Lydia Fayal explains why startup founders need broad, diverse networks to grow. She covers accelerators like Imagine K-12, practical setup steps like vesting schedules and 83(b) filings, and cites a University of Chicago study showing that trusting connections drive success.
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So doing the accelerator, Imagine K-12, the benefits of doing accelerator. I mean, I think what you guys have right here is amazing because you're getting a lot of the same things out of it. It's about people, people first. Who are you learning from? Who are you surrounding yourself with? For Imagine K-12, it was Tim Brady and Jeff Rowson. They were amazing. They were, you know, our advisors, and we still turn to them on a regular basis to try and get their advice on everything from how to ask for a note extension, to, I don't know, just everything that comes along the way. This doesn't mean doing an accelerator is easy. It's actually very difficult. You are going to have somebody who meets with you on a regular basis and just tears your website apart. That was usually what Jeff did with a devilish grin. I don't know why I said that in past tense. He still does that. That's the thing. Even beyond doing an accelerator, you're going to stay in touch with these people You're going to keep learning from them. We were just at their houses for a party last week, and it's great to touch base with them and continue to build your network. You also, by going through an accelerator, you get serious. You kind of become a real company at this time. That's the first time we felt like we were a real company. They get everything in order for you, how to set up employment agreements, how to do Vesting schedules, reminders to file 83s to the IRS. If you don't remember anything from this presentation, just jot down 83, because when you have a company and an idea, you're gonna be like, oh, I'm getting going, I'm getting going, and then you realize that you only had 30 days to file an 83, or you have all these tax implications. So, 83. Anyway, people, back to people. The other thing that came out of the accelerators that we did is, We met some really wonderful people there. The people who were a few classes ahead of us were hugely influential. ClassDojo, Elevate, great companies that we talk to the founders on a regular basis about what to do, what not to do, how to avoid a lot of mistakes. Through Founder.org, we again have an amazing network of other founders. Actually, 2 days ago, I thought that I was going to be deathly ill and not able to do this presentation. I call up one of the other founders who founded a company called PlushCare, and I'm like, dude, get me a doctor to write, you know, a prescription for antibiotics. He's like, great, done. That's, you know, why it's really nice to have a network. Even in prepping for presentations, you know, I'll turn to founders and CEOs of other companies. Just before this, I was talking to the people from Autolist, from Pillow Homes. From Zest Tea, which is a plug for my brother's tea company. There's a sibling rivalry going on here. Anyway, I keep mentioning up the word— I keep mentioning the word network. I think there's a negative connotation about it because of the ubiquity of networking events. I get flashbacks to working in Hollywood and this push to build vapid networks and grow your Rolodex. They don't really mean anything. What I'm getting at is more friendships. Friendships with people who are different from you and can be trusted advisors. There was a recent study by the University of Chicago, how social, the social network around you creates competitive advantage, innovation, and top-line growth. The main takeaway from the study is that if you have a small, close network, you're on the right side of the graph, you're connected to people who already know each other. They're like you. You're not challenged. It's a way to sort of stay closed-minded. It's like if you turn on the TV every day and you watch Fox News and you go to the gun club and you're like, hmm, I don't know why I'm not growing that much. But if you're on the left side of the graph and you have a large open network of people from different experiences, different levels of company growth, you're constantly growing, being challenged, learning from them and what they did, and you're able to achieve a lot more in the long run. In fact, the study says that the number one indicator of career success is how open and large your network is. So keep that in mind. Don't just hide behind your computers and build. Really think about who are the people you're meeting along the way. When you need to make hires, are you going to be able to turn to people and say, who's the smartest person you know? Can you make an intro? You're going to need to ask that question. You don't want to rely on recruiters. They're really expensive.
