A Product Market Fit Show | Startup Podcast for Founders

Saurav started a Groupon-like offering for SMBs in 2011. He quickly learned it wasn't going to work. He and his team pivoted and started driving leads to suppliers using Facebook ads. It worked and they generated revenue—but they were becoming a digital advertising agency. It wasn't at all what they wanted to build.So they pivoted again.  They used the cash from that business and built Perkbox. The idea was a subscription-based offering that that gave perks to SMB customers. Telcos started buying it and attaching it to their products to drive sales. Then, they pivoted again, this time moving away from customer perks and to employee perks.This time, it worked. They grew from $2M in ARR to $14M in just 2 years. They kept growing and hit $36M in ARR. Then he sold the business to PE for $170M.It took longer than expected. There were more pivots than expected. But it was a huge success.Here's how it happened.Why you should listen:How to use new social media channels to drive growth.How to leverage partnerships to get end user adoption.Why having a profitable agency can be a great way to get started.Why capital efficiency can be a huge edge.Rebranding can help clarify market positioning.What it feels like to make $10s of millions in one day.KeywordsPerkBox, Groupon, startup journey, business model, SMB market, marketing strategies, recurring revenue, partnerships, entrepreneurship, exit strategy, venture capital, entrepreneurship, startups, employee benefits, social media marketing, capital efficiency, business growth, acquisition, rebranding, emotional marketing, lessons learnedTimestamps(00:00:00) Intro(00:01:48) The origin of Perkbox(00:04:52) Going after SMBs(00:12:16) The Pivot(00:26:35) Creating Viral Ads(00:32:28) Demo to Close Rate(00:40:12) Selling to PE Firms(00:49:38) A Piece of AdviceSend me a message to let me know what you think!

Noah Glass, founder of Olo, a leader in restaurant technology, shares the fascinating journey from launching a pre-order app in 2005 to leading a $1B public company. He discusses the challenges of raising funds during the financial crisis and the strategic pivot from a marketplace to a B2B SaaS model. Noah reveals how early guerrilla marketing and a pivotal partnership with La Colombe propelled Olo into the spotlight. He emphasizes perseverance, adaptability, and embracing adversity as keys to success in the competitive tech landscape.

Frankie Le Nguyen, founder of Staging Labs, shares his journey into the startup world after losing $10K to a crypto scam. He delves into how personal experiences can fuel innovation and the pitfalls of following Lean Startup principles too rigidly. Frankie recounts the struggles of validating market needs amid shifting crypto sentiments, the challenges of partnerships, and the emotional toll of product failure. With insights on customer alignment and navigating the world of scams, his story is a compelling mix of ambition and hard lessons learned.

Hussein Fazal, co-founder of Super.com, shares his inspiring journey from a travel startup to fintech success. After facing the harsh impacts of COVID-19, he pivoted from SnapTravel to create a unique hybrid debit-credit card. He emphasizes the importance of understanding customer needs and finding an unfair advantage. With lessons on resilience, he reveals how testing ideas through smoke tests helped him navigate rejection from VCs. Just three years later, Super.com is thriving at $150M in ARR, proving that rapid adaptation can lead to incredible growth.

Jeffrey Wang, Co-founder of Amplitude, shares his journey in analytics, turning a startup into a $1.5B public company. He reveals how Amplitude outsmarted competitors like Mixpanel by offering superior features at a fraction of the cost. Wang discusses the struggles of securing initial funding and the critical pivot from voice recognition to user insights. He emphasizes storytelling as a tool for attracting investors and the significance of maintaining control and high standards in building a successful company.

Chris Ellis, the first-time founder of Thatch, shares his remarkable journey of raising $38 million in Series A funding for a health benefits platform after two years of hard work. He discusses the vital importance of choosing the right co-founder and the significance of having a mission in overcoming startup challenges. Chris reveals how he pivoted from an initial failed idea to create a product that meets critical healthcare needs, emphasizing the power of listening to customer pain points and the role of external deadlines in driving focus and urgency.

Peter Walker, Head of Insights at Carta, dives into the latest Q4 2024 venture capital trends. He reveals that companies raising bridge rounds face significantly lower graduation rates to Series A. The discussion highlights the growing dominance of AI in funding, with larger rounds being directed to fewer companies. Peter also touches on the shifting hiring practices in the startup ecosystem and how these trends impact early-stage founders. If you want to stay on par with VCs, understanding these insights is crucial!

Alon Arvatz, founder of IntSights and PointFive, transitioned from a military hacker to a startup mogul—selling IntSights for $335M but feeling an unexpected emptiness after the exit. He left millions on the table, driven by a desire to build once more. His new venture, PointFive, focuses on cloud cost optimization, where he quickly scaled to millions in ARR. Alon emphasizes the importance of learning from early mistakes and the emotional journey beyond financial success, revealing how true fulfillment comes from solving pressing customer problems.

Ned Phillips, Founder of Bambu and former leader at E-Trade Asia, shares his rollercoaster journey in the fintech sector. He turned down a major opportunity to start his own venture, achieving $3.5M in revenue and raising $20M in funding. However, he faced unexpected challenges as enterprise clients often failed to support the product, leading to financial struggles and eventual layoffs. Ned discusses the importance of product-market fit, team dynamics, and the emotional toll of startup life, offering valuable lessons learned from his experiences.

Jason Van Gaal, founder of ROOT—a data center company that saw a massive exit in 2019—shares his journey from entrepreneur to angel investor. He discusses how spotting inefficiencies can lead to competitive advantages and why customer concentration can drive success. Jason emphasizes the importance of the 'Why Now' slide and the value of startups achieving cash flow in the first 1-2 years. He reveals how the lead-to-conversation ratio can indicate product-market fit, offering crucial insights for aspiring founders in the startup landscape.