David Sinkinson, co-founder of AppArmor, shares his entrepreneurial journey and the lessons he learned along the way. He challenges startup myths and emphasizes the importance of finding the right co-founder. The conversation covers topics such as the need for funding, the psychology of being a founder, the evolution of AppArmor's product, the slow sales cycle in selling to colleges, and the impact of COVID-19 on the business. AppArmor was eventually sold for $40 million.
The conversation explores the psychology behind valuations and acquisitions in the software business. It highlights the concept of the 'mighty middle' where businesses sell for millions of dollars, but are not the multi-billion dollar giants. The discussion also touches on the challenges and opportunities of building a SaaS company, the importance of timing in seeking funding, and the benefits and complexities of working with family members. The guest also shares insights from his book 'Startup Different' which offers a chronological account of his company's journey and busts 33 myths about entrepreneurship.
Takeaways
- Challenge startup myths and evaluate what is truly necessary for your business.
- Finding the right co-founder who complements your skills and provides support is crucial.
- The evolution of a product is inevitable, and listening to customer feedback is essential for success.
- Selling to colleges can have a slow sales cycle, but once you gain traction, customer loyalty is high.
- Adapting to market changes, such as the impact of COVID-19, requires innovation and listening to customer needs.
- Building a successful business often takes years of hard work and perseverance. The 'mighty middle' refers to businesses in the software industry that sell for millions of dollars, bridging the gap between small startups and multi-billion dollar companies.
- Building a SaaS company to reach a million dollars in revenue is challenging but doable, while reaching 10 million is a whole different level of difficulty.
- Timing is crucial when seeking funding, as it's important for the market to develop and understand the product before investing heavily.
- Working with family members in a business can be successful if there is trust, complementary skills, and effective communication.
- The book 'Startup Different' provides a chronological account of the author's company journey and offers insights and lessons for young entrepreneurs.
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This episode is sponsored by Full Scale:
https://fullscale.io/
Find out more about Startup Different here:
https://www.startupdifferent.com/
Learn more about David Sinkinson here:
https://www.linkedin.com/in/davidsinkinson/
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Sound Bites
- "We wanted to make sure that entrepreneurs and founders can avoid some of the mistakes that we made."
- "Funding might actually leave your business worse off than if you hadn't pursued it."
- "Being a single founder is hard. You need someone to talk to, cheer with, and pick you back up in the low moments."
- "Most people think of software businesses as being these multi-billion dollar huge sales that happen later coming to nowhere kind of thing."
- "It's relatively easy to build a SaaS company that gets to a million dollars a year in revenue."
- "We were extremely profitable, turning a 60% profit by our final year."
Chapters
00:00 Introduction and Background
04:10 The Importance of Finding the Right...