Sramana Mitra: What specifically were each of you trying to do? Venky Balasubramanian: I was trying to pull ideas for my new startup back then. The first idea I had was a click-to-call. My co-founder was trying to build a framework for these IVRs. I was trying to build a framework to basically call to
Venky has built a fast growing, profitable company with just $2 million in angel financing, raised as two convertible notes. Excellent navigation, and a lot to learn in the domain of smart, capital-efficient entrepreneurship. As we are bound to see the market crash in the upcoming quarters, these are the type of companies that will
Steve Huey: University of Pittsburgh is a client, and we’ve had conversations with people at Princeton. Some of these schools have more applicants than they need. What they’re chasing is the right applicant. By understanding the behaviour of students and their families, you can market to them that you can assist them in finding the information
Sramana Mitra: What else is interesting in your story? Are there any other strategic moves that you want to discuss? Steve Huey: One of the biggest things that happened was about a year and a half ago, when we were introduced to a McKinsey study that talks about a consumer’s decision journey. The story that
Steve Huey: Understanding that this data advantage was the key for us to talk more intelligently to students, we started hammering on that perceived advantage. Very quickly, we expanded the data set that we had so that we could talk more intelligently to them. In the next generation of our product, we created a lot
Sramana Mitra: How did you acquire these customers? Can you get a bit more granular? Steve Huey: Certainly. We were six co-founders. Two of the co-founders were sales people that had deep relationships with many schools. They simply called their best customers and said, “We have a new company. We’re doing this. We explained our strategy
Sramana Mitra: The primary business is, essentially, lead generation for colleges? Is that what you’re saying? Steve Huey: Yes, our primary business is lead generation but for not-for-profit schools. It’s a very important distinction. There are around 3,300 not-for-profit colleges in the United States. Sramana Mitra: Let’s start there. What is the difference between leads for
Steve Huey: I relocated to Kentucky and started working in small companies again. I was hired by a group of private equity guys to help them turn around and sell a property they had. It was a listing business called Rentalhouses.com for single-unit rental properties. We sold that within about nine months to KKR and their company