“The Most Anticlimactic Moment” and Other Lessons from Undertone
Oct 23, 2024
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In this conversation, Eric Franchi, co-founder of the successful advertising technology firm Undertone, shares lessons learned from his entrepreneurial journey. He discusses the critical importance of strategic hiring and the impact of key team members on company culture. Eric also dives into the unique challenges faced by ad networks amid industry shifts, the often anticlimactic nature of success, and navigating life after an exit. His reflections on personal reintegration and maintaining a balanced life in ad tech offer valuable insights for entrepreneurs.
Strategic hiring of individuals who align with company culture and possess essential skills is crucial for startup success.
Post-exit, entrepreneurs must navigate identity challenges, focusing on personal growth and redefining their professional ambitions.
Deep dives
Innovative Hiring Strategies
Smart hiring is crucial for startup success, as demonstrated by pivotal hires at Undertone. The co-founders recognized the importance of finding individuals who not only possess technical skills but also align with the company’s culture and growth potential. For example, hiring Mark Costa, a senior engineer from a vendor, provided Undertone with essential technical expertise during its early stages. This strategic approach enabled the team to build a strong foundation and attract further talent as the company scaled.
Navigating Industry Challenges
The emergence of demand-side platforms (DSPs) posed significant challenges for traditional ad networks like Undertone. As agencies began adopting DSPs, Undertone faced existential risks due to increased competition and evolving market dynamics. The key to overcoming this adversity lay in differentiation—Undertone focused on providing unique, premium inventory and creative ad formats that were not readily available through DSPs. This strategy helped them pivot and reposition themselves effectively in a rapidly changing landscape.
The Importance of Continued Innovation
Continual innovation was vital for Undertone to maintain relevance in the evolving ad tech industry. As inventory commoditized, the company shifted its focus to differentiated ad formats that offered unique value to clients. By investing in creative technology and enhancing its offerings, Undertone successfully transformed and revitalized its business model. This proactive approach not only strengthened their market position but also attracted new partnerships and opportunities.
Life After Exit: Personal and Professional Growth
Post-exit transitions can be daunting for entrepreneurs, who may struggle to redefine their identities beyond their former companies. After selling Undertone, the founders engaged in personal soul-searching, examining their professional motivations and the impact they wished to continue making in the industry. This led to the establishment of a new venture, Appurium, aimed at using their experience to drive meaningful change in ad tech. Balancing professional ambitions with personal growth became a focal point, emphasizing the importance of maintaining diverse interests beyond work.
Joe Zappa interviews co-host Eric Franchi about the biggest lessons he learned building and selling Undertone. Eric talks about his best-ever hires, the biggest challenge Undertone faced in his tenure, and how he approached life and business post-exit.
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