I listen to startup podcasts so you don’t have to.
"There’s a decision here... that we probably didn't realize at the time... to build the platform in-house rather than using vendors."
[Takeaway]: • Building in-house gave John control but extended development time. • Vendor solutions might speed up time to market but limit flexibility. • Founders must weigh time, cost, and control when building products."We leveraged the marketing company that I mentioned... we had a favorable commercial arrangement... we were leaning on them."
[Takeaway]: • John secured an audience through strategic agreements. • Early partnerships can provide a launchpad for growth. • Founders should consider cooperative agreements pre-launch."I was in the research phase for seven years... by the time we were ready to go live you had to be ready to go live."
[Takeaway]: • John's years in sports betting informed his product vision. • He built a product that resonated due to his industry insight. • Founders can leverage prior experience to better meet market needs."We had 1,500 people copy this bet... it's going to go off if this thing wins... $3 million liability... we look at a bank balance like $2 million in the bank."
[Takeaway]: • John faced a potential $3M payout that exceeded their funds. • Limit exposure by setting bet limits and monitoring risk. • Founders should prepare for worst-case scenarios in financial models."We leveraged the marketing company that I mentioned... they had an existing database... that's how we got most of the first couple of thousand customers."
[Takeaway]: • John used his prior company's resources to acquire initial users. • Strategic partnerships can provide immediate access to customers. • Founders should explore all available assets for user acquisition."We were trying to do a seed round... they're like, you're nine months in, you know, you're saying that you're gonna go to market in three months, but you don't have a prototype."
[Takeaway]: • John's fundraising was challenged by extended development timelines. • He raised $1.5M at a lower valuation than anticipated. • Founders should manage investor expectations and be prepared for valuation adjustments."You can't publish an app into the App store unless you have met the local requirements in that region... that license process took nine months."
[Takeaway]: • John had to secure a bookmaker's license, delaying launch. • Regulatory compliance can significantly impact timelines. • Founders should plan for legal hurdles when entering regulated markets."He was in a well-paying job in the middle of a COVID lockdown and he was like, that's, it's a crazy time to do it... over a series of a couple of conversations, we somehow managed to get him across the line."
[Takeaway]: • John persuaded a former CTO to join by sharing a compelling vision. • Persistence and a clear mission can attract top talent. • Founders should not underestimate the power of personal outreach."I would say we truly found that about 12 months in... that this product is resonating, there is a large audience that's going to consume it and it does have the potential to turn into a real profitable business."
[Takeaway]: • John realized PMF when unit economics made sense after 12 months. • He emphasizes that PMF isn't immediate, even with early traction. • Founders should monitor customer retention and economics over time."The reality is he'd spent seven years before that in the sports betting space and a few years building a distribution machine that meant that the second that he launched this app, there was an audience waiting for it."
[Takeaway]: • John spent years building an audience through social media and affiliate marketing. • He leveraged this existing audience when launching Dabble. • Founders can benefit from cultivating an audience early to ensure launch traction.