How I Raised $17M in 14 Days | Pylon, Marty Kausas
In this episode, we sit down with Marty, co-founder and CEO of Pylon, the first customer support platform built specifically for B2B companies. His key insight: 👉 "All you need is one thing to work out, and that'll blow away all the failures in the past" – demonstrating the resilience required thro
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- 00:00being a Founder is very very stressful
- 00:02should I keep going do you have a job do
- 00:04you have a career that's going to going
- 00:05to work out my suggestion is frankly if
- 00:07you feel like you should stop going you
- 00:09should probably stop going and if you
- 00:10can't not continue then you should
- 00:13continue hey you know this is what you
- 00:14need to be doing you need to keep trying
- 00:16and all you need is one thing to work
- 00:18out and then that'll you know blow away
- 00:20all the failures in the past I have
- 00:22considered giving up many times but
- 00:25there was just something nagging inside
- 00:26of me that wouldn't let me interviews
- 00:28like this is that hey I'm someone who
- 00:30already gone through it maybe you can
- 00:31learn from some of my mistakes instead
- 00:32of going through the same two years of
- 00:34pain that I did as well I think you
- 00:36should stop being lazy and learn how to
- 00:38build yourself my name is Marie I the
- 00:41co-founder and CEO of pylon we're
- 00:43building the first customer support
- 00:44platform built for B2B companies we're
- 00:46going to consolidate all the products
- 00:48that you would get from a customer
- 00:49support platform customer success
- 00:51platform product marketing I'm tooling
- 00:53for Solutions and Professional Services
- 00:55teams and combine them all into one our
- 00:57initial Insight was that a lot of people
- 01:00are talking to their customers not over
- 01:01email anymore but they're starting to
- 01:03open up shared slack channels Microsoft
- 01:05teams channels WhatsApp we got to 120k
- 01:08in AR within 3 months of having the idea
- 01:11got our first customer in 14 days we've
- 01:13raised $20 million from investors like
- 01:15injuries and Horwitz General Catalyst
- 01:17and white combinator frankly the vision
- 01:19is shaping up so fast um because of
- 01:21what's evolving with
- 01:25AI might sound stupid but I was
- 01:27definitely inspired by movies like The
- 01:29Social Network or Pirates of Silicon
- 01:31Valley kind of learning about how those
- 01:32companies got started I guess I could
- 01:34relate a little bit to the characters in
- 01:36the movies where like oh I'm kind of
- 01:37nerdy too I like computers I like
- 01:39programming and maybe this could be a
- 01:41path I could go on too YouTube videos
- 01:43were an early teacher for me and then
- 01:45started making games and high school
- 01:46building website then it was only kind
- 01:48of sophomore year of high school where I
- 01:50joined our robotics team where I got
- 01:52really excited about after leaving high
- 01:53school I went to Purdue to study
- 01:55computer science I immediately fell in
- 01:57love with hacker culture there was this
- 01:59club prod hackers where every weekend
- 02:01they would spend time just writing code
- 02:03and just trying to build games or
- 02:05applications while I was in college I
- 02:07started to do internships of course so I
- 02:09worked at places like Qualcomm and San
- 02:10Diego I worked at Yelp as an intern and
- 02:13then airb B at airb B and I joined the
- 02:15payments team there and so I was working
- 02:17on back in infrastructure helping
- 02:19basically money move around the world to
- 02:20be honest I don't feel like it prepared
- 02:22me that much for startups I actually
- 02:23think it probably was not helpful it was
- 02:25anti- helpful I learned all the things
- 02:27not to do because big companies operate
- 02:28so differently and so slow compared to
- 02:30Startup while I was at Airbnb I really
- 02:33was not enjoying the work I was doing I
- 02:35was like looking at all these other
- 02:36Founders who were starting companies on
- 02:38the side even the ones who were failing
- 02:40I was more excited about what they were
- 02:41doing and the pot they were on than what
- 02:42I was doing at airb be when I left airb
- 02:44B I started working on one idea which
- 02:46was a health Tech idea we were trying to
- 02:47build an app for people with Parkinson's
- 02:49disease to better understand their
- 02:51condition it was a terrible idea for a
- 02:53lot of reasons and we spent a whole year
- 02:55on it the end I decided to Pivot not
- 02:57only away from the idea and the industry
- 02:59of Health Tech in general but also the
- 03:01co-founder I was working with even when
- 03:02I started working with my now
- 03:03co-founders adith and Robert we spent
- 03:06months pivoting together until we
- 03:07finally came up with
- 03:11pylon what we were interested in doing
- 03:13was building a really big fast growing
- 03:16company I have considered giving up many
- 03:19times I think in the back of your head
- 03:20you're always questioning okay should I
- 03:22keep going but there was just something
- 03:24nagging inside of me that wouldn't let
- 03:26me hey you know this is what you need to
- 03:27be doing you need to keep trying and all
- 03:30you need is one thing to work out and
- 03:32then that'll you know blow away all the
- 03:33failures in the past pivoting is really
- 03:36really hard you are going to Pivot a lot
- 03:39and you're going to Pivot so much that
- 03:41my co-founders and I we call it pivot
- 03:42hell now once you actually get into
- 03:45pivot hell and you start working with
- 03:46people and every week you might be
- 03:48switching ideas it becomes really really
- 03:50hard to keep going your parents are
- 03:52going to ask you what you're doing with
- 03:53your life your girlfriend or boyfriend
- 03:55are going to question hey like should
- 03:57you maybe start looking for a real job
- 04:00and you're also going to have this like
- 04:01creeping doubt that hey maybe I'm not
- 04:03actually good at this and uh should I
- 04:05keep going my suggestion is frankly if
- 04:07you feel like you should stop going you
- 04:09should probably stop going and if you
- 04:10can't not continue then you should
- 04:13continue and that was the case for me I
- 04:15basically didn't feel like I had a
- 04:16choice I had to keep going because
- 04:18that's just how my brain is wired one of
- 04:19the learnings for us was you just have
- 04:21to start in a really really big Market
- 04:24what type of idea you want to be working
- 04:26on to make something really big that can
- 04:28grow really fast what we did was we kind
- 04:30of like observed the biggest software
- 04:32companies in the world and turns out
- 04:34there aren't that many public SAS
- 04:36companies if you look at them like
- 04:37they're probably 76 uh Billion Dollar
- 04:40Plus public software companies that are
- 04:42B2B and of them almost all of them are
- 04:44horizontal SAS products meaning hey
- 04:46they're selling uh products that can be
- 04:48sold into almost any industry so think
- 04:50like payroll it sales marketing customer
- 04:53support Etc we decided okay let's to
- 04:56make sure we don't get stuck in a market
- 04:58let's go after something really big so
- 04:59we chose kind of post sales customer
- 05:01support as a category to go explore what
- 05:04we did was we went on LinkedIn And We
- 05:06messaged uh 40 people a day that's what
- 05:08LinkedIn would let you do let's say 7%
- 05:10of those people respond you know would
- 05:12create a cycle of us just cold
- 05:13interviewing people in Customer Support
- 05:16roles that we wanted to learn from I
- 05:18think you need to be very clear with
- 05:19yourself what type of company you want
- 05:20to build we wanted to build something
- 05:22explicitly very big and for us that
- 05:24meant a $10 billion market cap public
- 05:26company that was making let's say a
- 05:28billion dollars in revenues and also
- 05:30fast growing meant that usually there's
- 05:32some sort of emerging Trend that's
- 05:33happening in the world where you can
- 05:35capture that and grow with it so where
- 05:36we saw this emerging trend of B2B
- 05:38communication moving away from email to
- 05:40kind of new channels if I were going
- 05:42through and trying to find ideas now the
- 05:45strategy we used I think can be
- 05:47effective for other people we basically
- 05:48decided okay we're going to explore the
- 05:50customer support and success space um
- 05:52you know kind of horizontal category and
- 05:54then within it we said we're going to go
- 05:56and cold interview people also at the
- 05:58same time a was popping up and turns out
- 06:01all the data is flowing through pylon is
- 06:03conversational so now for the first time
- 06:05ever There's an opportunity to structure
- 06:06it who have newer types of roles so like
- 06:09new job titles that didn't exist let's
- 06:11say 10 years ago a lot of customer
- 06:12success managers support Engineers
- 06:14Solutions Engineers those people didn't
- 06:16exist 5 years ago now they did so we
- 06:18thought hey new roles might mean new
- 06:20workflows which means new software and
- 06:22maybe there's opportunity
- 06:25there the best time to raise a series a
- 06:28is when you're going to get the terms if
- 06:30investors are pounding on your door even
- 06:32if you haven't hit a certain Revenue
- 06:34Milestone it might be the right time to
- 06:35just go and take that we raised our $3.2
- 06:38million seed rone from General Catalyst
- 06:40in 6 days that's a catchy headline and
- 06:42and it did really feel like we were
- 06:44living in an episode of Silicon Valley
- 06:46the story is we were 2 months into our
- 06:48YC batch 3 months old as a company
- 06:50overall we were probably around like
- 06:5160,000 in annual revenue at the time 2
- 06:54months into YC that's when people start
- 06:56to think about fundraising bring on
- 06:57investors before the end of the batch
- 06:59well we did was we scheduled as many
- 07:01calls with VC's in the course of one
- 07:04week tried to create some sort of like
- 07:05time pressure between the investors
- 07:07themselves spreading it out basically
- 07:09going in with the mentality and kind of
- 07:11signaling to every investor hey yeah
- 07:13we're fundraising really hard this week
- 07:15and there might not be time for
- 07:16conversations next week so we kind of
- 07:18need to knock everything out uh right
- 07:20now all at once every time we got in
- 07:23touch with an investor it was important
- 07:24how they heard about us so instead of
- 07:26just like cold emailing investors
- 07:27directly saying hey we're pil on like
- 07:29you should invest in us we instead got
- 07:32Founders that they respected and knew um
- 07:34some that were even our customers
- 07:35already go message them and say hey VC I
- 07:38know this founder the founder pylon
- 07:40they're going to YC right now are you
- 07:42talking to them yet you should because
- 07:44they're a hot company I think what
- 07:45they're working on is really good we got
- 07:47a bunch of really great introductions
- 07:49through that and that just meant that
- 07:50the investors were coming directly to us
- 07:52like basically ready uh to have serious
- 07:54conversations and we'd skip straight to
- 07:56partner meetings the social proof was
- 07:57just already there and at seed round
- 07:59social proof is everything your business
- 08:01is still so nent it's so hard to kind of
- 08:03understand you know where you're going
- 08:04to go so having Founders vouch for you
- 08:06who the investor trust is is really
- 08:08really important to give you a sense of
- 08:10the timeline here so we start our
- 08:12initial conversations with investors on
- 08:14I guess it was a Monday Wednesday is
- 08:16when we had our first discussion with
- 08:18General Catalyst who eventually let our
- 08:19seed Dr Friday we had in-person partner
- 08:22meeting with General Catalyst uh
- 08:24investors and then Saturday went to the
- 08:26apartment of one of the investors uh
- 08:28went to the roof had like kind of a
- 08:30social conversation and by night time
- 08:32that same day they gave us uh a verbal
- 08:34offer that they wanted to invest the
- 08:36general advice that we got was hey find
- 08:38people who are good partners for the
- 08:40long term who have a reputable brand um
- 08:42that brand then helps you bring on
- 08:44employees because you have that social
- 08:45proof and then we'll also help you you
- 08:47know close customers they can help you
- 08:49get investors for the next round so
- 08:51General Catalyst was basically the top
- 08:53of our list and so we were going after
- 08:54funds like them to for for the seed run
- 08:57the whole process took around 14 days at
- 08:59the end of 14 days we ended up closing
- 09:01with andreon um who led a $17 million
- 09:04series a run the process of like talking
- 09:06to all those investors was not easy they
- 09:09actually tried to fill your calendar as
- 09:11much as possible to make sure that you
- 09:12don't talk to other people once they
- 09:14express interest because there's only
- 09:15downside for them to wait if they
- 09:17express interest then they know that
- 09:18other investors will suddenly get
- 09:20interested just because of that like
- 09:21social Dynamic low dilution was the
- 09:23thing that was really important for us
- 09:24we just didn't want to sell 25% of the
- 09:27company the only way to get low dilution
- 09:29is to have a competitive round we want
- 09:30INRI into better terms then you have to
- 09:33go to someone else they respect so you
- 09:34have to go to like a benchmark or
- 09:36Sequoia and andri has to feel like
- 09:38they're going to lose you if they do not
- 09:40lower the dilution amount it's kind of
- 09:41this like social game where they need to
- 09:43make the terms better for you and the
- 09:44company when he was trying to figure out
- 09:46how to have a good fundraise he
- 09:47basically was like okay how do you have
- 09:50a fundraise fast like the Twitter guys
- 09:52that was the example he gave and so he
- 09:53asked investors he's like why did the
- 09:55Twitter guys have such a fast fundraise
- 09:57there are actually no secrets it's you
- 09:58have to have a really good team building
- 10:00in a really big Market with a really
- 10:02good product that people love and you
- 10:03know high potential for growth you have
- 10:05all those things you've kind of already
- 10:07done all the work here are the numbers
- 10:08here's the growth rate here's you know
- 10:10what customers are saying and they're
- 10:11just going to be convinced based off of
- 10:12that so really just the fundamentals are
- 10:14what's actually
- 10:18important basically riding a big wave
- 10:22and then we have the founder SL compan
- 10:24that's a a great Surfer and so as a
- 10:27result you can surf the the big wave hi
- 10:30I'm uh tah Nam a co-founder of storm
- 10:33Ventures and also co-author of uh
- 10:36survival to thrival I started working in
- 10:38Silicon Valley in 1985 and then uh
- 10:41started storm in 2000 we've invested in
- 10:45uh over 200 B2B software companies since
- 10:48then of which 12 have become unicorns
- 10:50probably the best knowns are like
- 10:52maretto we also have uh unicorns like
- 10:55Vado techon algolia pipe drive and so
- 10:59forth want to talk to you about what
- 11:01happens after you unlock growth in other
- 11:03words you've spent all this effort to
- 11:06catch the wave and how do you stay on
- 11:08the
- 11:11way I hope that everyone that's in a
- 11:14startup recognizes that it's a an
- 11:18emotional roller coaster where you can
- 11:20go from the highest of highs the lowest
- 11:23of lows in 5 minutes and so in those
- 11:25moments I hope you realize life is never
- 11:28so bad or never were so good and at the
- 11:31end uh enjoy the
- 11:33[Music]
- 11:42journey when you're competing against
- 11:44incumbent you're not actually competing
- 11:46with all the employees there most of
- 11:48them are not working on R&D most of them
- 11:50actually do not care because you know
- 11:52they're just getting a paycheck we were
- 11:54at the time especially living in the
- 11:55office working 14-hour days the number
- 11:57of people grinding at Zenda trying to
- 11:59accomplish the same thing is very few I
- 12:01think at this stage what has worked for
- 12:03us in terms of what the founder should
- 12:05be doing and what leader should look
- 12:07like is just doing the work yourself so
- 12:09leadership at pylon is very much just
- 12:11doing the work yourself and other people
- 12:14kind of following by example so like 6
- 12:16months ago we were actually living at
- 12:18the office it was like Robert had a bed
- 12:20in the living room and that you know
- 12:22everyone just had desk surrounding or
- 12:24our salesperson his desk that he would
- 12:26take sales calls out was literally like
- 12:275T away from had this bed I was like
- 12:30sleeping in a meeting room for us
- 12:31leadership just meant doing the work and
- 12:33then people kind of seeing that kind of
- 12:35being motivated and excited by by that
- 12:37being a Founder is very very stressful
- 12:39at the end of every month that's when we
- 12:41do our reporting on how much revenue and
- 12:43how quickly we've grown we keep doing it
- 12:45and part of me feels like oh my God this
- 12:46is magical it just keeps happening but
- 12:48it's very stressful I think the only way
- 12:50through the stress is by just addressing
- 12:52the problems and grinding really really
- 12:54hard so you can more consistently
- 12:56maintain growth and you know hiring
- 12:58Pipeline and building great product both
- 13:00myself and and I think my co-founders
- 13:02feel very similarly where we just want
- 13:04to win we want to build a company and so
- 13:06we just didn't let ourselves give
- 13:08up I think the really important thing is
- 13:11to be able to build and solve problems
- 13:14yourself say heyy I'm just going to go
- 13:16find let's say a technical co-founder
- 13:17who will build the product for me I
- 13:19think you should stop being lazy and
- 13:21learn how to build yourself there are
- 13:22lots of resources on how to do it you
- 13:24could go watch YouTube like I did go to
- 13:26a boot camp or any free courses that
- 13:28exists around the world at this point
- 13:29just learn how to build for yourself
- 13:31especially with AI it's becoming so easy
- 13:33then the world is your oyster you can
- 13:34have an idea make it and then just try
- 13:36it and see what happens so first off if
- 13:38you're not like purely set on starting a
- 13:41company immediately I do actually
- 13:42recommend just trying to get a job at a
- 13:44startup you can create a network and
- 13:45kind of like be immersed in the startup
- 13:47community so for example you work at
- 13:49pylon we have events here all the time
- 13:50for Founders and um other startups that
- 13:53are coming through so you just have an
- 13:54opportunity to mingle with a bunch of
- 13:56people if you are just set on starting a
- 13:58company immediately I would probably go
- 14:00live in a hacker House of some sort I
- 14:02would probably just attend a lot of
- 14:03Meetup YC has meetups now and events I
- 14:06would just go to as many of those as you
- 14:07could find the best people and then try
- 14:09to get into their networks I would
- 14:11probably tell myself learn from others
- 14:13more I think I'm one of those people
- 14:15that often likes to just go figure
- 14:17things out on my own which I think is
- 14:18really helpful but I think there's also
- 14:20a lot of advice for example I could have
- 14:22gone to successful entrepreneurs and
- 14:24been like hey what do you think of my
- 14:25idea like is this good what do you think
- 14:27are the risks whatever and I gotten to
- 14:29the same point 2 years later in months
- 14:31had I just like listened to their advice
- 14:33taken that instead of just trying to
- 14:35like discover everything on my own
- 14:37interviews like this is that hey I'm
- 14:38someone who's already gone through it
- 14:39maybe you can learn from some of my
- 14:41mistakes instead of going through the
- 14:42same two years of pain that I did as
- 14:44well so that would be one piece of
- 14:46advice is just go learn from other
- 14:48people who have done it before and are a
- 14:50couple years ahead of you