Christophe Gerlach

When celebrities invest cash into startups they often get lower valuations in exchange for promotion. And I believe that is exactly what happened with Ronaldo’s latest investment in wearable technology company WHOOP. The Portuguese soccer icon just invested and became an official global ambassador for Whoop, the wearable technology company. “Whoop has had a transformative impact on my life both on and off the pitch,” Ronaldo said in a statement. “I wear Whoop while training, sleeping, and recovering. It’s been one of the most important tools helping me elevate my game and monitor my health.” The financial details of the investment have not been disclosed, but according to Whoop, the deal represents one of Ronaldo’s “most significant investments to date.” Although it could definitely be true that Ronaldo invested cash, I don’t believe he paid the full price for it (but this is just an assumption). Often when celebrities invest, they get discounted valuations or do a part equity deal in exchange for promoting the company. Ronaldo for example has 629 million followers on Instagram and is the most followed person on the platform. One post about a company and the website will probably blow up (which is exactly what Ronaldo did this morning btw announcing his partnership with Whoop). Besides getting a financial injection, most often the startups receiving the celebrity investment also gain a lot of social exposure, which they normally have to pay millions of dollars for. So it makes sense to do a part equity deal or offer a lower valuation. What do you think? 

52

10 comentários

Brex is one of my favorite fintechs. Ever wonder what their journey from $0 to over $300M in revenue within 7 years looked like? 2017-2018: The Birth of Brex • Henrique Dubugras and Pedro Franceschi, both 22-year-old Stanford dropouts, decided to flip the fintech world on its head by launching Brex, a corporate credit card tailored for startups. • With their co-CEO model (which has become popular), they doubled their management bandwidth. Internal & external duties? No problem when you have twice the number of CEOs to lead folks 2019-2020: Rapid growth • Brex quickly partnered with big names like DoorDash, Flexport, and Roblox. • In 2019, they secured $300 million in funding, catapulting their valuation to $2.6 billion. It’s amazing what you can achieve when you’re swimming in a pool of investor cash. 2021-2022: Diversification and challenges • Brex expanded its product suite to include expense management, bill pay, & travel booking services. If you’re going to burn through cash, you might as well make it convenient. • Despite their success, they faced some “minor” hiccups. Layoffs in 2022 were a delightful reminder that even fintech unicorns aren’t immune to cutting costs by cutting people. 2023: Strategic shifts • Transitioning to a single CEO model, Pedro took the helm while Henrique became chairman. Having two brains was slowing things down? • They continued to innovate, integrating AI into their platform. By the end of 2023, Brex hit over $300 million in revenue, proving that even with all the chaos, they were still making bank​. 2024: Path to profitability • With a goal of being cash-flow positive by 2025, Brex halved its cash burn by chopping 20% of its staff and focused on sustainable growth. Making money instead of burning it is always a sound strategy. • Serving 30K+ customers globally, Brex’s commitment to transparency & customer-centric solutions has kept them in the game. They’re not just participating – they’re rewriting the rules. Want to copy their homework? 1. Identify a significant pain point in an industry and create a solution that addresses it. Please don't start a business without doing this. 2. Utilize a strong co-founder dynamic to maximize efficiency & divide responsibilities effectively. Two heads are better than one, until they aren’t. 3. Secure early partnerships with influential companies to build credibility and a customer base. It’s always about who you know. 4. Listen to your customers. & Expand your product offerings to meet their evolving needs. 5. Maintain a strong focus on transparency & trust to build a loyal customer base. People surprisingly prefer not being lied to. 6. Strategically manage growth, and make tough decisions like layoffs when necessary to ensure long-term sustainability. 7. If you want to go public, be profitable. Did I miss anything?

86

2 comentários

I'm excited to be part of an amazing panel at The AI Impact Conference at the University of Minnesota next Tuesday, Sept. 17, where I'll be discussing "AI in Action and in Our Community" at 3:40 PM. I’ll be sharing how we’re leveraging AI at Omnia Fishing to go beyond problem-solving and innovate in ways that truly matter to our customers. At Omnia, our AI philosophy is centered on purposeful innovation. It’s not just about building features—it’s about using AI to solve real-world challenges. Here’s how we approach it: 1. Factual Knowledge: We leverage fishing reports, environmental data like water temperatures, wind patterns, and weather conditions to create a rich foundation of insights. 2. Procedural Knowledge: We deeply understand how anglers shop for gear and prepare for their trips, ensuring our AI supports their natural habits. 3. Systems Integration: By connecting user-generated content, purchase history, and environmental data, we create a dynamic, seamless experience for our customers. These three elements enable us to deliver personalized, impactful recommendations that continuously enhance the customer experience. Our approach ensures our AI remains practical, scalable, and valuable as technology rapidly evolves. As foundational AI models continue to improve at an unprecedented pace, it’s crucial to architect applications that harness that progress—rather than compete with it. I’d love to connect or hear your thoughts if you’ll be attending the conference! How is your industry integrating AI beyond the hype? What practical applications are you seeing that truly enhance user experience?

29

1 comentário

VCs don't want you if you're not throwing tons of 💸💸💸 at outbound marketing... 😮 From Matheus Darós Pagani's experience, this is why taking Venture dollars was not an option 🙅‍♂️ As an offshore development shop (located in Brazil), he experienced first-hand how cold email was a money pit 😣 Too many of his ideal clients were resistant to accepting software development labor from an offshore team that they'd never met. What did he do? He focused his marketing on building relationships and taking an organic approach to growth. Was it slow-going? Yes. But it has proven more successful than when he was pursuing cold email campaigns. Is this unique to offshore dev agencies? Is this true for all dev shops? I'd love to hear your thoughts below! 👇 _____________________________ Are you a software development agency looking for a little guidance on your journey to growth? Subscribe to the Dev Launch podcast! We interview software dev agency owners as they share their startup journey and what they're learning in the process. This isn't some generic entrepreneurial podcast with "rah rah" advice - we're talking about specific industry challenges. Find us on YouTube and Spotify. We are changing things up in the format as we launch into Season 2, so stay tuned!

39

9 comentários

BJJ CORE PRINCIPLES APPLIED TO THE STARTUP JOURNEY 🥋 As I navigate the startup journey, I’ve been reflecting on core principles of Brazilian jiu-jitsu and how they apply to startups (and to life in general). The parallels are numerous! Just as in BJJ, the startup path is marked by BLOOD, SWEAT, AND TEARS -pushing through the hard times and constantly refining your approach. BJJ has provided lessons in strategy, patience, and perseverance, all of which are just as relevant in business as they are on the mat. 1. LEVERAGE: Doing More with Less In BJJ, leverage allows a smaller practitioner to overcome a larger opponent. In startups, it’s about maximizing limited resources. Whether it’s capital, personnel, or time, founders must make strategic decisions to gain an edge with what they have. ---------------- 2. CONNECTION AND SENSITIVITY: Building Relationships and Staying Attuned In BJJ, connection is about staying in sync with your opponent’s movements, while sensitivity helps you react to subtle shifts. In startups, this translates to building meaningful relationships - with customers, your team, or investors - and staying attuned to their needs. Sensitivity to feedback and market changes allows a startup to adjust and grow, and make complete pivots if warranted. --------------- 3. WEIGHT DISTRIBUTION: Balance and Control Proper weight distribution in BJJ enhances control. In startups, it’s about balancing focus across product development, marketing, and operations to keep the business steady during highs and lows. ---------------- 4. TECHNIQUE: Precision Over Power In BJJ, superior technique wins over brute strength. In startups, it’s about focusing on execution, ensuring strategies are well thought out and refined. It’s not about doing more, it’s about doing it RIGHT. --------------- 5. BEING COMFORTABLE IN UNCOMFORTABLE POSITIONS In BJJ, you learn to breathe and stay calm in hellish positions. Startups often face tough moments - financial constraints, rejections, or setbacks. The ability to remain calm and adapt during these times is crucial. --------------- 6. ADAPTABILITY In BJJ, no two matches are the same—you have to adapt to your opponent’s style and strategy. Similarly, startups operate in constantly shifting environments. The ability to adjust and embrace uncertainty is what keeps startups alive. -------------- 7. RESILIENCE AND PERSEVERANCE Both BJJ and startups demand resilience. Failure is part of the process in both, but those who learn from mistakes and keep pushing forward ultimately succeed. ------------- #Startup #Unicorn #JiuJitsu #BusinessStrategy #Innovation #AngelInvesting

6

3 comentários

A few months ago, I accidentally misgendered a VC in my email outreach 😬 I was trying to say "nice to meet you" in Portuguese and ChatGPT translated it to "prazer em conhecê-lo." It assumed I was communicating with a man and my Portuguese wasn't good enough to spot the gender agreement issue. Fortunately the VC gave me grace and still took a meeting with me, but I'll never forget the panic that hit me when my wife pointed out the mistake - the email was sent and I couldn't take it back. We're actively investing in techniques to make Verbalista more inclusive by prioritizing gender-agnostic phrasing when possible. For example, a perfectly acceptable gender-neutral alternative in this scenario is "prazer em te conhecer." In high stakes professional environments, words matter and a general translator will leave you prone to these kinds of mistakes. At Verbalista, we're obsessing over these details so our customers can be confident deploying it to their teams.

91

2 comentários

This fintech company disrupted the entire industry in 6 years. Its Brex. They turned a small startup into a $12.3B giant. How? Here’s the story: Henrique Dubugras and his co-founder, Pedro Franceschi, dropped out of Stanford to start Brex in 2017. They wanted to solve a real pain point they experienced firsthand, "startups’ difficulty in securing corporate credit cards". Traditional banks failed to serve startups with no credit history, so they thought of building a financial services platform that addressed these challenges. Built from scratch, no relying on third-party processors. Brex created a solution for startups: No personal guarantees, fast signups, and higher limits. Now it's $12.3B company. And here's how they did it in just 6 years: 1. Targeted User Acquisition Cold emails, billboards, and champagne, their growth strategy was unorthodox but effective. They built a pipeline by marketing where their users hung out, even on LinkedIn.     2. Nailing Retention Early Brex understood retention was critical. They used churn data to improve customer service and even developed white-glove support to keep customers happy. 3. Iterating for Scale From a simple corporate card, Brex grew into a financial platform. They created multiple revenue streams — expense management, bill pay, and even venture debt.     4. Creating a Moat The founders kept adding value with features like a cash management account and travel integration. Customers were more likely to stay, leading to strong expansion revenue.     5. Non-traditional marketing They experimented with unique tactics, driving demo bookings through creative campaigns — this set them apart from competitors.     When faced with growing pains, Brex doubled down on venture-backed startups, offloading SMBs to maintain their premium positioning. Brex’s journey proves that success comes from understanding your market’s pain points and solving them better than anyone else. What can you take from this? Focus on retention, find creative marketing channels, and don’t be afraid to pivot. #startup #casestudy

108

15 comentários

Zero funding, zero shortcuts: Here’s how we hit #6 on the App Store. In an industry where giants dominate, reaching #6 in the Brazil app store is no small feat. As a bootstrapped app, In one of the most crowded industries, This milestone can be attributed to our team’s Laser focus on putting the user first. We still have many problems to solve and battles to win, but this is a milestone to celebrate. Here are the 7 hard-earned lessons that got us here. 1/ Listen to your users constantly 2/ Obsess over problems, not features 3/ Measure retention over acquisition 5/ Data guides us, empathy drives us 6/ Launch with a local mindset 7/ Create a brand experience, not just a product 8/ Fuel growth through word-of-mouth Create an experience, By the user, for the user. What’s the one lesson you wish you’d learned earlier building your app? ♻️Repost to inspire others. Follow me, Michael Krayenhoff for insights on building strong relationships and start-up teams.

55

44 comentários

I would've rejected Nubank's Seed Round. Here's how I would've reviewed it. This is an internal exercise I did when I started at Latitud, reviewing the seed deck Nubank used to raise their first round. 8 times out of 10, I would've rejected them. It's so easy to dismiss. Colombian founder with no leadership experience challenging the most profitable banks in the world in a tough market like Brazil in 2013? REJECT. For aspiring VC analysts or entrepreneurs working on their story, here's a window into how a VC could review your materials. One of the capital sins of Venture Capital is to fall prey to thinking how things could go wrong instead of imagining or carefully distilling how things could go right. Because of the volume of deals getting assessed, the job-description could be thought of as "reject 80% of deals as fast as possible to unlock time for the 20% that have potential". And you... would you have had invested in this?

381

33 comentários

Great hiring advice on a recent 20VC episode with CEO of Brex, Pedro Franceschi: "Look for individual contributor skills in every leader." We often talk about the necessity of being hands-on in start-ups and scale-ups. Looking for specific IC skills a leader has (vs looking for indications of being hands-on appearing implicitly in other answers in an interview) is a nice way of making this assessment one level more precise.

16

Would a Nubank copy-paste work in Africa? Probably not (at least right now). "LATAM is similar to the US: credit-cards are understood, widespread. Credit cards as a product are supremely powerful. Users can seamlessly borrow and spend. It’s a gold mine for the issuer, and it’s (in part) what made Nubank so successful. A small survey estimated that 58% of Latin Americans have credit cards. In Nigeria, Africa’s most populous country, the figure stands at around 1.6%. Any African neobank play has to start with contextually-relevant products, like someone’s first proper bank account." Read the full Realistic Optimist piece by Hassan Bourgi, co-founder of Djamo here: https://lnkd.in/gSb4TNfB

17

1 comentário

Startup fundraising requirements have gone up... Here are 3 key takeaways and actionable steps you can take: Takeaways from Carta's report: 1️⃣ Lower Valuation Multiples – Series A startup valuation multiples have dropped from 4.9x in 2022 to 2.8x, indicating more cautious investor sentiment. 2️⃣ Extended Fundraising Cycles – Startups are now waiting over 100 days longer between rounds, reflecting slower deal flow. 3️⃣ New Opportunities – Larger seed rounds and technological advancements, such as AI, provide startups with ways to grow without relying as heavily on traditional VC funding. So, what can you do about it? If you’ve already raised pre-seed or seed funding, your primary focus should now be on generating revenue. There’s no way around that. If you haven't raised yet but plan to start a company, here are some strategies to consider: 1️⃣ Write Openly on LinkedIn - Share your thesis and gather feedback before you build. - Pay attention to what resonates with your audience and what doesn’t. 2️⃣ Talk to as Many People as Possible - Use tools like Dripify Lead Conversations to automate LinkedIn connections. - Cold email your ideal customer profile (ICP). - This will help refine your thesis and shape your vision. 3️⃣ Build a Network of VCs and Founders - Many VCs and founders are open to talking with aspiring entrepreneurs. - Use ChatGPT to refine your thesis and identify the best VC matches. - Reach out via concise emails or LinkedIn DMs. Bonus Tip – Be Patient - Once you raise capital, the clock starts ticking and pressure builds. - Consider developing a strong thesis and influence through writing before raising funds. This will give you conviction as you move forward. After all, you’re likely in this for the next 10+ years. #startup #fundraising #vc #entrepreneurship 

5

Wild story about account renting on gig economy platforms 🤯 Priscila Barbosa emigrates from Brazil to the US. She wanted to drive for a ride-hailing platform. But didn’t have the driver’s license or SSN that it required. So instead, she rented an account that used someone else’s identity. This allowed her to bypass all the onboarding verification. Soon she learned to create fake accounts on ride-sharing and delivery platforms using stolen identities. So she started renting them out herself and built a big business. At the peak of her fraud scheme, she was pulling in about $15,000/wk 😮 As platforms figured out how to stop her scheme, she kept finding ways around their defenses. She even started a WhatsApp group named ‘Mafia’ where she invited fellow account renting fraudsters to share tips and discuss problems. She did this for 2+ years before the FBI raided her house and arrested her. In the end, the US government said she created 2,000 accounts, leveraging hundreds of driver’s licenses, and profited more than $780,000. Gig economy platforms have made a lot of changes to prevent this type of thing. But unfortunately it’s still happening all the time. And it can lead to a host of problems, including increased liability for the platform, safety risks for customers, and decreased customer satisfaction. If your platform is dealing with an account renting problem, we should talk. Incognia has the device and location intelligence you need to crack down on this behavior.

20

NU is not seen as a tech company it’s still seen by people as a bank and it’s that that is driving the growth. And this growth is because TRUST is flowing into the digital banking market. Trust is all that is needed for people to leave ‘traditional’ banks and go to new digital banks like Nubank, Wise, Revolut, TymeBank and others. Why? Because of UX. These new banks’ UX is still light years ahead of tranditional banks. UX isn’t just the UI of an app or a website it’s how you feel when you interact with them. There is such a big difference between the new and traditional banks the the only thing stopping a massive exodus (this is already starting) is trust. We should expect to see way more growth as more people switch. We are still at the beginning of ‘the early majority’.

26

4 comentários

Amazing Nubank! Funded 9 years ago is the most influential finance company, not only fintech but financial company, in 2024  1. Nubank got a higher valuation than Paypal, $62.9 billion (Nubank) vs $61.9 bn (Paypal).  2. In 2023, Nubank hit $1 billion in profit, a first for any Western online-only bank. Nubank in 2023 launched 40 new products with 9000 employees (around a quarter of what Santander has in Madrid for Tech Support) And remember that it was set up for 1 main expat founder, with no bank experience and a bunch of interns doing research and MVPs in Brazil. https://lnkd.in/dnbMAqdT Now tell me that the insurance industry is working well globally and that will not have similar change-makers.  Who is in? 😉 🚀

3

A little naivety can be a good thing. When I moved to Brazil in 2022, I tried to talk to as many people as possible about Kelihi. I wanted to get their input on how to get in touch with the low-income, high-potential talent that I'd hire and train as data analysts -- who better to ask about Brazil than Brazilians? In almost every conversation, people told me that I wouldn't find low income individuals with even a B1 level of English (a recurring theme to this day). Many said my belief that these people exist was naive and advised me to go through normal recruiting channels to hire experienced, well-educated Brazilians to fill these roles. I was told I'd get burnt out trying to do something impossible; I was even warned that I'd be scammed. If you know me personally, you know I don't like being told that I can't do something. Our fourth cohort of data analysts started this past Monday, with 6 new analysts selected from almost 350 low-income, English-speaking applicants. It turns out, a little naivety tempered the doubts of people who thought this would never work. But it begs the question -- what do I believe as an absolute truth because I've never looked at it from an outsider's perspective? And what could we achieve if we approached problems with a bit more openness, even a bit more naivety?

47

4 comentários

Coach had the girls practice differently. With no boots on. Why? He wanted them to ‘feel’ the ball. The most technical national team according to Coach and the girls? Brazil. One of the reasons why? They grew up playing barefoot. In startup it's all about getting a "feel" for our customers. Just like Coach emphasizing the importance of getting a feel for the ball, successful founders know the importance of getting a feel for their customers. But how do you do that? - Spend time with them - Ask questions - Listen carefully Getting a feel for your customers isn't just about building a better product. Its about deepening your understanding of their problem. Understanding their pain. Understanding the impact of that pain. Understanding their environment. This curiosity deepens relationships. And that relationship is the foundation of your startup's success. So, if you're not already getting a feel for your customers, it’s something you should start effective immediately. And don’t forget: Take your boots off! Happy Tuesday, ya’ll.

45

27 comentários

🚀 Launching Vertex PM in Portugal! 🇵🇹🌍 When my family and I moved to Portugal, I saw an opportunity to make an impact. Many Portuguese SMBs face challenges in product development – they have great ideas but often lack the resources to bring new features to life or execute winning strategies. That's why I started Vertex PM: to empower SMBs in reaching their full potential! 💡 From ideation to go-to-market, we’re here to guide them through every step of the journey, helping them grow, innovate, and elevate their tech. 🚀 Excited for the road ahead and to support SMBs on their path to success! 💪✨ #SMB #smallmediumbusiness #ProductDevelopment #BusinessGrowth #Innovation #strategy #growth

38

8 comentários

The best way to understand if your company has PMF…

12