How to Get and Evaluate Startup Ideas

Common Problems

1. Not solving a real problem - Solution In a Search of a Problem (SISP)
2. Getting stuck on a "tarpit idea" - Widespread problem that seems easier to solve
3. Not evaluating an idea
4. Waiting for perfect idea

Key Questions

1. Is there a founder/market fit?
   • Ex. Plangrid (W12) - Construction Productivity Software
   • i.e. Pick a good idea for your team
2. How big is the market?
   • Good markets for startups
     • Currently big market
     • Rapidly growing
       • Ex. (S12) - Cryptocurrency Exchange Platform
3. How acute is this problem?
   • Ex. Brex (W17) - Credit Card for Startup
4. Do you have competition?
   • Having competition could be counterintuitively good, but if it's an entrenched problem, it'll require new insight
5. Do you want this?
6. Did this recently become possible or necessary?
   • Ex. Checkr (S14) - Background checks via API
7. Are there good proxies for this business?
   • Ex. Rappi (W16) - Food delivery in Latin America
8. Is this an idea you would want to work on for years?
9. Is this a scalable business?
10. Is this a good idea space?
    • Ex. Fivetran (W13) - Tool for data analysis

Things that make startup ideas seem bad, but actually make them good

• Hard to get started
  • Ex. Stripe (S09) - Credit Card payments through website
• In boring space
  • Ex. Gusto (W12) - Payroll software
• Have existing competitors
  • Ex. Dropbox (S07) - Cloud storage

Setting up for future ideas

• Become an expert on something valuable
• Work at a startup
• Build things you find interesting
  • Ex. Replica

Recipes for generating startup ideas

• Start with what your team is especially good at
  • Ex. Rezi (W17) - Apartment Renting
• Start with a personally encountered problem
  • Ex. Vetcove (W16) - Supplies for Veterinarians
• Things you wish existed
  • Ex. Doordash (S13) - Food delivery
• Things changed in the world recently
  • Ex. Gather Town - Digital space for teams
• New variants of successful companies
  • Ex. Nuvocargo (W18) - Cross-border logistics for Mexico ↔ USA
• Talking to others about problems they face
  • Ex. AtoB (S20) - Fuel Cards for Truck Drivers
• Big industries that seem broken
• Find a Co-founder who has an idea