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Twitch founder Justin Kan (Justin Kan) talks about the reasons for the failure of his second entrepreneurial atrium

Twitch is one of the biggest success stories, but the follow-up business of its founder Justin Kan, the legal services startup Atrium, was burned out within three years. Although most founders spend time celebrating their success on social media, Kan still put an insightful topic on Twitter, discussing what went wrong, what to learn from Atrium’s failure, and what’s next. what happens. Kan wrote that although his first company, Twitch, was sold for nearly US$1 billion in 2014 (over Rs 62 billion at the time), Atrium lost US$75 million (over Rs 543 crore) in 36 months. , And then break down why it happened

Atrium, a startup that mixes legal software and law firms, announced in March 2020 that it was about to close due to failing to figure out how to be more efficient than traditional law firms. The company must fire all of its more than 100 employees. Justin Kan (Justin Kan) served as CEO of the company until the company closed.

He said in the first of a series of tweets: “People like to talk about success, but today I want to talk about failure. Now is the time to talk about Atrium.” Kann said, in becoming a partner of YCombinator, a US seed fund startup accelerator. During his tenure, his ambition to build a large company only grew.

The 37-year-old added that the whole experience was too complicated and opaque, so he founded Atrium to make it easier for the founders to do this. He said: “I have assembled a team of five founders with different backgrounds. With my name as the head, everyone is asking for help.” “We raised 10 million US dollars (a little over 7.2 million rupees). In the A round of financing, the idea at the time was a -10 pitch slide deck.” The critical moment has arrived, and Kan suggests that people build something they believe and love, “not for your ego”.

Kann said that their initial mission was unclear, and added that they should start with a clear reason for existence and screen early hiring of believers. He wrote: “If there is no clearly defined goal between the co-founders, there will be huge friction costs.”

Kan said: “We hired too fast.” He went on to add that the hiring was too fast, especially before PMF (product and market fit) could be a fatal error, as in the case of Atrium. “At Atrium, we hired too many people too fast, but we failed to establish a cohesive culture as early as possible. It is hard to change later, which is incredible.”

Kann emphasized other issues in the atrium, but it is not clear whether the company serves lawyers or clients who purchase legal services. He said: “With no difference, we are in a dilemma of trying to be everything for everyone.”

Then, he tried to distinguish what was going on on Twitch, but not at Atrium.

Naoto also talked about “leadership of success or failure.” He said his colleagues need to be supported and prepared for success.

He felt that not looking inward and asking big questions was another reason that Kann did not thrive in his second venture. He said: “Without understanding my inner motivation, it is impossible to maintain resilience in difficult situations. My main question is, do I really want to be CEO and develop products? I also have no passion or enthusiasm for legal technology. Real interest,” he said.

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