Facing setbacks and using them as an opportunity to become better is essential for startup success.

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  00:00

  Founders must be prepared to face inevitable setbacks in the startup game.

  • Founders must develop skills to identify and approach setbacks, as they are inevitable in the startup game.
  • Fundraising can be difficult, but setbacks are part of the process and should be expected.
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  02:16

  Raising money can be a rollercoaster, but failure can create an opportunity to gain an advantage.

  • Raising money can produce a range of experiences, from feeling like destiny to being eviscerated in front of everyone.
  • Most people don't get into YC, but the best people realize it's not a one-shot game.
  • Failing can create an opportunity to gain an advantage.
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  05:20

  Having a strong relationship between cofounders is essential for startup success, especially when friction arises.

  • Most Series A's fail, but no one talks about it, creating a false perception that everyone is succeeding.
  • Co-founder disputes can rock you to your core more than investor issues and YC encourages people to do startups with their friends.
  • When friction arises, having a strong relationship between cofounders is essential to ensure the success of the venture.
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  08:17

  Microsoft ad contract was a costly lesson in the reality of long-term success.

  • We got a six-figure advertising contract with Microsoft, but it was a waste of time and money and didn't lead to success.
  • Founders often think success is inevitable in the first two and a half years, but many successful companies take 8-10 years and have constant setbacks.
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  10:58

  Launching a startup is a lot of hard work with no fanfare, and can be discouraging if people don't care or hate it.

  • People often have unrealistic expectations of a launch, expecting it to be like a movie, when in reality it's usually just people typing at their keyboards punctuated by boring conversations.
  • Launching a startup is a way to flush out ideas and get feedback, but it can be discouraging if people don't care or hate it.
  • Startup launches are the opposite of movie premieres, with nobody caring for a long time before eventually gaining attention.
  • Early Facebook development was a lot of coding and graphs, with no music or excitement, just the joy of launching a new school.
  • Movies can be inspiring but they can also mess up people's perception of what is normal and lead to legal issues.
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  15:43

  Despite setbacks, stay calm and use them as an opportunity to show leadership.

  • Running a business involves setbacks like getting sued, but it can also lead to opportunities.
  • Everyone deals with setbacks, but you can learn to control your reaction to them.
  • You can win points by how you react to setbacks, setting an example for those around you.
  • Freaking out doesn't help anyone, but being tactical and staying calm can help the situation.
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  20:02

  Taking a punch and doing hard things can give you a superpower, even if your startup fails.

  • Do an inventory to assess the situation and determine if it is recoverable.
  • Startups can give you a superpower if you learn how to take a punch and do hard things, even if the company fails.
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  21:35

  Use bad situations as an opportunity to become better and be an example for those around you.