You want to do a startup. So, you need an idea to build around.
So, how do you ideate? How do you evaluate if your idea has legs? How do you make sure that your tech startup idea is viable? Scalable?>>>
Udemy has over two million students who are learning Machine Learning on the platform. Many of these students are aspiring entrepreneurs.
Here is a list of Udemy entrepreneurship courses based on the 1Mby1M methodology that would help them put one foot before the other to get a startup strategy figured out.>>>
Sramana Mitra: That positioning is sharp and well-defined. Does that continue to be your sweet spot?
James Cramer: It continues to be the biggest line share. It is where we focus the most. What we added that expanded our market was partnerships. We sought professional services automation platforms that targeted the same customers knowing that they don’t have our functionality. If they did, we partnered with them and added a competitive differentiation in that deal.>>>
Sramana Mitra: Three out of the fifteen customers you started the process with converted into customers. What kind of average deal size did they convert at?
James Cramer: The initial deal size was maybe $50,000 to $75,000 in ARR.
Sramana Mitra: What time frame are we talking about?>>>
Sramana Mitra: Tell me how you went about it. You used the lesson that you learned on bootstrapping using services. Tell me more about how you applied that principle to this business.
James Cramer: The first thing that we did was, we got into a room with a whiteboard. It was just the two of us. Because we are such experts in this topic, we thought that we would give it a week or two and we will have this thing all white boarded out, and we’ll have a good model of what the problem is and the corresponding solution. We can then start building.>>>
Sramana Mitra: How did the acquisition happen?
James Cramer: We would occasionally get solicitations from bankers. We would always entertain it to get a sense of which company was worth it and what was going on in terms of acquisitions. One day, I got an email from a banker in New York that said, “I have a client that is looking to make an acquisition in the United States for a company that had these criteria.”>>>
Sramana Mitra: The game hasn’t been released yet?
Tobias Seidl: No. What we are offering on our platform is for early-stage companies to share future profits. For revenue-making companies, they share a part of their revenues. We always have a balance of these two components.
Sramana Mitra: What is the profile of the investors who are coming onto your platform?>>>
Sramana Mitra: Help me out with one piece of this story. In an entrepreneur journey, the first time you’re doing it without personal money is a different ball game than when you have made money and are doing it a second time. By the time you come to Zimit, you had money. It’s a different situation. The bootstrapping using services story is important in CPG. How did you get your first customer? What got you your first customer?
James Cramer: My partner and I were both employees of our previous companies. We met on a project that their company and our company were working on together. We were in our mid-20s. You can convince yourself of a lot of things at that age. We started to convince ourselves that we could make it on our own. We convinced ourselves that we could compete with the companies that we worked for even though they were billion-dollar organizations.>>>