Building a $100M+ Company - Matt Bertulli @ Pela Interview

TL;DR

Matt Bertulli discusses scaling Pela and securing Jay-Z as an investor.

Transcript

• Scale and paid is about speed, right? So, outsourcing creative to me doesn't work, not at scale. So if you're a small brand, you can outsource creative all day long because your cycles are much longer. - Yeah. - My cycles are daily. (upbeat music) - Matt Bertulli, what's up, dude? - You almost did it.
• I know. - You almost said the name wrong. (... Read More

Key Insights

• Scaling a physical goods company like Pela involves unique challenges such as inventory management, capital structure, and systems that can break under rapid growth.
• Pela's mission is to eliminate a billion pounds of waste annually, focusing on everyday products with a graceful end of life, which aligns with their environmental impact goals.
• Matt Bertulli emphasizes the importance of courage in business, encouraging taking calculated risks to achieve growth and innovation.
• Effective paid advertising requires understanding attribution and being willing to invest in campaigns even when immediate returns aren't evident.
• Creative ideation at Pela involves listening to customer feedback and iterating on ideas to create engaging and relevant advertising content.
• Building a team capable of scaling involves having dedicated media buyers and a creative team that can rapidly produce and iterate on content.
• Matt's approach to advertising involves balancing technical media buying with creative intuition, often testing unconventional ideas to see what resonates with audiences.
• Pela's growth strategy includes leveraging cultural events like Earth Day to step up audience engagement and brand awareness.

Questions & Answers

Q: What breaks when you scale so fast?

When scaling rapidly, various elements can break, including inventory levels, capital structures, and operational systems. A company must anticipate these breakpoints and build infrastructure and processes ahead of growth to manage these challenges effectively.

Q: How did Matt Bertulli secure Jay-Z as an investor?

Matt Bertulli secured Jay-Z as an investor through an introduction to Jay Brown and Larry Marcus of Marcy Venture Partners. Their interest was piqued by Pela's mission and cultural relevance, leading to a quick decision to invest after understanding the company's vision and potential impact.

Q: Why is 'courage' one of Pela's core values?

Courage is a core value at Pela because it encourages taking calculated risks and making bold decisions that can lead to significant opportunities and growth. It aligns with their mission to innovate and challenge the status quo in reducing environmental waste.

Q: What do most founders miss when it comes to paid ads?

Many founders miss the importance of understanding attribution in paid advertising. They often focus too narrowly on immediate ROI from specific campaigns, rather than looking at broader KPIs and being willing to invest based on overall business growth metrics.

Q: How does Pela approach creative advertising?

Pela approaches creative advertising by listening to customer feedback and using it to inform their campaigns. They test unconventional ideas and iterate quickly based on performance, focusing on engaging and entertaining content that resonates with their audience.

Q: How do you build a team that’s able to scale?

Building a scalable team involves having specialized roles such as media buyers and a creative team that can produce and iterate on content rapidly. This structure allows for quick response to market changes and the ability to capitalize on successful campaigns.

Q: What is mission market fit, according to Matt Bertulli?

Mission market fit, as described by Matt Bertulli, goes beyond product market fit by aligning a company's mission with market needs. It involves creating products that not only meet consumer demands but also contribute to a larger purpose, such as environmental sustainability.

Q: What role does customer feedback play in Pela's strategy?

Customer feedback is crucial in Pela's strategy. It informs product development and advertising campaigns by highlighting what resonates with consumers. This feedback loop allows Pela to create products and marketing messages that align with customer values and preferences.

Summary & Key Takeaways

• Matt Bertulli shares insights into scaling Pela, a company focused on reducing waste with biodegradable products, and discusses the challenges of rapid growth in a physical goods business.

• The conversation includes how Pela secured investment from Jay-Z by aligning with cultural relevance and the importance of having a mission-driven approach to business.

• Matt emphasizes the role of creative advertising, leveraging customer feedback, and the necessity of courage in making strategic business decisions to drive growth.