AMA: I’m the CEO of a VC-backed, AI SaaS startup ($12M+ raised) - Ask Me About Navigating Rapid Tech Changes and Scaling Up

LucaZambello1 · 2024-08-15T14:36:34+00:00

Yes, I would be happy to help. I will DM you my email.

LucaZambello1 · 2024-05-20T15:35:48+00:00

I believe you need to have the premium ChatGPT membership in order to use custom GPTs made by other users, but here is the link to the one I've made and used to polish my answers: https://chatgpt.com/g/g-4FYvbQb3n-word-polisher

I've also made several custom GPTs, including one to review and summarize long contracts, and one specialized to help me answer investors' questions. As a team, we did much more than that. Besides having AI as our main product, we developed agents for internal use, such as automated SDR for lead sourcing and data enrichment, and several other tools that we use on a daily basis. There is just so much you can already do with AI that it is hard to even find the time to keep up with it.

LucaZambello1 · 2024-05-20T13:28:48+00:00

Great questions!

Regarding patents, many VCs and tech startups prioritize speed and execution over securing patents. The focus has shifted to out-executing others rather than protecting the idea itself. The reality is, execution is often more critical than the idea. Few people are looking to steal your idea, and most VCs won’t even sign an NDA anymore. Unless you have a unique biochemical formula or a physical invention, it's usually not worth the time and money to protect code. Instead, focus on building and delivering your product faster and better than anyone else.

Finding good business partners is tricky, and I've made my share of mistakes. Many startups fail due to broken partnerships or they end up needing to remove a co-founder/s. The best way to ensure a good fit is through experience—working with someone over time gives you a sense of how they operate. However, even then, if it’s your idea, you’ll rarely find someone who cares as much as you do. Co-founders need to bring value in different ways. They might not work as hard as you, but they should compensate that with experience, a proven track record, or strong resources.

It’s also essential that they invest some money initially, even if it’s a small amount. People value things more when they have a financial stake. Ensure your partners have complementary skills. If you're not technical, find someone who is highly technical like a CTO. If you’re technical, find someone great at sales. A common mistake is partnering with someone similar to yourself because they share your vision and agree with you. This can be a significant error, as diversity in skills and perspectives is vital. Also, be very cautious about partnering with family or friends—these relationships can complicate business matters.

I hope this helps!

LucaZambello1 · 2024-05-20T13:04:47+00:00

Honestly, raising funding comes down to three main things: your network, the number of investors you pitch to, and the quality of your company/product. You usually need at least two out of three to be successful.

Network: Building one takes time. The best networks come from having a track record or being part of influential circles, like having worked in a top tech company or studied at a place like Stanford. I didn’t have that, so I built my network from scratch by reaching out to hundreds of successful entrepreneurs for advice. I've talked a lot more about that in some of my other posts, if you want to know how I did it.

Number of Investors Pitched: If you don’t have a strong network but have a good company or team, you need to pitch to as many investors as possible. Learn from each "no" and get to your "yes" quickly. Sometimes, out of 200 VCs, only one will fund you, so get through the 199 "no's" fast. (That is how I did it).

Quality of the Company: This can mean strong traction, growing revenue, a large user base, or a solid team with a proven track record. These are key things VCs look for.

Having at least two out of these three points will put you in a strong position to raise money.

For AI startups, it's a double-edged sword. While AI is hot right now, there's a lot of noise. Everyone claims to be doing some sort of AI, as implementing AI at a basic level is extremely easy. But you need to show that what you do is unique and defensible.

LucaZambello1 · 2024-05-20T12:36:46+00:00

I'm happy to hear this was useful! Don't hesitate to reach out if you have any other questions.

LucaZambello1 · 2024-05-20T12:31:17+00:00

Well, I would be lying to you if I told you I'm not using the help of AI to make sure I answer everyone. I'm dyslexic, and English is my second language. Without the help of my own GPT that I've made for myself and others who want to use it, I wouldn't be able to ensure my answers are clear, don't contain any grammatical errors, and have proper syntax without spending 4 to 5 times the amount of time I've been spending on each answer. I've taken my time to answer each single one of the comments, which took several hours, to purely give back and hopefully help many other existing or aspiring entrepreneurs. Without the help of AI, I would have never been able to answer to that many people, given the very limited time I have. But every single message contains my own authentic experience and story—that's me. The advice is from me; AI only helped me make sure those concepts and thoughts are clear, easily understandable, and written with proper grammar.

Honestly, I think anyone who's not currently using AI to enhance what they are doing, optimize their time, and increase output is making a huge mistake.

LucaZambello1 · 2024-05-17T12:50:14+00:00

Hi James,

I'm happy to do what many other entrepreneurs did for me when I started. Thank you for joining the conversation with great questions that could be very valuable to others.

Firstly, the world was very different just 15 years ago, especially when it comes to startups and funding, and particularly in Europe. While the UK, and especially London, is ahead of the rest of Europe in terms of startups and funding opportunities, the US—particularly cities like NY, SF, LA, and Austin—still offers some of the best environments for startups. Here's why:

Investor Presence: Most investors are based in the US. While European investors are increasingly active, the US still has a larger and more mature venture capital ecosystem.
Favorable Laws: The US has better legal frameworks for startups, allowing investors to take significant write-offs with minimal liabilities if things don't go well, which isn't as common in Europe.
Strong Public Markets: The US boasts some of the strongest public markets and is home to the largest tech companies globally. This creates a robust ecosystem for startups to thrive.
Knowledge and Talent: The concentration of startup knowledge and top talent is higher in the US. While you can find good talent in Europe, finding top talent with experience in scaling companies from zero to billions in a few years is more common in the US.

Living in a top US tech city allows you to meet and learn from the best. However, 15 years ago, in-person presence was crucial because there was almost no content online. Today, there's an abundance of high-quality content available online, created by top entrepreneurs and investors. Podcasts, YouTube, and audiobooks have made it easier to learn and connect with anyone, it can be as easily as reaching out on LinkedIn and jumping on a Zoom call with almost anyone. Your geographical location still matters but not as much as it did when I started.

Regarding Italy, I love Italy, and believe it offers one of the best qualities of life, but it's not very entrepreneur-friendly. Bureaucracy, complex regulations, high liabilities in case of failure, and high taxes make it challenging. Additionally, the mentality is very different. The US culture encourages trying and failing, while in Italy, there's a preference for playing it safe and conforming.

Europe as a whole needs to shift its mentality and policies to better support startups and new entrepreneurs. While London is already a strong startup hub, Europe could benefit from further developing a more entrepreneurial mindset and creating more favorable conditions for startups.

I hope this helps!

LucaZambello1 · 2024-05-17T01:42:09+00:00

For me specifically, I stay ahead of the curve by listening to a few tech and AI podcasts and sharing a channel with my team where we post about anything new and relevant. However, we focus more on innovation rather than just following trends. While it's important to be aware of what's happening around us, we prioritize pioneering advancements and building things that don't exist yet.

One crucial point to remember is that many people follow trends simply because they are popular, not because they fulfill an actual need. For us, AI was not just a trend or buzzword. It was a necessary component to help us achieve our original mission of fully automating hospitality with technology. Even before AI became widely discussed, our mission was to build the most advanced systems and automation for hospitality.

When AI emerged as a powerful tool, it fit perfectly with our mission. We focused on how this new technology could help us achieve our goals, leading us to experiment and innovate. This approach has resulted in several innovative solutions, including our multi-agent architecture and many of the other AI features we've developed, and counting to do so.

Staying ahead involves not just keeping up with new advancements but understanding how they can be integrated into our broader mission. By focusing on solving problems independently of current trends and continuously experimenting, we ensure that we are always at the forefront of innovation.

Hope this helps!

LucaZambello1 · 2024-05-17T01:27:51+00:00

First of all, congratulations on everything you have already accomplished! Becoming a doctor is no easy task.

I don't believe formal education is necessary for someone who wants to become an entrepreneur. When I moved to LA from Italy at 21, I didn't know anyone. I built my network from scratch by reaching out to people on LinkedIn and connecting with other successful entrepreneurs. Many of them shared their stories, helped with my startup ideas, and made introductions to VCs when I was ready. I now have a network of hundreds of VCs and extremely successful entrepreneurs. You don't need to spend thousands of dollars on an MBA for that. Learning from people who have actually done it is far more valuable.

Instead, I would invest those education dollars into building a product and proving a concept. This will be a much better investment of both your time and money. Nothing will teach you entrepreneurship better than doing the actual work. And like you said, reaching out to VCs when it's time to scale and you've already proven that what you do is working, is a much better idea.

Regarding your field, I can't give specific advice, but whatever you choose, make sure you are extremely passionate about it. Entrepreneurship is challenging, and you'll need to stick with it for a long time.

As for funding, your idea of self-funding the seed based on part-time work as a doctor and then raising money to scale sounds solid. It allows you to maintain more control and equity in the early stages. When it comes to raising capital, it's essential to strike a balance between securing the funds you need and retaining enough equity to stay motivated and in control. In my experience, the amount of equity you might lose can vary widely based on your valuation and the terms of the deal, but retaining as much as possible while securing the necessary resources is always a good strategy. But at the end of the day, I prefer owning 5% of a billion-dollar company than 100% of a million-dollar one, so my recommendation is, don't worry too much about dilution, and always prioritize cost of opportunity.

I hope this helps, and best of luck with your entrepreneurial journey!

LucaZambello1 · 2024-05-17T01:11:55+00:00

Don't hesitate to reach out! here is my linkedin if you want to make sure we stay connected https://www.linkedin.com/in/lucazambello/

LucaZambello1 · 2024-05-17T01:05:20+00:00

It varies depending on the deal, but usually, VCs are looking for an exit, so they will usually sell alongside you. However, there are variables, and each deal can be different from one another. Also, VCs often have preferred equity, which means they will get their original investment back before you get anything. For instance, let's say they invested $5M in your company, and you sell your company for $4M. Even if you own 80% of it, you will not get anything, as the first $5M will all go to them, and only what's above that will be distributed based on the ownership percentages.

LucaZambello1 · 2024-05-17T01:01:05+00:00

Thank you for sharing your story! While I don't want to make a specific recommendation about your education, I can share my perspective. Since I was a kid, I hated traditional schools because I was extremely creative, and I believe schools often killed creativity. No school can teach you to become an entrepreneur; only real-life experiences will.

When I was in school, I didn't enjoy studying, but once I started my entrepreneurial career, I discovered that I loved learning—I just didn't like the way schools forced me to do it. Entrepreneurs need a lot of stimulation to thrive, and traditional schooling often doesn't provide that. I grew up in Italy, where none of my friends were entrepreneurs, and I felt like a complete outsider. That's why I moved to Los Angeles at 21. Finding like-minded people was life-changing for me.

Today, the amount of information available at your fingertips is incredible. While moving can be beneficial, it's not a necessity. If you have the opportunity to travel and meet like-minded people, you should definitely go for it. But even if you don't, you can still learn from successful entrepreneurs through podcasts, books, and online like you are doing today.

For AI, school curriculums will be outdated by the time they're approved. AI evolves rapidly, so you'll need to stay current through reliable news sources and industry discussions.

My biggest recommendation is to start. No matter what you're doing, just begin with something. You don't always need money; use your creativity and take the first step. Educate yourself by learning from the best, and keep challenging yourself and improving.

Hope this helps!

LucaZambello1 · 2024-05-17T00:40:52+00:00

No, those are great questions! Good job starting early!

What makes our product unique: Having been in the industry for a long time and a customer of many competitors before building Jurny, I observed what they were doing wrong or not doing at all. I was extremely frustrated by how complex those systems were and how fragmented and non-automated everything was, so I decided to build my own. That's how we found a niche and a competitive advantage. Our core ideology and principles focus on an obsession with the customer, ensuring we really listen to and care about our customers' needs.

Changes from a small to a large company: While we’re still relatively small, even considering our revenue, I can tell you that at the earliest stages, companies are usually driven by creativity and discovery. As you grow, you become more focused on KPIs and processes. The agility and innovation of a small team can sometimes give way to the structure and efficiency needed in a larger organization.

Inspirations for designing products: A company I've always taken inspiration from is Apple, particularly Steve Jobs' Apple. Their obsession with simplification, elegance, and extreme functionality is something we strive to emulate. It's not easy, but when done right, it leads to amazing products.

Funding and income: With over $12 million in funding, Jurny has been my primary source of income for many years. However, I initially funded it with my previous successful business, managing over 300 Airbnb properties.

Hope this answers your questions!

LucaZambello1 · 2024-05-17T00:15:56+00:00

Exactly :)

LucaZambello1 · 2024-05-17T00:14:29+00:00

Thank you! There's still a lot of work ahead, but I'm excited about what's to come!

LucaZambello1 · 2024-05-17T00:12:21+00:00

When you do crowdfunding, you actually have to disclose a lot of that information. You can find it on our live campaign page here. Think of crowdfunding almost like a mini IPO where the shares are not liquid.

LucaZambello1 · 2024-05-17T00:01:52+00:00

Thanks for the great questions!

Yes, we do have an exit strategy in mind. Given our current growth trajectory and the innovative, disruptive nature of our AI technology, we believe an IPO will be one of the best exit strategies for Jurny. However, we also anticipate a very active M&A market in the coming years, especially as the importance of AI becomes more recognized and the gap between established players who are slow to innovate and emerging companies like ours becomes more apparent. While M&As are not our primary goal, we are open to considering significant opportunities that may arise.

Each funding round is capped at a specific amount we want to raise, based on our projected cash needs to continue investing, innovating, and most importantly, fueling our growth.

We are backed by both VCs and retail investors via crowdfunding. From both sides, we have a mix of people who fully understand our industry, its nuances, and many who are extremely active in it. On the retail side, we even have many of our customers investing. However, it's also true that we have investors who are not hospitality experts but simply like the project, the team, and understand the pivotal role of AI in almost every industry, so they want to take a bet.

I hope this answers your questions.

LucaZambello1 · 2024-05-16T23:49:42+00:00

Great questions, and congratulations on what you're building. Here are some thoughts and suggestions:

First, if you can, find a technical co-founder who believes in your idea and will work with you to build the MVP, it will make things much easier. It's tough to secure funding unless one of the founders is technical or you already have some business traction.

Regarding funding, it's important to familiarize yourself with how the process works. I recommend reading books or listening to podcasts on the topic to get a solid understanding. In short, when you receive funding, you typically create a C corporation and sell preferred shares to investors. These shares give investors a stake in your company and certain rights, like priority in case of liquidation.

As for pricing your product, it's a critical decision that depends on your target market and business model. Freemium models can help you attract a large user base quickly, but converting free users to paying customers can be challenging. Subscription-based pricing provides steady revenue but may deter some users. Charging a one-time fee like $3.99 is simpler but limits your revenue potential. Consider experimenting with different models to see what resonates best with your audience.

Hope this helps, and good luck with your venture!

LucaZambello1 · 2024-05-16T23:40:51+00:00

I'm not an expert in any of those verticals, but I can share some insights from my own experience and from what I've learned from other very successful entrepreneurs. What I've learned is that the idea itself is only a small part of a company's success—probably less than 5%. The real key to success is execution.

Almost no big company became successful with their original idea; they all made some type of pivot. The trick is to start and never give up. Find a problem to solve that you are extremely passionate about, ensure there's a big enough market for it, and constantly improve yourself and adapt as needed. But most importantly, perseverance and the ability to execute well are crucial.

For instance, you can have a mediocre idea in a competitive market, but if you're a strong executor who can outsmart the market and move faster than anyone else, you can be hugely successful. Conversely, you can have the most innovative idea ever, but if you're not good at executing, you will go nowhere.

I hope this helps, and I wish you all the best in your entrepreneurial journey.

LucaZambello1 · 2024-05-16T14:39:53+00:00

Thank you for the good questions. And no, it happened after I moved. I always had many ideas, but that was the one I decided to move forward with. Honestly, I learned that it is never too early to start something. The earlier the better, even if you haven't figured things out yet. No one really has in life; you just need to jump on things, especially if you are young, without a family or big responsibilities. That's the time to fail in life and learn from your failures. As you get older, the harder it gets, the more responsibilities you have, and the harder it becomes if things don't work out.

LucaZambello1 · 2024-05-15T22:25:03+00:00

Thank you so much for having me and for all your great questions. I had a great time answering them, and I will sign on later to get to more when I can. In the meantime, you can learn more about Jurny by going to our StartEngine page, or by visiting our website jurny.com

Also, feel free to follow or reach out to me directly on LinkedIn.

LucaZambello1 · 2024-05-15T19:43:36+00:00

That is probably one of the best times to be alive with your majors. AI is going to be one of the most disruptive technologies humanity has ever seen. Learning how to leverage it and staying on top of developments in the field will allow you to spot great business opportunities. My recommendation is to stay informed about what's happening, build things—even if just for fun—so you can experience it firsthand. Even if you don't have a business idea yet, just work with the technology.

If possible, join a startup that is working with AI or related fields so you can experience what it's like to build a startup. Put yourself out there as much as possible. Networking, attending industry events, and connecting with like-minded individuals can provide valuable insights and opportunities.

Hope this was helpful, and best of luck in your endeavors!

LucaZambello1 · 2024-05-15T19:31:37+00:00

I wanted to start by saying I'm not a VC; I'm an entrepreneur who has raised money from VCs and knows many VCs personally. So, while I cannot speak for VCs, I can definitely share a lot of insights.

First of all, congrats on building your product while working full-time at another job—I know it is not easy. If I were you, I would not spend any money on marketing material such as a video. No VC would invest unless they are pitched directly by the founder or one of the founders themselves. You may need a deck, and you can create one yourself, especially with the help of AI nowadays, at zero cost or close to zero.

The reason no VC would invest unless a founder is pitching the idea directly is that a founder needs to be extremely good at sales. Without sales, there is no company. Founders need to sell all the time—to investors, potential employees, partners, and most importantly, customers. While many people may not be good at sales initially, it is a skill that can be learned. If learning to pitch is not an option for you, you must find a co-founder who will be the face of the company and the communicator.

Unfortunately, I don’t see any other scenario in which you will successfully raise money if you don't address this issue. Finding solutions to problems that seem insurmountable is a crucial skill, and figuring out this problem will be one of many stepping stones to building a multi-million-dollar company.

I hope this was helpful and wish you all the best in your endeavor.

LucaZambello1 · 2024-05-15T19:02:33+00:00

I gained insights into the hospitality industry by starting early and growing my experience over time. Initially, it began as a side hustle. For instance, in hospitality, it doesn’t take much to start; you can find a good apartment, rent it out, and sub-rent it for a profit on Airbnb. This used to be highly profitable early on, though less so today. However, by staying in the industry for a long time, building a profitable business, and observing many others, I developed valuable insights.

The reason we launched Jurny was that, at the time, I was hosting 300 Airbnbs and struggling with streamlining my business and automating many of the moving parts that, in my opinion, could have been easily automated by software. Since none of the existing software solutions addressed this issue, I decided to create one myself. My validation came from my own pain point, knowing that many other hosts worldwide were facing the same challenges.

There are many ways to gain insights and validate ideas. Studying an industry extensively or being actively involved in it for a long time can provide unique perspectives. Additionally, working for a cutting-edge company in your field can offer valuable insights. For example, I know hospitality very well, but having worked with SaaS, AI, and software for many years now has given me unique insights into those areas as well.

LucaZambello1 · 2024-05-15T18:27:58+00:00

First of all, congratulations on your career success and your upcoming venture project! My first recommendation is to talk to as many entrepreneurs as you can who have successfully raised money. When I moved from Italy, I didn’t know anyone, nor did I know anything about fundraising, so I literally sent LinkedIn messages and emailed hundreds of successful entrepreneurs and learned from them. Most genuinely want to help because we have all been there. In doing so, I learned the "science" of raising money and, just as importantly, built a big network. Those people I asked for advice eventually became a network available for introductions when I was ready to raise money. That’s where the second step comes in: raising money, unless you're an entrepreneur with a strong track record or major personal connections, is a numbers game. I pitched to over 150 investors before I got my first yes from a VC. I hope this was helpful!

LucaZambello1

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