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Snapchat founder Evan Spiegel on why capital is not always a predictor of startup success

October 19, 2023

Snapchat founder and CEO Evan Spiegel gave a great answer when asked how they would compete with giants like Apple and Facebook on AR hardware:

“One of the things that’s so exciting about the technology industry is that capital is not always a predictor of success. I think that’s one of the things that draws so many people to this industry and excites them. True innovation—especially long-term, complex, technical innovation—can create really breakout products even when your competitors have way more money and are hiring more people.”

He continues:

“I think what happens is that many of those companies that are spending a lot more money aren’t having to make hard choices. And design is all about those hard choices and tradeoffs. When you have lots of money and someone presents you with three you options, you say: ‘let’s do all three’. And that means that ultimately over time, you miss the opportunity to learn and to iterate and evolve the product as quickly as you could if you were really constrained by the amount you could invest.”

Steve Jobs expressed a similar view:

“People think focus means saying yes to the thing you’ve got to focus on. But that’s not what it means at all. It means saying no to the hundred other good ideas that there are. You have to pick carefully. I’m actually as proud of the things we haven’t done as the things I have done. Innovation is saying ‘no’ to 1,000 things.”