The Founder's Journey

Ep. 2 - Eugene Cho and Dean Rosenberg

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Summary

This episode is a conversation with Eugene Cho, CEO and founder at Discover Echo, and Dean Rosenberg, fund manager at New Fund Venture Group. They discuss Eugene's journey with his company and the challenges and accessibility of early stage funding. Eugene shares how he started Discover Echo after working in sales for microscopy companies and identified a gap in the market. Dean emphasizes the importance of sales acumen in founders and the value of angel investors in providing not just funding but also guidance and support. They also discuss the process of fundraising and the role of smart money in helping startups succeed. After securing funding through a convertible note and a $2 million purchase order, the company focused on fulfilling orders and scaling up. They raised a Series A round of $5 million, which allowed them to expand their sales team and product portfolio. They also invested in digital marketing and growth hacking strategies to generate leads and accelerate sales. The company experienced rapid growth and success, even during the COVID-19 pandemic. Building strong relationships with industry partners, customers, and investors was a key factor in their journey.  

Takeaways
  • Early stage funding can be accessible, but founders should be realistic about the challenges they may face.
  • Having a product that is significantly better than existing options in the market can be a competitive advantage.
  • The support and guidance of angel investors can be valuable in addition to their financial investment.
  • Timing, luck, and seizing opportunities are important factors in fundraising success.
  • Smart money refers to investors who not only provide funding but also offer advice, guidance, and assistance.
  • Sales acumen is an important characteristic for founders, as the ability to generate revenue is crucial for startup success.
  • Fundraising involves creating a sense of urgency and demand, as well as building relationships with potential investors.
  • The fundraising process includes getting strong interest, securing commitments, and collecting funds.
  • The value of investors goes beyond their financial contribution, as they can provide expertise, connections, and support throughout the startup journey. Securing funding is essential for growth, but it's important to have a plan for how to use the funds effectively.
  • Building strong relationships with industry partners, customers, and investors can lead to valuable opportunities and support.
  • Investing in digital marketing and growth hacking strategies can be a cost-effective way to generate leads and accelerate sales.
  • Having industry-specific knowledge and understanding the needs of your target market can give you a competitive advantage.
  • Being adaptable and willing to pivot your strategy when faced with challenges, such as the COVID-19 pandemic, is crucial for success.
    • Quotes
    • "If Tesla or Apple were to build a microscope, they would build yours."
    • "We saw a gap in the marketplace...becoming the best in that particular area."
    • "We just wanted to team up with people who were interested in our story and who were supportive of that."
    • "You start getting funding in this is more funding than you've ever had before."
    • "You're fulfilling, which is important, but you're also dealing with issues like expansion problems, like getting a new building, getting a new space, leasing."
    • "Convertible note essentially means the investor is loaning the company money with a term in that loan that says if the company does their part and raises what's called a qualified financing, then when that convertible note is papered, they agree in advance that without our consent, you can convert what you owe us into equity in that qualified financing round."

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      The Founder's JourneyBy Guy Reams