Start Up Stories

Thursday, July 28, 2016 • Category: A taste of DEI discussions Leave a comment (0)

Technology hub, innovation hot spot or (new classic ) Start Up Nation  – anyone based here knows that none of this is hype. There are around 3000 start ups and many of us work for or with these crazy little powerhouses. Recently we asked for Start Up Stories. There was a good discussion about the value of options, comments about the difference between start ups and working as a supplier to the larger companies and this – which really tells it like it is…….

Hey,

 One story I would like to share is related to one of my customers:

A young startup after 1st round, has a product and initial sales. Sales exceed the projections by 25% and the future looks promising.

In order to align with customer requests, the company asked to add several employees in the budget for next year.

Honestly – I was certain the budget will pass smoothly. It was obvious the company is on the right track (and did not need fund raising for the next year).

We came to the board meeting, which was controlled by the main shareholder who was not Israeli and very rigid. He was very pleased with the results, but insist the company should not recruit further employees.

We felt we came to a “dead end” – we did everything by the book but still there was no approval.

During the meeting I sent several SMS messages to the CEO (not very polite, but sometimes a must).

We closed the meeting and went to dinner.

At dinner time we had some small talk and we understood that due to some pressures from the shareholder’s company (which was a traded company, not a VC), they could not bare the extra loss at this point of time.

Understanding his position, made us re-think the situation and bring an updated budget version that had some compromises on one hand, but on the other ensure the company will not lose their main goals.

This is what I like when working with startups – the constant challenge of creative thinking and solving the “sodoku” with business elements along with relationships and interactions.

Have a great day,

Ayelet

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