From Solo Entrepreneur to $65 Million in Revenue: Brazilian Entrepreneur Daniel Scandian, CEO of MadeiraMadeira (Part 6)

Sramana Mitra: I completely agree with you.

Daniel Scandian: The priority is to be profitable and grow. If I don’t reach profitability, it can be very difficult. The company has to remain profitable. We are 230 people right now. We need to add another 200 people in the next two years.

Sramana Mitra: What happened to the loan that you took from your family? Were you able to pay that off in time?

Daniel Scandian: Yes. We paid instalments. We have no debts right now.

Sramana Mitra: What is your impression of the startup ecosystem in Brazil? How did you benefit from it?

Daniel Scandian: Especially in 2011 and 2012, what happened in Brazil was a lot of business plans were sold by a lot of entrepreneurs from universities. The reality is different. The execution and hard work is much more important. I’m not a good seller to investors, but I work hard. The big difference in Brazil, especially for outside investors, is it’s not so simple like in US.

Brazil is different because it’s hard to get traction. After you get traction, it’s much easier. In the US, it’s the opposite. It’s easy to get traction but difficult to maintain. The bureaucracy in Brazil is difficult.

Sramana Mitra: The phenomenon that you’re describing of people coming with fancy presentations that they learn in universities and wanting to raise money right away is present everywhere. It’s a phenomenon that’s happening all over the world. The truth is investors are not interested in these kinds of pitches.

Investors are more interested in validated businesses which explains why you have been so successful. By the time you went to investors, you already had revenues and a business model that was validated. Investors prefer to work with entrepreneurs like you who have taken the time to validate and bring business as opposed to just concepts.

Daniel Scandian: Yes. If I become an investor in the future, I’m 100% sure that I want to invest in businesses that have been through two years of bootstrapping and proof. It is much difficult for investors without proof of achievement. There are a lot of smart people who go to Stanford to learn how to pitch to investors. They are very smart. Again, hard work beats talent.

Sramana Mitra: Definitely.

Daniel Scandian: I think this is what is happening in Brazil. Investors lose a lot of money. I hope I can compensate this in the future.

Sramana Mitra: Very good. It was a great story. I enjoyed hearing it. Thank you.

This segment is part 6 in the series : From Solo Entrepreneur to $65 Million in Revenue: Brazilian Entrepreneur Daniel Scandian, CEO of MadeiraMadeira
1 2 3 4 5 6