Fund/Build/Scale

In the startups I worked at, we never had spare laptops.  When we hired someone, we’d order their laptop that day. That’s Startup Cashflow 101: don’t spend money until you have to. The same principle applies to your leadership team. Hiring a CMO before product-market fit? Too soon.  And a CEO can handle COO duties for a while. Most seed-stage companies don’t need a full-time CFO either.  A good controller can handle day-to-day finances, while a fractional CFO can plan future fundraising and create investor-friendly forecasts — all without reducing your runway. To understand why a fractional CFO might be the smarter move, I spoke to Dan DeGolier, founder of Ascent CFO Solutions. Runtime 27:21 Episode Breakdown (1:44) Dan explains Ascent CFO Solution’s origin story. (4:53) Why so many founders hire full-time CFOs before they actually need to. (6:33) A list of specific value-adds a fractional CFO can provide. (7:29) “We might be two days a week or three days a week. But we are very much a part of that team.” (8:57) Inside Dan’s client onboarding process. (12:44) “Part of it is getting a handle on cash flow and spend.” (15:24) “Understanding what the risk factors are to your runway is really critical.” (18:39) Which stats and KPIs are most important to share with the entire company? (20:51) If you want cash flow to break even, “be capital efficient to begin with.” (23:31) Clients “often supplement a VC round with a venture debt round so they can extend that runway a little bit further.” (25:09) How to interview a CFO if you don’t have an entrepreneurial background. (26:08) Resources Dan recommends for founders seeking financial discipline. Links * Dan DeGolier [https://www.linkedin.com/in/degolier/] * Ascent CFO Solutions [https://ascentcfo.com/] * Good to Great: Why Some Companies Make the Leap...And Others Don't [https://www.amazon.com/Good-Great-Some-Companies-Others/dp/0066620996], Jim Collins * Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant [https://www.amazon.com/Blue-Ocean-Strategy-Uncontested-Competition/dp/1591396190], W. Chan Kim and Renee Mauborgne * Traction: Get a Grip on Your Business [https://www.amazon.com/Traction-Get-Grip-Your-Business/dp/1936661837], Gino Wickman * EOS One® [https://eosone.com/] Subscribe 📥 LinkedIn: https://www.linkedin.com/newsletters/7249143254363856897/ [https://www.linkedin.com/newsletters/7249143254363856897/] 📓Substack: https://fundbuildscale.substack.com [https://fundbuildscale.substack.com/]   Thanks for listening! – Walter [https://www.linkedin.com/in/walterthompson4/].

When I learned that MaC Venture Capital just raised $150 million for its third fund since 2020, I immediately reached out for an interview with Marlon Nichols, the firm’s co-founder and managing general partner. Marlon previously co-founded Cross Culture Ventures, which merged with M Ventures in 2019 to form MaC VC. In this interview, we talked about his path from enterprise software into venture capital, the concept of cultural investing, and MaC VC’s focus on diverse founders. He also explained what types of startups the new fund is open to and discussed some of the criteria he uses to assess the strengths of founding teams (and their ideas). Runtime: 45:44 Links * Marlon Nichols [https://www.linkedin.com/in/marloncnichols/] * Contact Marlon [https://macventurecapital.com/team/marlon-nichols/marlon@macventurecapital.com] * MaC Venture Capital [https://macventurecapital.com/] * Exclusive: MaC VC raises $150 million for its third fund in four years [https://fortune.com/2024/10/29/exclusive-mac-vc-raises-150-million-for-its-third-fund-in-four-years/] (Fortune) * The Hard Thing About Hard Things: Building a Business When There Are No Easy Answers [https://www.amazon.com/Hard-Thing-About-Things-Building/dp/0062273205], Ben Horowitz * Secrets of Sand Hill Road: Venture Capital and How to Get It [https://www.amazon.com/Secrets-Sand-Hill-Road-Venture/dp/059308358X], Scott Kupor Subscribe 📥 LinkedIn: https://www.linkedin.com/newsletters/7249143254363856897/ [https://www.linkedin.com/newsletters/7249143254363856897/] 📓Substack: https://fundbuildscale.substack.com [https://fundbuildscale.substack.com/]   Thanks for listening!   – Walter [https://www.linkedin.com/in/walterthompson4/].

In this episode of Fund/Build/Scale, host Walter Thompson interviews Sahil Agarwal, CEO and co-founder of Encrypt AI. Sahil shares his journey from academia to leading an international AI company, discussing the importance of storytelling, confidence, and addressing biases within AI models. He also delves into challenges faced by immigrant entrepreneurs and the balance between leadership and employee well-being. Sahil provides insights into navigating enterprise AI security, fundraising strategies, and the intrinsic demands of running a startup. Tune in to uncover strategies for launching a company and overcoming industry hurdles. Runtime: 33:04 (1:46) Sahil describes Enkrypt AI use cases that “ensure equitable and safe use of AI for everyone.” (3:36) How his background in applied mathematics led to a career in enterprise security. (6:45) “You work until two in the morning whether that's PhD or a startup, and you wake up and you start again.” (8:34) “It took us some time talking to prospects and talking to people in the space to really hone in on the problem.” (11:42) Sahil’s path to obtaining the green card that would let him launch his own company. (15:31) “There has to be some sort of confidence that we have to project in front of investors and in front of enterprises or prospects.” (17:19) “You're accountable to everyone else in your company. That's my principle of leadership.” (20:26) How Sahil and co-founder Prashanth Harshangi approach work-life balance. (24:27) Setting expectations with investors and leading Enkrypt AI’s GTM strategy. (29:18) His advice for anyone pitching a seed-stage AI startup: “don't pitch a technology, pitch a story.” (31:17) The one question Sahil would ask an early-stage CEO if he were interviewing for a job. LINKS * Enkrypt AI [https://www.enkryptai.com/] * Sahil Agarwal [https://www.linkedin.com/in/sahil-agarwal/], co-founder and CEO * Prashanth Harshangi [https://www.linkedin.com/in/pharshangi/] * Enkrypt AI Raises $2.35 Million To Take On The Chatbots Going Rogue [https://www.forbes.com/sites/davidprosser/2024/02/27/enkrypt-ai-raises-235-million-to-take-on-the-chatbots-going-rogue/] SUBSCRIBE * LinkedIn [https://www.linkedin.com/newsletters/7249143254363856897/] * Substack [https://fundbuildscale.substack.com/] Thanks for listening! – Walter [https://www.linkedin.com/in/walterthompson4/].

Branding is a condensed form of storytelling. That’s my opinion, but it’s also shared by David Placek, founder and president of Lexicon Branding. Here are a few of the companies and products they’ve named since 1982: * Subaru Outback, Subaru Forester * BlackBerry * Pentium * PowerBook * Nissan Rogue * Lucid * Azure * Sonos * Swiffer * NVIDIA Shield * Febreze In May 2024, I interviewed him at his headquarters in Sausalito, California about brand architecture and positioning, the merits of being bold and authentic, and the methodology his company uses to transform innovative ideas into distinctive names that resonate.  Our conversation focused on aligning brand with market behavior, the art (and science) behind selecting a name, tools and exercises for brand identity creation, and techniques for validating a brand name before you commit to it. He also offered suggestions for early-stage teams on tight budgets and shared some insights from a study on branding for AI startups: “Don't overpromise, don't overhype, don't participate in all this hype.” RUNTIME 44:10 EPISODE BREAKDOWN (2:56) ”We have a process that takes that new idea and, and along the way, the goal is to give it a voice, a distinctive voice.” (4:02) How Lexicon Branding develops “coined” brand names. (7:18) Over time, David realized the company needed a creative layer and an engineering layer. (8:31) “Right now, in-house, we have at least three programs that are AI-based.” (10:22) “We are first and foremost a creative consulting firm, so everything has to be customized.” (12:09) David ballparks cost, timelines, and explains how Lexicon Branding works with clients. (15:07) “We create a vessel that will carry the story into the marketplace.” (17:36) How to validate your branding idea before fully committing to it. (21:53) Using generative AI in client work “is not only saving us time, but it's getting more information.” (25:07) Situations where David recommends changing your company’s name. (27:39) Head of Research Dmitri Seredenko offers an overview of an AI startup branding survey. (29:12) The challenge of injecting genuine emotion into your brand. (33:02) “I don't think any brands have really taken a stake on what they really want to be known for.” (35:56) “Don't overpromise, don't overhype.” (38:53) Why adding “AI” to your brand is a bad idea. (41:36) After you’ve made a decision, “stop trying to be comfortable about the new name.” (42:45) David describes the emotional experience of encountering his brands in daily life. LINKS * Lexicon Branding [https://www.lexiconbranding.com/] * David Placek [https://www.linkedin.com/in/david-placek-05a82/] * Dmitri Seredenko [https://www.linkedin.com/in/dmitri-seredenko-29062341/] * 6 Things You Need to Know if You’re Building an AI brand [https://www.lexiconbranding.com/the-results-of-our-research-are-in-6-things-you-need-to-know-if-youre-building-an-ai-brand/] SUBSCRIBE 📥 LinkedIn: https://www.linkedin.com/newsletters/7249143254363856897/ [https://www.linkedin.com/newsletters/7249143254363856897/]   📓Substack: https://fundbuildscale.substack.com [https://fundbuildscale.substack.com/]   Thanks for listening!   -- Walter [https://www.linkedin.com/in/walterthompson4/].

Deeptech founders are solving problems that most of us don’t think of as problems and tackling challenges that push the boundaries of what we think is possible. This interview with Justin Fiaschetti, CEO and co-founder of Inversion, is a good example. Inversion is building a platform that will enable space-based cargo delivery using autonomous re-entry vehicles with parachutes that will let them deliver goods from space to pretty much anywhere on Earth in less than 60 minutes within 20 feet of their customer. After my initial chat with Justin to prepare for this interview, I literally had to take a walk to process it all. Today, Inversion is announcing its $44 million Series A round — a clear signal that investors and potential customers believe the company is on the verge of something groundbreaking. “None of our customers care about how technically cool or what new fun technology we have on our product,” said Justin. “All they care about is can they get their cargo in under an hour, wherever they want. And so our goal is to do the minimum amount of technical innovation in order to meet our customers’ needs while having a growth path to continue to increase the capability [and] reduce the cost for our customers.” I interviewed him about early customer discovery and market validation, how Inversion is developing its go-to-market strategy, and asked how he plans to put the Series A to work in the company’s next stage of development. We also discussed the unique challenge of pitching something to investors that only exists in your imagination. “What is the addressable market for delivery from space? It doesn't exist right now,” said Justin. “Fundamentally, we're making a new market.” RUNTIME: 56:15 EPISODE BREAKDOWN (3:55) “Space really only has two viable business models. And we asked ourselves, ‘what's the third thing that's going to happen?’” (6:05) How Inversion’s on-demand space cargo delivery platform will work. (8:12) “I like to define ourselves by our customers rather than by our technology.” (12:08) “Having closed this Series A, there are a couple of big things for us.” (14:33) Differences between the Ray reentry vehicle and Arc, the larger prototype. (16:50) Inside Inversion’s go-to-market strategy. (20:39) “Nobody's built this before. There is no playbook. There is no rule set that you have to follow.” (25:21) Justin’s approach to validating customer demand for space-based cargo delivery. (27:40) “Our first investor pitch went terribly.” (31:07) Why Justin and Austin pivoted away from their initial idea. (34:40) “There is a huge market for on-demand and rapid cargo delivery.” (39:18) “We are the first new space company to develop parachutes in space.” (43:56) His framework for staying focused on product and customer needs. (46:00) “Starting with the military has been critical for us.” (50:45) “One of my personal goals is to deliver the Olympic torch.” (51:13) How Inversion is navigating the Valley of Death. (54:26) One question he’d have to ask the CEO if he were interviewing for a job at a deep tech startup. LINKS * Inversion [https://www.inversionspace.com/] * Justin Fiaschetti [https://www.linkedin.com/in/justin-fiaschetti-097b10166/], CEO/co-founder * Austin Briggs [https://www.linkedin.com/in/austinbriggs7/], CTO/co-founder * Inversion Space accelerates orbital reentry vehicle tech with $71M Space Force contract [https://techcrunch.com/2024/09/10/inversion-space-accelerates-orbital-reentry-vehicle-tech-with-71m-space-force-contract/] (TechCrunch) * Inversion secures reentry license for first mission [https://spacenews.com/inversion-secures-reentry-license-for-first-mission/] (Space News) * Jobs at Inversion [https://www.inversionspace.com/careers] SUBSCRIBE 📥 LinkedIn: https://www.linkedin.com/newsletters/7249143254363856897/ [https://www.linkedin.com/newsletters/7249143254363856897/] 📓Substack: https://fundbuildscale.substack.com [https://fundbuildscale.substack.com/]   Thanks for listening! -- Walter [https://www.linkedin.com/in/walterthompson4/].