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The former chairman founded the company with his college roommate Steve Huffman in June 2005. Just a year later, the pair sold Reddit to Condé Nast for a reported $10 million.
Ohanian stepped down from Reddit’s board of directors in June 2020 but remains active in the investment world.
Ohanian is a co-founder of Angel City and sits on the board of directors of Apcoin, with over 220 investments under his belt. PitchBook Data.
in Master Class Episodes 2023Ohanian explained what it’s like to be on the other side of the investment table and shared his top tips for startup founders.
“Starting a business is as simple as having an idea and executing on it, anyone can do it,” he said, adding that it has never been easier to become an entrepreneur.
“Founders today have even more influence than they did 10 years ago. Many of the different components are now automated or semi-automated by software.”
Success is being able to turn those ideas into viable products and having the perseverance to keep at it, Ohanian said.
1. Become a generalist
Being a successful startup founder requires tenacity and adaptability.
“Early on, you have to be prepared to wear every hat, be prepared to be a generalist,” Ohanian said during the class.
Leaders need to be willing to take on tasks outside of their comfort zone, even if it’s unfamiliar, and Ohanian says this attitude should also extend to a startup’s early employees.
“That tenacity needs to be instilled in not only the founding team but also in early employees, because you’re going to be in a situation where you have to get something done,” he said.
2. Ship something, even if it’s basic
It’s important to show investors that your idea works in the real world, even if it’s just a basic prototype.
“Minimum viable product” (MVP) is a term used in the startup world to describe a product that has enough features to attract early adopter customers and validate your product idea.
“This is something you can put in front of your customers, your users, your potential clients, your partners, and it gives you some insight into whether you’re on the right track,” Ohanian said.
While this may be enough to attract some investors, building this base also means that the startup has some areas to work on and improve.
“It’s all about execution,” Ohanian said. “Not just doing the job, but doing the job right.”
“Finding your advantage and continually improving your product is the most important thing you can spend your time on in the first six months,” he added.
3. Get used to being told no
For startups, securing funding can be a long process.
Getting told “no” multiple times is just “part of fundraising,” Ohanian said.
“There is no CEO who gets told no more times than they get told yes,” he added. “The whole point of being an entrepreneur is to get used to being told no.”
Ohanian suggested that early founders should focus on getting something out there, even if it’s basic, and then share it widely on social media. Gaining a social profile can encourage investors to reach out to founders directly, potentially cutting down on the number of phone calls founders have to make.
4. Build the right team
Hiring your first employee is a major milestone for any startup, but it’s also a decision that can make or break your company.
“Hiring great talent quickly is incredibly hard. There’s no hack,” Ohanian said, noting that the rise of remote work has further complicated the hiring process.
“The first 10 employees you hire will define the culture of your company for the rest of your life. The ideal candidate should be willing to help build the plane while flying it.”
Ohanian encouraged founders to look outside their own networks when recruiting and proactively reach out to top talent on platforms like X.
He also suggests founders focus on crafting a job ad that stands out: “If you do something distinctly different in an environment where everyone is doing the same thing, then people have something to talk about.”