EyeRate CEO Ray Weisberg on scaling from $0 to $10M + Steve Jurvetson on disruptive tech | E1765 | Summary and Q&A

TL;DR

Investing in disruptive innovations, such as SpaceX and Tesla, can lead to transformative change in industries and create new market opportunities.

Key Insights

• 🏍️ Disruptive innovations leverage rapid iteration cycles, software development, and simulation technologies to challenge established players in industries.
• ✊ Moore's Law, which governs the exponential growth of computing power, drives transformative change and presents new opportunities for investment.
• 🥺 New entrants, rather than established companies, are the primary drivers of disruptive innovation and often lead the charge in transforming industries.

Transcript

one of the great ironies is you and I don't talk that often because you're crushing it and this is one of the things I train investors your great Investments you're going to just open up an update one day and it's going to be like oh yeah we're getting close to 10 million in revenue and when you invested they were at two or three thousand a month w... Read More

Questions & Answers

Q: What is the key driver of disruptive innovation in various sectors?

The exponential growth of computing power, driven by Moore's Law, enables rapid iterations and simulations that can revolutionize industries.

Q: How can new entrants disrupt established industries?

New entrants can disrupt established industries by leveraging software development, simulation technologies, and rapid iteration cycles to create innovative solutions that challenge traditional players.

Q: How does SpaceX exemplify disruptive innovation?

SpaceX's success in the aerospace industry demonstrates how new entrants can disrupt established sectors through the development of fully autonomous vehicles, rapid software iterations, and cost-effective solutions.

Q: What impact does Moore's Law have on the future of investing?

Moore's Law drives exponential growth in computing power, enabling the emergence of new technologies and business models that have the potential to revolutionize various industries.

Q: What is the key driver of disruptive innovation in various sectors?

The exponential growth of computing power, driven by Moore's Law, enables rapid iterations and simulations that can revolutionize industries.

More Insights

• Disruptive innovations leverage rapid iteration cycles, software development, and simulation technologies to challenge established players in industries.

• Moore's Law, which governs the exponential growth of computing power, drives transformative change and presents new opportunities for investment.

• New entrants, rather than established companies, are the primary drivers of disruptive innovation and often lead the charge in transforming industries.

• Investing in disruptive innovations requires a long-term perspective and an understanding of the potential for profound change in various sectors.

Summary

In this video, Jason Calacanis interviews Ray Weisberg, the founder of Ira, a company that focuses on employee-driven growth and helps service businesses get authentic reviews. They discuss the growth of Ira, the importance of framing and branding, and the challenges of scaling the business. They also talk about the need for marketing and finance expertise as the company continues to expand.

Questions & Answers

Q: What was the original idea for Ira and how did it evolve?

The original idea for Ira was to create a point of sale review system on iPads for businesses, but it didn't work because customers didn't engage with it. They then pivoted to attaching employee incentives to customer engagement rates, which led to the concept of employee-driven growth. This idea evolved into a platform that pays service employees for getting mentioned in online reviews, effectively driving business growth through authentic customer experiences.

Q: How has Ira grown since its inception?

Ira is now in over 4,500 businesses with 90,000 employees on the platform. They are approaching $10 million in revenue and expect employees on the platform to earn a million dollars per month by the end of the year. They have seen significant growth in both the number of businesses using their platform and the earnings of employees through customer reviews.

Q: How did the concept of employee-driven growth come about?

The concept of employee-driven growth was developed as a way to differentiate Ira in the competitive review management market. The founders realized that service employees, who have a direct impact on customer experiences, were under-recognized and underpaid. By incentivizing employees to get mentioned in online reviews, Ira was able to create a unique value proposition and establish a new category in the market.

Q: How has marketing played a role in the growth of Ira?

Currently, Ira does not have a dedicated marketing function within the company. However, they have leveraged their unique value proposition and customer success stories to generate interest and attract new customers. Moving forward, they plan to build a marketing team and develop a two-year marketing plan to continue driving growth and market awareness.

Q: What are the challenges of scaling a company like Ira?

One challenge of scaling is finding executives who have experience with different stages of growth. The founding team may need to bring in new leaders who can navigate the transition from 10 million to 100 million in revenue and beyond. Additionally, maintaining open and candid communication within the founding team is crucial to address challenges and ensure everyone remains focused and committed to the company's growth.

Q: How can Ira level up its management team to support future growth?

One area for improvement is bringing in a dedicated CFO to handle the financial aspects of the business as Ira continues to scale. It is also important to find executives who have experience scaling companies and have successfully navigated similar growth phases. Building a strong management team that can bring new perspectives and expertise will be key to sustaining and accelerating the company's growth.

Q: How can Ira leverage its relationship with Launch to aid future fundraising efforts?

The introduction and network of Launch have been helpful in making valuable connections for Ira during past fundraising efforts. Being associated with a well-known and respected accelerator like Launch can help build trust and credibility with potential investors. Introductions and endorsements from Launch can also ensure that Ira receives attention from the right investors who are aligned with their business model and goals.

Q: Has the association with Launch helped in securing meetings and funding from investors?

Yes, the association with Launch has played a significant role in securing meetings and funding from investors. When introduced as a Launch company, potential investors are more likely to take the meeting and consider investing in Ira. The reputation and track record of Launch adds credibility and helps overcome some of the initial barriers to entry when approaching investors.

Q: What other areas of expertise or support does Ira need as it continues to grow?

In addition to marketing and finance, Ira will need to consider other areas of expertise as it scales. It may be beneficial to bring in external advisors or consultants to provide guidance in specific areas such as operations, legal, or technology. This additional support can help address any gaps in knowledge or experience and ensure the company has the necessary resources to navigate future growth.

Q: What are the key takeaways from the conversation with Ray Weisberg?

The conversation highlights the importance of framing and branding in establishing a unique position in the market. It emphasizes the need to create a category rather than simply improving upon existing solutions. Additionally, the discussion underscores the significance of building a strong management team, leveraging marketing strategies, and securing the right investments to support future growth. Overall, the key takeaway is that constant innovation, candid communication, and strategic partnerships are instrumental in scaling a disruptive technology company.

Summary & Key Takeaways

• Investing in companies that are unlike anything seen before and adjacent to existing industries can lead to profound transformations and reinvention of entire industries.

• The exponential growth of computing power, driven by Moore's Law, is a key driver of disruptive innovation in various sectors.

• SpaceX's success in the aerospace industry is an example of how new entrants can lead the charge in disrupting established industries by leveraging rapid iterations in software development and simulation technologies.