Startup Istanbul Podcast

I talked this week with Peter Vesterbacka, entrepreneur and founder from Finland known for building major brands like Angry Birds, Rovio and Slush.

Taking action is critical for entrepreneurs according to him, as learning happens by doing rather than just thinking. Entrepreneurs should execute on ideas through constant action, without fear of failure, to create opportunities and accelerate growth.

Here are three key takeaways on why taking action is critical for entrepreneurs based on Peter’s comments:

* Learn by doing rather than over-analyzing. Taking action provides practical learning opportunities that thinking alone cannot.

* Focus on executing ideas rather than just having them. Entrepreneurs make things happen through action.

* Don't fear failure. Most startups fail, so view it as a normal part of the process and learn from the experience.

"It's very important to actually do. And when you are doing things you are learning. So I'm a big believer in learning by doing." — Peter Vesterbacka

We also talked about how Finland has managed to create a successful startup ecosystem. Here are the top 3 secrets to their achievement:

* Changing Mindsets - Programs like Slush focused on shifting attitudes towards entrepreneurship, especially among youth. This built a culture of innovation.

* Empowering Young Leaders - Finland put young people in charge of programs like Slush to give them leadership experience for starting their own companies.

* Collaboration Over Competition - The startup community was nurtured through collaboration and sharing best practices rather than cutthroat competition.

Common startup founder mistakes according to Peter Vesterbacka:

* Fail to communicate vision and direction. As startups grow, founders need to over-communicate goals and plans to align the team. Repeatedly sharing the vision is critical.

* Don't communicate enough. With more people added, constant communication across the organization becomes even more important. Founders should over-communicate even if it feels repetitive.

"Don't be afraid to talk to people. You should always be pitching. And then the thing there is that you should also, then, you know, when you do that, then people will help you. That's kind of like what people want to do." — Peter Vesterbacka

I have had the pleasure of knowing Eamonn Carey for many years. We first connected when we hosted him as a speaker at various events in Istanbul and Antalya. I always enjoy our conversations and learn so much from his experiences.

Eamonn began his career as a journalist before transitioning into the world of venture capital. His background in journalism provided great preparation for his work in VC. As a journalist, Eamonn honed critical skills like conducting thorough research, asking thoughtful questions, and listening closely to responses.

When Eamonn became an investor, he was able to effectively apply these journalistic skills to his new role. During investment meetings and due diligence, his training enabled him to gain deeper insights by probing founders with targeted questions. Overall, Eamonn's journalistic foundation gave him invaluable experience in research, interviewing, and listening intently. These capabilities directly translated into success when evaluating potential startup investments.

I found our conversation with Eamonn to be truly enlightening. There were many valuable insights that founders would benefit from listening to again and again.

"The dumbest, craziest, best thing I've done is start my first company." — Eamonn Carey

I took extensive notes during our discussion, especially around the lessons Eamonn has learned from investing in over thousand startups. A few key points really stood out:

* Successful founders do extensive preparation and discovery:

* In-depth research on their market

* Exhaustive customer discovery

* Thorough investigation of competitors

* Detailed data rooms demonstrating knowledge

* Best founders have an open, curious mindset:

* Constantly seek feedback to improve

* Intellectual curiosity to learn continuously

* Driven to evolve from good to great

* Preparation is essential, as "Fortune favors the prepared mind"

* But top founders also have humility:

* Admit gaps in knowledge

* Boldly ask experts for help

* Stellar founders have true passion for solving problems:

* Go incredibly deep on understanding their market

"Don't overthink things and don't be afraid to talk to other people." — Eamonn Carey

I asked Eamonn about the red flags he looks for during investor meetings with startups.

* Momentum and progress are essential red flags

* Look for founders actively driving the business

* Beware when founders are just waiting for investment

* Fundraising goals need clarity

* Unclear or wide fundraising ranges are concerning

* Founders should know how much they need and why

* Team dynamics require close scrutiny

* Ensure all founders actively engage, not just one

* Try to evaluate dynamics in person over a meal/coffee

* Watch for co-founder relationship issues

* Other red flags:

* CEO answering all technical questions

* Lack of customer development, even at idea stage

* Vague customer profiles and market understanding

* Body language and energy on calls provide clues

* Meeting founding team in-person invaluable to assess relationships

* Co-founder breakups before Series A common issue

I highly recommend this conversation with Eamonn for entrepreneurs to listen to or watch. 3 Books he recommends;

* Obviously Awesome by April Dunford - On positioning your business, not just marketing/branding

* The Hard Thing About Hard Things by Ben Horowitz - Discusses the difficult parts of being a founder

* The Mom Test by Rob Fitzpatrick - Guide on customer development for early stage startups

"The 3 most powerful words for a founder are 'I don't know.'" — Eamonn Carey

I recently had the pleasure of speaking with Arthur Wang, founder of Fud, about his entrepreneurial journey.

Arthur Wang's family origins as Chinese American immigrants who ran restaurants influenced his entrepreneurial ambitions. He also inherited a passion for educating and helping others from his teacher relatives. This unique blend shaped his vision for empowering everyday entrepreneurs with Fud.

Fud is an online platform empowering everyday entrepreneurs through community support and expert guidance. By connecting side hustlers to share knowledge and monetize their skills, Fud helps regular people build fulfilling careers outside the traditional 9-5 job. The app makes side hustling accessible for all.

* During COVID, Arthur had trouble buying a pair of Air Jordan sneakers because of resellers buying up inventory. This led him to research sneaker reselling.

* Though new to it, Arthur made money reselling sneakers as a side hobby. This reawakened his youthful entrepreneurial spirit.

* However, he almost got scammed on eBay as a seller. He realized scams could discourage new resellers.

* Arthur saw most reseller content focused on flashy wealth, not the details. He wanted to create a platform to teach reselling to avoid scams.

* Beyond just sneakers, Arthur recognized a need to help regular "side hustlers" make money outside traditional jobs.

* He aimed to create a supportive community celebrating all types of side hustles and helping people achieve financial freedom.

* With his background in startups and digital media, Arthur founded Fud as a platform for educating and empowering everyday entrepreneurs globally.

"It's a very lonely journey too. You have to find people you trust because it can mess with your head. It's all about perseverance and grit to make it happen." — Arthur Wang

As someone who has weathered the ups and downs of startup life for over two years now, Arthur shared invaluable insights on the realities of getting a business off the ground.

My takeaways from our conversation:

* Take risks and bet on yourself as an entrepreneur

* We are irrationally biased towards risk aversion

* Failure today is not catastrophic like in the past

* Have courage to create weird outcomes

* The world needs people willing to take risks

* Advancement requires unconventional thinking

* Don't let fear of the downside hold you back

* Failure won't make you completely destitute nowadays

* Overcome biases toward safety and security

"It takes twice as long and twice as much money as you expect. It's hard. You have to really believe in your idea and have that founder-market fit." — Arthur Wang

I asked him, "What have been the biggest challenges or lessons learned for you personally as a founder of Fud?"One of the best pieces of advice from him for founders is:1. It takes twice as long and money as expected- Be prepared to invest significant time and funds- Have contingency plans for extended timelines2. Perseverance and grit are essential- There will be brutal days that test your resilience- Stay focused on your vision to push through3. Develop a thick skin- Rejection and ego hits are inevitable- Maintain self-belief and don't take failures personally

"Just remember that we probably are biased towards risk aversion. We're probably biased a little too much towards safety. So it's okay to get out there and just kind of bet on yourself." —Arthur Wang

I have a great talk with Casey Van Maanen is a Senior Analyst at LOI Venture, an early stage venture capital fund focused on young entrepreneurs in British Columbia. He has experience in venture capital, finance, and business management through roles at different funds.

"It's never easy, but having grit and resilience is key." — Casey Van Maanen

Here are my 3 key takeaways from the conversation with Casey:

* Be transparent and provide actionable feedback in rejection emails to founders

* Clearly explain reasons for declining a deal and provide constructive feedback entrepreneurs can learn from.

* Maintain good relationships.

* Build a strong founder-investor relationship post-investment

* Regular communication through progress updates builds trust and keeps investors informed on key traction metrics, product launches, team changes etc.

* Tailor your fundraising approach (for startup founders)

* Target investors strategically in your space, craft a tight pitch deck, and focus on volume when fundraising.

* Leverage networks like accelerators too.

He also talked about how the rejection process works. Here are my 3 key notes:

* Provide clear and transparent feedback in rejection emails explaining why you declined the deal. Don't leave founders guessing.

* Advise founders not to take rejections personally. It's often not a reflection on them or the business itself.

* Encourage founders to listen to feedback objectively, strengthen their pitch, and persist through inevitable rejections. Grit and resilience are critical.

"One of the red flags that we will identify or that we've seen is a lack of transparency." —Casey Van Maanen

After they've made an investment, they expect founders to provide regular progress updates, ideally on a monthly or quarterly basis. This allows them to stay current on key traction metrics, new hires, product updates, and any other meaningful developments.

As an investor, some of the key things Casey wants to be informed about include:

* Traction metrics like new customers, revenue growth, engagement stats etc. These demonstrate business progress.

* Personnel changes like new key hires. This shows strengthening of the team.

* Product launches or new feature releases. This indicates product momentum.

* Any major partnerships or business development updates. This validates external belief in the company.

* Changes to business/revenue model if any. Understanding pivots.

* High level insight into burn rate/cash position. Allows assessing capital needs.

In terms of frequency, monthly founder update emails are ideal but Casey understands bandwidth can be constrained. Quarterly also works well. They like having regular touch-points beyond just board meetings.

The goal is not to micro-manage but rather stay abreast of major progress and issues. Founders know their business best so they trust their judgment while providing guidance and support where possible. Clear communication keeps the relationship strong.

I had a great conversation with Tuomo Laine, founder and CEO of Twice Commerce, formerly known as Rentle. Additionally we met during our side event at Slush in Maria 01 last week.

The Twice Commerce platform simplifies the process for businesses to manage rental, resale, and refurbishing operations. It facilitates the circular economy by helping companies extend the lifecycles of their products.

Here are some key takeaways from our insightful discussion:

* Passion is a great servant, but a poor master. It should fuel you, not drive you. And remember - no number gets better on its own. Someone, somewhere is working very hard for every improvement you see.

* During tough times, remember that you are not working just for yourself, but for others and future generations. It's like the saying - we don't truly own the land, we borrow it from our children.

* Fundraising is hard work, as it should be. The more ambitious the idea, the more VCs you'll need to meet - maybe 50 or 100. Difficulty ensures proper vetting. If money falls into your lap too easily, question why. The work required is healthy, not rejection.

Tuomo sees both new startups and large brands adopting circular models like rentals and resale. Software companies like Twice Commerce will remove friction through digital infrastructure.

Specialized operators will handle tricky logistics like refurbishment. It's a collaborative dance between software and operations. Change will happen as software enables new business models and experts handle complex logistics.

Passion is a great servant, but a poor master. It should fuel you, not drive you. And remember - no number gets better on its own. Someone, somewhere is working very hard for every improvement you see. Stay grounded and keep your passion in check, while appreciating how much effort it takes to build something great. —Tuomo Laine

I had an insightful chat with Christopher Burns, Co-Founder of fundraising platform for nonprofits, Everfund.

Christopher has been working on startups for over 5 years. Everfund emerged from their previous work building QR code donation tools for nonprofits.

Our conversation covered Chris' lessons on customer validation, hiring failures, co-founder relationships, startup motivation, and more.

Here are my top 5 takeaways from our discussion:

* Key lessons when pivoting go-to-market

* Focus on customers with the real "pain killer" problem, not just who likes your solution.

* Learning from early hiring missteps

* Fail fast and course correct - use mistakes as critical lessons for future team building.

* Finding investor partners, not just money

* Shared vision and belief in your mission matters more than funds from misaligned investors.

* Co-founder dynamics

* Play to individual strengths while working through disagreements constructively.

* Let your co-founder be who they need to be to succeed.

* Identify strengths, delegate accordingly.

* Work through disagreements constructively.

* The bond with a co-founder is one of the hardest but most important for startup success.

* His motivation and passion

* Seeing Everfund's social impact on groups like his partner's nonprofit keeps Chris driven.

I posed these questions to Chris, and here are his responses.

“Is this startup journey like a roller coaster? How do you feel daily?"

Christopher said that life and startups are not really like a rollercoaster, even though there are ups and downs.

* Startup journeys have unpredictable twists and turns, unlike a rollercoaster's defined track.

* The ride feels like driving fast on winding roads with surprises around each bend.

* This brings daily excitement about potential ahead paired with uncertainty about looming roadblocks.

"If you had the superpower to make changes in startup life, what would they be? Can you name three superpowers?”

* Removing his own biases to see solutions from the customer's eyes

* Enhanced communication and mentoring abilities

* Increased speed and efficiency

"You are invited to host a dinner party with three people, dead or alive. Who would you choose?"

* Walt Disney: Walt Disney started the company with an amazing vision.

* Frank Wells: Frank Wells and Michael Eisner worked together in a successful co-founder partnership that led Disney's renaissance.

* Michael Eisner: Christopher would love to hear them discuss and even squabble over how to run Disney, with the creative visionary (Eisner) balanced by the operations-focused partner (Wells).

I had a wonderful conversation with Mosmos co-founders recently and asked them the question,

"If you go back in time 2 years, when you were just starting Mosmos, what advice would you give to yourself?"

Chengo Masha's answer:- Focus ruthlessly on understanding the customer's problem first.- Don't get caught up in perfecting the solution too soon.- Let customer feedback drive building the right solution.Juliet Shiro Njoroge's answer:- Have patience and persist in business conversations.- It takes time to turn a lead into a partner.- Keep sight of the opportunity and maintain persistence balanced with patience.

Mosmos Africa

Mosmos has a different model than "buy now, pay later" credit models. Since they operate in Kenya, it can be challenging to understand this new business model without context. Here are my notes about Mosmos Africa:

Product Offering:

* Mosmos operates a "save now, buy later" model where customers save up for a product and receive it once fully paid off.

* This differs from "buy now, pay later" credit models.

* They focus on high-ticket, high-value products that require more planning and budgeting for customers. (Electronics like laptops, smartphones, TVs Vacation packages or trips, Home appliances like refrigerators, washing machines)

Customer Experience:

* The model is designed to be flexible and align with customers' income streams, whether daily, weekly or monthly.

* They offer a seamless user experience with timely reminders and progress tracking to encourage savings completion.

Distribution Channels:

* Mosmos has both a direct-to-consumer marketplace and partnerships with retailers to offer their payment solution.

* Partnerships with leading local retailers provide customers product access, ability to see/test items.

Competitive Advantage:

* Mosmos aims to provide competitive, affordable pricing compared to other retailers.

* Customer-centricity is core to their model - solving pain points around difficult savings goals.

* Mosmos aims to differentiate via great user experience and flexibility compared to traditional financing options.

Technology Enablement:

* Mosmos leverages mobile and digital payments to create an automated, transparent process.

Kenyan startup ecosystem

We have also discussed the Kenyan startup ecosystem, which has seen rapid growth and progress in recent years.

Kenya's startup success began with mobile money innovation. Improved infrastructure and government support expanded opportunities. Global investments flowed in. Funding started enabling local startups, initially concentrated in fintech but now diversifying. Support programs assist startups. Regulations are maturing the ecosystem. Challenges remain around later stage funding and scaling, but momentum continues around inclusion.

Last week I had the pleasure of speaking with Yrjö Ojasaar, Partner at Change Ventures, about the startup ecosystems in Estonia, the Baltics, and the Nordics.

Yrjö has a fascinating background, having worked as a lawyer in the US defending major tech companies before returning to Europe to work with startups. He has been the CEO of a Finnish clean-tech startup, a UK digital publishing company, and advised many Estonian founders.

Currently at Change Ventures, an early-stage VC fund focused on ambitious founders from the Nordics and Baltics, Yrjö draws on his diverse experience to help entrepreneurs build global companies.

Our hour-long conversation covered a range of topics from pitching mistakes to founder obsession and the role of AI in VC.

"Startups and venture capital can dramatically expand an individual's power to affect change in the world around them. As an investor or startup founder, you have the ability to fundamentally transform how people conduct business and live their lives by introducing entirely new solutions and ways of doing things." —Yrjö Ojasaar

These are my top 5 notes from our conversation with Yrjö:

Common mistakes entrepreneurs make in pitches

* Founders often just memorize a pitch formula rather than having an in-depth discussion.

* This lack of depth on customers' problems is a red flag.

How to respond to investor rejections

* Ask for specific, actionable steps you can take to improve, rather than taking the rejection personally.

* Markets change so re-evaluate later.

Factors behind the success of Estonian startups

* Early wins like Skype broke psychological barriers.

* Successful founders reinvest in the ecosystem.

The importance of founder obsession with solving customer problems

* Successful founders are obsessed with deeply understanding their customers' problems throughout the startup's growth.

* Continually empathizing with and focusing on customers is key, as their needs change over time.

The benefits and drawbacks of being a generalist VC

* The job is much more exciting and interesting because you get to learn about so many different areas of business, new business models, and different technology sectors. You get a lot of variety.

* There is much more randomness and many more unknown pieces to evaluate compared to being a super specialized domain expert who knows all the details of a narrow niche.

"At the end of the day, we reject founders who lack a deep, empathetic understanding of their customers' needs. You can have the most innovative product in the world, but if you don't intimately understand who will use it and why, you'll fail. We invest in founders who obsess over solving real problems for real people - they ask questions, listen, and continually refine their solutions based on feedback. If that founder-customer connection isn't there from the start, we simply can't proceed." —Yrjö Ojasaar

When Sean's wife signed him up to coach his daughter's soccer team, he knew little about the sport. However, as with any challenge, he wanted to take a data-driven approach.

Since scoring itself didn't occur often enough to analyze, Sean tracked shots on goal instead. He then used each game as an experiment, constantly shifting player positions between quarters to gather data on different lineups.

By recording shots for both teams each period, Sean looked for trends that could help optimize performance. His testing revealed one lineup dominated possession and shots. This allowed Sean to improve the team significantly, gaining so much control of games that the league complained he was scoring too much.

Sean's success in enhancing soccer performance showed growth hacking methodology applies broadly. Testing and optimizing anywhere yields opportunity for measurable advancement.

Coaching my daughter's soccer team, I knew little of strategy, but growth hacked: understanding players, tracking goals, mixing positions, optimizing from data. —Sean Ellis

I had an insightful conversation with Sean Ellis, who will be visiting Istanbul in February 2024 as part of his global growth-hacking world tour. His tour aims to not only teach strategies but help implement them through workshops.

7 Key notes from our chat that I noted down.

- Nothing's perfect; through testing we improve.

- Without product-market fit validation, growth hacking just accelerates the path to failure

- Understanding human psychology is key, like our response to peer influence.

- Growth comes from a team working closely together, with shared metrics and experimentation.

- Growth hacking looks the same globally - what matters is effective cross-team execution.

- Metrics should show sustained customer value, not vanity signals like downloads.

- Growth culture builds from shared goals and wins from experimentation, not documents.

One of the biggest mistakes I see is startups trying to use growth hacking before validating their product-market fit. —Sean Ellis

Sean Ellis' Book Recommendations

* Influence by Robert Cialdini

* Predictably Irrational by Dan Ariely

* The Cold Start Problem by Andrew Chen

* Presenting to Win by Jerry Weissman

* Pitch Anything by Oren Klaff

If your company's growth teams are interested in meeting with Sean Ellis while he is in Istanbul, there are several ways to contact him regarding his expertise and programs:

* Personal website: Sean Ellis

* Growth programs information

* LinkedIn profile

* Twitter account

Top notes from my conversation with Juan Camilo co-founder of Figuro

Figuro: InsurTech startup

Focus: Latin America

* Platform:

* Simplifies insurance buying

* Streamlines quotes, buying, managing

* More transparency, ease for users

* Approach:

* Uses tech to digitize old processes

* Data-driven insights

* Goal: Make insurance access equal for all

1. Outdated Insurance Distribution Is the Real LATAM Problem

In LATAM, it's extremely difficult to get insurance in a streamlined, easy way. Figuro saw this as a huge opportunity.

2. Data, Not Products, Is Figuro's True Superpower

Figuro sees insurance as a data science problem. The more policies they sell, the more data they have to enhance experiences.

3. Flywheel Model Fuels Explosive Growth

More data powers more sales and platform growth. More sales means more data. Rinse and repeat.

4. Global Vision Is Crucial for LATAM Founders

Programs like 500 Startups and Y Combinator gave Juan Camilo the global perspective to think beyond just Colombia.

5. Partnerships Are Key to Cracking Distribution

Figuro has partnered with 70%+ of insurance companies in Colombia by solving their distribution challenges.

6. Trust Is Still a Major Hurdle in LATAM

Startups must build consumer trust in their brand and products in a market skeptical of new entrants.

Figuro proves that with the right vision, huge opportunities exist to transform antiquated LATAM insurance.

#LATAM #startups #funding #InsurTech

"What's ironic is that none of our investors are actually from Latin America. They're all from the US, Europe, and other parts of the world. This highlights that local investors haven't yet recognized the opportunity that exists here."

Juan Camilo González T. Co-founder of Figuro

Why we invested Figuro?

Team & Founders

* Strong founding team with expertise in insurance, finance, and technology

* Founders we believe in and can add value to

Technology & Product

* Proprietary technology platform that streamlines insurance buying process

* Innovative data-driven approach to optimize customer experience

* Ability to create tailored insurance products for Latin American consumers

Market Opportunity

* First mover advantage in Latin American insurtech market

* Large underserved market opportunity in Latin America

We invested in Figuro because of their strong team, innovative technology, and proven acquisition strategy to capitalize on the massive opportunity in the underserved Latin American insurtech market, which we believe makes them poised to become a category leader and deliver substantial returns.