“How to build products users love – when you don’t have any
money!”
&
“Doing things that don’t scale – while thinking internationally!”
These were the two main statements of our latest lecture. Guest Lecture by Haukur Gudjonsson,
Founder of Bungalo.com and self-proclaimed “Viking Entrepreneur”.
The startup Bungalo.com is probably one of the best examples
when talking about building something from scratch. Haukur launched his company
around the same time as Airbnb and both focus on “a house renting platform”.
The substantial difference is the valuation which is probably related to the
location of the company’s launch. Airbnb was founded in the Valley, full of
entrepreneurial knowledge, incubators, high potential growth rates for startups
and of course a lot of venture capital. The other one was launched in faraway
Iceland, not
very famous for its startup scene ,
barely experienced people in the venture business and not to mention no capital
for these crazy ideas.
However, Haukur was smart and travelled to the US and Canada
to explore the startup culture and learn about tools he could use. He got
support from other experienced entrepreneurs so that he was even more motivated
and focused on his project when he returned to Iceland.
“Wherever you see big problems, you’ll find opportunities for companies to improve it!”
Airbnb
is a huge competitor, so he set his focus on places Airbnb would not go for.
Remote places, bungalows in the middle of nowhere for people who like silence,
natural landscape, being away from city life and mainstream places. Locations
where you could meet the real locals and enjoy your vacation with family and
friends. It took him a couple of years but he was persistent, believed in his
startup. He learned programming within 3 months because he could not raise the
money for an IT employee or web-designer. He took matters into his hands,
started calling owners of a bungalows and asked them to join his project. He
used Facebook as a marketing and feedback channel for customers.
“Just do it!”
was the lesson learned again! Grab the chance of the internet to connect
with other experienced people, go to meetups to ask for advice, work in co-working areas to
meet other entrepreneurs or go to the Valley if you have the opportunity!
An inspiring
lecture by Haukur with just one thing that was thought-provoking. When I asked
him whether he would accept a takeover bid of let’s say $3 m he simply said
“Yes!”. You probably ask yourself: Why not? Evan Spiegel, CEO of Snapshat,
rejected a $3 BILLION offer from Facebook. Think about it and have a look at
the interview with Bloomberg ;)
In
the second half of the lecture, Bala talked about his vision of Iceland - a
unique place on earth where you can test things in a way you could do nowhere
else on this planet!
His post and the whole blog gave a new perspective on things
by the end of 2011 for many entrepreneurs and interested people. He opened a
door for visionaries who saw the future and believed in something. He couldn’t really
quantify the outcome of his posts. Of course, he measured click rates and views
on his blog. However, he did not get any revenues out of the post but he keeps
doing it. His aim is to build sustainable entrepreneurial ecosystems in
Iceland, providing a platform where people get support in form of mentoring and
Venture Capital - simply something people were looking for!
He created a yearly
event next to his blog which he describes as “A Woodstock For Startups”! Or in
Paul Graham’s words:
“The recipe for great work is: very exactingtaste, plus the ability to gratify it."