Leading Through Change - Rohyt Belani - PhishMe

Bootstrapping to Success: Rohyt discusses how he and his co-founder bootstrapped the company to $2.5 million in ARR before accepting any external funding. They leveraged their prior industry experience and personal networks to secure their first enterprise customers.

Implementing Employee-Friendly Policies: The adoption of policies such as half-day Fridays significantly boosted morale and productivity among staff. Rohyt emphasizes the importance of putting employees first and how this principle was pivotal in creating a positive company culture.

Transitioning From Services to Product: Rohyt talks about the challenges and learning curve associated with moving from a consulting company to a scalable product business. He highlights the necessity of balancing growth with capital efficiency and the mindset shift required to achieve this.

Acquiring Enterprise Customers: The PhishMe team focused on a hands-on approach to customer acquisition, including attending numerous industry events and leveraging their expertise in cybersecurity to build trust. Expansion into new markets was approached cautiously and strategically, ensuring that initial customer wins provided a foundation for further growth.

Investigated by the U.S. government: Rohyt recounts the hardships faced during a CFIUS investigation into a Russian investor associated with their private equity backer. Despite an onslaught of negative publicity and customer attrition, the PhishMe team managed to steer the company through this crisis while maintaining their integrity and focus on growth.

Fundraising and Investor Relations: Initially, raising capital was a grueling process involving over 100 investor meetings to secure their first funding. However, as PhishMe demonstrated significant growth, subsequent funding rounds saw increased interest, culminating in multiple competing term sheets and better negotiation leverage.

Balancing Innovation and Customer Needs: The importance of listening to customer feedback and anticipating future needs led to the development of complementary products, which significantly boosted the company's market standing and revenue. This approach ensured that PhishMe stayed relevant and valuable to its customers.

Leading Through Change - Rohyt Belani - PhishMe - Episode #38