The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

20VC: Why VC is Distorting a Generation of SaaS Companies & With $900M in ARR and a Market Cap of $2.6BN is Lightspeed the Most Misunderstood Public Company with Dax Dasilva, Founder & CEO @ Lightspeed

Aug 9, 2024

Dax Dasilva, the Founder & CEO of Lightspeed Commerce, shares his journey of building a thriving commerce unicorn. He discusses how opting out of early VC funding shaped their success and critiques how current funding practices distort the SaaS landscape. Dax reveals why he returned as CEO in 2024 to address public market misconceptions. The conversation dives into the qualities of effective leadership, the complexities of M&A, and the importance of strategic planning for founders navigating growth.

46:12

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Dax Dasilva

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Quick takeaways

Dax Dasilva emphasizes that avoiding early VC funding allowed Lightspeed to build a strong foundation by deeply understanding customer needs.

The transition to venture capital has introduced challenges, highlighting the need for operational efficiency amid increased market scrutiny post-IPO.

Effective leadership has evolved for Dax as he emphasizes the importance of vision and team guidance during significant company transitions.

Deep dives

The Early Days of Lightspeed

The initial phase of Lightspeed involved extensive hands-on coding and direct customer interaction. The founder dedicated countless hours to developing software while simultaneously learning from the experiences of four early customers. This close observation allowed for rapid iterations to the product, ensuring it aligned with user workflows and needs. The emphasis on real-time feedback and iteration established a strong foundation for the company's future development process.

Beware the Growth Trap

00:53

Invest Wisely, Build Boldly

01:17

Intro

4min

From Roots to Tech: A Journey of Growth

16min

Navigating Growth and Profitability

9min

The Double-Edged Sword of Leadership Traits

3min

The Power of Individual Influence in Driving Change

2min

Strategic Planning for Founders

9min

Engaging Wrap-Up and Innovative Solutions

4min

Dax Dasilva is the Founder & CEO Lightspeed Commerce, one of the most incredible stories in startups. For 7 years they did not raise outside funding and ran a very profitable business. Ultimately they partnered with Accel and Innovia before going public on the Canadian Stock Exchange with just $70M in ARR. Lightspeed also undertook 9 acquisitions over the course of a four year period to consolidate the global market. Today they have a whopping $900M in ARR but are only valued at $2.6BN. Today we ask the question, is Lightspeed one of the public market's most misunderstood companies?

In Today's Episode with Dax Dasilva We Discuss:

1. VC Funding is Distorting SaaS:

Why did Dax decide not to raise money for Lightspeed in the early days?
Does Dax believe Lightspeed would have been successful had they have raised a seed round like many do today in SaaS?
Why does Dax believe venture funding is distorting a generation of SaaS companies today?
How does Dax advise founders scaling their business today from $0-$1M in ARR?

2. What Went Wrong: The Founder Returns:

Why did Dax feel he had to come back to the role of CEO in 2024? What was not working?
What was the single biggest problem that the public markets had with Lightspeed?
What were some of the biggest challenges that came with the intense amount of M&A?
What would Dax most like to do that the public market will not allow?

3. What Makes a Great Leader: How it Changes:

What required skills in leadership change with the changing scale of the company?
What skill does Dax have that he is slightly ashamed of but has most contributed to his success?
What did Dax not know when he founded Lightspeed that he wishes he had known?
What question is Dax never asked that he should be asked more?

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