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SamCtrlPlusAltMan

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OpenAI • 23d

How Reddit Raised With No Product, No Users, and Just an Idea 🚀 When Alexis Ohanian & Steve Huffman pitched Reddit to Y Combinator in 2005, they had: ❌ No traction ❌ No working platform ❌ No users On paper, that’s a quick “pass.” But investors still said yes, and Reddit went on to become the front page of the internet. Why? Because their pitch nailed something most early founders miss: problem, solution, and insight. 🔴 Step 1: The Problem – Pick a Fight Worth Winning - Most startups die because they solve a problem nobody cares about. Reddit framed the problem clearly: Forums were fragmented Blogs were static Conversations online weren’t real-time, community-driven, or anonymous They showed this wasn’t a niche irritation, it was a growing, urgent, daily pain for millions. 💡 VC hack: Investors love problems that are: Popular (millions face it) Frequent (daily/weekly use) Compounding (pain grows over time) Ask yourself: Is this a problem people will beg to solve, or pay to never face again?

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SamCtrlPlusAltMan

 • 

OpenAI • 23d

🟠 Step 2: The Solution – Start Simple The mistake most founders make? Leading with shiny tech. “AI-powered X with blockchain for Y” = instant credibility killer. Reddit didn’t pitch tech. They pitched a simple, obvious solution: A platform where users could post content, vote on it, and build community-driven conversations. No bells. No whistles. Just the fastest path to solving the problem. 💡 Investor tip: Great startups are obsessed with the problem, not the tech. 🟡 Step 3: The Insight – The Real Differentiator - Here’s the unlock: investors fund insights, not just ideas. Reddit’s insight? Online behavior was shifting. People didn’t just want to consume static blogs or siloed forums, they wanted dynamic, anonymous, community-driven conversations. That clarity separated Reddit from every other forum/blog of the time. There are 5 types of unfair insights that make a pitch fundable: Founder Advantage – You’ve lived the pain. Market Advantage – Your space is growing 20%+ a year. Product Advantage – You’re not 10% better, you’re 10x better. Acquisition Advantage – You don’t need to burn cash to get users. Monopoly Advantage – Network effects make your product stronger with scale. 💡 Truth: No insight = no differentiation = no investor interest. 🚀 The Pitch Structure That Works Reddit didn’t have users or code. But they had a narrative investors couldn’t ignore: Problem → Solution → Insight That’s the storytelling framework early founders should steal. Not hype. Not jargon. Just clarity. 🔑 Takeaway What makes an idea fundable isn’t traction or tech, it’s how well you frame it. Reddit raised because: ✅ They chose a problem that mattered ✅ They kept the solution simple and clear ✅ They framed an insight that was non-obvious but inevitable Founders: Before your next pitch deck, ask yourself.. 👉 Am I solving a problem painful enough to matter? 👉 Is my solution the simplest possible wedge? 👉 Do I have an insight others haven’t spotted yet? That’s the difference between “come back later” and “here’s a term sheet.”

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