Facing accusations about a failed NFT project, the founder's strategy is to openly admit the project was a failure, shut it down completely, and open-source the work. He frames failure as a natural part of building ambitious things rather than defending the outcome.
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Silicon Valley's default response to crazy ideas is curiosity, not cynicism, which fosters greater ambition. Crucially, the culture values the experience gained from failure. A founder who raised and lost $50 million is still seen as a valuable bet by investors, a dynamic not found in other ecosystems.
When studying failed money management firms, WCM found that founders were unwilling to discuss their mistakes. The most valuable, unfiltered lessons about what truly went wrong came from conducting deep diligence with former employees of those organizations.
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Disagreeing with Peter Thiel, Josh Wolf argues that studying people who made willful mistakes is more valuable than studying success stories. Analyzing failures provides a clear catalog of what to avoid, offering a more practical and robust learning framework based on inversion.
Instead of engaging in public debate after a viral negative review, Rabbit's team meticulously analyzed MKBHD's video, creating a detailed action list to methodically fix every issue raised. This turned a PR crisis into a product improvement sprint.
Seemingly costly failures provide the unique stories, data, and scars necessary to teach from experience. This authentic foundation is what allows an audience to trust your guidance, turning past losses into future credibility.
Many believe once trust is lost, it's gone forever. However, it can be rebuilt. The process requires transparently admitting the mistake and, crucially, following up with tangible actions that prove the organization has changed its ways. A mere apology is insufficient; you must 'walk the walk'.
The controversial WSJ quote "We do fail a lot" should be embraced by Anduril. It frames failure as a key part of rapid, venture-backed R&D, distinguishing its agile culture from the slower, risk-averse model of traditional taxpayer-funded defense contractors.
Success isn't linear. Mobile gaming giant Supercell didn't start with mobile games, and drone delivery firm ZipLine began with a robotic toy. This shows that foundational failures in one area can be the necessary learning experiences that lead to market-defining success in another.
After a startup fails or you exit, dedicate time to writing a detailed, private postmortem. Critically analyze interactions, decisions, and outcomes. This exercise helps transform painful experiences into a concrete set of operating principles for your next venture.
Supercell's culture redefines failure. Instead of punishing unsuccessful projects, they are treated as learning experiments. The company literally celebrates killing a game with champagne, reinforcing that learning from a false hypothesis is a valuable outcome.
