Why Now - by Lenny Rachitsky - Lenny's Newsletter
Why Now - by Lenny Rachitsky - Lenny's Newsletter
Why now?
Why it matters for startups to have a strong "why now"—and also why it doesn't
LENNY RACHITSKY
JUL 21, 2021
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8/1/23, 9:24 AM Why now? - by Lenny Rachitsky - Lenny's Newsletter
Long answer: With the help of a bunch of smart investors, Twitter, and my own research, I’ve
collected why nows for dozens of businesses (see below), and through this research, I’ve come to
some unexpected conclusions:
Huge thank-you to Sarah Tavel, Ann Miura-Ko, Bill Trenchard, Josh Elman, Alexander Taussig, Garry
Tan, Eric Vishria, and everyone who shared their insights in this thread for contributing their wisdom to
this post 🙏
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8/1/23, 9:24 AM Why now? - by Lenny Rachitsky - Lenny's Newsletter
“The importance of the ‘why now’ has a lot to do with the reason venture
capital exists. Venture capital works because there is justification for being an
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8/1/23, 9:24 AM Why now? - by Lenny Rachitsky - Lenny's Newsletter
Smartphones with accurate GPS, 3G, and release of Google Maps API: Uber and Lyft
Acceleration of e-sports: Twitch
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8/1/23, 9:24 AM Why now? - by Lenny Rachitsky - Lenny's Newsletter
“I think of markets like currents, not whether or not they are big bodies of
water. The stronger the current, the higher your chance of success. ‘Why
now’ is often a description of a current— a macro one. The move to cloud, the
employment/cultural trends driving the creator economy, etc. are all
tremendous why nows.”
—Sarah Tavel, Benchmark
If you can build a 10x better product, and/or discover a growing untapped market need, you could
get away without a strong why now. Which brings us to our second point.
SpaceX
Airbnb
DoorDash
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8/1/23, 9:24 AM Why now? - by Lenny Rachitsky - Lenny's Newsletter
Instacart
GitLab
Cameo
Duolingo
TripActions
You could argue that there were macro trends that explain why a DoorDash or an Instacart were
only possible in 2013 versus a decade earlier (e.g. increased adoption of smartphones, growing
expectation for on-demand services, etc.), but to me, these don’t feel fundamental to their success
at that moment in time.
“Of course any startup benefits from the tightest definition of why now—if
the company literally couldn’t have existed without the ‘why now.’ Platform,
technology, regulatory shifts are all examples of this. Uber would not have
been possible without smartphones + GPS. Salesforce wouldn’t have been
possible without maturity of web browsers + widespread broadband.
But great companies can also just ride one or more trends to success. The
company clearly could’ve existed without these trends but wouldn’t have
been nearly as successful.”
—Bill Trenchard, First Round Capital
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