On Saturday, I had the opportunity to attend Startup School 2008 at Stanford. It was a conference featuring some of the top Silicon Vally entrepreneurs including Jeff Bezos and Marc Andreesen. The website describes it as “Startup school is an annual free conference for hackers interested in startups.”Although I wasn’t able to stay for the entire conference, as I had to meet a client for a design project, I made sure I attended the talks given by Jack Sheridan (WSGR), David Heinemeier Hansson (Creator of Rails), Marc Andreessen (Creator of Netscape and Ning Founder), Jeff Bezos (Founder of Yahoo) and Greg McAdoo (Sequoia Capital).
Why did I only want to listen to those guys speak? Well firstly I have great respect for the Ruby on Rails Framework. After messing around with PHP and mySQL for a few years, with occasional scripting in PERL, it was very refreshing to use Ruby on Rails to develop my first real web application for my senior software project entitled myFlee, an online market place for college students. I have since decided to pretty much develop all my web applications in Ruby on Rails unless a client specifically wants me to use something else, in which case, I may reject to take on the project. Don’t get me wrong, I would be willing to write components of a web application in another language (I even still integrate some PHP & Perl scripts in some of my web apps), but to build an entire application from the ground up using something other than RoR, would be something I have no desire of doing. For my day job, I develop in J2EE and getting the simplest things done, takes forever and since Digitalvaliance is currently a part-time venture, I need to maximize my productivity.
Secondly, I thought the other guys would have some additional insight into the “startup game”, as they are all seasoned vets with experience relating to the legal, financial and technical issues . Jeff Bezos talked about Amazon’s exciting new webservices (AWS). I unfortunately wasn’t able to be at Michael Arrington’s talk (Techcrunch) but I made sure to watch the video, as he took had some really good things to say.
DHH gave one of the coolest talks I’ve been to in a while. Outlining his talk would have to be another entry on it’s own, but luckily Omnision recorded the presentation so you can just watch it there. He didn’t talk about Ruby on Rails, but instead talked about the current business model of most startups and why 37Signals, the company he is a partner off, has been profitable from day one. DHH made fun of the current mindset of most Web 2.0 companies, being that they first strive to get as many eyeballs to their site as possible and then think about how to monetize. DHH contends that there is nothing wrong with charging users,particularly niche users, a small price to use a service that would make their lives a lot simpler. DHH dubbed this group of niche users, as the Fortune 5,000,000. DHH reminded us that not everyone will get a billion dollar valuation (referring to facebook) for their companies/product and that these days, it seems as though people are looking down on “million dollar companies”.
I very much agree with what DHH had to say. I am a personal user of Highrise, 37Signals’s Simple CRM tool which makes my life as a daytime software engineer and night time entrepreneur a lot simpler. This is a tool I first tried out using the free plan but got hooked immediately and upgraded to their Simple plan. Once Digitalvaliance picks up a little more, I envision further upgrading my plan. It is not a complex or complete CRM tool by any standards (compared to SugarCRM or Salesforce), but at this point, I don’t need such complex tools which is why Highrise is perfect for me (and the remainder of the Fortune 4,999,999)
At Digitalvaliance, our goal has always been to target the Fortune 5,000,000 and it was refreshing to hear that DHH shared our insight.