The Art of Creating: Understanding the Unknown

The Art of Creating: Understanding the Unknown

In the world of art and creativity, there is a common belief that in order to create something truly remarkable, one must possess an intangible quality. Renowned Japanese author Mori Hiroshi once said, "Being an artist means being able to hold on to something unknown without fully understanding it." This notion suggests that to embark on the journey of creation, one must have within themselves something that cannot be easily put into words or explained. It is not something innate but rather something that is acquired through external stimuli and interpretation.

The act of creating art, whether it be in the form of a painting, a novel, or a startup, involves the transformation of the abstract into the concrete. It is the ability to take something intangible and mold it into a tangible form. This process requires tapping into the reservoir of abstract ideas and emotions that exist within us all. These abstract concepts serve as the primary motivation for creation.

In the realm of startup investing, this concept holds true as well. As outlined in the essay "Black Swan Farming," investing in startups requires a counterintuitive mindset. The most important aspects to understand about startup investing are that the majority of returns come from a few major successes and that the best ideas often appear as bad ideas initially. This stark contrast between expectation and reality is what sets the stage for the creation of something truly groundbreaking.

Startups that achieve monumental success often defy our conventional notions of what is possible. The variation in outcomes within the startup world is staggering, with some ventures experiencing 1000 times the success of others. This reality has far-reaching implications. Financially speaking, only a fraction of the startups in a given batch will significantly impact returns, while the rest simply serve as the cost of doing business. This fact is difficult to fully internalize due to its counterintuitive nature, but it remains true nonetheless.

To navigate this domain successfully, one must be willing to set aside their intuitions and embrace the unknown. Similar to a pilot flying through clouds, entrepreneurs and investors must trust what they know to be true intellectually, even if it feels wrong. The key lies not in the probability of success but rather in the probability of achieving monumental success. The startups that make it big are the ones that initially appear to be bad ideas. This intersection of seemingly bad ideas and truly innovative concepts is where the magic happens.

Looking back at the history of successful startups, it becomes evident that hindsight often distorts our perception of their potential. Take Facebook, for example. When it was first introduced as a site for college students to waste time, it seemed like the perfect bad idea: niche market, no money, and a seemingly inconsequential purpose. Yet, it went on to revolutionize the way we connect and communicate.

One of the challenges of startup investing is the lack of immediate feedback on success. It takes years to determine whether a venture will become a big winner. Meanwhile, the only tangible metric available is fundraising after Demo Day, which is not a reliable indicator of financial success. This counterintuitive reality further complicates the decision-making process for investors.

Despite knowing what the right course of action is, it is easy to fall into the trap of justifications and rationalizations. Concerns about preserving the brand or reputation of an organization can cloud judgment and prevent the necessary risks from being taken. However, ultimately, the success of a startup lies in the hands of its founders. Their ability to sell their idea and product is what determines their success in the fundraising process.

In light of these insights, it is essential to consider three actionable pieces of advice for those embarking on the journey of creation, whether it be in the form of art or startups:

1. Embrace the unknown: To create something truly remarkable, one must be willing to explore the uncharted territory of the abstract. Embrace the intangible and allow it to guide your creative process.

2. Challenge conventional wisdom: Great ideas often appear as bad ideas initially. Do not shy away from concepts that defy expectations. Instead, explore their potential and seek to uncover the hidden gems within.

3. Trust your instincts: While it is important to turn off your intuitions when they hinder progress, it is equally important to trust your instincts when they align with the truth. Be confident in your intellectual understanding and let it guide your decision-making.

In conclusion, the act of creation requires a deep understanding of the unknown. Whether it be in the realm of art or startups, the ability to transform abstract ideas into tangible forms is what sets the stage for innovation. Embracing the counterintuitive nature of creation and trusting one's instincts are key to achieving success. By incorporating these principles into our creative endeavors, we can unlock the true potential of our ideas and make a lasting impact on the world around us.