1Mby1M Founder Sramana Mitra wants entrepreneurs to not waste their time and money.
The waste stems from a widespread misunderstanding of how investors think.
Over 99% of founders chase funding before they are fundable.
Here, Sramana teaches how to build with customer money (otherwise known as revenue) until a startup reaches that fundable stage.
Once fundable, a startup can go to investors like a king, not a beggar.
Sramana Mitra: When Ben comes on board, what are you able to accomplish? Did the business validate?
David Moricca: We did get Breakout Band built over the next couple of years. We ended up working with a couple of European engineers as well who were experts at audio technology. We also brought on a couple of our teammates who are still with us today. We got some users. We had a very passionate audience. They loved the platform, but it wouldn’t scale to millions of users for it to be a viable business. That was clear. We did go through the process of learning how to build and bring a product to market. We learned from that experience what was happening in the music space, which led us to our second product.>>>
Co-founder Mads Jensen started working on Sefaira while an MBA student at INSEAD Business School. When we spoke in 2016, he had gone on to launch a sustainable architectural design software product, raised $18 million in funding, and exited the company. Read on for more.
Sramana Mitra: Let’s start at the very beginning of your journey. Where are you from? Where were you born, raised, and in what kind of background?
Mads Jensen: I was born and raised in Denmark. I’m from a family with several generations of entrepreneurs. I grew up with business in my blood. I was fortunate enough that my grandfather, in the early 80s, thought this computer thing might have some potential. He bought me a computer when I was quite young. All kids these days grow up with computers.
Entrepreneurs are invited to the 556th FREE online 1Mby1M Mentoring Roundtable on Thursday, December 9, 2021, at 8 a.m. PST/11 a.m. EST/5 p.m. CET/9:30 p.m. India IST.
If you are a serious entrepreneur, register to “pitch” and sell your business idea. You’ll receive straightforward feedback, advice on next steps, and answers to any of your questions. Others can register to “attend” to watch, learn, and interact through the online chat.
You can learn more here and register to pitch or attend here. Register and you will receive the recording by email, even if you are unable to attend. Please share with any entrepreneurs in your circle who may be interested. All are welcome!
Jeff Solomon: A buddy of mine went to get his MBA. He was also an engineer. He was working on the side for me. When he graduated, the one thing that he learned was that to build a scalable business, you needed an asset.
Sramana Mitra: Not just services.
Jeff Solomon: He came to me and said, “This service business is cool, but you need to do something that is going to have some real equity value. He suggested a SaaS business. I went to look at all the projects I’ve been doing. I saw some similarities. We were doing a lot of the same things for a lot of similar clients. I started to think about a SaaS application that we could build for these people. That was how Velocify was born. We worked nights and weekends on Velocify while we were consulting for other companies. After six months, we launched this SaaS lead management platform.>>>
Big data player Splunk (NASDAQ: SPLK) continues to expand its PaaS capabilities by adding to its partner offerings. The company recently announced its quarterly results that surpassed market expectations.>>>
Sramana Mitra: What were you trying to build in the first iteraton?
David Moricca: The original vision was an online music creation platform targeting young people. It’s called Breakout Band. We created one of the first music creation platforms. It had a beatmaker where you can create your own beats. You can add your own vocals in the vocal booth. It was a consumer product oriented around younger people.>>>
Sramana Mitra: To underscore what you said about joining the software industry in a business development role, it’s a common path for non-technical people. What you’re describing is a very good example of how entrepreneurs with non-technical backgrounds make their way to technology entrepreneurship.
Jeff Solomon: Yes. I learned a lot about how it all worked and what didn’t work. I resonated with the tech team that was there. I was interested. I decided to start a tech company. I decided to start with five friends which I do not recommend. We had six co-founders which is too many. A couple of them I went to high school with. A couple of them I went to college with.>>>