Startup School

5 books every budding entrepreneur needs to read

Before you even start thinking about starting your own company, read these books. Photo by Utamaru Kido/Getty Images

You thought you were done with homework, but, if you're an entrepreneur looking to start a company, that's not the case. The startup world is a lot of fun, but also a lot of work and preparation.

So, what kind of homework should you do? Unfortunately, watching Shark Tank and HBO's Silicon Valley can only take you so far. You need to know about pre-money valuations, convertible notes, liquidation preferences, control provisions, and so much more. Fortunately, there are plenty of books to get you up to speed. Yes, books — do you remember those? Turns out plain old books can be very useful if you're looking to get involved with the even the highest tech parts of the startup world. So here are five books to get you started.

The Launch Pad: Inside Y Combinator, Silicon Valley's Most Exclusive School for Startups

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As a startup founder, you'll need to know what Y Combinator is, how it works, what the people are like, and how great founders and mentors conduct themselves. This book offers a behind the scenes look at the most elite startup incubator/accelerator. Why is it the most elite? Because it keeps producing unicorns (companies valued at over $1 billion) — think AirBnb, Dropbox, Twitch, Stripe. With this book, you'll really get a sense of the day to day conversations and challenges that startups face. It is also just a really entertaining book and a great starting point.

Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist

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After reading Launch Pad, it is time to get down to business. Venture Deals is a fairly in-depth breakdown of the relationship between investors and startup founders. It runs through typical VC titles, processes, and incentives. Perhaps most importantly, it goes into the economic and control provisions of the term sheet. You'll want a pen and paper to take plenty of notes when going through this one. Do not expect this book to always be fun, but do expect to learn a lot. If you can make it through this one and really absorb what is being said then you might actually be serious about the startup world, so good job.

Measure What Matters: How Google, Bono, and the Gates Foundation Rock the World with OKRs

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Whether you'll be a founder, investor, reporter, or just want to be a successful person, you need to set lofty goals, write them down, share them, and stick to them. OKR stands for objectives and key result. This book is less about startups and more about pushing yourself to achieve more. OKRs force you to break down your goals in metrics that can be tracked. For example, I knew I wanted to meet with hundreds of startups per year for my investment job. But how many exactly? How do I set a goal for that? Simple — just say you need to meet with at least two startups per day for a least one hour. That means at least 10 startups per week (five working days), or over 40 per month. Set lofty goals, so that you fail to achieve 30 percent of them.

Startup CEO: A Field Guide to Scaling Up Your Business

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Time to step inside the shoes of the CEO — must be nice to be in charge, right? I'm sure it is nice in some ways, but it is also an unbelievable amount of work. This book goes through every last detail — in detail. You may feel overwhelmed at times, but you might also feel ready to manage a company. There is much more to managing a company than can be found in a single book, but this is a great breakdown of the day-to-day activities. It has tips on how to be organized, prioritize time, grow your key employees, and interact with the board of directors. Sure, you'll still need to build a great product that customers want, and you'll still need to have great interpersonal and communication skills, but at least this book describes the details of how to operate.

​Zero to One: Notes on Startups, or How to Build the Future​

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The final book in this short list will drive you to think big — and think differently. Think about building a dominating monopoly. Yes, monopolies are a good thing when you're the one making the business. I hope that concept is not too upsetting, but you should be ruthless when you are out there competing. That means giving your customers something amazing that your competition can't even compete with. If you think about it, the big tech companies pretty much dominate at least one market. Google has search and maps. Facebook, since owning Instagram, has social media. Amazon has logistics. If you're going to start a startup you should aim to be 10 times better than any competition in one key way. You want to clearly differentiate your product from your competition. Zero to One teaches you how to think that way, and so much more.

So, there you have it. I think these five books will give you a good starting point. There are a dozen or more other books you should also read about innovating, investing, and managing, but you must start somewhere. This list gives you a little bit of everything to get you started.

Now, you just have to actually start.

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Mark Friday is an associate leading venture capital investments at Houston-based Cathexis Holdings LP.

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Building Houston

 
 

Axiom Space — along with Collins Aerospace — are teaming up with NASA to create the next generation of astronaut gear. Image via NASA

Two startups — including Houston-based Axiom Space — have been tasked with helping NASA gear up for human space exploration at the International Space Station and on the moon as part of a spacesuit deal potentially worth billions of dollars.

NASA recently picked Axiom and Collins Aerospace to help advance spacewalking capabilities in low-earth orbit and on the moon by outfitting astronauts with next-generation spacesuits. While headquartered in Charlotte, North Carolina, Collins has a significant presence in the Houston Spaceport.

This deal will help support landing the first woman and the first person of color on the moon as part of NASA’s return to our lunar neighbor. The equipment also will help NASA prepare for human missions to Mars.

Under this agreement, NASA, Axiom and Collins “will develop advanced, reliable spacesuits that allow humans to explore the cosmos unlike ever before,” Vanessa Wyche, director of NASA’s Johnson Space Center in Houston, says in a news release. “By partnering with industry, we are efficiently advancing the necessary technology to keep Americans on a path of successful discovery on the International Space Station and as we set our sights on exploring the lunar surface.”

Axiom and Collins were chosen under an umbrella contract known as Exploration Extravehicular Activity Services (xEVAS). The contract carries a potential value of $3.5 billion.

Michael Suffredini, co-founder, president, and CEO of Axiom, says his company’s “innovative approach to xEVAS spacesuits provides NASA with an evolvable design that enables cost-efficient development, testing, training, deployment, and real-time operations to address a variety of EVA needs and operational scenarios for a range of customers, including NASA.”

Axiom’s partners on this project are KBR and Sophic Synergistics, both based in Houston, along with Air-Lock, David Clark Co., Paragon Space Development, and A-P-T Research.

NASA says Axiom and Collins will own the spacesuits, and are being encouraged to explore non-NASA commercial applications for data and technology they co-develop with the space agency.

The EVA & Human Surface Mobility Program at the Johnson Space Center is managing the xEVAS contract.

NASA astronauts have needed updated spacesuits for years.

“The decades-old spacesuit designs currently in use on the International Space Station are well past their prime. NASA had been working on new suits and showed off a patriotic prototype of a moonwalking outfit — called the Exploration Extravehicular Mobility Unit, or xEMU — back in 2019,” according to CNET.

A 2021 report from NASA’s Office of Inspector General called out delays in developing the spacesuits that would make a proposed 2024 human moon landing unfeasible, CNET says. Now, Axiom and Collins, instead of NASA, will create the spacesuits. Demonstration-ready spacesuits are supposed to be ready in 2025.

The spacesuit deal is the latest in a string of milestones for Axiom.

Axiom recently broke ground on its new headquarters at Houston Spaceport. There, the company will build Axiom Station, the world’s first commercial space station.

Axiom also recently welcomed home the crew of Axiom Mission 1 after their successful completion of the first all-private astronaut mission to the International Space Station. The crew came back to earth in a SpaceX capsule. The company has signed agreements with several countries, including Italy, Hungary, and the United Arab Emirates, for future space missions.

Axiom recently tapped Italian Air Force Col. Walter Villadei as its first international professional astronaut. He currently is being trained in Houston and will serve as a backup on Axiom Mission 2.

Founded in 2016, Axiom employs more than 500 people, most of whom work in Houston. The company expects its workforce to exceed 1,000 employees by 2023.

To date, Axiom has raised $150 million in venture capital.

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