ScaleUp & Up – Details, episodes & analysis

"Most people don't get into entrepreneurship because they are passionate about accounting" — says Alex Wheldon, co-founder of Rho Banking, a New York-based technology company that raised 350 million dollars to disrupt the business banking sector in the United States.

Still, it goes without saying that even if you have the best possible product out there, your company has to be good at managing money. Otherwise, you might go down faster than you think. That is the exact reason why Rho Banking was founded by Alex and his co-founder Everett Cook, who grew it into one of the most well-respected fintech scaleups, which is now valued at almost half a billion dollars.

We caught up with Alex during his recent visit to Belgrade, Serbia, where IBB and Mia Biberovic had the opportunity to talk about his beginnings in music production and advertising to becoming a serial entrepreneur with a knack for innovation in the regulated industries.

"I truly believe in challenging conventional solutions and seeing the potential to solve fundamental financial management problems for businesses", said Alex who revealed that he wasn't initially interested in finances, but he learned through experience that managing cash flow and maintaining financial discipline are crucial to sustaining and growing a business.

"Rho, in a way, reflects this philosophy by aiming to simplify and enhance financial operations for businesses".

Our guest explained why Rho is not a bank, but is offering banking services and partnering with banks that are more inclined to offer traditional services such as lending and are not focused on the technology part. That is exactly the gap that Rho is filling in, with Alex explaining how their products are helping various businesses across different industries manage money more effectively — from early startups to well-established companies.

Despite his background in advertising, Alex uncovers why Rho is deeply focused on referrals for customer acquisition and not ads. He firmly believes that this approach allows Rho to maintain a close connection with customer needs and refine the product based on feedback. He also reveals how the company fundraised all the way to Series B and how his experience from the dot-com boom helped him deliver a greater value to investors.

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Timestamps:

00:00 - Intro
00:42 - What is the episode about?
01:54 - Not a bank, but...
03:15 - Musician with a knack for advertising
05:39 - Don't be foolish with your (company's) money
07:34 - The rule of First Principles
09:13 - Who are Rho's customers?
12:00 - Starting a business
14:05 - Working with competitors
19:14 - Truth behind funding
23:35 - Disrupting regulated industries
25:44 - Culture of risk evaluation
30:03 - Does the product change with scale?
34:08 - Looking for talent outside US
37:47 - Building out the culture of entrepreneurship
39:37 - The future of Alex in Rho

Why do we hire designers? Is it just to make things look pretty or can they actually drive revenue?

Well, according to Andy Budd, a proper design legend, one of the first UX designers in the United Kingdom and a VC nowadays, it's the latter.

We caught up with Andy during our recent visit to the How To Web conference in Bucharest, where we had the opportunity to pick Andy's brain on design and growth. He talked about the things that founders miss when it comes to design and about the things that designers miss and often overlook when it comes to actually running a profitable and scalable business.

As somebody who works on bringing those two sides closer through mentoring and consultancy work, our guest shared his views on product-led and founder-led marketing, noting that many founders are focused on product development and often overlook the significance of effective marketing and sales strategies:

"The founder’s involvement in sales and marketing is crucial for connecting with customers and building a successful growth strategy."

Throughout the episode, Andy took the time to explain why retaining users is a common challenge for startups, as founders often assume customers will instantly see the value of their product. He emphasized the need to prioritize usability and user onboarding, noting that customers usually need guidance to understand and utilize a product’s features fully. He stated:

"Founders should really resist the urge to continually add new features and instead focus on optimizing existing features to provide clear, accessible value."

Continuing our conversation, Andy underlined that UX plays an important role in a product’s success. Our guest encouraged founders to value design not just as an aesthetic element but as a strategic tool that can improve user engagement and business outcomes.

He also noted that design leaders should focus on measurable outcomes and collaborate with other departments to demonstrate the impact of design on the company’s growth and success — especially nowadays when organizations are trying to streamline their budgets.

Saving the best for last, Andy also gave us an insight into his latest book, The Growth Equation. This book summarizes the past 30 years of his work and discusses valuable principles for growing companies, teams, and revenue.

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Timestamps:

00:00 - Intro
01:49 - Falling in love with web design
03:38 - Discovering CSS
05:55 - Starting the first UX agency in UK
10:29 - Publishing "The Growth Equation"
13:37 - Founders on the frontlines
15:33 - It's not just about the product
20:47 - Usual mistakes about retention
25:40 - Understanding users
29:49 - What founders need to know about design
32:10 - Designing for profit
33:57 - Proving why design is valuable
37:09 - Design 2.0
39:56 - Being a team player

In this episode, we dive into a fascinating conversation with David Heinemeier Hansson, also known as DHH. As the creator of Ruby on Rails and co-founder of Basecamp, DHH shares insights on prioritizing profitability over investments, challenging mainstream business models, and the importance of building trust through admitting mistakes.

Join us as we explore the keys to success for scale-up founders, the significance of effective communication, and the potential for affordable products in a subscription-dominated industry.

Don't miss out on this engaging discussion that delves into the core skills needed for entrepreneurship, the power of writing as a communication tool, and the excitement of venturing into the unknown in the world of business.

Actually engage with your customers over WhatsApp, SMS and iMessage. Grow your startup or scaleup with Infobip’s platform – just as Uber, HubSpot and Meta! → https://bit.ly/44xYxqy

Mario Ancic, a former professional tennis player known for his Wimbledon appearances and Davis Cup victory in 2005 with Croatia's national team, has transitioned from the tennis court to Wall Street. Currently serving as Vice President at One Equity Partners, Ancic's journey from sports to finance was discussed in the third episode of the ScaleUp & Up podcast.

In the new episode, Ancic delved into his upbringing in Croatia, highlighting the support he received from his family in both sports and academics. He shared insights into the parallels between his experiences as a professional athlete and his subsequent career in finance, drawing from lessons learned on the court. Additionally, he discussed his education at Columbia University and the trajectory of his finance career, providing context to his current role at One Equity Partners.

Furthermore, the conversation explored Ancic's involvement in supporting businesses like Infobip, shedding light on Croatia's emerging status as a hub for innovative startups in Southeastern Europe. Ancic emphasized the importance of technical expertise in entrepreneurship and discussed the dynamics of investor-founder relationships, underlining the significance of personal connections and mutual commitment to creating value in the investment landscape.

Ivan Ostojic, Chief Business Officer at Infobip, has been immersed in science and technology since childhood. In the second episode of ScaleUp & Up podcast, Ivan discusses his journey from a fascination with technology and molecular biology to becoming a pivotal figure in the tech industry as a "business translator."

His academic pursuits include a doctorate in natural sciences from the University of Basel and a Master’s degree in management, technology, and economics from the Swiss Federal Institute of Technology. These studies melded his background in biomedicine with a keen understanding of emerging technology trends, ultimately leading to leadership roles at McKinsey & Company, where he co-founded and co-led the Global Technology Council.

Ivan emphasizes the significance of grasping both technological and business aspects to drive innovation. He underscores the role of business translators in bridging the gap between technical expertise and business impact, advocating for asking the right questions, iterating on insights, and integrating technical advancements to achieve business objectives. 

Additionally, he sheds light on the CPaaS industry's current state, particularly the emergence of conversational apps and the transformative potential of the conversational era. He elaborates on how businesses can harness these solutions to enhance customer experiences, stressing the importance of true omnichannel communication and the evolving role of AI in consumer interactions.

In the first episode of ScaleUp & Up podcast, we talked with our very own Silvio Kutic, CEO and founder of Infobip - Croatia's first ever tech unicorn.

Silvio gave us an insight into what made him quit his first job after just a couple of hours and pursue his passion for developing communication technologies which later turned into the creation of Infobip - a billion-dollar company and one of the leaders in the CPaaS industry which is actively working with WhatsApp and Uber.

We talked with Silvio about the early days of the company, what it's like to work with a family member and why the company chose to build their first campus in the same village where the company is founded. He shared with us how Infobip scaled its services to millions of end users, as well as his views on the future of SMS, WhatsApp, Message and RCS, as well as AI which is rapidly changing the landspace of communications.

What is the role of marketing in a successful tech company? Do marketers only care about the brand, or are they more user-focused? In today’s episode, we talked with Andrew Davies, CMO of Paddle, a unicorn valued at over 1,4 billion dollars.

We explored the critical role of marketing in navigating the multiple ceilings that scale-ups face as they grow – particularly the importance of investing in a brand to avoid escalating customer acquisition costs.

Andrew opened up about the thoughts and fears that keep him up at night, particularly the challenge of understanding and reaching new customer segments as the Paddle continues to scale. He emphasized the need for continuous innovation and testing to uncover new areas of growth - especially when expanding beyond a tightly defined ideal customer profile.
 
Paddle’s CMO addressed the challenges of navigating market fluctuations and the importance of observation over prediction in understanding market dynamics. He also discussed the company’s approach to product-led, sales-led, and marketing-led growth strategies and the differences between these strategies.
 
Towards the end, Andrew touched on the importance of branding for tech companies, discussing how a strong brand can reduce customer acquisition costs and enhance demand generation. Our guest concluded with practical advice on fostering a brand that resonates with customers and drives long-term success.

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Timestamps:

00:00 - Intro
01:22 - What keeps you up at night?
03:41 - Testing is key
05:08 - Serving small businesses globally
07:09 - Recognizing the challenges in SaaS
09:44 - Signs of recovery
11:56 - Looking for markets outside US
13:36 - Marketing for scaleups
16:33 - How is Paddle helping other businesses?
18:14 - Growing with acquisitions
21:25 - Buying audiences for marketing purposes
23:00 - Different types of growth
27:51 - Product led growth
29:29 - Aligning the team
31:22 - Relationships with analysts
36:50 - Branding for scaleups
38:47 - Branding lessons from Paddle
42:52 - Actually investing in marketing
44:04 - Acquiring ProfitWell (the documentary)
46:36 - Content marketing done right
51:27 - AI impacts marketing talent
53:47 - Scaling skills and expertise

How does one go from a music journalist to a founder and CEO of one of the most recognizable companies in the web dev area?

This week, we talked with Mathias Biilmann Christensen, who, alongside his co-founder Christian Bach, started Netlify - a web builder / hosting company that supports more than 35 million websites globally.

Matthias shared his journey of building Netlify and the concept of Jamstack, which he coined to revolutionize web development by separating the user experience from backend logic. Throughout the episode, he explains how nurturing a community and investing in it pays off big time.

Our hosts IBB and Mia Biberovic explored the early days of Netlify, including the company's strategy of targeting key influencers in the developer community and the importance of a product-led approach. Mathias talked about Netlify's pricing model, which included a free plan that catered to open-source projects, helping to drive adoption.

Speaking of supporting the community, Biilmann explained how he and his team intentionally branded Jamstack to be inclusive and larger than just Netlify. He emphasized the significance of genuine community building and the pitfalls of trying to position oneself at the center of a new category.

We also touched on the cultural differences between the tech ecosystems in the United States and Europe, with our guest highlighting the unique optimism and risk-taking mentality found only in Silicon Valley. He shared personal anecdotes about his background as a music journalist and how his journey into tech was shaped by his passion for programming and problem-solving.

Finally, Matthias opened up about the human challenges faced in entrepreneurship, particularly during his co-founder’s battle with cancer, and the importance of maintaining a healthy perspective on identity and roles within a startup.

He concluded the talk by discussing the value of a distributed company culture and how music continues to play a significant role in his life, drawing parallels between music and programming - saying how composers were the first programmers!

Interested in the whole interview? Click the video below or find us on Apple Podcast, Spotify, or Pocket Casts!

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Engage with your customers over WhatsApp, SMS and iMessage – just like Uber, HubSpot and Meta → bit.ly/44xYxqy

***

Timestamps:

00:00 - Intro
01:18 - What is Jamstack?
04:24 - Scaling Netlify
11:26 - Make scaling easier and more successful
17:38 - Early investors
20:54 - Why is Europe GOOD and BAD for startups?
26:16 - Setting up corporate and human values
37:25 - Personal story of Mathias Biilmann

What does it take to become one of the most prominent players in Web3 / blockchain community? How do you build tools for Web3 developers and how do you market them? How do you do all of this and become one of the fastest growing developer tooling companies?

This week, we talked to Bogdan Habic, co-founder and CTO of Tenderly, a full-stack infrastructure for Web3 professionals which was founded in 2018. and has so far raised almost 60 million dollars from VC’s such as Accel, Point Nine, Version One Ventures and Spark Capital. 

In this episode, Bogdan shared his experience with starting a Web3 company by coming from a Web2 community, highlighting the importance of understanding developer mindset and the need for reliable tools that they can use.

Our hosts, IBB and Mia Biberovic, explored how Tenderly transitioned from a tooling company to a broader infrastructure provider thanks to their investors and mentors. Habic emphasized the significance of community engagement and direct communication with users, which was pivotal in shaping their product offerings.

He also touched upon the subject of hiring in Web3 space, noting that most of their team comes from Web2 backgrounds and required training in order to adapt to the new enviroment. This nurturing approach became a cornerstone for their successful growth.

Throughout our conversation, Bogdan shared valuable lessons on navigating the complexities of developer marketing, the importance of building a strong company culture, and the need for continuous learning and adaptation in a rapidly evolving industry. Habic noted the parallels between the current AI boom and the Web3 landscape, suggesting that both fields are on the brink of mainstream acceptance.

Towards the end, our guest emphasized the importance of giving back to the community through initiatives such as Garaza which is aimed at supporting and mentoring the next generation of founders.

Timestamps:

00:00 - Intro
01:52 - How do you scale in Web3?
04:15 - Build it and they will come?
06:45 - Engineers as consumers
08:33 - Investor pep talk
10:52 - Market effect on Tenderly
12:52 - Web3 over promised the timeline not the value
15:24 - Hiring for Web3 space
18:57 - The NEW 20% RULE
23:49 - Community is everything
27:01 - Communicating with developers
28:32 - Giving back with Garaza

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Have you ever wondered what building and scaling products from the frontlines is like? To be at the intersection between customers and teams shaping digital tools and products?

This week, we discuss those questions with Hamid Palo, a former Director of Product at Trello and Uber with extensive knowledge and experience in product development. Our hosts, IBB and Mia Biberović, caught up with Hamid in Brooklyn, where this seasoned product leader talked about his career and experiences and shared valuable insights into the world of startups, scale-ups, and large organizations.

Hamid talked about his time at Trello, where he joined the company as employee number five. He recounted pivotal moments that led to Trello's acquisition by Atlassian, shedding light on the emotional rollercoaster and strategic decisions that followed. He reflected on the importance of people-first leadership and the challenges of letting go of ownership in a rapidly evolving organization.

Since our guest spent almost nine years at Trello and Atlassian, he also discussed people development in large organizations and how decision-making works from top to bottom.

After a short sabbatical in 2022, Hamid joined Uber, where he worked on grocery delivery, a new product at the time, bringing it to market from zero to one. He highlighted the significance of team ownership, accountability, and the iterative process of scaling a new product while emphasizing the value of storytelling and innovation.

As the conversation unfolded, Hamid shared his transition to working on his own AI company (like everybody these days!), showcasing his entrepreneurial spirit and commitment to tackling inefficiencies in the construction industry. Join us as we explore the intricacies of scaling products in the ever-evolving landscape of technology and business!

Timestamps:

00:00 - Intro
01:14 - In the beginning there was a developer
03:10 - Working on Trello for mobile
04:02 - Transition to product management
06:00 - Product management at Trello
09:06 - Localization vs. internationalization
10:59 - Trello's acquisition
13:35 - Atlassian did it the right way
14:30 - Culture is the key
15:28 - Atlassian's mistake
18:17 - Personal growth at Atlassian
21:05 - Taking time off
22:24 - Working on M&A
24:37 - High level decision making
26:38 - Putting out fires
30:09 - What makes a good leader?
32:35 - The importance of team ownership
34:13 - Boosting people's creativity
37:01 - Building new products at Uber
38:02 - How do you go Zero-to-One?
41:19 - Starting an AI company
43:33 - Pen and paper baby!

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