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[Twitter thread; 7 mins] Andrew of Tiny Capital shared how he lost $10 million
in competition with Asana, and lost
Some key takeaways from his lesson from #failure
if you're in a competitive space with lots of #VC-backed startups, it's foolish
to compete without raising money - don't bring a knife to a gun fight
if a tree falls in the forest and nobody is around to hear it, it didn't fall
running a #SaaS (Software-as-a-Service) business without deeply understanding
churn, #LTV, #CAC, etc, is like flying a plane without instrumentation - really
stupid & dangerous
bootstrapping works best in non-competitive spaces/niches, or if you have an
unfair advantage (a personal #brand, unique customer acquisition channel, etc)
*Note: Andrew Wilkinson (@awilkinson) is Co-founder of Tiny Capital
(tinycapital.com

), an early-stage venture capital firm that also acquires internet businesses
that have
1) high margins: healthy & sustainable
2) unique advantage: like a brand, community or niche
3) simple business model: you can explain it to your parents
4) healthy profit: USD $500K to $30M
5) successful operations: 3 years or longer
6) high quality team: a great team with a positive culture
7) positive & ethical approach: no sketchy stuff