StartUp Podcast - Startups are a Risky Business

Summary

In this episode of 'Startup', Alex Bloomberg narrates the journey of launching a podcast company called Meta. After an investor suggests expanding the idea to create an Instagram-like platform for audio, Alex grapples with the 'platform versus no platform' dilemma. He eventually partners with Matt Lieber, and they face the challenge of convincing investors. The episode explores the dynamic between content creation and technology, the varying motivations of investors, and the personal sacrifices involved in starting a business.

Takeaways

• 🎙️ The podcast 'Found' explores stories behind lost and found items, aiming to create a community around shared experiences.
• 📈 'Startup' is a podcast miniseries documenting the journey of launching a podcast company, providing an intimate look into the entrepreneurial process.
• 💡 The idea of integrating more technology into podcasts, such as messaging and microtransactions, was pitched to expand the podcasting experience.
• 🤝 Finding a business partner was crucial for the business's growth, with the partnership helping to validate and strengthen the company's vision.
• 💼 The importance of having a clear business model was emphasized, with investors looking for strategies to grow audience and monetize the platform.
• 📊 Investors were particularly interested in metrics like customer acquisition cost and lifetime customer value to assess the potential for success.
• 🚫 Some investors were skeptical about the scalability of the business, preferring to see proven acquisition models before committing funds.
• 🌐 The 'platform versus no platform' dilemma was a significant discussion point, with some advocating for focusing on content creation over technology development.
• 💭 The emotional aspect of starting a business was highlighted, with the founder expressing fears and anxieties about the venture's impact on his personal life.
• 🏦 The process of securing investment involved multiple pitches to various investors, each with their own motivations and requirements for what they were looking for in a business.

Q & A

What is the name of the podcast hosted by Davey Rothbart?

The podcast hosted by Davey Rothbart is called 'Found'.

What is the main theme of the podcast 'Found'?

The podcast 'Found' explores stories behind lost and found notes, letters, photos, and even a found baby.

Who is Alex Bloomberg and what is his role in the podcast 'Startup'?

Alex Bloomberg is a collaborator on the podcast 'Startup', where he documents the launching of his podcast company, Meta.

What is the 'platform versus no platform' question mentioned in the script?

The 'platform versus no platform' question refers to the dilemma of whether to become the Instagram of audio or to focus on creating and distributing shows through existing channels like iTunes and Stitcher.

What are the two terms that Michael Rosenblum and Alex used during the meeting with Alex Bloomberg and Matt that they wanted more details on?

The two terms are 'customer acquisition cost' and 'lifetime customer value', which relate to the cost of attracting new listeners and the revenue that can be generated from each customer over time.

Why did Matt and Alex feel that the pitch was not ready for a venture-scale investment?

Matt and Alex felt the pitch was not ready for a venture-scale investment because it lacked a proven acquisition model and a credible theory of hugeness, such as exponential audience growth.

What is the significance of the number '40 million' mentioned in the script?

The number '40 million' signifies the current number of people in America who are downloading and listening to podcasts, according to Edison research.

What is the main concern expressed by Alex Bloomberg regarding starting a business and his family?

Alex Bloomberg expresses concern about the risk and the potential negative impact on his family life due to the demanding nature of starting a business, especially with young children.

What is the name of the company Andrew Mason started after Groupon?

After Groupon, Andrew Mason started a company called 'Detour', which is a location-based audio platform for guided tours.

What is the total amount of money in the checking account of American Podcasting Corporation after receiving investments?

The total amount of money in the checking account of American Podcasting Corporation is $385,000.

What is the term used to describe the financial cushion needed for 18 months of operations in the script?

The term used to describe the financial cushion needed for 18 months of operations is 'runway'.