Office Hours with Adora Cheung

TL;DR

In this interview, Adora Cheung, a YC partner and co-founder of Homejoy, shares her experiences and advice on starting a startup, including topics such as applying to YC, dealing with funding challenges, working with family, and knowing when to pivot.

Transcript

alright hey everyone today we have a door Chun she's a YC partner and co-founder of home joy thank you how's it going good how are you good alright we're gonna do some office hour questions from the internet so let's go cool so first question is from Topher Peterson and he asks how many users do you have when you applied to YC and also how much rev... Read More

Key Insights

• 📱 Starting a startup: The founder knew they wanted to create something and finding the right idea was the key. They started the company with their brother and had trust and compatibility, which made working together easier. They had no apprehension about starting a company with family.
• 💰 Financial challenges: The founder advises keeping personal burn low when unable to raise money. Being scrappy and finding creative ways to acquire users is essential. They personally kept their burn low for two and a half years before raising $100k. ⏰ Determining when to quit: The founder suggests evaluating whether an idea is something you want to pursue long-term before starting. They also recommend periodically reassessing if you are still passionate and if the idea is worth pursuing.
• 💡 Lessons from failure: The founder sees failures as learning experiences that can provide a strong foundation for helping others. They advise seeking advice from others but also reflecting on your unique situation and goals.
• 🌐 Market entry challenges: The founder shares challenges when entering different markets, such as adapting to local needs and preferences, acquiring service providers and customers, and understanding local customs and infrastructure.
• 🔒 Building company culture: The founder emphasizes the importance of finding the right co-founders to establish the company's culture. They suggest focusing on compatibility and trust, and also recommend articulating core values to guide hiring decisions later on.
• 💼 Office Hour Questions: The founder provides advice on various topics, such as user acquisition, raising money, working with limited resources, and marketing strategies for B2C startups.
• 🌍 Third-World Country Startup: The founder encourages founders from countries with limited tech talent and resources to build their own product and start gaining users. They suggest reaching out to potential users, learning from their feedback, and eventually poaching talent from big corporations.
• 💼 Getting Started in Angel Investing: The founder suggests watching educational videos and reaching out to founders. They believe that location does not significantly affect the process and that getting involved in the startup community can help investors get started.

Questions & Answers

Q: How did Adora Cheung and her co-founder handle the challenges of starting a startup with no revenue and few users?

Adora Cheung and her co-founder focused on bringing in service providers and growing that side of their marketplace, even though they had no revenue yet. By onboarding a large number of service providers, they were able to attract more users and eventually generate revenue.

Q: What advice does Adora Cheung have for founders in their early stages of starting a startup?

Adora Cheung suggests keeping personal burn low and being scrappy in acquiring users and building the product. She also encourages founders to evaluate if their startup idea is something they are truly passionate about and can see themselves working on for the long term.

Q: How did Adora Cheung handle working with her brother as a co-founder?

While there were initial concerns, Adora Cheung found that working with her brother was beneficial due to the level of trust they had. They were able to establish a strong working relationship and enjoy a high level of trust, which helped them navigate the challenges of starting a startup.

Q: How did Adora Cheung approach the decision of when to walk away from an idea or startup?

Adora Cheung suggests evaluating if the startup idea is something you can see yourself doing for the next several years. Additionally, seeking outside perspective from friends and mentors can help when questioning the direction of the startup. If doubts persist, it may be important to consider transitioning out of the startup responsibly.

Q: What were some unique data science and machine learning challenges faced by Homejoy?

Homejoy had to focus on building prediction models for demand, finding the best customers to target, and solving scheduling challenges. These challenges required data science and machine learning techniques to optimize supply and demand alignment, customer lifetime value, and scheduling efficiency.

Q: How has YC's perception of cryptocurrency and blockchain startups changed since Coinbase's success?

YC has become more optimistic about cryptocurrency and blockchain startups due to increased activity and understanding in the space. YC recognizes the potential for these startups to address real-world problems and create meaningful impact.

Summary & Key Takeaways

• Adora Cheung founded Homejoy, a marketplace for online services, after previously working at Slide building Facebook apps.

• When applying to YC, Homejoy had no revenue and few users, but they focused on bringing on service providers and eventually found success.

• Adora Cheung emphasizes the importance of keeping personal burn low when unable to raise money and the benefits of being scrappy.

• She discusses the challenges of working with family and the trust that comes with having a sibling as a co-founder.

• Adora Cheung believes it is important to evaluate if a startup idea is something you are passionate about and can see yourself doing long-term.

• When deciding to walk away from something, she recommends reevaluating and seeking advice from friends and mentors.

• Adora Cheung also shares insights on entering new markets, building company culture, and the role of unit economics in startups.