The Audacity of Zero

"The Audacity of Zero" is a phenomenon that startups often face in their early stages. It is the ironic situation where it is often easier to raise money or acquire other resources when a startup has zero revenue, zero customers, and zero traction than when it has a small amount of each.

The reason for this is that zero invites imagination. As long as a startup has no data, it is still possible for investors and other stakeholders to imagine a future of massive success. However, small numbers can pour cold water on this hope. Small numbers invite questions about whether large numbers will ever materialize.

This creates a perverse incentive for startups to postpone collecting data until they are certain of success. However, this is a dangerous path to take. By delaying the collection of data, startups increase the amount of wasted work, decrease essential feedback, and dramatically increase the risk of building something nobody wants.

The antidote to the audacity of zero is validated learning. By focusing on validated learning, startups can demonstrate real progress, even when their gross numbers are still small. This can help them to overcome the audacity of zero and secure the resources they need to grow.