How could this be perceived as anything but a massive failure in today’s world? Would Stripe even be investable today? Which investors would ever think that only launching after two years of work and with 50 users would ever be the beginning of something gigantic?
I can’t see how anybody would be happy with this today. And yet, almost imperceptibly, Patrick and John were painstakingly laying the foundation for something that was built to last and built to grow strong and immovable like a Sequoia. How can mushroom growth rates produce anything other than mushroom longevity?
I’m not saying that real value CAN’T be built quickly. But I think it’s far more common than we like to talk about that founders work for two, three, four, seven, even fifteen years before something extremely valuable is born into the world and really takes off.
James Dyson worked on the design of his vacuum cleaner for 5 years before he got to a working prototype and 8 years before it became a commercial product.
Dylan Field worked on Figma for four years before launching a *closed* beta.
Tim Leatherman worked on his idea and prototype for 8 years before he had his first multitool design that was ready to sell.
Palmer Luckey spent about 7 years from the time he began working on VR prototypes before Oculus released the first consumer headset.
Jensen Huang started Nvidia in 1993 and it wasn’t until 4 years later in 1997 that they had their first major commercial success with the RIVA 128.
Steve Wozniak was the fastest and went from an idea for a personal computer in 1975 to the Apple II release 2 years later in 1977.
Time and again the reality is that great things take time to build. I’m not saying it doesn’t take hard work. I’m definitely not saying it doesn’t take determination and extreme focus. But it does take time. I think we try and pretend that it doesn’t take time and lift up the seeming exceptions to the rule.
Why not be honest and instead focus on the determination and extreme grit that it takes to keep building for years before any outward success arises or glory is received?
I hope we can be honest with young founders and repeat these stories again and again so that they learn to work thanklessly for years before the outward vindication comes, because that’s what it really takes.
John Collison: We only had 50 users two years after founding Stripe
“We started working on Stripe in the Fall of 2009, and we launched Stripe in September 2011,” John Collison reflects. “I remember right at the beginning when we were starting it I said to Patrick [Collison], ‘Yeah let’s do it. How hard can it be?’ Which gives you a sense of our mindset. And the answer was: two years of difficulty. We had not predicted that.”
John remembers feeling dejected when Stripe only had 50 users two years later:
“When you spend two years getting 50 users, it doesn’t feel like a whole lot of progress. It feels like things are going pretty slow.”
But this is one of the challenges of startups, he argues:
“If you’re working on a startup that’s a bad idea, it’s going to feel like slow-going. But if you’re working on a startup that’s a good idea, it may feel like slow-going too.”
Yet slow growth has a silver lining:
“I think the thing that allowed us to take off in the subsequent years was the fact that since we were spending so much time on each one of those users; since we were hyper-focused on building a great product; and since we weren’t dealing with problems of scale yet, that allowed us to build the product that we wanted. Part of the culture that set in really early on was taking abnormally good care of those early users.”
The Stripe founders would get an email or phone call anytime a user ran into a bug. When they sent the customer an email moments later alerting them that the bug was now fixed, people’s minds were blown.
They set up a Campfire room that any customer could join and use to message John and Patrick at any hour of the day or night. And if a user was based in the Bay Area, the founders would invite them to come by the office and help integrate Stripe for them.
In the Stripe dashboard they would prompt their customers for feedback and feature requests. Then the Stripe founders would reply to that feedback within 10 minutes.
“What this meant was that even though the user growth was happening quite slowly in the early days,” John explains, “it actually had a pretty surprising viral effect where people had a good experience, they told their friends about it, and we were able to spread entirely through word-of-mouth even to this day.”