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08 December 2020

336: Starting a Business During a Crisis with the founder of Alpha and Strata, Thor Ernstsson

4Frameworks
10Insights

Frameworks in this episode

Insights & moments

The myth-busts, hot takes, explainers, and tools worth keeping.

Hot Take· 1

Hot Take25:00

In a Crisis, Ask What Will Not Change

Rather than building around temporary pandemic conditions, Ernsten recommends looking for durable human needs that are likely to persist over a 20-year horizon. He contrasts a tool tied to today's engine design with the enduring need for transportation and applies the same reasoning to connection, community, and work.

  • Temporary implementations can disappear while underlying needs remain
  • A long horizon helps separate durable problems from current forms
  • Transportation remains a need even as vehicles change
  • Strata framed human connection as an enduring need

the question isn't what is changing the question is what is not changing

Thor Ernsten · 26:00
#durable needs#crisis#long-term thinking#problem selection

Explainer· 2

Explainer03:00

Zynga Treated Games as an Analytics System

Ernsten characterizes Zynga as an analytics company wrapped in gaming. He describes measuring interactions across games, learning what drove engagement, and sharing those findings across the portfolio, which changed how he thought about solving problems at scale.

  • Teams measured clicks, modals, pop-ups, and other interactions
  • They looked for behaviors associated with engagement
  • Learning was folded across multiple games
  • The experience shifted Ernsten toward scaled problem solving

we'd measure everything every click every modal every pop-up every interaction

Thor Ernsten · 03:30
#analytics#gaming#engagement#product management
Explainer05:00

Why Alpha Targeted the Corporate Learning Gap

Ernsten says startups commonly encounter customer development, while large companies can substitute resources and internal process for early user learning. Alpha was built to help internal early adopters test ideas, concepts, prototypes, and competing products with target users before large investments were committed.

  • Large organizations can fund products before exposing them to users
  • Internal risk functions may outweigh customer-value evidence
  • Alpha aimed to give change agents user evidence
  • Ernsten says the platform offered access to a large testing audience

you don't have the 06 00 same experimentation and the same focus on learning

Thor Ernsten · 05:30
#customer development#corporate innovation#user research

Story· 3

Story01:00

Immigration Pushed Thor Ernsten Into Solving Business Problems

Ernsten says he moved from a small Icelandic fishing village to Huntsville, Alabama, where defense-contracting roles generally required citizenship and security clearance. Unable to follow the local conventional route, he moved into consulting, startup, and technical work and came to see many apparent technical problems as product-market-fit or user-understanding problems.

  • Ernsten grew up in a fishing village of about 500 people
  • Local defense roles were largely inaccessible without citizenship
  • Consulting exposed recurring product-market-fit and user problems
  • That experience shaped his later product-building career

i wound up trying to solve other people's problems

Thor Ernsten · 01:30
#founder story#product-market fit#career
Story10:00

Strata Launched as Its Live-Event Route Disappeared

Strata expected live events to be a practical route into relationship management, but launched in the second week of March 2020 as events shut down. Ernsten says the underlying problem became more relevant because people could no longer rely on chance encounters and had to be deliberate about maintaining broader professional relationships.

  • Live events were intended as a go-to-market route, not the whole problem
  • The pandemic removed that route immediately after launch
  • The team retained its focus on meaningful relationship maintenance
  • Remote life increased the need for intentional outreach in Ernsten's view

the underlying problem is still there

Thor Ernsten · 11:30

now you have to be so intentional

Thor Ernsten · 12:00
#pandemic#go-to-market#relationships#strata
Story20:30

A Useful Product Can Still Miss Its Acquisition Goal

Strata built virtual-event tools that let attendees contact speakers through a controlled inbox and formed partnerships with event companies moving online. Ernsten calls the effort successful as a learning experience but says it had not yet succeeded at the team's user-acquisition objective, and corporate controls added friction to converting event participants into main-platform users.

  • The tool created a controlled contact channel for event speakers
  • Event-company partnerships put users through the experience
  • Learning success did not equal acquisition success
  • Institutional controls complicated conversion into the core product

it was successful as a learning experience

Thor Ernsten · 22:30

was certainly not successful at least not yet from a user acquisition standpoint

Thor Ernsten · 22:30
#virtual events#user acquisition#product learning#strata

Takeaway· 4

Takeaway12:00

The Overlooked Network Between Close Friends and Sales Leads

Ernsten identifies a middle layer of professional relationships: people who are neither close friends nor transactional CRM contacts but can matter for business, introductions, and professional support. He says customer interviews repeatedly revealed improvised paper, spreadsheet, and task-list systems that people struggled to maintain.

  • Close relationships already receive deliberate attention
  • Sales contacts fit conventional CRM workflows
  • A broader professional network often falls between those systems
  • Manual lists make follow-through easy to lose

it's really the other few hundred people in your life

Thor Ernsten · 12:30

we all are embarrassed by how often we drop to the ball

Thor Ernsten · 13:00
#networking#relationships#crm#follow-up
Takeaway31:30

Acute Demand Shows Up as Customer Effort

Ernsten describes early customers who pushed through procurement or unsettling authentication screens because they urgently wanted the product's value. He presents that willingness to tolerate friction as a useful signal that the team is solving an acute problem, while the account does not by itself establish broad market demand.

  • One Alpha buyer reportedly used a corporate card while formal review continued
  • Early Strata users accepted a worrying Google authentication flow
  • Customer effort can indicate urgency
  • Anecdotal urgency still needs wider validation

you want the customers to be a part of the team almost

Thor Ernsten · 34:00
#early adopters#demand signals#customer pain#sales
Takeaway35:00

Founder Control Breaks Around the 20-to-40-Person Stage

Ernsten says founders often feel control slipping as teams reach roughly 20 to 40 people. In his view, early clarity about purpose and decision direction lets later functional hires remain aligned, whereas trying to impose alignment after behaviors and subcultures harden creates much more friction.

  • Founders cannot personally control every decision as headcount grows
  • Unclear early direction can produce functional fiefdoms
  • The first team shapes how later hires interpret the company
  • Ernsten presents early cultural alignment as less costly than repair

you get one chance really to set your culture

Thor Ernsten · 35:30
#culture#scaling#alignment#leadership
Takeaway42:00

Talk About the Vision Until Other People Can Help

Ernsten closes by encouraging founders to act before they have complete answers and to share the vision widely. He argues that conversations can generate feedback, introductions, prospective teammates, and a community that wants the idea to become real, while acknowledging that building a company involves rejection and difficult periods.

  • A small action can produce information before certainty is available
  • Sharing the vision invites feedback and introductions
  • Repeated outreach can uncover collaborators with relevant capacity
  • The advice acknowledges rejection rather than promising an easy path

just do something reach out and try

Thor Ernsten · 43:00

the more you talk about it the more likely it is that those kinds of connections will come up

Thor Ernsten · 44:00
#bias to action#outreach#community#founder mindset