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March 14, 2024

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On December 11th, I had the honor to chat with Siqi Chen. Siqi is a legendary figure in the startup space. He has led product at Zynga and growth at Postmates, served as CEO at SandboxVR, and is a 3x founder with two exits. Siqi currently works as the founder and CEO of Runway: a company which develops tools to allow businesses to painlessly model their finances. We had a great conversation which touched on topics such as high/low agency, PMF, insecurity. I thought this conversation was especially fruitful. Without further ado:

DEVELOPING AGENCY

I started out the conversation by asking Siqi if he felt he was always a high agency person, and it seemed so, he said:

Looking back, there were memorable things from my childhood that suggest that I probably did. For instance, when I was three or four, I would ride my tricycle in the yard. When my grandparents closed the gate, I would turn the tricycle around and ride it through the vegetable patch to get to the other side. That seems pretty emblematic of how I turned out. But it’s hard to tell when you’re young… One of the more profound impacts on how I turned out is–my dad is a physicist and he gave me a book by Richard Feynman when I was in the 6th grade. It’s called “Surely You’re Joking, Mr. Feynman”. That had a huge impact on my development. I recommend that book to everyone. He was a very iconic, first principles thinker, didn’t care what other people think. 

I followed up by asking how people like me can work on developing more agency. The short answer is self-awareness, but here’s the complete answer:

In my interactions with people, I think there are feedback loops that can become very productive or very negative, depending on where it starts. And I think maybe where it all starts is self-awareness. Like, what are the feedback loops that are feeding you right now? Where people become low agency, is when they ascribe blame or responsibility to people, to things outside of them. And it’s not even wrong, right? Like, we’re all affected by things outside of our control. But when everything that happens, you assign blame to something outside of you. Then you’re right, and it’s confirmatory. Next time it happens, you’re going to do it again and you increasingly get into this loop where you have less and less agency. And the converse is also true, right? If everything that happens, I could have done something about that. Increasingly, you become more capable and you have more agency. So I think it’s like identifying which feedback loop you want, and understanding what feedback loop you’re in now is probably the way to do it. 

I agreed with Siqi and added that I thought that the positive feedback loop was the more meaningful, but difficult way to live life–surprisingly, Siqi had a different opinion, explaining that a low-agency life is actually more difficult because you end up at the whim of other people, living a life you don’t want to live.

PRODUCT MARKET FIT

Naturally, as the master of all things growth, I had to ask Siqi about PMF. I started by asking him how he defined PMF:

One way I think about it is that product market fit is something that you want to always constantly be chasing. You can have perfect product market fit with the market that you have, but in order to grow you need to extend to new markets and increase the capabilities of it. There’s always going to be a customer in that new segment that is unsatisfied with your product and it’s going to feel bad.

I think it is a continuum that you chase, but there is also another part of my mental model about product market fit. I don’t think it’s a line. I think it’s actually a 2D grid. 

When I think about starting a new startup, there is like, are you even on the path to increasing product market fit? Initially, you’re just like searching in the wilderness for something. You don’t necessarily know what is the right target customer. You don’t know what the right solution is. There’s a bunch of unknowns. As you talk to more customers and you build more things, you can see further out into this forest, you can maybe see the exit from the forest, and that’s when you start getting on the tracks. 

So I think it’s very much a 2D grid, and so you want to first get on the track. To make sure that you understand what you’re doing. You have a pretty good understanding of what your ideal customer profile is, and you’re going to build towards it. Then it becomes like, okay, how many of the market can I actually service? Today is it 10, 100, a thousand? And can I expand to different segments?

Siqi also mentioned another framework he used for PMF which to me seemed retention focused:

One framework I do have is this idea of a boat. The problem with the boat is if you don’t have product market fit. The best boat will sink if there’s a hole in it. You can try to compensate by having a nicer boat, a bigger boat, or a faster boat, but if there’s a hole, you won’t be able to see it unless you focus on it. In terms of metrics, that’s retention. You could be really good at growth hacking and have a million people come in, but if they’re not sticking around, you probably do not have product-market fit.

I also brought up an article I had read recently, The Tyranny of the Marginal User, which is a great article that I recommend our readers read. Essentially, the main idea of the article is that modern apps are catering to the marginal user, the next user they’re going to get. By adding features or tuning our apps or products to reach the widest audience, the product can be degraded, especially for existing consumers. I had Siqi give his thoughts on this:

Andrew Chen referred to this as the next feature fallacy ten years ago. The next feature is the thing that’s going to get you there. What you’re describing is a version of that at scale, where you can only do the next feature because you have so many users. I think the framework that I have about this is that products are path dependent. If you start with a certain audience and a certain user base, they will lead you towards the shape of a certain product. Their asks and their problems are going to be a certain shape. That might not at all intersect with some other segment that you would find really valuable. 

If you’re building a product for a brand new startup with ten to 20 people, there’s a lot of these companies out there. It’s a pretty big market. There’s nothing wrong with that. You’re going to be building new products, but the things that they ask for a lot of the time, if not most of the time, are going to be very different from the things that an enterprise customer will ask for. If you actually want to get the enterprise with any level of latency, sooner rather than later, you have to go directly attack them. You can’t just next feature your way from there to here. You have to figure out, okay, I can focus on this product, but there is some other segment, another value we’re probably going to solve, and I’m going have to treat that almost independently of the product that I have.

I asked Siqi if he had run into this problem with Runway:

It’s a lesson I took for Runway. Initially, the thinking was, we’re going to build something for startups and just for startups. Like, companies of a certain size and we’ll grow with them. We built a product focused on reporting and Runway. It helps you understand your spend because you’re a brand new startup. What do you care about? You just care about burn. You’re not a very sophisticated business. What we quickly found is that we solved that problem.

It’s not that valuable a problem, as it turns out. Once you’re a startup, you learn that Runway tells you very succinctly, that you spend all your money on people this month and next month doesn’t change, right? Meanwhile, you have these larger companies who are making multimillion-dollar decisions, and they need some kind of modeling planning tool. These use cases are so far apart. We could have gotten a million startups, but they wouldn’t have had the pain and the detail of this problem. So we kind of threw it away after a year and focused on the SMB use case or 50,000 employees and you’re on excel, and there’s a lot of complexity. The product, as a result, looks completely different. If we kept on chasing more of those startups, the product would have looked completely different and would never have gotten us to where we are today.

I asked Siqi if they still offered the original product, turns out they’ve sunsetted it to focus their limited resources on building tools for SMBs, but they are planning to eventually go back and serve the very early startup market.

BEING ASIAN AND INSECURITIES

As Asian Hustle Network, I was obligated to ask Siqi how he felt being Asian qualified his experience as a founder–his answer was similar to Webflow cofounder Bryant Chou’s:

I try to avoid it as much as I can. Not because I’m not proud of being Asian. I think there’s plenty to be proud of. It’s generally seen as one of the model minorities. But I do think about it sometimes. I think about conflict avoidance. Or I can be introverted. And I noticed that it will surprise people who don’t know me, but I’m an INTP. I’m super introverted. And I tend to be kind of conflict avoidant. And I do wonder, when I look at people who are more outgoing and into football, would my career would have turned out better if I liked “white people” things. So I have thought about it, but I actively try to avoid thinking about it because it comes back to agency. Whether I’m Asian or not, it’s not something I can control.

I think being introverted is something a lot of Asians can relate to, so I asked him to drill down on that:

I felt like over time, you become confident in the things that you are good at. For me, at least, that was a big moment in my growth as a kid. Finding something that I could be proud of, something that I’m good at. And then you focus on that. I feel like once you have that, the introversion matters a lot less. Because you can focus on the thing that you’re good at and develop more confidence in there. As a byproduct, you sort of express or come off as less introverted.

What I took away from Siqi’s comments was that introversion/shyness and insecurity in your abilities were pretty related. I brought this up, and Siqi had a pretty interesting comment on the relationship between insecurity and extreme outcomes:

One of the things that a lot of entrepreneurs and high performing people have in common is this sense of insecurity. That also causes a desire to please people because you’re insecure. So that you have to push yourself to be better and you want to make sure other people like you because of that insecurity. And that is highly motivating for me, and I think many people. It’s like how people get, I think, to certain points in their life or certain levels of success, at least somewhat. And then once you’re there, all of those causes become less useful. Like, the insecurity, the willingness to please as a CEO, those are, like, really toxic things. That paradoxically got you to this point because it made you push yourself to be better. But once you’re there, it doesn’t get you further.  

BEING A LEADER

The last topic Siqi and I talked about was leading others, the first thing Siqi brought up was something he had recently heard in a Brian Chesky interview.

Brian described the job of a leader as believing that people can level up and exceed their own expectations and get them there. That was really a point of reflection for me. I believe in smart people and hiring and talent and all these things. But if you want to get the best out of people, the prerequisite is that you have to actually believe that they can be amazing. Because if you don’t even believe that, you’re not going to set those expectations or deal with any kind of motivation or inspiration.

I didn’t quite understand this, because I would expect Siqi to only hire people if he believed that they could be amazing. Siqi explained to me:

It’s just that my temperament is to quickly write people off. “They’re good at this particular role that we hired them for, and that’s all they’re going to do.” But people want to know that you have their interests in mind, that there is a growth path for them. If you don’t believe that there is, that’s a problem. You want to hire the best people that you can, but in how you lead and manage them, you have to always believe that they can do better than they are.

We also chatted a little about what made a good employee.

Edwin: One thing I’m curious about. What kind of person do you notice is the best employee? What matters more, their talent and technical ability or how much they believe or align with the mission of the startup?

Siqi: It’s a difficult question to answer because there’s a lot of wisdom out there that says, “This is the most important thing.” I think the reality is they’re all requirements. They’re all important. And you don’t want to compromise on any of those aspects. What are those aspects? High integrity, proactiveness, high agency. Some people think integrity is the most important thing. Others think intelligence is the most important. Those things are important, they’re all absolute requirements. You want extremely high intelligence, extremely high integrity, and extremely high self-awareness and agency. But out of all of those, I think the thing that is the most important is high agency. Intelligence is a lot of nature, so that’s fairly difficult to change, but there’s a certain baseline that you want.

But everything else outside of that is almost entirely driven by agency. Whether you are successful, whether you blame people, whether you can grow. Whether you’re a good collaborator, whether self-aware. There’s so many things that one thing affects. That is the thing that I look for the most. 

SHOUTOUTS

Runway is hiring for engineering and customer-success roles! You can check out current job openings at https://runway.com/careers/ 

[Hint: if this isn’t you but you still really want to work at Runway, I would drop Siqi a line and articulate how you would add value to the company, bonus points for bringing a demo/a plan]

If you are currently having financial planning problems, sign up for early access for Runway at https://runway.com/


Thank you to Siqi for chatting with us!

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Image Source Colin Boyle/Block Club Chicago

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North Side Immigrant Rights Group Foster Community By Folk Drumming

Hana Center, a nonprofit organization for Asian American and immigrant rights, provides neighbors new opportunities to teach them traditional Korean folk drumming, which activists frequently use in their advocacy. 

Community engagement coordinator Won Joon Lee tells Block Club Chicago that the group teaches Pungmul, a Korean folk tradition with deep historical roots. It originated in Korea’s pre-industrial farming culture and used the hourglass-shaped janggu (a double-sided drum) to protest immigration and racism. 

Lee explained that during the Japanese occupation of Korea from 1910 to 1945, public gatherings were prohibited except for musical performances, making Pungmul a form of resistance. 

In 2017, two long-standing organizations,  the Korean American Community Services, and the Korean American Resource and Cultural Center were combined to become Hana Center, named from the Korean word for “one.”

The organization has a long history of youth Pungmul programming, but this summer marked the first time the non-profit offered classes for adults interested in advocacy work. 

The first-ever class will proceed after the initial session of eight weeks has passed. As the new program expands, the instructors intend to continue enrolling new students in it on an ongoing basis.

Hana Drum School instructor Inah Jeong said Pungmul drumming is loud as planned, and they are culturally and politically distinct. Korean immigrants may connect with Chicago immigrants and join the immigrant rights and citizenship march, she tells Block Club Chicago.

The ensemble delivered its first drumming class this summer, but new students are always welcome to join in. Residents and community organizations can benefit from such events, according to the center’s administrators.

Choi tells Block Club Chicago that the current situation is both exhausting and frightening, but she believes the strong and loving communities they form may provide joy even in difficult times.

Their communities enable them to change the world now and in the future. The goal according to Choi is to turn community building into advocacy that targets racial, gender, and economic concerns along with immigrant rights.

Hana Center is located at 4300 North California Avenue in Irving Park. It also offers services to address needs related to citizenship and immigration, housing, and other areas.

Image Source TomoCredit

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TomoCredit Raised Its Value To $222M To Help Gen-Z Build Credit Fast

TomoCredit announced that it had raised $22 million in a Series B funding round, giving it a post-money valuation of $222 million. 

It has also secured $100 million in debt financing and has raised $39 million in equity since its launch.

The newly acquired funds will be put to use by the corporation in the form of product line expansion, which may include the provision of mortgages and automobile loans. 

Kristy Kim founded TomoCredit in 2019 to help international students get credit. Three and a half years later, the fintech no longer focuses just on immigrants but is now also eyeing domestic students and SMBs that want to “build credit fast”. They received 2.5 million applications over time.

TomoCredit provides users credit limits of up to $30,000. It earns revenue from merchant interchange fees, not consumers. It doesn’t require a credit check, a deposit, or an APR.

According to TechCrunch, the firm doesn’t use FICO scores to underwrite, unlike many other credit offerings. Tomo Score, a “proprietary” underwriting algorithm, identifies “high potential borrowers” without credit scores. 

“Our customers are not in financial trouble…Once you identify them and give them a card, they spend a lot and don’t default. Our performance has been great and that gave us and our investors the confidence to scale.” Kim told TechCrunch.

Morgan Stanley’s Next Level Fund and Mastercard participated in the equity portion of the deal including GoldHouse, Asian Hustle Network, and Hyphen Capital, while Silicon Valley Bank provided the debt.

Alice Vilma co-manages Morgan Stanley’s Next Level Fund, which invests in early-stage innovation and tech-enabled enterprises with women or diverse founding teams, said that she was amazed by Kim’s ability to recognize a need as a young female immigrant and create a financial product.

“As a first-generation South Korean immigrant, I wanted to help immigrant communities to reach their American Dream faster with TomoCredit,” Kim told TechCrunch. “It has been wonderful to partner with minority-focused funds who truly understand Tomo’s mission.”

Ai Nguyen

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“My dad left our family for another woman when I was around 6 years old”

You might have heard a tale similar to this one here and there, but for every family who is now going through this — it feels like the beginning of the end. 

What more if your father left your family when you were young and just beginning a new life in a foreign place?

Nevertheless, it is utterly devastating that some even end up questioning themselves, “what have I done wrong or what should I have done right?” But eventually, you’ll come to the conclusion that you should just accept it, keep a positive attitude and figure out how to go on living your life without a father figure.

But what if one day your father knocks on your door and asks if he could come back to your family’s life?

Here’s Ai Nguyen, A Life and Business Breakthrough Coach, who shares a powerful story through her voice and experience of her 80-year-old dad.

The Crucial Memory

Last week, I celebrated my dad’s 80th birthday.  It was a deeply healing experience for me. Many of you don’t know this, but my dad left our family for another woman when I was around 6 years old, about a year after we had immigrated from Vietnam over to America. Here we are in a strange new country, and then he left us.

One of the last memories I had at that time was that he took me to the bus stop in the morning for school and told me that he was leaving the family and wasn’t coming back. That was it. I came home from school and he was gone.

For decades, I had blocked out this CRUCIAL memory of the bus stop day. It was brought out again during a healing hypnosis session I had last year. While growing up, he would come and visit our family from Guam every few years to attend any huge celebrations such as family weddings. 

Here we are in a strange new country, and then he left us.

-Ai nguyen

The Comeback

But then, about 18 years ago, he asked us if he could come back because he was struggling with his business. He was basically going to be homeless if we didn’t take him in.

This was such a stressful time in my life because we had to learn to build a life without him fully being there and then we had to also learn to accept him as he came back. Long story short, when he came back, even though he stayed, he had lost his power in the family.

We weren’t interested in what he had to say. I wasn’t interested in his opinions. Because, honestly, he lost our respect when he left the family. So, we had never celebrated his birthday.   

My dad had to learn how to make peace with himself. He practiced Buddhism, spirituality, and yoga to calm his internal state.

Long story short, when he came back, even though he stayed, he had lost his power in the family.

-Ai nguyen

The Celebration of Birthday and Healing

Fast forward to last week, his birthday party, my husband Dave and I flew back to St. Louis, Missouri to celebrate this with my family. My dad has been asking the family for the past year to do a party for him. He had an inkling that he would die soon and it was important for him to experience this. And so we made tons of food and brought the whole family together.

And there was a moment where I caught him feeling super happy, in front of the colorful walls, getting photos taken by me. Like a child’s smile when they are being acknowledged and celebrated. I caught it in the moment and in the photos.  

Ai’s father all smiles for his 80th birthday

And all of a sudden..

A deep level of compassion and forgiveness fell into my body.

(As I am writing this, I am CRYING. Nose dripping, wiping my shirt all over my face type of crying)

I suddenly realized that this man is 80 years old. And now he’s finally being celebrated. My heart felt the pain of living in a body for 80 years and not experiencing the greatest, most loving moments in life.  

I felt compassion for the pain of him having to forgive himself for his mistakes. I felt compassion for him, probably realizing he could have done more in his lifetime, but he didn’t get to do so. I felt compassion for him for having to release guilt, shame, and resentment over the years. Because death is near, and he simply wants to be acknowledged.

At that moment, I saw the inner child in him; the child who just wants more praise, love, and attention on this special day. And I wish if I had been quicker in my realization, that I had taken more pictures, to make him laugh, and make it even more of a special day for him. 

(A moment of regret showed up for me)

I suddenly realized that this man is 80 years old. And now he’s finally being celebrated. My heart felt the pain of living in a body for 80 years and not experiencing the greatest, most loving moments in life.  

-ai nguyen

This was the level of compassion that I had prayed for, and I wasn’t ready to fully receive it for many years until I participated in this birthday party.

I got balloons with his favorite celebration colors: red and gold. (Coincidentally, his outfit matched my balloon colors).  Intuitively, I knew what he wanted. If my sister had not asked me to be in charge of the balloons and decorations at the last minute, I would have missed out on seeing the joy and happiness in my dad.  

It was as though SPIRIT planned all of this to happen FOR ME.

I share this story with you because I want you to know that we all have the opportunity to experience forgiveness and healing. Be present, be open, and compassionate and spirit will give you powerful insights. Life flies by fast. Always celebrate yourself. Find gratitude and greatness in your reality and everything will shift for you!

Lastly, you have the power to turn your pain into your purpose.

Ai Nguyen

Your Life and Business Breakthrough Coach

Image Source Esquire Philippines

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Filipino Founder of Mega Sardines William Lim Shares Business Wisdom

Mega Global Corporation began as a fishing vessel in 1975 and is now one of the Philippines’ most successful canned sardine manufacturers. It has 88 ships, two functioning factories, one under development, and two headquarters.

The company’s founder William Lim said that her wife was from a fishing family and his enthusiasm for fishing sparked his successful business – but his entrepreneurial journey wasn’t easy.

Be a risk-taker

He advised taking calculated risks and anticipating outcomes. “When we came up with advertisements, in three to six months, our sales started to improve slowly. You need to spend to build your brand name so people will have confidence in your product,” he told Esquire.

Good Brand Communication

By learning how to communicate effectively to store owners and consumers about your brand, you will be able to differentiate it from its competitors. “Because nobody knew our brand, supermarket owners did not want to accept our products to be on their shelves,” he told Esquire Magazine, he had to personally visit the stores to convince them for a chance to sell their product. 

Adapt to the times

Simply abandoning ineffective old methods, and always taking opportunities to improve.

Remain focused on your vision

Never forget what the goal was when starting and always remember what the company stands for. He added that when it comes to making decisions about the company, these guiding principles will serve as the primary motivation and compass. “If you keep changing your focus, you have less time to succeed. You have to put your heart and mind to your vision and never give up, no matter the odds,” he tells Philstar.