Inevitably the single most frequent question I get asked since embarking on this venture has been “what are you doing?” And also inevitably the response I give is “making software for consumers.” This almost always generates the knowing nod from the other party that says “ah, you’re keeping it a secret.” But that’s not really true. Let me try again to explain.

The typical consumer software startup usually centers around an idea, a “what” vs. a “how.” Unsurprisingly that idea is usually for a piece of software. In recent days startups often work on the software on a shoestring. Once they get some proof of concept up and running they go to get financing to bring the product to market (or out of beta as the case may be). Once in the marketplace they work hard to bring customers to their software, trying to find distribution and tell their story. In some cases the business model is to have consumers pay directly to use some form of the product. But these days more often than not the intention is to fund the software through advertising dollars. But in order to do that, first the company needs to spend the time, money, and effort to build a critical mass of customers that they then hope will be attractive to advertisers. By attractive that means that the advertisers can actually make a profit off of them. Then hopefully the money left over that the company actually gets at the end of the day can not only cover their operating costs and pay back their funding partners, but will yield a profit as well.

To me the chain of dependencies here and opportunity for failure at each step is just too great. That’s not to say that people can’t be successful using this model. It’s just that I personally don’t know how to traverse all those failure points with any great degree of certainty. Rather than take those chances our approach is simple and also fundamentally different than what’s happening out there today: why not work directly with brand advertisers (the biggest chunk of the advertising business) up front, understand their customers, and craft an attractive and engaging software experience that those customers will love, and that reflects the kind of values a brand wants to convey. So you might immediately conclude that we are creating a software contracting/consulting house where we churn out cookie-cutter crappy flash-based games featuring dancing [insert company logo here] for any advertiser willing to pay. Given what’s happening in the industry today, it’s fair to make that assumption. And that’s exactly not us.

How are we different? It’s simple: we intend to become the Pixar of consumer software.

Early in Pixar’s history they did all kinds of work including contract work for others (including the Genesis effect in the first Star Trek movie). Their first major hit offering (Toy Story) was made in partnership with a major corporation. It both reflected their own creativity while incorporating some of the creative requests from their partner Disney. And most importantly, it elevated the quality and creative expectations in its product category in ways that nobody expected (and most doubted was possible). In doing that they massively pushed the industry forward both in terms of their commitment to creativity as well as their countless technical innovations. While wildly successful, Pixar stayed small relative to film industry standards, only producing one film every couple of years because it was the only way they could maintain the quality that was core to their brand. And while Pixar stuck to making kid-oriented animated films, they reinvented the category and opened it up like never before, making films with brand new stories, characters, and worlds. So how does this apply to the software business and to us? Simply put, we will:

• Stay small and intimate, foregoing potential growth and scale for maintaining our values and identity
• Stay obsessively focused on quality and attention to detail
• Make a diverse set of offerings that let us explore (and hopefully extend) the boundaries of our creativity
• Only work with people who share and demonstrate the above values

Our decision to focus up front on working with advertisers is the recognition not only of the changing state of the software industry, but also an observation that a huge opportunity exists to partner with companies that have a deep focus on finely crafted messages resonating with a well-defined set of customers who they value and appreciate. The best marketers understand this and value creative partners who do as well.

So most people will still be disappointed after reading this. Ok, they say, you’ve told us “how,” but what are you doing, what’s your killer idea?

Our killer idea is our company.

We will generate and launch multiple products. Does that mean we have no focus? If you have to ask that question, you’re still not getting it. Most of the time, especially in smaller companies, you have to rebuild your company every time you want to launch the next big idea—the team, the infrastructure, the financing, etc. Again the Pixar story proves illuminating. In most modern filmmaking, teams and even companies are rebuilt every time a film is made (with the major studios acting as financing coordinators as well as marketing and distribution arms). At Pixar the same talented people work together over and over again in various combinations. They benefit from this model as collaboration and understanding grow in teams the longer they work together.

“In the Hollywood model, the energy and investment revolve around the big idea (the script) and the nitty-gritty of the deal. All sorts of highly talented people (from above-the-title stars to screen writers to key grips) agree to terms, do their jobs, and move on to the next project. The model allows maximum flexibility but inspires minimum loyalty…

…In contrast to standard Hollywood procedure all of [Pixar’s] star performers have traded contracts for salaries and contribute to all of the studio’s projects rather than work just on their pet projects. According to Randy Nelson [of Pixar]: ‘the problem with the Hollywood model is that it’s generally the day you wrap production that you realize you’ve finally figured out how to work together. We’ve made the leap from an idea-centered business toa people-centered business. Instead of developing ideas, we develop people. Instead of investing in ideas, we invest in people. We’re trying to create a culture of learning, filled with life-long learners. It’s no trick for talented people to be interesting, but it’s a gift to be interested. We want an organization filled with interested people.”

– Mavericks at Work, Why the Most Original Minds in Business Win, William C. Taylor & Polly LaBarre

If there’s one thing I’ve learned in working with some of the most talented people on earth, it’s that they value diversity in what they do. Focusing on one thing at a time is fine, but really talented people want to keep growing—they don’t want to work for the rest of their lives at a company that focuses on only one or two ideas.

Of course, in the ultimate irony, Pixar was bought by Disney, the corporate entity that brought scale to the category of animated films in the first place. Whether the Pixar focus and magic can remain in the context of a vast parent organization remains to be seen. But we’ll be watching intently.

By no means do we think that the model we’re adopting is for everyone. But the fact that it’s not for everyone is fundamentally the point. It’s the right model for us, and we believe it will also be right for a sizable number of fervently loyal customers and partners. And for those of you still curious about the “what”, don’t worry, we will let you in on that soon. Stay tuned for some of the current projects we’re working on with partners as well as a few of our independent creations.