25 Years of Building Startups Explained in 17 Minutes | TaleTree, Matt Hagger
Meet Matt Hagger, Founder & CEO of Taletree and a veteran serial entrepreneur who spent 25 years building companies from the UK to Silicon Valley. He was the...
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Intro
- 00:00Over the last 20 years, I've been a
- 00:01serial [music] entrepreneur in the UK
- 00:04and then Silicon Valley in Los Angeles.
- 00:06The second company was Scatter, which
- 00:08was the photo sharing product. I wanted
- 00:10it to become something that every member
- 00:12of the world would access and use. When
- 00:15you're working on something that means
- 00:17everything to you at the time, you're
- 00:19putting your heart in it, your soul.
- 00:22Unfortunately, 95%
- 00:26of all startups end in failure. Scatter
- 00:29did not become the Instagram, Tik Tok or
- 00:32X that we see today because it's not
- 00:35existing [music] right now. When you
- 00:36climb that high, the fall is equally as
- 00:39heavy. But I think going through failure
- 00:42or feeling failure gives [music] you
- 00:45great weaponry for the future, gives you
- 00:47a an armor. I think for entrepreneurs,
- 00:50most of the time you're falling out of
- 00:52the plane without a knowing how to open
- 00:54the parachute. And as you get closer to
- 00:56the floor, [music] you finally work it
- 00:58out. And I think that is something that
- 01:00I learned growing up, which gave [music]
- 01:03me a little bit of courage. Courage
- 01:06comes from taking a [music] leap,
- 01:07throwing yourself in because we don't
- 01:10know the solution. We don't know the
- 01:11answer. I think my father threw me in
- 01:13knowing that he was there, I guess, if I
- 01:16went wrong, but made me feel like I was
- 01:18on my own doing it. And that [music] was
- 01:20powerful. You just need that one person
- 01:24to say, "I believe in you. You can do
- 01:26it. You're good enough." [music] These
- 01:29acts of empowerment are so important.
- 01:32What we need to do is we need to try and
- 01:35think [music] how can we be like a
- 01:38kindergarten kid for life. [music] They
- 01:40don't give up. They stand up again. True
- 01:42entrepreneurs will always come back.
- 01:51Hi everyone, my name is Matt Hager. I'm
- 01:53the founder and [music] CEO of Tail
- 01:54Tree. Tailtree empowers children in a
- 01:57post AI era to hold on to the precious
- 02:00gift of imagination and creativity. So
- 02:02when you arrive at Tailree and you
- 02:04[music] adopt your companion, you will
- 02:06start brainstorming and imagining and
- 02:09coming [music] up with ideas. So it's a
- 02:11free space for children to explore
- 02:14what's on their heart, [music]
- 02:15what they care about, their interests.
- 02:18Prior to that, over the last 20 years,
- 02:20I've been a serial entrepreneur in the
- 02:22[music] UK and then Silicon Valley in
- 02:24Los Angeles in Eman Venture Labs,
- 02:26helping [music] founders turn their
- 02:27ideas into products and into successful
Say "Yes" When Everybody Says "No"
- 02:30companies.
- 02:35When everybody thinks your idea is
- 02:37crazy, you should take it very, very
- 02:38serious. That's more important than
- 02:40having everybody agree with your idea
- 02:43because everybody agrees with your idea,
- 02:45it's probably too late and somebody's
- 02:47already done it. So I went to a school
- 02:49in England in Cambridge here, primary
- 02:51and secondary educations. There were
- 02:53certain times [music] at school that I
- 02:55enjoyed writing stories, drama, art,
- 02:58stuff like that where I could be
- 03:00creative. But one of the hardest things
- 03:02for me about going to school [music] was
- 03:04the bell ringing when I was working on
- 03:06something. I remember once I wouldn't
- 03:08leave the classroom cuz I needed to get
- 03:09my [music] story finished and I was in
- 03:12the flow of creativity and my teacher
- 03:15was like, "Matt, you you've got to go to
- 03:18mathematics now, but I can't leave the
- 03:20classroom because I'm working on
- 03:21something." I found the answer. You
- 03:24know, I realized that I wasn't going to
- 03:26have the creative freedom that I had
- 03:28when I was uh in kindergarten. My
- 03:30childhood was challenging but as soon as
- 03:33I found the internet I became incredibly
- 03:36excited about the idea. The way I start
- 03:38companies it comes from an inherent
- 03:40problem that I am trying to solve. A
- 03:43pain that I have. Every time we used to
- 03:45connect to the internet dialup internet
- 03:47it would crackle and it would load up
- 03:49the web pages and I would often visit my
- 03:51favorite website which was obviously my
- 03:53football team. I would see that nothing
- 03:56had changed on that website. I need to
- 03:58solve this problem because I'm costing
- 03:59my mother a lot of money every time I
- 04:01dial up. I'm costing a a fortune in the
- 04:03telephone bill. So, she would present me
- 04:05with this telephone bill and say,
- 04:06"Listen, you're going to have to pay for
- 04:08this because you're using the internet
- 04:10far too much." My response was, "Right,
- 04:12I'm going to build something that
- 04:13prevents this from happening for me and
- 04:14everybody else." So, this desktop news
- 04:16alerts protocol was built as soon as you
- 04:19connect to the internet. It would go
- 04:21straight to your favorite website, check
- 04:22to see if there was any breaking news.
- 04:25if there was it would deliver that
- 04:26breaking news to your desktop. And that
- 04:28simple idea was a big one. I got a
- 04:31feasibility study grant from Cambridge
- 04:33University Science Park and ended up
- 04:35going on this huge journey and it was an
- 04:38invention that everybody wanted to uh
- 04:41implement and it ended up being rolled
- 04:42out as Sky Sports News alerts platform
- 04:45with Premier League football teams and
- 04:47breaking news at Sky and that's a
- 04:49broadcast media corporation in the UK.
- 04:51It was a very exciting period of my
- 04:53life. The only thing is I didn't
- 04:55understand what venture capital was. I
- 04:57didn't understand what entrepreneurship
- 04:59was. I just knew I was solving a problem
- 05:01for myself. So these two episodes made
- 05:04me realize that if I was going to
- 05:06progress in life, it was going to be
- 05:08through my own curiosity and my own
- 05:11ideas as opposed to following the status
Never start a startup without THIS
- 05:14quo.
- 05:19I have to be honest about it. It is not
- 05:21for everybody. If you don't have a deep
- 05:24and meaningful passion that scratch that
- 05:26you want to itch, you should [music] not
- 05:27do it because when you get into that
- 05:29struggle, it is going to be extremely
- 05:31hard. You can lose sight of where you're
- 05:34going. So my childhood does have a
- 05:36direct correlation to tail tree and why
- 05:39I'm building talry. I feel like
- 05:41sometimes I'm building tree for the
- 05:42child inside me. Even though the school
- 05:45[music] curriculum didn't suit me, my
- 05:48dad acknowledged that and used to help
- 05:51me learn through challenges. Courage
- 05:54comes from [music]
- 05:54taking a leap, throwing yourself in
- 05:57because we don't know the solution. We
- 05:58don't know the answer. I think my father
- 06:00threw [music] me in knowing that he was
- 06:02there, I guess, if I went wrong, but
- 06:04made me feel like I was on my own doing
- 06:07it. And that was powerful. We [music]
- 06:08used to go and watch soccer together and
- 06:11travel all over the country supporting
- 06:13our team. He would enable me [music] to
- 06:15open up the map, find out where the city
- 06:18was, and I would be directing my father,
- 06:20and then I would learn about the city
- 06:22that we were visiting and the [music]
- 06:24history behind it. Then he would ask me
- 06:26about the team and statistics, [music]
- 06:29all the different things that had
- 06:30happened during the game. And I felt
- 06:31like I was learning through [music]
- 06:33something that I love, and that was
- 06:34really, really powerful for me. What I'm
- 06:37doing now with Tower Tree is essentially
- 06:39an extension of [music] that. As a
- 06:41child, I realized that I wanted to help
- 06:44empower humanity to [music] think
- 06:46creatively with authenticity with
- 06:49purpose. I wanted all of humanity
- 06:51[music] to be able to call upon their
- 06:53authenticity and spiritual gifts and
- 06:54serve others with that. [music] This big
- 06:57thinking, this curiosity, the
- 06:59imagination and creativity and wonder of
- 07:02a child, we all possess [music] that.
- 07:04It's just as we've grown up and we've
- 07:06gone through the system, [music]
- 07:08we have lost that spark. It's not that
- 07:12the spark is not there. It's just we're
- 07:14not training that spark. Even through
- 07:16the Head Start program that was [music]
- 07:18piloted by George Land at NASA where he
- 07:20tested creativity on 5-year-olds and
- 07:23then repeated that test [music] at 10,
- 07:2515, and 30. The average genius level
- 07:28creativity [music] in children, 98% of
- 07:31all kids that were tested were deemed as
- 07:33geniuses. But by the time these children
- 07:35[music] reach the age of 30, it goes
- 07:37down to 2%. Between the age of 5 and 30,
- 07:40the light of learning, the light [music]
- 07:42of curiosity, the light of imagination,
- 07:45it dims down. It goes off. And it goes
- 07:47[music] off because we're not encouraged
- 07:49to pursue that side of ourselves. We're
- 07:52encouraged [music] to memorize, be
- 07:54graded upon our knowledge, our ability
- 07:56to perform well in examinations, and
- 07:58[music] to become experts in a field
- 08:02that we're supposed to [music] upskill
- 08:03ourselves to be able to perform those
- 08:05duties in societies. If I held up this
- 08:08pen [music] and said, "How many uses of
- 08:11this pen can you think of?" And on
- 08:13[music] average, kids came up with 15 to
- 08:1520 uses of this pen, whereas adults came
- 08:18up with [music] between one and three
- 08:20uses of this pen. But for a kid, this
- 08:22could be anything. This could be a
- 08:23sword. It could be [music] a lightsaber.
- 08:25It could be a rocket. It could be a
- 08:27paper clip. Even kids just need [music]
- 08:30that one person to say, "I believe in
- 08:32you. You can do it. You're good enough."
- 08:36These acts of empowerment are so
- 08:39important. And that is essentially why
- 08:41Teltree provides children [music] with
- 08:43this global community of kind and
- 08:45creative kids. Our mission is that kids
- 08:47all over the world can share their works
- 08:50of art with one another. Kids all over
- 08:51[music] the world can communicate,
- 08:53compliment and share. We allow children
- 08:56to feel liberated. [music]
- 08:58Having supportive community around you
- 09:01is very very important for
- 09:02entrepreneurs, for creative people cuz
- 09:05without community [music] I think we
- 09:07would struggle. So when you make the
- 09:10decision to become an entrepreneur, it's
- 09:13so important that you are deeply in love
- 09:15with the problem that you're solving.
Why I Only Invest in Failed Founders
- 09:23The ideas that started in Eman Venture
- 09:25Labs will always invest in a an
- 09:28entrepreneur that's failed [music] three
- 09:29or four times because of the learnings
- 09:31that they get from the failure. They're
- 09:33closer to their success with every
- 09:35iteration. And of course some of the
- 09:37companies succeeds the first time has a
- 09:40lot of luck but 95%
- 09:43[music] of all startups end in failure.
- 09:46Around 2005 2006 it was just at the
- 09:50beginning of the smartphone era say
- 09:51Windows Mobile had a a [music]
- 09:53smartphone and there was this rumor that
- 09:55iPhone and Android were coming. I was
- 09:58playing around with a Windows mobile and
- 10:00I realized that the power of a camera
- 10:02was gave us extraordinary abilities as
- 10:05humans that we could share what we saw
- 10:07in real time that I made the decision I
- 10:10was going to work on that problem and I
- 10:11was going to actually build scatter
- 10:13which was one of the first ever
- 10:15photosharing smartphone apps. I was
- 10:17incredibly excited about the potential
- 10:20of what I was building. Of course, with
- 10:22any startup, you need to raise capital
- 10:24and you need support because the
- 10:26smartphone era was at the very
- 10:29beginning. I found it very very hard to
- 10:31explain to people what I was trying to
- 10:33do. It was like this will never take
- 10:35off. People take their photos, they get
- 10:37them developed, they share them with
- 10:38their family. Nobody wants to see other
- 10:41people's media. One thing which is
- 10:43really interesting is that scatter did
- 10:45feel like a contrarian truth. you know,
- 10:47you're sitting on a good idea when
- 10:50everybody thinks it's crazy. So, all of
- 10:52these issues [music] I was I was being
- 10:55faced with was just very negative and I
- 10:57couldn't really see how in the UK I
- 11:00could get my business going. Luck and
- 11:02timing are hugely important. Having a
- 11:04product that country or that market
- 11:07wants to adopt, having access to the
- 11:09technology that will enable you to
- 11:11distribute it. So I decided to take a
- 11:14bold leap
- 11:16in the US particularly in San Francisco
- 11:18and Silicon Valley. I saw so much
- 11:21positivity around new ideas. The people,
- 11:24the support, [music] the way people
- 11:26encourage me and get behind my ideas.
- 11:30The whole ecosystem was just incredible.
- 11:32And if I hadn't have gone out there, I
- 11:34don't think I would have [music] been
- 11:35able to achieve what I achieved with
- 11:38Scatter. One of the greatest things that
- 11:40occurred with scatter was that Android
- 11:42had just launched and there was just six
- 11:45people in the team and I met uh one of
- 11:47the Android team members who were
- 11:49working under Sergey Brin the founder of
- 11:51Google on this project. So they invited
- 11:53me into their cohort of innovators and I
- 11:56ended up getting the first G1 Android
- 11:59device and Android 1 was dropped where
- 12:01it wasn't even launched the Android
- 12:03ecosystem. It was just a beta. So we got
- 12:06access to the developer kit and we could
- 12:07start building. It was an incredible
- 12:09experience to be able to [music] connect
- 12:11my native app and access the camera. We
- 12:13launched Scatter on Android market.
- 12:16There was like $150 apps on the app
- 12:18[music] store. So we raised in excess of
- 12:19a million dollars to preede the company
- 12:23but we were too early. Scatter did not
- 12:26become the Instagram, Tik Tok or X that
- 12:29we see today because it's not existing
- 12:31right now. We didn't have access to
- 12:33distribution because the app stores were
- 12:36new and we were launching and helping
- 12:38these ecosystems to evolve. All the
- 12:40technical resources required to continue
- 12:42to iterate and build on unstable systems
- 12:45[music] meant it to be very costly,
- 12:47timeconuming and heavy. And what the
- 12:49biggest takeaway from some of this is
- 12:51that just because you have an idea
- 12:53that's so profound, if you don't have an
- 12:55addressable market or the ability to
- 12:57distribute your idea, you might end up
- 12:59being eaten by somebody that arrives on
- 13:02time. The product life cycle is very
- 13:05very important and being in the right
- 13:06place at the right time with the right
- 13:08technology. You often become an R&D lab
- 13:12for somebody that can take your idea and
- 13:15launch a better version of it because
- 13:17they are on time. When you're working on
- 13:20something that means everything to you
- 13:23at the time you're putting your heart in
- 13:25it, your soul, all your attention and
- 13:28passion is going into it. It becomes a
- 13:30way of life. When you climb that high,
- 13:32the fall is equally as heavy. I felt
- 13:35very very down and and depressed [music]
- 13:38because I wanted it to become something
- 13:40that every member of the world would
- 13:42access to my product. But I think
- 13:44failure is great feedback. It tells you
- 13:47all the things [music] that you don't
- 13:49want to be doing next time. Failure
- 13:51means you tried. Means you were actually
- 13:53the man in the arena, not the voice in
- 13:57the crowd. You were doing it. [music]
- 13:59You put yourself out there. You were
- 14:00vulnerable enough to take the risk.
- 14:02you're prepared to be judged and
- 14:05observed for what you're doing. Which is
- 14:07why our relationship with failure needs
- 14:09to change. What we need to do is we need
- 14:12to try and think how can we be like a
- 14:16kindergarten kid for life. They're not
- 14:18scared to fail. Nature is not scared to
- 14:21fail. Unfortunately, with adults, when
- 14:23we fall on the floor, we often run away
- 14:25and we never come back. Why? Because of
- 14:27shame, embarrassment, through all these
- 14:30things. It's so hard and so brutal when
- 14:32you fail. But there definitely needs to
- 14:34be a greater acknowledgement and
- 14:37understanding that this is part of the
- 14:39journey and I'm not finished yet.
The Key Difference: Good vs Great Founder
- 14:47I always say work on the business not
- 14:50[music] in the business. If you work
- 14:52inside it for too long, you can
- 14:54suffocate [music] and stifle the growth
- 14:56of the business because you are trying
- 14:58to be every member of your team. [music]
- 15:00You're trying to overont control the
- 15:03outcome and the destination of what's
- 15:04going on. It can suck the energy from
- 15:07you and everybody that's in the company.
- 15:10When you're building a company, company
- 15:12means company, right? Doesn't mean you.
- 15:14It means a bunch of [music] people all
- 15:17going in the right direction, all with
- 15:19the same aims and objectives. [music]
- 15:21There are certain founders that are
- 15:22really good at scaling their business.
- 15:24They're really good at working on the
- 15:26business. I think they make great chief
- 15:28happiness officers [music] as opposed to
- 15:30chief executive officers because they
- 15:32have the ability to bring people in and
- 15:35understand the type of people that their
- 15:37company needs when they need it and
- 15:39empower those people to [music] do their
- 15:41best work. I think working on the
- 15:42business is working on a mission where
- 15:45everybody [music] that joins your
- 15:46company feel like it's their mission
- 15:48too. For example, I'm building tail
- 15:50tree. I'm going to make sure that from
- 15:52the chief financial officer, chief legal
- 15:54officer, anybody down to the head of
- 15:57well-being, [music] the person who would
- 15:59potentially be preparing food for the
- 16:01company, they would all have a deep and
- 16:03meaningful [music]
- 16:04connection to the problem that we're
- 16:05solving. have the vision and break
- 16:08[music] down the miracle of the vision
- 16:12into bite-sized moments. Every single
- 16:15day has its own problems. Tomorrow you
- 16:18have another set of problems. [music]
- 16:20You just have to try and break this
- 16:22overwhelming vision down into bite-sized
- 16:25pieces [music] and feel accomplished
- 16:28every time you achieve these small
- 16:31little milestones. And I always say
- 16:34miracles come from momentum. Momentum
- 16:36come from a [music] succession of
- 16:38moments. So every day as you're
- 16:41completing [music] and getting further
- 16:43towards the end goal, you're creating
- 16:45this momentum through continuing to
- 16:48attack [music] every day the same and
- 16:51breaking things down. Working on that
- 16:53company always as I think the difference
- 16:56between [music]
- 16:57being good and being great. These are
- 17:00the things that I've used [music] to
- 17:02help me on my journey as an
- 17:04entrepreneur.