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How to Build a Developer Tools Startup - Insights from Nicolas Dessaigne
Nicolas Dessaigne

Nicolas Dessaigne’s talk at Y Combinator Startup School focuses on building developer tools startups. He covers key topics like forming a founding team, choosing the right idea, building an MVP, go-to-market strategies, and selling to developers. He emphasizes the importance of learning quickly, launching early, and leveraging a developer-first approach in both product and marketing.

Here are the highlights:

  1. Founding Team: Developers should lead, as they understand the audience and their needs. Non-technical co-founders aren’t a necessity.
  2. Idea Selection: Runtime tools like APIs are critical and scalable, unlike build-time tools, which are often “nice-to-have.”
  3. Building an MVP: Build fast, prioritize iteration, and avoid overengineering.
  4. Sales & Marketing: Founders must sell initially. Engage directly with developers and focus on community-driven, non-intrusive marketing.

Key Takeaways

Start Now, Iterate Quickly

Waiting for the perfect idea is a mistake. Build a quick prototype, even if it’s rough. Nicolas recalls demoing Algolia to its first customer with just a command line and a basic webpage—and still closing a $2,000/month contract.

Choose Scalable Ideas

Ideas tied to runtime (e.g., APIs like Stripe) tend to scale better as they’re critical to operations. Build-time ideas like QA tools can work but often face intense competition.

Launch Early and Often

Use platforms like Hacker News to test your ideas and gather feedback. Nicolas mentions how companies like Segment and Ollama used repeated launches to fine-tune their products and gain traction.

Engage Users Directly

Developers often avoid customer-facing roles, but Nicolas insists it’s critical. He shares how Stripe’s founders sat with customers, coded alongside them, and gathered invaluable feedback.

Open Source Thoughtfully

Open source works well for frameworks and data-sensitive tools but needs a monetization plan, such as hosting or advanced features for enterprises.

Developer-Centric Marketing

Documentation is marketing. Developers hate being “sold to,” so prioritize clear, helpful resources and authentic community engagement.

Founder-Led Sales

Early sales should come directly from founders. Nicolas notes that 74% of Y Combinator’s dev tool companies were founded by tech-only teams.

Examples from the Talk

  • Algolia’s MVP: Initially just a command-line tool and a simple search page, but it solved a niche problem effectively.
  • Stripe’s Hands-On Support: Early Stripe founders personally implemented their tool for startups to ensure satisfaction.
  • Hacker News Launch Success: Companies like Ollama and Segment gained momentum by showcasing their products on Hacker News and engaging with feedback.
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