Zvi Band: Founder of Contactually - coder, entrepreneur, and startup mentor

Summary: In this episode, Dave interviews Zvi Band, the founder and CEO of Contactually, a CRM tool designed to actually help users manage client relationships. Contactually has already raised over $12 million in funding, and is aiming to grow into a billion-dollar business. Listen as Dave and Zvi talk about how investing in relationships secured Zvi's funding - and break down the process of researching, pitching, and funding a incredibly successful startup, step by step. Time Stamped Show Notes: 01:00 – Opening of podcast 02:20 – Developing a great company culture is a process 02:55 – Dave introduces Zvi 03:30 – Contactually is a platform for businesses that rely on relationships 04:50 – Differs from other CRMs in its focus on nurturing relationships 05:50 – How do we enable businesses to build personal and authentic relationships? 07:00 – We developed a mission to be thought leaders: people want to hear about it 08:20 – "Bottom-up adoption" - tools that users choose 09:00 – CRMs have largely become reporting tools - we wanted something else 09:50 – "How do we help the end user?" 10:50 – Relationships can only exist between people - not businesses 12:30 – Currently in a snap-back from the first generation of social media 13:40 – Zvi is a software developer by trade 14:30 – Very introverted through school - but saw the importance of relationships 15:00 – Worked as a consultant by knowing people 16:00 – Saw a gap for a product that helped build better relationships 18:00 – The first funding offer for Contactually led to a hard decision for Zvi and to close down his existing business 20:00 – A walkthrough of Zvi's decisions around funding 21:00 – "I needed a 'burn the boats' moment" 21:40 – Knew he wanted to focus on Contactually - so applied for venture capital 22:20 – First round of funding was $50k from 500 Startups 24:10 – Most incubators take around 5% of the business 24:50 – Then raised $500k from angel investors 25:40 – "Investors are investing in either the track, the horse, or the jockey" 26:30 – Zvi's reputation allowed him to attract investors 27:20 – There's no personal risk with angel investors apart from reputation 28:30 – Get a good start-up lawyer! 30:30 – Two types of funding: equity or convertible debt 32:00 – Investors currently own 30-40% of the company 33:40 – After angel investment, moved on to seed financing to raise $3.5 million 35:30 – Series A investment raised $8 million in capital 37:00 – Not currently profitable: they're investing in rapid growth 39:00 – "Ideas mean nothing: execution means something" 39:30 – How do you turn an idea into a product? 39:50 – "The moment you have a good idea - turn around to someone and pitch it" 40:50 – If there's a market - set up a small landing page and see if people will sign up 41:30 – Talk to the people that sign up: see what they want 42:10 – You'll now have enough specifications to start building a minimum viable product 43:10 – Start with a small, simple, high-quality product 44:30 – Create a visual representation: wire-frame tools like Mockingbird or Balsamiq 45:00 – Representations let you talk to developers and potential users 45:50 – Decide who you'll learn from: users or designers. 47:10 – In-house or outsourced development? Zvi suggests finding a co-founder. 49:00 – How to connect with Zvi: Twitter and email 3 Key Points: The best way to grow your business and your life is to build and maintain relationships with other people. Your reputation and your networks are valuable resources. If you have an idea that seems promising: research your market. Your potential users are your best educational tool. Become a thought leader in your area. You'll gain exposure not by trying to sell your product, but by having something interesting to say. Resources Mentioned: Entrepreneur's Organization – The EO Network Contactually - A platform to manage client relationships effectively 500 Startups - A startup incubator Mockingbird and Balsamiq - tools to create wireframe mockups of your product Credits: Show Notes provided by Mallard Creatives