Unscripted with @jrichlive ft. Kevin Frechette (Fairmarkit)

TL;DR

Fair Market CEO Kevin shares his journey of starting and scaling the company, including pivots, fundraising challenges, and a vision to disrupt the procurement space.

Transcript

all right we're live kevin good morning i guess good afternoon for you good morning to you how you doing i'm great man i'm in the uh ggb truckee office trying to squeeze in a few days up here with my kids before the summer's over believe it or not it's um we only have about five more weeks of summer so we're trying to get a few days in yeah but i'm... Read More

Key Insights

• 🌥️ Fair Market shifted its focus from price transparency to automating procurement processes due to customer feedback and identifying a larger problem in the market.
• ⌛ The company emphasized the importance of overcommunication, transparency, and prioritization during uncertain times, such as the COVID-19 pandemic.
• 😤 Kevin recognized the need to uplevel as a leader and learn to delegate, empowering capable team members to take ownership and make decisions.
• 🏂 Having independent board members and an executive coach has been valuable in gaining different perspectives and feedback to support personal and professional growth.
• 😤 Fair Market aims to disrupt the procurement space and eventually compete against large players like Amazon, rallying the team around this goal.
• 😨 Balancing work and personal life requires prioritization and setting boundaries, such as dedicating specific blocks of time to family and self-care activities.

Questions & Answers

Q: What inspired Kevin to start Fair Market and take the leap into entrepreneurship?

Kevin's background in sales, his father's work ethic, and the investment made by his father in the company all contributed to his decision to start Fair Market. He believed it was the right time in his career to take a risk and pursue his own venture.

Q: How did Kevin find his co-founders, Tariq and Victor?

Kevin and Tariq had previously worked together, and they shared a similar drive and passion for solving challenges. They realized the need for a technical co-founder and found Victor, who had the right background and mindset to tackle problems differently.

Q: What challenges did Fair Market face in its early years?

Fair Market initially struggled to raise capital, with many top-tier VCs requesting more traction before investing. They had to pivot their business model and pricing several times to better align with customer needs. Additionally, they faced setbacks when a term sheet from an angel investor fell through.

Q: How did Fair Market overcome funding challenges and secure funding?

After facing setbacks with VCs and angel investors, Fair Market decided to reach out to seed-level VCs and angels who were more aligned with their stage. They wrote their own term sheet and oversubscribed the round within a few weeks.

Summary & Key Takeaways

• Kevin started Fair Market to solve the problem of price transparency in the tech industry, but quickly realized the potential in addressing procurement inefficiencies.

• The company initially raised funds by signing up five customers on low-priced licenses, but pivoted its focus towards automating procurement processes for large companies.

• In the first year, Fair Market faced fundraising challenges but eventually secured funding, enabling them to hire great talent and mature as a business.