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

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

20VC: Hubspot Co-Founder Dharmesh Shah on The 3 Risks All Startups Face, Angel Investing Rules; No Founder Meetings and No Due Diligence, SMB vs Enterprise; Lessons on Pricing, Distribution and Why You Should Resist Going Enterprise

Jun 13, 2022
Dharmesh Shah, co-founder and CTO of HubSpot, shares his journey from bootstrapping Pyramid Digital Solutions to building a billion-dollar CRM powerhouse. He discusses the three core risks every startup faces and stresses the importance of nurturing a strong company culture, treating it like a product. Dharmesh also reveals his unorthodox approach to angel investing, which avoids traditional meetings and due diligence. He emphasizes the need for market validation and strategic pricing for both SMBs and enterprises, ensuring startups stay focused on their core mission.
01:04:02

Episode guests

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Quick takeaways

  • Founder-Finding: The importance of shared passion in SMB ventures, risks of early mistakes
  • Cultural Prioritization: Treating culture like a product, emphasis on low ego to accomplishment ratio

Deep dives

Launching Darmash Shah's Second Product

When considering the launch of a second product, founders should assess the reasons driving the decision. Factors such as growth stalling due to limited customer base, declining market categories, or the presence of a natural adjacency can indicate the need for expansion. It is essential to recognize the timing when saturation is near or when adjacent markets offer strategic advantages, balancing growth opportunities with increased operational complexities.

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