&Apple&had&to&increase&their&Game&Center&multiplayer& capacity&for&us& ▪  Irony&given&that&we&stopped&being&a&multiplayer&game&platform&provider&to& make&the&title…&!  We&launch&Battle&Nations&in&November&and&it&was&the&#1&Top& Grossing&Game&on&iPad&until&January&!  We&grew&from&11&employees&to&60&in&2011&!  We&have&been&profitable&ever&since&
  15. 15. !  Amazon&AWS&“Cloud”&+&RightScale& !  EC2,&S3,&ELB& !  Over&100&servers&!  Java& !  We&needed&to&write&persistent&game&sessions& !  Developers&were&comfortable&with&it& !  Rails&is&not&designed&for&the&threading&model&needed&!  MySQL& !  Used&as&a&dumb&keyhvalue&store& !  Consistent&hash&of&key&across&N&masters&!  Node&+&CoffeeScript& !  For&lightweight&services&such&as&the&Maintenance&page,&Matchmaking& System,&Push&Notifications,&Realhtime&Multiplayer&Servers& ▪  The&first&company&who&can&write&a&realhtime&multiplayer&game&in&JavaScript&
  16. 16. !  Application&Stacks& $ brew update $ brew install rbenv !  Node+express+vows& $ rbenv rehash $ ruby-build 1.9.2-p290 ▪  CoffeeScript,&bundler,&npm& $ rbenv local 1.9.2-p290 $ gem install rails !  Rack+Rails/Sinatra&& $ brew install redis $ rails new eastsideinc ▪  rbenv,&ruby,&gem,&cap& $ cd eastsideinc !  No&SQL&stores& $ git init $ git add . !  Redis,&MongoDB& $ git commit –a -m "Initial commit" $ rails server !  Tools& <HTTP Server is listening on 3000> !  brew& !  Sublime&Text& !  git&and&github&
  17. 17. Clients& Protocols& Load&Balancer& Application& Caching& Data&Stores& Offsite&Backup& HTTP Hourly& Snapshots& &Mobile Analytics&Device & Masters Slaves & DynamoDB& Heroku Elasti- MongoLabs& AppJet HTTP ELB& Cache MongoHQ& EngineYard S3 # EMR Pusher& Redis- Redish&Mobile Elastic-Device ToGo ToGo& Beanstalk RDS&
  18. 18. !  You&just&got&the&task&to&deliver&a&task&to&store&all&ad& impressions&during&the&Superbowl& !  And&you&have&3&days&to&bring&the&system&up!&!  Shazam’s&results&on&DynamoDB& !  100,000&writes/second&over&4&hours& !  <3ms&latency&(avg)& !  <8ms&latency&(TP99)& !  1.4&Billion&writes&total&!  Note:&this&is&10x&PEAK&tweets&during&that&period*& *I&never&thought&I&would&use&“Peak&Tweets&Per&Second”&as&a&unit&of&performance&
  19. 19. !  Contact& !  damondanieli@gmail.com&(@damondanieli)& &!  Have&Fun!& !  HTML5&+&Canvas& !  Node&+&CoffeeScript&+Redis&!  Read& !  Getting$Real:$the$book&by&37Signals& !  Engineering$your$Startup&by&Swanson&and&Baird& !  The$Lean$Startup&and&startuplessonslearned.com$Eric&Ries$ !  Four$Steps$to$the$Epiphany&by&Steven&Gary&Blank&

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