Y Combinator Startup Podcast
00:26:57 · S1, Philip Johnston
[00:26:57] S1: How did you build such an awesome team? [00:26:59] S0: So my co founders, Adi and Ezra, I... Well, with Ezra, I I reached out to him after being down to Starbase, Texas, I was like, have you got any ideas that would make money if launch cost was 10 x cheaper than it is today? And we started with this space based solar idea with Adi who was introduced to a friend... Through a friend. He he actually had already been thinking about this. He already had registered the domain name stellarcloud.com before. And then with the team, we were just ruthlessly slow at hiring, and, like, picky about hiring. After YC, we'd raised, like 11,000,000 at 40, which is like a decent round in YC. And even then, took us six months to make our first hire. And we've got, like, the most kick ass space engineers, our first hire. We've raised, like, a lot of money now. Even this round that we announced in March, we've raised a much larger round since then. We're still only 20 engineers. Like, the... And we have one commercial guy who came from the Space Force who was working on Golden Dome. We are so picky about who we hire. Like, it is, to a point of being very frustrating, to be honest, but it's the whole game. It's the whole game is having an... A kick ass engineering team.
00:28:08 · S3, Philip Johnston, S2
[00:28:08] S3: What was it like to have this idea, have people sort of poo poo it, like, didn't really get it, and then suddenly, I mean, to have much more commercial validation that, like, you know, Google, SpaceX, the the stalwarts of the industry sort of embraced the idea and realized, actually, like, some crazy percentage of future data centers likely are going to be in space. What was that like to sort of see the the sea change and be early? [00:28:34] S0: It was surreal. So if you go back through my Twitter feed, I've been, like, shouting from the rooftops for the last, like, three years about this. [00:28:42] S3: I'm concerned, but right. [00:28:43] S0: Every day, I would post something about, like, why data center space are gonna be... Are gonna make sense. And then slowly and slowly and slowly, people would start to drop hints about things. Like Elon at one point was like, 99.999% of the energy in the in the solar system is is is from the sun. So I'd repost that, and I'd be like, we need to build data centers in space. Yeah. Like, I would like everything I would find a hook for. Like [00:29:12] S2: I think this is one of the things we see with all the best hard tech founders. You're essentially living in the future and are almost like a prophet that brings the future back to now, us underlayings, the earth that don't quite get it yet. [00:29:26] S0: I'm gonna tell my mom, who's very religious, why she said I'm a prophet.
00:29:26 · Philip Johnston, S2
[00:29:26] S0: I'm gonna tell my mom, who's very religious, why she said I'm a prophet. [00:29:31] S2: But I think that's cool. I mean, and the other thing that's fascinating to me is that your background, if you go in your LinkedIn, is not very legible that you would be in space. But you had a background previously doing software and physics and then went to business, but nothing there that set space. [00:29:52] S0: Yeah. So for people who don't know my background, spent the first five years of my career as a... An engineer on the software side, studied math and physics before that, undergrad and masters. And then I went to McKinsey more on the commercial product side. But I actually ended up doing a couple of projects, with National Space Agencies on different satellite missions, and that's where I really started to notice the launch cost coming down very rapidly. Actually, I had another startup before this. And, yeah, when I left that one, decided, okay, if I'm gonna do another startup, it has to be something I'm, like, very passionate about. And yeah, for my whole life, I've been very passionate about space. Because I don't have a space engineering background, realized, okay, I'm gonna need the world's most kick ass space engineers. And actually, this is where I give credit to YC. I was kind of blindly following the YC advice. I was like, okay. The first thing we need to do before coming up with an idea is get the most incredible space engineers in the world on the team, essentially.
00:29:52 · Philip Johnston, S1
[00:29:52] S0: Yeah. So for people who don't know my background, spent the first five years of my career as a... An engineer on the software side, studied math and physics before that, undergrad and masters. And then I went to McKinsey more on the commercial product side. But I actually ended up doing a couple of projects, with National Space Agencies on different satellite missions, and that's where I really started to notice the launch cost coming down very rapidly. Actually, I had another startup before this. And, yeah, when I left that one, decided, okay, if I'm gonna do another startup, it has to be something I'm, like, very passionate about. And yeah, for my whole life, I've been very passionate about space. Because I don't have a space engineering background, realized, okay, I'm gonna need the world's most kick ass space engineers. And actually, this is where I give credit to YC. I was kind of blindly following the YC advice. I was like, okay. The first thing we need to do before coming up with an idea is get the most incredible space engineers in the world on the team, essentially. [00:30:48] S1: This is before you even knew what you wanted to do in space. All all you knew at that point was that, like, launch costs were gonna come down dramatically, and there were gonna be cool stuff to do in space. Yes. And you wanted to find some space people to do it with. [00:30:59] S0: Yes. Literally. That is literally it. Yeah.
00:30:59 · Philip Johnston, S3, S1
[00:30:59] S0: Yes. Literally. That is literally it. Yeah. [00:31:02] S3: But it wasn't a vibe of, like, oh, can you please build this crazy idea that I No. No. It's like the reverse even. Like, I'm going to figure out the commercial part. [00:31:10] S0: Yeah. Exactly. My pitch to Adi and Ezra was essentially, if you have any ideas that would make sense if the launch cost was 10 x less than it is today, I can figure out everything else around that besides the building the satellite piece. [00:31:26] S1: How did you how did you find them? How did you recruit them? [00:31:29] S0: So Ezra and I had grown up in the same place in The UK. I didn't... I should be frank. I messaged like a a lot of space engineers. Maybe 10 of them took a call, two of them said yes. That's [00:31:39] S3: all you need. You don't need, like, a 100 people to do it. You only need one or two.
00:31:39 · S3, S1, Philip Johnston
[00:31:39] S3: all you need. You don't need, like, a 100 people to do it. You only need one or two. [00:31:44] S1: So, Philip, during the batch, the way I thought about StarCloud was that it could only work if you were able to make it cheaper per unit of compute than like ground based compute, and I think you will, but it's occurred to me since then that like, it's not actually clear to me anymore that that is necessary for Starcloud to succeed. I'm curious if you think about it the same way, because since the batch, we've learned that AI data centers are becoming politically incredibly unpopular, and it seems not unlikely to me that it will soon become like basically de facto impossible to build AI data centers like anywhere, at least in like a democratically high-tech country. Like, I'm curious, like, how you think about that, how it affects your plans for the company. [00:32:24] S0: Yeah. A 100%. And this has moved faster than I was expecting as well, to be honest. You know, we've just seen New York now blocking data centers construction. You know, for reasons which are not grounded in science, really, you know, it seems like more more like vibes than anything else. Building these things in space will definitely be much easier from a regulatory perspective. [00:32:45] S3: So let's do some myth busting. You... There are a lot of misconceptions about certainly water and data centers, but also power. You know, what are some of the things that come to your mind?