The Pursuit of Scrappiness

Helmuts Bems is the co-founder and CEO of Sonarworks, a company making individually perfected sound for creators and listeners used by Grammy-award winning producers. Having recently raised a fresh investment round of $6 M led by Almaz Capital (and $13.8 M in total to date), Helmuts and his team are working tenaciously on getting their software into your headphones and changing the way you listen to music, podcasts, and any audio content foreverIn this episode we talk about the future of sound,  discuss the peculiarities of conquering China and other innovative Asian markets, building a B2B strategic partnerships business that is targeted at B2C as well as the nature of developing an R&D intensive productThe topics covered in this episode with Timestamps[03:15] - Introduction and sound techMaking any sound come out of any sound deviceHow do listeners know what sound they like?Bass&Treble knobs - in fact, a super complicated UISimplifying the sound taste discovery experience[20:40] - How Sonarworks products can improve your listening experienceSonarworks SDK is integrated into headphone manufacturersCustomize your sound taste via the Sound ID appMegatrend - hardware products as base products and software upselling as the main businessWhoever owns the user data, has the value in the supply chain[29:45] - Conquering China and global marketsChina is more innovative than the west, at least in consumer electronicsWho is better fit to produce the future car - Volkswagen or Apple?Europe is a global laggard in consumer electronicsHaving B2B product, but with a B2C engagementUser interfaces in China are generally different than in the west[39:10] - Specifics of selling a B2B product with B2C audiencesLeveraging professional niche market for consumer product credibilityBenefits of using partner marketing budgets for your promotionWorking with media and bringing media benefits for partnersWorking with influencersStructuring a long term integrated partnership[56:00] -  Building an R&D intensive productPlanning of R&D process with a sprint+iterations approachManaging pivots & building teams with strategists and executorsSoundtech cluster in Latvia and its originsHiring highly specialized engineering talentUsing Winamp to develop automotive sound productsFind out more on https://www.pursuitofscrappiness.co/ Support for this episode comes from Nexpay > https://paynexpay.com/===See the video content exclusively on Linkedin > https://www.linkedin.com/company/pursuit-of-scrappiness/ Questions/suggestions? Join our Telegram group > https://t.me/pursuitofscrappiness The full interview with Helmuts is available NOW on Apple Podcasts, Spotify, and Google Podcasts Find out more on https://www.pursuitofscrappiness.co/ Support the show

Andris K. Berzins is the managing partner of Change Ventures, the first and largest pan-Baltic seed investor. With an MBA from Stanford and 20+ years of tech experience in all kinds of roles from founder to executive, to an investor, Andris brings a uniquely nuanced opinion on the Baltic startup scene through the eyes of a VC. He is also credited for being one of the most visible shapers and champions of the Latvian startup ecosystemOn this energizing pod, we discuss the Baltics as the next startup nations by drawing parallels to Israel, what it takes to be a successful startup founder, how to build valuable mentor-mentee relationships as well as talk about the overall Baltic startup market situation through the lens of the Baltic Startup Funding Report latest issueThe topics covered in this episode with Timestamps[03:15] - Introduction, the birth of Latvian startup ecosystem and going to top US universitiesBuilding the Latvian startup ecosystemThe promise of the Baltic startup sceneThe value of going to top US universities and business schools[13:00] - Investing in the Baltic startup sceneWhen you are a founder, there is no boss to help with your challengesComparing the Baltics to Israel - Baltics as the next startup nationsWhat can the Baltics learn from Israelis?The emergence of cross-Baltic founder cases and senior hires going across Baltic bordersWhat Andris looks for in foundersHow to test for gritHow to build a working mentor-mentee relationshipThe value prop of Change Ventures for Baltic foundersInternational and US investors comingIt’s never been a better time to raise money in the BalticsWhat mistakes founder’s make when approaching VCsHow to test the ability to ability to enter big foreign markets[50:40] -  The Baltic Startup funding reportTrends behind growth in Baltic round sizes and valuationsBaltics as a destination for talent, not low-cost laborDo you need to set a valuation for your raise?Is it possible for Latvia and Lithuania to catch up with Estonia?Global trends in VC funding and the longstanding effect of the pandemicThe right time for a productInteractio app experience in timingThe future for Change VenturesFind out more on https://www.pursuitofscrappiness.co/ Support for this episode comes from Nexpay > https://paynexpay.com/===See the video content exclusively on Linkedin > https://www.linkedin.com/company/pursuit-of-scrappiness/ Questions/suggestions? Join our Telegram group > https://t.me/pursuitofscrappiness The full interview with Andris is available NOW on Apple Podcasts, Spotify and Google Podcasts Find out more on https://www.pursuitofscrappiness.co/ Support the show

Carlos Paniagua is the co-founder and CTO of Glia - one of the leading digital customer service providers that to date has raised $107 million in VC investment. Coming from Guatemala originally, Carlos has spent a third of his life in Estonia, where he also resides currently and runs the technical team of Glia, while his co-founders and the rest of the team are based in the US. In this episode, Carlos shares his experience in running a US-Estonian organization in terms of operations and fundraising. We also have an in-depth discussion on the realities and challenges of a startup CTO as well as a look into the role of digital channels for sales and customer service in the pandemic era.The topics covered in this episode with Timestamps[03:35] - Digital communication in customer serviceThe impact of the pandemic on customer serviceDigital sales and support channels becoming mission-critical for most businesses[09:45] -Being based in Estonia and the US, operations, and fundraisingChoosing Estonia for engineering talentAdvantages of the time zone differenceEstablishing enough overlap in work hours between officesCommunication and socializing information that is importantEase of relocating to EstoniaLiving, working, and running a company  in Estonia as a foreignerHiring abroad vs. relocatingWhat VCs look for from the technical perspectiveMaking sure the licensing is figured out throughout your whole tech stackConsiderations in picking VCs to back youThe value that VCs bring for the tech side of the businessThe mechanics of the technical due diligence processMaking past and future tech decisions digestible for investorsPresenting a US-Estonian company to investors[34:10] -  The role and reality of being a CTO in a fast-growing companyPractical involvement of the CTO in various parts of the business (product, sales, engineering)Choosing fundamental priorities in development to drive all product decisionsHow to determine if you want/can be a CTOImplementing team onboarding practicesScaling the teamPlanning of development process and managing expectationsProduct education for customersMaking feature decisions from customer feedbackPrioritization in the development processBeing a technical founder of a startup without significant prior work experienceCompeting for tech talentFind out more on https://www.pursuitofscrappiness.co/ Support for this episode comes from Nexpay > https://paynexpay.com/===See the video content exclusively on Linkedin > https://www.linkedin.com/company/pursuit-of-scrappiness/ Questions/suggestions? Join our Telegram group > https://t.me/pursuitofscrappiness Support the show

Jone Vaituleviciute is Partner at Startup Wise Guys that was just named The Hottest Startup Accelerator in Europe. In this episode Jone shares the perspective of the accelerator - with 1-2% acceptance rate, what are they looking for in business models and founders. We also discuss why investors like to invest in B2B SaaS and the value that early-stage support organizations can bring to startups in the pre-accelerator stage.The topics covered in this episode with Timestamps[06:00] - Startup Wise Guys and early-stage investing/acceleratingAccelerator wants you to move 6x faster than without itIt’s not school, nobody checks attendanceThe key value add of the accelerator is the community of founders who are struggling the same as youThe average age of founders is increasingBeware of passive accelerators - if you are giving up equity, you want to maximize the valueThink very hard whether you want and need accelerating as many companies are already matured past and might give up equity without the necessary value[22:40] - What accelerators want to see in founders and companiesRevenue can be a vanity metric and not say anything about traction and trajectoryIf founder just wants money, they should go to a Non-accelerator investorIf the founder is not committed to full time, it’s a big red flagFounder decisiveness is a key requirement[38:00] -  What to expect from the acceleration programThe acceptance rate is 1-2%This is a long term relationship, accelerator stays on your capable 5-7 years while the accelerating phase usually lasts around 12 monthsSupport for founders in the further round and help avoid big mistakes[48:20]  - B2B SaaS - Why is it the favorite business model for VCsB2B SAAS is extremely broad, also Fintech can be B2B SaaSThe model is relatively easier to build for the founderThe traction metrics are easy to track and compare to others, thus it is less risky for the investor to take a betThe importance of revenue in the earliest stages should not be overstatedBig corporates develop quickly from product user to acquisition of the providerEdtech and health tech as biggest opportunities in B2B SaaSThe next generation of blockchain companies[1:06:30] - The role of support organizations for startupsInternationalization of local startup ecosystemsTaking care of startups that are not ready for investment/accelerators yetFind out more on https://www.pursuitofscrappiness.co/ Support for this episode comes from Nexpay > https://paynexpay.com/Support the show

Jekabs Endzins is a serial entrepreneur, currently developing Roibox, a digital marketing tool that revolutionizes the potential of geolocation data. He has co-founded several profitable businesses, including Mogo Finance (now Eleving group), Tapbox, TweetDeleter, Finitera. He has also failed close to 10 other ventures over the past 10 years and has some ‘war stories' to share.As a true serial entrepreneur, Jekabs is always working on several projects at the same time, and in this episode, he shares his secrets on how to manage that. We talk about the latest in AdTech, building and failing companies, choosing the right co-founders, the value of business incubators, challenges in monetizing businesses with great user metrics as well as fails and learnings from building companies for 10 years.The topics covered in this episode with Timestamps[06:15] - Roibox and making digital ads more geo-targeted and efficientIn most online businesses analyzing data is a mustThe place where consumers work, live, and spend their time has an influence on their commercial decisionsDigital ad spending is bigger than TV, print, outdoor and othersDeliver product updates as fast as possible to get real market feedbackBe decisive - a bad decision is better than no decisionFinding product-market fit by trying to help as many and as different customers as possible[26:18] - Serial entrepreneurship and managing multiple ventures at the same timeThe key for time management is to have the right partners in multiple projects, to be able to run many companies in parallelThe more you do, the more you can get doneThe ability to multitask between projects is keyFinding co-founders based on gut feelingDoing background checks and references on cofounders you don't know wellIt’s important that you want to spend time together with your co-founder[38:15] -  Tapbox and the value of business incubatorsGovernment support for startups in Latvia is extensive enoughBusiness incubator as big financial support in early stagesYou can get 50k and more financial support without putting in too much work[45:15]  TweetDeleter and challenges in monetizing a great and highly demanded productTweetdeleter is a new type of company - fail it till you make itChallenges in monetizing a convenient consumer product[59:28] - Business fails and challengesDealing with modern financial system regular practice of freezing fundsLearnings from hiring over 10 yearsYou can always build things fasterFind out more on https://www.pursuitofscrappiness.co/ Support for this episode comes from Nexpay > https://paynexpay.com/   ===See the video content exclusively on Linkedin > https://www.linkedin.com/company/pursuit-of-scrappiness/ Questions/suggestions? Join our Telegram group > https://t.me/pursuitofscrappiness Support the show

Meeri Rebane (EE) shares her experience of launching a company in one of the hottest Insurtech markets in Europe - Germany. Having pivoted away from a bicycle identification platform, Meeri together with her co-founder Risto Klausen (EE) is building a consumer-friendly insurance app in the heart of the Berlin tech scene with an edgy brand inspired by Red BullIn this conversation, we talk about the potential of Insurtech (an industry that raised over 1bn EUR in VC in Europe this year) and how it is helping the age-old insurance industry to reach the young and mobile population. We also dig into the intricacies of starting a company abroad and especially as a foreign founder. Finally, we discuss serial entrepreneurship, pivoting and building on top of existing businesses and ideasThe topics covered in this episode with Timestamps[02:00] - Starting an Insuretech businessIf your home market is tiny, then whatever traction you have there won’t mean anything for proving the ability to conquer the bigger European or other marketsDon’t be afraid to start a business in an industry where you don’t have significant experience[08:45] - The rise of global and European Insurtech and INZMOCustomer acquisition cost through digital  is so high in insurance that one must find smarter ways of getting customersB2B2C partnerships as an efficient customer acquisition methodLegacy insurance companies invest in Insurtech companies heavily to not become obsoleteThe insurance market pie is growing both due to new types of products (devices, pets, rent/bills) as well as the growing adoption of insurance products among the younger generationsUser experience is more important than the cost for the consumer in most casesSubscription and embed models will create huge value by making the insurance experience even more seamless[28:35] -  Starting a company abroadPicking the market to go-toLegally it’s simple to set up in Germany and most countries in the EUTap into potential partners for market intelligenceBerlin is a great place to start a business in terms of costs and welcoming towards startups and big VC interestUse local accelerators to help market entry with investors and partnersNot knowing the local language has not been a problem at least in Germany so don’t be discouraged by thatHiring the local teamMaking your company an  appealing workplaceEmployer branding as a foreignerEstonian vs. German company - how to present yourself in a foreign market to investors, employees, and clients[43:00]  2 Co-founders / 2 Co-CEOsHow it practically  works in day to day businessLong experience working together with founders seen as a huge plus by VCs[51:40 ] - Serial entrepreneurship and Pivoting the businessGet started, get to market, don’t make the perfect productRaising 3M from VCs shortly after making the pivotTo successfully pivot you need to be conscious of the real value that you are bringing to the customer - it might be in just one feature of your whole productIntroducing a high;y demanded insurance innovation (apartment deposit insurance)Building a Red-bull like brand in an old-school industryFind out more on https://www.pursuitofscrappiness.co/ Support for this episode comes from Nexpay > https://paynexpay.com/Support the show

Martin Koppel is the CEO and Co-founder of Fortumo. Before iOS and Android existed they offered various SMS services. Now they are solving payment challenges for Google, Spotify, Amazon, Tencent, Epic Games in emerging markets. And they invented Android in-app payments before Google did. Fortumo is truly one of the biggest success stories coming out of Estonia (Tartu to be precise) and Martin shares how he got there.This episode is overflowing with actionable insights and tips on business development, direct sales, Fortune500 company courting, deciding the right time to exit, deciding when and why to raise VC money, and selling with confidence in yourself and in the value you create for your customersThe topics covered in this episode with Timestamps[2:30] - Monetizing consumers in markets where it is hard to do so with Fortumo's mobile payment solutionsFortumo are pioneers in offering checkout with payment through mobile phone monthly billEstonian companies are blessed with the local market being so small that they have to think globally from day oneIf you want your company to last 20-30+ years, you need to diversify and reinvent your product portfolioSymbiotic collaboration models between Telco companies and consumer tech subscription companies[15:00] - Scaling the company, profitability, and the right time to exitBuilding a company to make a profit was old school way of doing business before startup mentality came to Estonia and the BalticsRaising VC money as a way to improve reputation (stamp of approval) and boost top tier salesHow to decide when to sell your company?Should big tech be regulated more strictly? Martin shares from his painful business lessons[36:10] - Business development for startups is all grit and hustleThe benefits of starting a company using already existing infrastructure (piggybacking)Creating value for the customer as the no.1 focusPutting in the work to prepare for f2f sales during eventsFocusing on customer needs and always thinking where the market is heading - being ahead of the curveEven if you're successful, don't be complacentGetting key accounts and is LinkedIn still working?Don't start selling too early. Listen to the customerSelling to Fortune500 companiesBook “Snap selling” by Jill Konrath - the bible for everyone doing salesDon't be afraid to reiterate sales messaging after time if no deal has been closedDon't be a customer-pleaser. Go into a sales meeting knowing your value. Avoid master-slave dynamic[1:07:30 ] - Conquering emerging marketsDon't rely on local salespeople to “sell for you” in the early phase. You have to go sell by yourself or your core teamBesides local help, you also need “boots on the ground”, best case the founder himself has to spend significant time getting market intelligenceFind out more on https://www.pursuitofscrappiness.co/ Support for this episode comes from Nexpay > https://paynexpay.com/Support the show

Ieva is a marketer with a decorated career in product branding. We meet, however, to talk about her 180-degree career change - deciding to become an entrepreneur and joining Antler VC London cohort. After successfully graduating from the program and raising investment Ieva currently is in charge of growth at FlowSpace - a marketplace she has co-founded where teams meet co-working spaces in London. An insightful conversation follows. What questions to ask in order to find the right business partners? What the future of work looks like? As well as how to manage family & career and why it is different for female founder? We also came up with at least 2 legit new business ideas in this podcastThe topics covered in this episode (with Timestamps)[2:00] Becoming an entrepreneur via a startup acceleration programQuestions to ask your prospective co-founders (or any people you plan to work with)The difference between a hard-working employee and a hard-working entrepreneur is an obsessionHow to make a financial plan before jumping into entrepreneurshipHow to pick the best accelerator program to start your entrepreneurship journeyTo start with Antler (antler.co) you don't neither a business idea nor a co-founders teamThat the right order for establishing a team is chemistry, values, and only the business ideaTo have hard conversations with potential cofounders about motivation, financial outlook, and some polarizing issues that can harm your team chemistry[31:20] How does the future of work look like The 15-minute city conceptHow 3 types of work organization based on team specifics - Fully remote, hybrid, and fully back to the office will play outThe future of work and life includes greater engagement with local communities around your homeWith flexible workspaces, you can do “office-crawling” to keep your environment interesting[57:50] Women in techThe inner and outer challenges female founders faceHow to be open about family plans with your team and investorsHow not to overthink family planning and take career decisions without hesitationFind out more on https://www.pursuitofscrappiness.co/ Support for this episode comes from Nexpay > https://paynexpay.com/===See the video content exclusively on Linkedin > https://www.linkedin.com/company/pursuit-of-scrappiness/ Questions/suggestions? Join our Telegram group > https://t.me/pursuitofscrappiness Support the show

Donatas is one of the most well-known investors in the Baltic startup scene. Having hustled in different businesses and investments, he started VC investing 10 years ago and has been part of such success stories as TransferGo, Trafi, Ziticity, Sonarworks, and recent headline maker InteractioIn a super high-energy conversation, we go back in time to compare what the startup scene was like 10 years ago and how far we have come. Donatas also shares many interesting stories from investing and not investing into different companies and principles in VC-founder relationships. By listening to this episode you will learn:A brief recent history of the Baltic startup scene and key milestones along the roadThat often hugely successful companies don’t look like it in early stagesThe societal and psychological benefits of having unicorn level success storiesHow in some verticals, the Baltics are setting global trends instead of followingThe role of local investors with the increasing presence of international investorsKey things investors like Donatas look for in foundersSome mistakes to avoid in VC-founder relationshipsThat it is critical to be open and honest about your company going out of businessThe role of VC in further investment roundsHow Vinted started and missing the opportunity to invest by 4 weeksThe amazing tenacity, grit, and timing of the Interactio team whom they rejected 2x before making the investmentFind out more on https://www.pursuitofscrappiness.co/ Support for this episode comes from Nexpay > https://paynexpay.com/Support the show

Sandris is the CTO of one of the hottest Baltic fintech startups, Jeff App,  however, in this episode, we focus on Codelex developer school, which he created a few years ago. With Codelex Sandris has added north of 130 able-bodied developers both men and women across different age groups to the market after subjecting them to an intensive 3 months developer Bootcamp.In a very direct and no bullshit interview Sandris shares his vision that almost anyone can code at a professional level, but also points out that it depends on everyone’s own motivation, explains that discrimination in the job market still exists, and gives advice on what will make developers consider you attractive as an employerBy listening to this episode you will learn:That you can become a developer in 3 months if you make an investment in yourselfWhat developers value the most in a job/employerThat 80% of the population are able to become a developerHow to avoid scams in coding schoolsHow to make the decision between remaining a specialist developer vs. a team lead/managerHow software development is similar to business managementWhat the demand for developers will be in the future and the gap between employers and jobseekersWhat salary  will an experienced developer in the Baltics be making in 5 yearsWhether AI will take over developer jobs in the near futureFind out more on https://www.pursuitofscrappiness.co/ Find out more about Codelex coding school https://www.codelex.io/ Support for this episode comes from Nexpay > https://paynexpay.com/Support the show