Joe Cieslik

7 RECOMMENDATIONS FOR HARDWARE STARTUPS It’s hard to understate the difficulty of the v1 launch of a consumer hardware company. I see a ton of new HW startups coming out. Here are some counterintuitive recommendations… 1) Target a small market for v1, not a large market. You need a small number of people to love your product and this will earn you the right to build a v2. You have to understand your v1 will not make you a successful company. Your v1 needs to prove that you deserve to exist in the first place. In the case of WHOOP, we started with pro athletes who were willing to put up with our v1’s short battery life and flaky Bluetooth connections because they so desperately needed Sleep and Recovery data. A broad consumer base would have rejected it. 2) Be great at no more than 1-3 things. If you try to be great at more than that, you will build a hardware that is mediocre at a wide range of things. You won’t think it’s going to be mediocre, but it will be. 3) You want a small launch. Not because you want small sales but because you want to have a steady ramp. It’s much better to do 100k of sales steadily over 12 months than in 2 months with a huge drop off. Keep in mind you need to manage your manufacturing partner and that there’s nothing better or more efficient than steady and predictable. 4) CAC is your enemy. Referrals are gold. The magic of referrals is that they signal high NPS and they help you grow steadily. Again everything that helps you have a steady HW manufacturing plan is good. Building a referral program for v1 launch is a good use of your time. 5) Be excellent at Software. Turns out being good at both Hardware and Software is a hard thing and something that your BIG COMPANY competitor is actually not great at (excluding Apple here). For some reason, there’s such a magnifying glass on the Hardware development, that Software is then overlooked by consumer startups. Don’t make that mistake. You can be great at both. 6) You should spend an unreasonable amount of time and money on ONE aspect of your Hardware. Could be the design or a technical breakthrough. But something needs to be SPECIAL. In our case, we designed a modular battery pack that allowed Whoop to be charged without taking it off your body. This made our development timeline much longer, but it allowed us to achieve something that no other wearable has achieved since: 24/7 health data. 7) Finally, have an unrealistic belief in yourself and your team. You are not supposed to succeed and the odds are stacked against you. Building hardware takes confidence and you’re up against big players who will rip you off. We went so far as to leave a message for our competitors on our circuit board (pictured below). In the case of Amazon and others, the prophecy came true. If you’re building consumer hardware, I wish you nothing but success. It will be super hard, but super rewarding. Good luck 👊🏼 #consumer #hardware #wearable #startup #whoop

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The “forgotten users” have never been forgotten by many of us. They’re at the core of my work, my ‘why’—to create for those who aren’t being served. And this doesn’t have to be through non-profits alone. Profit matters, but I know there are social impact investors who prioritize people. I have a vision for a digital product. Where are the helpers, enablers, supporters, funders, and builders? “Let my helpers find me.” – (from a prayer by) Luvvie Ajayi Jones #VC #investors #socialimpact #founders #indie #empactglobal —————————————————————————- Empact Global is a service design and innovation firm that tackles complex problems to advance humanity. We collaborate with organizations across health, education, and community sectors to reimagine and realize equity, access, and outcomes. Using a blend of strategic foresight, systems thinking, and humanity centered design we partner with health systems, government entities, non-profits, and academic institutions to tackle complex challenges and drive lasting impact. We will improve 5 million lives by 2030. 👉 Contact us at https://bit.ly/MeetShaunte to explore how we can support your organization’s mission and impact.

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PSA: If you send a founder product nits + feedback with concomitant screenshots/mocks you instantly vault into being an S-tier user. (Friction logs are even better, of course.)

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From 0-10 mio dollars in revenue in 1 year! Last week I talked to a couple of VC's who had turned down this company in their early beginning. The reason was that the tech was not overwhelmingly good, it was AI but not something that really brought attention to the eye. The founders seemed great and had clear knowledge within the field. Yet they had very low traction. They received numerous rejections yet ended up finding someone who believed in the idea, them as founders and the market. They ended up raising a 2 mio dollar pre-seed round, then they launched their beta. Then came a 19 mio dollar Series A. Then a 80 mio dollar series B. Execution beats everything, technology market etc. If you find entrepreneurs who can execute and execute fast, they will typically make things work. Today that company is worth more than 1B dollars with investors like Andressen Horowitz and Sequoia Capital and it is called ElevenLabs. Thanks to the trust and financial help from Credo Ventures and Concept Ventures they were able to prove themselves and scale! Moral of the story, keep going, iterate and perfect your pitch and vision until you hear the magic words: "Yes we are in. "

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7. That's the median employee headcount for SaaS companies under $1m in ARR. Nearly half of those positions are in engineering. I'm often asked about headcount planning and it's so helpful to provide data to drive decisions. The High Alpha SaaS Benchmark Survey is live and it's full of data like this. Download the report now. (Link in the comments)

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Here's how we bootstrapped ossa.ai from $0 to nearly $600k revenue run rate in less than 5 months... Things have been moving incredibly fast here at ossa.ai. Recently, I had some time to reflect at my desk and pondered: "How did we get here so quickly?" The answer was simpler than you might think: I surrounded myself with people who have been there and done that. If there is one truth about business, it's this: You can spend your entire life learning lessons yourself, or you can surround yourself with people who have already learned those lessons. I choose the latter every single day. When Brennan Duncan and I first started building ossa.ai, we thought we would have to do everything ourselves. We believed we needed to hold the entire pie to create something valuable that could change people's lives. Over the last two years, I have learned the opposite to be true. My thought process has shifted to, "How can I find ways to..." Speaking of individuals who have been there and done that, today at 12pm PST, I will be joined by Ben Murray, also known as The SaaS CFO on Linkedin Live. Back in Q3 of last year, Brennan Duncan and I joined one of Ben's SaaS Metrics Foundation Live cohorts. In that course, I learned many frameworks and lessons that still guide the financial health of the business today. Today, Ben and I will be discussing the current stage of ossa.ai and what is next to take us above and beyond a $1M revenue run rate. We will also discuss the fundraising environment and our plans to potentially seek fundraising in the coming quarters. You can register for the event here: https://lnkd.in/g6kf-ATN See you at 12pm PST! :)

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I got a lot of guff, yes GUFF, when I posted about bundling 1-time fees as ARR. Turns out it's illegal. Public companies are not allowed to "stuff" ARR wirh 1-time fees, as it is a violation of the Sarbannes Oxley act. In general, if you try to run your company like a public company, you will not have to unwind many problems that you may have to deal with down the road.  It is important to follow all laws and regulations regarding company operations so that you can avoid costly mistakes in the long run. Even if practice may seem like a good idea at first, it's always best to ensure you have done your due diligence before making any moves. Don't be sneaky, and your investors should know better.

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We scaled Windmill Growth to $500K ARR in just 5 months. 🚀 Here’s a quick story about how we did it: We got some harsh feedback from a client. It stung, but we saw it as a chance to improve. We refined our service, and that same client ended up referring us to many more! Building this company hasn't been easy, but focusing on what people truly need speaks for itself. Our primary source of leads? Customer referrals. Here are 3 key takeaways from our journey: 1️⃣ Stay Focused: Criticism will come. Improve every day, even if it's just by 1%. 2️⃣ The Downs Hit Hard: But as long as the business grows, things change. What's been your toughest challenge? 3️⃣ Love Your Clients: Feedback means they trust you to improve. Have you ever received feedback that stung but helped you grow? Building a company is tough, but surrounding yourself with the right people is the best hack. What do you think? What are your best takeaways for scaling a business? Follow for more, we are building in public here!

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🏜️🏔️Utah, Wake Up: They’re Taking Everything While You Watch 👀 Utah, you’re sitting on something priceless—not gold, oil, or tech startups—it’s water and energy. But instead of protecting what’s yours, you’re watching it get stripped away while outsiders and outdated systems profit. The corporations flooding into Silicon Slopes aren’t here because they love Utah. They’re here to take what you have. What’s Really Happening? 1. Your Water Is Being Drained Data centers use millions of gallons daily to cool servers. Aquifers take decades to recharge, but Utahns are outpacing replenishment. When water runs low, these companies will leave, leaving Utahns to face the crisis. 2. Your Energy System Is Broken Rocky Mountain Power’s grid is failing under this demand. They block decentralized microgrids and quantum systems to protect their monopoly while hiking your rates and calling it “progress.” Demand real innovation. 3. You’re Paying the Price Rising costs, shrinking resources, and a future where Utahns are left with nothing but regret. Meanwhile, outsiders profit and leave Utah with the mess. They Don’t Care About You These corporations aren’t here to build a better future for Utah. They’re here to extract value and leave. - Your water is disappearing. - You’re locked into a failing energy system. - They call it “progress” while you foot the bill. You’re not getting a share of their billions. You’re being robbed blind while your leaders hand them the keys. The Solution: Bet on the Future Utah doesn’t have to go down like this. Quantum technologies and independent microgrids are the solutions—but only if you demand them. 1. Revolutionize Data Centers Quantum computing can slash energy use by 50% and water consumption by 40%. 2. Decentralize Energy Microgrids empower communities with local control, integrating renewables and reducing grid strain. 3. Protect Utah’s Legacy With smarter systems, Utah can grow sustainably without sacrificing resources. Why Aren’t We Doing This? Because the people in charge don’t care about innovation or sustainability. They care about control and profit. - Rocky Mountain Power blocks progress to protect their monopoly. - Politicians pander to corporate interests instead of fighting for Utahns. - Most are too distracted by the tech boom to see they’re being sold out. What You Can Do? 1. Educate Yourself Learn how quantum and microgrid systems can transform Utah’s water and energy infrastructure. 2. Demand Better Leadership Elect leaders who prioritize sustainable solutions and hold corporations accountable. 3. Push for Change Advocate for policies that protect Utah’s resources and empower communities. 4. Take Back Control Fight for decentralized systems that put power literally in your hands. Quantum technologies and decentralized microgrids aren’t just options—they’re the solutions Utah needs to survive. I’m betting on Utah’s future. Are you? #Utah #SaltLakeCity #WaterTable #Energy #Resources

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CTO, do you “dumb things down” for the CEO? It's you. You're the problem. The CEO is not intellectually challenged. You're the one who is challenged. CTOs don't dumb things down, nor translate geek-speak. A CTO needs to REFRAME things. It's not an issue of language ability, but of perspective. A CTO must be able to see things from a business perspective. If you can't do it, you're the one who the CEO has to dumb things down for. You’re a Chief Technologist, not a CTO who is one of the leaders of the company. Drill down into the company's business model. What are the company's goals and strategies? What financial constraints apply? How does each department measure its progress? What is the interplay between your core metrics? What market trends is the company reacting to? What are the biggest risk factors for the company? You’ll see plentiful opportunities for driving business outcomes through technology, and via initiating collaboration with the other execs.   Claim, earn and deserve your seat at the executive table. CTO, VP or Dir. of Engineering — Imagine yourself having built authority and autonomy as a fully-fledged executive leader. Imagine your department repositioned as a core business driver, not a service function, and transformed from cost centre to profit centre. 👉 DM me the word "OUTCOMES" for details.

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Get Shit Done - Bootstrapping edition There is nothing better then the bootstrapping phase. Use what you have. Create more with less. I’ll bootstrap our venture to 10M EUR ARR. It will take time. I’ll invest time.

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Get a large, referenceable customer. Building a software company is hard. Really, really hard. Many things need to happen to have any chance in hell at pulling it off. This is why 90% of software companies fail before ever making any real revenue. Having an idea is not enough… You need a problem worth solving. A problem that people are tolerating because there are no other known alternatives. You need a huge, underserved, addressable market AND you need a shit load of money!!! That’s it? Nope… You need to build a world class product, a world class team, and get world class customers. Getting those first few customers onboard is a grind. No one knows who you are. Why would they ever risk going with you? There’s an old saying in tech… “No one ever got fired for buying IBM” Meaning, no one will blame you for a bad purchase as long as you went with the known leader in the space. Luckily it only takes one. One big company that has huge name recognition, and reputation in the industry, and the respect of their peers. Get that one company to take a chance on you, and you can point to them the next time someone isn't sure. For us, that company was Bellai Alliance. After we signed up several smaller customers, and learned from them, we knew it was time to go after a whale. Coming up working in trades, I'd idolized them as the biggest, baddest company in town, with over 1000 workers. When we started this company, doing business with them was a dream, and for the past three years it's been a dream come true. We've learned so much from the team at Bellai Alliance, and we're deeply grateful for all the support they've given us throughout our journey. Because they believed in us, dozens of other large enterprise construction companies followed suit. Corfix #healthandsafety #constructiontech #SaaS #construction #formwork

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We've been lucky with ARR growth at Jointflows. Here's why... I see a lot of technical founders struggle with sales. ☠️ They have an amazing product and a great understanding of their space but struggle to sell. So why are we lucky? ✚ We use Jointflows to sell Jointflows, which is a huge advantage. Each buying cycle is a mini-POC for the prospect. They experience Jointflows before buying it. ✚ We have the highest sales caliber in EMEA: Hitesh + Stuart. They can talk the talk and walk the walk. My dream team would be to bring in: Katie Miles, Rebecca Feiten and Neill Murphy. ✚ We are building a solution that solves our own issues. Our own issues are similar to our ICP's, so we sell by telling our own stories. ✚ We don't have a sales process... Who cares about your sales process? We have a technology that can capture the full BUYING process and automatically orchestrate everything around it. MUCH BETTER. In other words, all we do is help the buyer justify a purchase. We're their insurance policy. Any system that reports on a funnel or uses funnel data to help you will lead you to failure. We believe any mature organization should have a conversion rate between 60% and 80%. Is your conversion rate below this?

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B2B SaaS is not easy, especially on the beginning. Let me explain. As Jason M. Lemkin says: getting to $1M ARR is impossible, getting to $10M is improbable, getting to $100M is inevitable. Not surprisingly, only a few will get there. The problem is how to make sure as a founder/CEO you take proper actions, optimal from time and costs perspective, truly required to achieve the next milestone in the company growth. Or even, in the first place, do you actually know what are those milestones and steps required. There's plenty of advisors on LinkedIn and beyond that will offer you the GTM services. My experience is, they rarely understand there is the "impossible" and "improbable" stage first. Advising in the "inevitable" growth stage is something many can do, but how to make sure you can cross the chasm of 0-1 and 1-10? In B2B SaaS, that's the stage of conceptualizing and engineering the product - the stage where most GTM experts will not help. If you will listen to their advice before doing the homework, it will backfire. Sure, it's super compelling to hire sales team and start scaling the business. The issue with that, if you do it prematurely, you will burn cash and not achieve the growth targets. There are steps you have to do yourself as founder/CEO before that, and they are not possible to be delegated. Especially for the first-time founders, discovering them can be quite daunting, but there are no shortcuts. For me professional growth is about learning new things. I'm constantly in pursuit of new knowledge, researching internet, my personal network and other resources to better understand the position and momentum we have in Occubee and which next steps we need to take. Sometimes I get lucky and come across great tactical materials on PMF, like recently shared by Rob Snyder from Harvard Innovation Labs (link in the comment). But to get the actual perspective on the whole process, from the idea market fit, through product market fit, go-to-market fit to scaling, the discovery of Wayne Morris and his GTM debt methodology was absolutely essential for me. GTM debt assessment is such a powerful tool, which by providing a framework of questions regarding the milestones and steps required to achieve them, allows founders and CEOs to make sure they operate in the same phase of growth as their company is in a given moment. I was one of the first that had the opportunity to take the assessment (when it was still in the beta) just before I met Wayne for the first time in person. Since then, we had multiple touch points and discussions, and they were pivotal for me. I was actively evangelizing about GTM debt for a while already, hoping more founders will have similarly cardinal discovery. Today, I am happy to share the news about Wayne's new initiative, RVNU, which will make it possible for even more fellow B2B SaaS founders. If you are a B2B SaaS founder or CEO, you definitely need to check it out! https://rvnu.co/

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I look at software as incoming-producing assets, not as a goal for $100M exit. When I look for salespeople, I looking for "partners" who want to leverage the software I've built, to generate passive revenue for themselves (and me). By building scalable income-producing assets and then creating capable partners, this is how I believe I can build massive passive revenue, without massive up front capital. This is what's in progress right now with TRUEclaims

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As public software companies got hammered over the last week, David Peterson explores what that means in our latest edition of The Angle. Are we witnessing the end of software? Where did all the growth go? Software isn’t dead, but it’s evolving. And building great companies is no longer about riding the wave of the cloud and building products that are a bit better than the incumbent. Founders who want to build great public companies need ideas that break the mold. And we’re excited to partner with such founders. To read David’s column and explore other exciting tech news, please access and subscribe to our newsletter using the links in the comments. 

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Does the cost of inaction motivate people to switch? Nope. I’ll prove it to you. I know a podcaster who is paying $24/month for Riverside. He’s also using Descript. I told him that Descript includes Squadcast (a competitive product). It does the same thing. I highlighted the cost of inaction: $288 every single year. But he doesn’t want to switch. Why? Jobs-to-be-Done theory tells us that the habit of the present and anxiety are secret deal killers. People get comfortable with their current workflow. The anxiety over potential problems with a new tool and the learning curve can be more daunting than the cost of sticking with the current one. People don’t like uncertainty. What’s a seller to do? Step 1: Call out the elephants in the room. “You’re comfortable with Riverside.” “You don’t want to learn a new tool.” “You’re not sure if Squadcast has automatic backups and reliable recording options, ensuring that there’s always a safety net in place.” Why this works: Acknowledging concerns shows empathy, making the prospect feel understood. This builds safety, making people more open to conversation because they don’t feel pressured—they feel heard. When people feel heard, they’re more likely to hear you. Step 2: De-risk it. “Not sure if you’ll feel the same way, but podcasters who switched tell me the interface is similar to Riverside. They didn’t even need to watch tutorials. If you’d like, we can set up a test podcast interview later this week. That way you can see for yourself.” Why this works: It reduces uncertainty and allows the prospect to experience the tool in a risk-free environment. Step 3: Detach Some people will be open to testing it out. Some won’t. It’s okay either way. You don’t control when or if people switch. The idea is to do your best and detach from the outcome.

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Magic, a U.S.-based startup developing AI models for software writing, is reportedly in discussions to raise over $200 million in a new funding round. This round is expected to value the company at $1.5 billion, a significant increase from its previous valuation of $500 million in February. This potential investment highlights the growing interest in AI-powered coding tools, which are seen as a way to potentially reduce costs and increase efficiency in software development. However, the high valuation for a pre-revenue company also underscores the speculative nature of investments in this rapidly evolving field of AI technology. ➜ Check the news at: https://lnkd.in/d2Sj_TbA ➜ Vendorvise's official Instagram: https://lnkd.in/ebK2KQ2C ➜ Vendorvise's Linktree: https://lnkd.in/dQdbMdth 🤖 If you enjoy reading my posts about AI and tech news, hit the like button and share with your friends to support my content! #ai #artificialintelligence #ainews #aipowered #news #blog #magic #software #coding #tools #funding #200million #valuation #vcs #us #generativeai #aitech #technology #content #socialmedia #future #new #business #techtrends #innovation #launch #success #markets #marketing #people #industry

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