From 0 to 1M customers, a conversation with Y Combinator

Eric Migicovsky is a Partner at Y Combinator, one of the top of U.S. startup accelerators, and he was previously Founder and CEO at Pebble, the company that created the first commercially successful smartwatch. Last Friday, he was interviewed by Adora Cheung (another YC Partner) on being an entrepreneur at the intersection of hardware and software. Here you can read a summary of my five biggest takeaways.


Fast iterations can save you a lot of money

7 out of the first 10 smartwatches built and shipped at Pebble ended up exploding (as in, broke into pieces), and the company learned a ton about what caused the issue. This early finding prevented them from making hundreds of devices with the same problem.

 “We screwed up everything you could possibly screw up.”

Going from implementation to validation as fast as possible helps uncover issues that can be fatal if discovered in future iterations, when it might be impossible to recover due to lack of resources like time or money. Validating your product with real users is the ideal case, but you risk losing customers’ trust if a problem is not handled properly: if you ask your customers for their feedback, you better be ready to listen.

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Thank you MoviePass and goodbye

The past couple of weeks have been a big roller coaster for MoviePass. I got to experience the Thursday July 26 outage when I was going to see a movie with a friend. We were upset but decided to go for happy hour instead which turned out to be great. The next day we found out it was because they had run out of money which indicated that the end was near. MoviePass was able to get their emergency loan and service was restored. On Friday my friends wanted to see Mission Impossible but the option was grayed out however, after refreshing several times, I was able to get a ticket with an outrageous $6 surcharge. This grayed option turned out to be a change in plans where new movies were not going to be offered anymore. This was a breaking moment for me. I had to make a decision to stay or not before I would be charged the next month.

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Unboxing Google’s 7 new principles on Artificial Intelligence

How many times have you heard that Artificial Intelligence (AI) is humanity’s biggest threat? Some people think that Google brought us a step closer to a dark future when Duplex was announced last month, a new capability of Google’s digital Assistant that enables it to make phone calls on your behalf to book appointments with small businesses. You can see it in action here:

The root of the controversy lied on the fact that the Assistant successfully pretended to be a real human, never disclosing its true identity to the other side of the call. Many tech experts wondered if this is an ethical practice or if it’s necessary to hide the digital nature of the voice.

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4 lessons I learned losing money on Bitcoin

I looked at the “Buy Bitcoin” button and paused, was I ready to do it? had I read enough articles explaining what is blockchain? 2017 had just closed after an all-time high for cryptocurrencies, and according to many enthusiasts, it was just the beginning. I felt like I was missing out, so I pushed the button and sat back. I felt confident, but in reality, I had no idea what I was doing.

I passively consumed news about Bitcoin for years, but I never went deep enough to properly understand the technology behind it and its potential. Even though I followed the ultimate rule of “investing only what you can afford losing”, the truth is that I only began to comprehend blockchain technology after I already got my feet wet. I started losing money shortly after my first order completed, these are the 4 lessons I learned since then.

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1. A big Bitcoin dive can drag the rest of the crypto market with it

There is so much speculation around cryptocurrencies and so many people investing in them without having a clue, that a moment of panic can snowball into a sudden market crash. A Bitcoin crash can affect many investors’ confidence in other cryptocurrencies (or altcoins), dragging their price down as well.

Many altcoins are variants of Bitcoin with small code differences, making their prices change practically in parallel to Bitcoin’s.

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Amazon Go: A.I.’s grim face?

I have been waiting since college on RFID’s failed promise to deliver a walk-away checkout experience, and Amazon finally made it possible. After reading my co-blog writer’s experience in the Amazon Go store I had to check it out for myself and was excited for it. All my friend’s pictures were of long lines, but thankfully I am a morning person and there was no line when I got there. My goal was to pretend I had no idea what it was or how it worked. My experience overall was good, with the exception of the on-boarding process. I was greeted with a condescending “oh, you don’t have the app?” and was asked to stay aside. My T-Mobile reception was very poor so it took me a bit to get started. Once I downloaded the app and signed into my Amazon account everything was smooth. Mission accomplished! In this post, I’m not going to talk about the actual store (Ivan did a great job already) but about the implications of the first tangible and successful AI automated store.

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Exterior of the Amazon Go store

Automation has always been part of our history. Automation has helped us evolve into the society we have now. Such as, automating how we grow and crop food so we can have a good food supply, the industrial revolution to make things faster and cheaper, the assembly line to make them even faster and cheaper, and finally computers to automate processes and tasks. Now, AI is here and it will automate all of our productivity.

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I experienced the future of retail: Amazon Go

The craziest thing I’ve seen is someone who came in dressed in a Pikachu costume,” said an Amazon employee while she handed me a promotional bag with the Amazon Go logo on one side and the text ‘good food fast’ on the other.

I arrived at the new store in downtown Seattle around 7:20 pm and was surprised to see the line of people still reached the end of the block. It had been a cold day in Seattle but that didn’t discourage the hundreds of people who came to see the ‘magical’ store on day 0. I didn’t use the term ‘magical’ lightly here: the experience was truly unique and it felt too good to be true. Amazon Go is probably the store with more sensors on the planet right now, and it is intimidating:

The ceiling of the Amazon Go store

Each of those boxes on the ceiling are cameras connected to deep learning algorithms that analyze every move you make: which aisle you walk through, what items you grab to read and then return to the shelf, what items you put in your pockets or bag… everything to ensure you only get charged for what you take home. But also, everything to ensure your shopping pattern is studied and well understood. Maybe not today, but it’s the inevitable next step and the ultimate dream for any retail store: to know what their customers like and the type of advertisements that will work best on them.

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Nintendo Labo: Thinking outside the box (or with the box?)

When Nintendo released the Switch last year I was very surprised by what they had been able to achieve, take the gaming industry on a spin (again). Once again they proved that they can innovate in a crowded space with deep pocket rivals. They were able to achieve something fun, flexible and that meets our new lifestyle not by thinking of specs but thinking of use cases. They understand people still want to play but they don’t do it just in a living room, so they would meet them where they are by providing play flexibility (great article about that here). Now, with Labo they have done something I consider priceless: enable kids to imagine, play and dream by connecting both the physical world and the digital one.

I have to be honest, I did not buy the Switch right away and when I did I played it and then returned it. Sometimes there is a price for innovation. To me, the Switch has two big drawbacks. First it is the lack of games. I could care less for Zelda (yeah yeah hate me) and some of the other games are just “meh”. However, it was the release of Mario Odyssey that finally made me get it. I loved it, it was fun, I could play at home and take it with me. I bought my Switch just before my holiday trip and took it on the road with me. This meant playing with the Joy-Cons inserted to make a huge Gameboy. I’m a big guy and I am very jumpy and move around when playing. Towards the end of the trip my Switch started to break. My gameplay would stop every minute because they would get disconnected (guess I can’t be that excited while playing). Turned out that the price to pay for the hardware flexibility was ruggedness. So when it was time to return, I could exchange or return and decided for the former due to lack of games.

I thought that would be the end of my Switch journey but this week Nintendo announced Labo. Nintendo has always been great at thinking outside the box. Some of these product work (Wii, Amiibos) and some don’t (VirtualBoy, Wii U) and that is the price to pay to try new things. What amazes me is Nintendo’s relentless pursuit of not thinking about what is the next big technology push they can do, but how to enable new ways to bring playfulness into our lives.

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Why is Net Neutrality important?

In a few days, on December 14th, the Federal Communications Commission (FCC) will vote to change how the internet is regulated in the United States. The impact on how regular users like you and me access information online could be massive, and here’s why.

Currently, there is policy around open communications, mandating that the treatment of traffic should be non-discriminatory: broadband providers cannot get in the way, they cannot censor or make deals that benefit certain types of content over others. For example, Comcast is not allowed today to treat Netflix differently than any other new video streaming startup.

The FCC Chairman, Ajit Pai (who worked as Associate General Counsel at Verizon), is proposing to vote to remove these rules in favor of a less regulated internet. Fewer regulations means, according to their main argument, that the amount of investments made by telecommunication companies will stop decreasing. However, the same data that the FCC used shows that investments have been flat at worse (or actually increased at best) since 2013.

The FCC also argues that if any corporation starts misbehaving, consumers can take their business elsewhere. Nonetheless, more than 50% of the US population only has access to one single internet provider, so they cannot even vote with their wallets. The only way to defend consumers rights will be through litigation and class action lawsuits.

Is everything bad in the new proposed plan? No, there is one important point that will be critical to detect future abuses: broadband providers are obligated to be transparent about their traffic practices; in other words, if Comcast made a deal to promote Netflix over any other streaming service, or if they started blocking or throttling certain sites, it would have to be public knowledge (even if that just means one more line in the fine print at the end of a contract).

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Visiting the Oculus office in Seattle: is augmented reality (AR) or virtual reality (VR) the future of user interfaces?

Earlier this week I had the pleasure of visiting the Oculus Seattle office for a private tour, some cool demos and a very interesting conversation. During the whole visit, a question kept popping up in my mind: will augmented reality (AR) or virtual reality (VR) ever become the standard way of interacting with our desktop or mobile devices?

User interfaces have evolved over the years in very significant ways: we moved from punched cards to command-line interfaces, and from there to graphical interfaces, which ended up evolving into what we know today, mouse, keyboard and touch. With recent advances in artificial intelligence, we are beginning to transition into conversational interfaces, where we can use natural language to get things done, sometimes even without touching a button or reading a line of text.

Is the future of user interfaces an (almost) invisible one? In many cases, yes, just watch the 2014 movie Her to see a glimpse of where we will be in a few years (minus the “falling in love” part):

However, for many other tasks we will still need to read, type, touch and draw. This doesn’t mean that we will be tied forever to a screen, and here’s where VR and AR come in.

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How Mexico is using technology to help people after the 7.1 earthquake: interview with Paulina Bustos

Is that an earthquake?” the candidate asked with their eyes wide open, as everything around us started shaking. On September 19th, a 7.1 earthquake hit Central Mexico shortly after 1pm, and I was there interviewing university candidates for Microsoft. We were able to exit the building without issues, and even though my phone was unable to make any calls, it had data connectivity, allowing me to contact my family and friends over WhatsApp.

Many others weren’t so lucky: 369 people were killed, and over 6,000 were injured. The earthquake occurred on the 32nd anniversary of the 1985 Mexico City earthquake, which killed around 10,000 people. After spending the following days inspired by the amazing reaction of the Mexican society, united and determined to help each other, I wondered how different the situation would have been without technology’s help. How long would it take for people to find out if their families and friends were OK? How would they be able to find help or where help was needed?

My good friend Paulina Bustos was the perfect person to talk about these issues, so I decided to interview her. Paulina studied Computer Science at the Tecnológico de Monterrey University, worked at Microsoft in Redmond, WA for over 3 years and is now living in São Paulo doing a Technology Fellowship with Artigo 19; she is the co-funder of Cívica Digital in Mexico, where she worked with several non-profit organizations and governments to strengthen citizenship using technology, and she also teaches Software Design & Analysis at ITAM University.

Where were you during the September 19th earthquake in Central Mexico and what was your immediate reaction when you realized the magnitude of the event?

I was in Sao Paulo in a meeting, when my cellphone started ringing with all the messages from family and friends. My oldest sister lives in Mexico City and she usually texts back within the first 5 minutes after an earthquake. This time she took almost an hour. I knew immediately that something was off.

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