Lessons from a $1.5M Startup Exit

Move fast, you need to sharpen your bets, you need to think probabilistically... we're at like this ground truth world and it's nice.

• Adopt a data-driven, probabilistic approach to decision-making.
• Be efficient with resources and focus on fundamentals.
• Embrace clear thinking over hype or unrealistic expectations.

We were coming up during the kind of like peak of growth at all costs era in 2021... the mandate was grow, grow, grow.

• Be cautious of unsustainable growth strategies.
• Prepare for shifting investor expectations and market conditions.
• Balance growth with profitability and long-term viability.

In the venture studio model, you can be more systematic... you can clarify the situation... you can be more, I'd say, rigorous about testing the risks in those businesses and finding out if there is actually a market for that opportunity.

• Venture studios allow for systematic exploration of ideas.
• They provide flexibility to pivot or kill concepts early.
• Starting organically may lead to path dependency on a single idea.

Build your business to be durable in good times and bad and then just be as unbiased as possible when you actually evaluate what are the risks in the business, what are the opportunities in the business.

• Create a business model that is sustainable under varying market conditions.
• Regularly assess risks and opportunities with an unbiased perspective.
• Prioritize path to profitability and resource efficiency.

Now I start with market first and I start with customer need first rather than starting with what can our team do and then backing into it.

• Focus on solving real customer problems identified in the market.
• Avoid building products based solely on your team's abilities.
• Invert the sequence: market opportunity first, then assemble the team.

Essentially, what is required is a bit of a mental shift in how you think about your business and then present your business.

• Adjust your focus to the immediate value you can offer an acquirer.
• Leverage existing relationships when seeking potential acquirers.
• Be prepared for a process that differs from fundraising.

I don't think we had true PMF in the broader sense of repeatable motion... we didn't have those.

• Measure product-market fit beyond initial customer acquisition.
• Ensure retention and repeatability in customer engagement.
• Avoid false positives by testing your value proposition thoroughly.

We realized that there could be a really good opportunity at the intersection of our edges, which is his machine learning and data science expertise and my growth marketing experience.

• Identify overlapping strengths with your co-founders.
• Leverage combined expertise to create unique solutions.
• Explore opportunities at the intersection of different skill sets.

We were not quick enough to pivot our fundraising strategy to the new reality. We were still expecting high multiples, and I think that actually slowed down our fundraising process a bit.

• Adapt your fundraising expectations to current market conditions.
• Be realistic about valuations during downturns.
• Develop a fundraising strategy that reflects the new market reality.

We faced a shift in 2022 when the market shifted... We had cuts across the board across all channels. We had headcount cuts.

• Monitor market trends closely and be ready to adjust your strategy accordingly.
• Consider diversifying your customer base to mitigate risk.
• Be prepared to pivot or make tough decisions to preserve the company.