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Daniel
Hey everyone, welcome back to Founders Story. Today we have Roy Samuel, the founder and CEO of Connected. Roy, something that really stood out to me is Connected. What you've been building and how you are bringing together the investor, the entrepreneur, the advisor, slash experts, and all of the data that you're collecting all the way and all the information that you're gathering around these startups and just the ecosystem of investing and funding fascinates me a lot. Let's dive in though, Roy, as to what is connected.
Roy Samuel
So after my last startup, Real Sport, was acquired by a Gaming Co. In 2018, I started investing in startups and advising startups as well. And I could see with the companies that I was invested in and working with a really strong positive correlation between specific behaviors the businesses were making and the outcomes they were having in terms of performance, in terms of growth, and in terms of funding. And those behaviors were really twofold. One was the quality and frequency of their investor reporting and by extension, the strength of their investor relations. And the second was their ability to access expert networks of talent. Now, neither of these things are rocket science by any means, but it's amazing to see how many businesses almost take those behaviors for granted when they're really pursuing the secret sauce that we all love in startup land. But even though those behaviors seem to really predicate success. So with Connected, we build technology that enables everyone in the ecosystem, the businesses, the investors and the talent to take part in Those behaviors in as frictionless way as possible. So for behavior one, the reporting infrastructure, we've built technology that integrates with the business's bank account accounting platform and commerce solution. So call it their Chase bank account, their QuickBooks accounting software and their Stripe commerce solution. For example, we ingest all of that transactional level data so every single transaction in that business's history from inception and then from the ingestion of that data instantly, we create that investor reporting environment. So all those monthly reports, everything historically, all the things they should be reporting on, that makes an investor bought in, that creates transparency in their business. Accountability helps them really think about growth in a way that helps them understand how they're performing against their peers. Benchmarking and all the rest of it all done instantly, which obviously builds amazing trust with investors, help helps them grow better. And then we use that same data set to power discovery of talent. So if for example, your revenue is increasing or your CAC's increasing and you're a B2C fintech within international payments, you need a performance marketing expert with a background in financial services who understand subscription models. So we started to build out ecosystems of talent, ecosystems of businesses and investors, really all plugging into this data infrastructure to create instant frictionless reporting and discovery and therefore improving these outcomes and these two behaviors that we see so interlinked with success, making them easy and accessible for everyone.
Daniel
I'm new to the investing or funding world. I've never gotten funding for a startup, although maybe I should have looking back and I've only invested a handful of times and all of them basically failed. So I'm really interested though in terms of the transparency piece because when I invested I never saw any really information and was barely shared anything. I was talking to a VC friend of mine about this recently and he was telling me that, you know, some funds, they, they basically, you know, take money and barely give any information. Some funds, you know, get their LPs with some sort of involvement or you know, give some sort of advice. It's fascinating to me how like how people can just give money and it's total hands off and very little transparency. So what are you seeing with your platform from the investor side? Are they much happier that they get to see this information?
Roy Samuel
Yeah, absolutely. And I actually think the reason it leads to success is not necessarily the transparency, but it's more the accountability. So I know as a founder, because my investors are going to see on a monthly cadence how we're performing across these core metrics. It keeps me hyper focused on Moving the needle in the things that really, really matter. It's so easy as a founder to get distracted by the million opportunities and all the different amazing things you could do. But actually if you hyper focus in on the things that you need to do and get that cadence of monthly growth and movement, that's what venture wants to see, that's what investors want to see, it's what the market wants to see. So it's all wrapped up in the investor reporting, but it's actually that accountability and the mindset of setting up every unit of operation of the business for monthly movement and monthly growth and accountability, that's what leads to success.
Daniel
Yeah, it's really easy to chase a lot of rabbits. I think when you're a startup you get, you're just like excited about ideas, right? Most people that start a company, they're excited about ideas and they're visionary and then there's all these rabbits coming at them and a lot of problems they want to solve. And it's hard to many times get like tunnel vision and hyper focus on the thing that you are doing. It's really easy to start chasing everything. I know that you're launching in the U.S. or you've launched in the U.S.
Indeed Voice
I'M sorry, you're expanding in the U.S.
Daniel
So what are some of the markets that you're looking at?
Roy Samuel
Yeah, exactly. So we launched into Miami in December, just before Christmas. Not because that's a really good time to launch in a new market, but more we were really keen on ensuring we hit the ground running in 2024. So we're now servicing about 6, 700 customers in Florida and we're now launching up in New York and we're really partnering with different groups, different organizations as a business that helps startups grow, we're not taking equity in startups, we're not charging commissions or transaction. We're a pure subscription business. So we partner really well with others in the ecosystem. We're not competing over the same types of dollars, take great or equity. So we partner really well with different players in the ecosystem, accelerators, incubators, et cetera. So we're now really just trying to get our technology into as many hands as possible and just improve the outcomes for all these players. And we were talking about it before, you might get the likes of an Elon Musk type entrepreneur who can raise money left, right and center and will never have a problem in raising tons of cash. But the reality for the vast majority of entrepreneurs, first time entrepreneurs in 2024 who don't have access to loads of capital networks. The way that you fundraise, the way that you grow is following these principles of not chasing the rabbits, showing that accountability. So we really want to just help be that, you know, be that rising tide, to lift all boats by helping people understand, you know, if you're in capital networks then that's one thing, but if you're not, this is how you grow, this is how you find talent, this is how you really build a business. We want to be a really positive force on the ecosystem.
Daniel
I'm a big proponent of going global with a company, if you can. I know not everyone sticks to that same mindset, but I've done it personally and I've seen positive results, although there's challenges along the way. So how has the experience been for you and what do you think helped you able to expand from the UK and European market to now the North America and then the US market?
Roy Samuel
Yeah, it's a really good question. So one of the ways in which users distribute our technology is you've got startups distributing reports to their investors and to their experts. Investors can say, awesome, I can get everything in one place. They distribute it out to their portfolio companies. So although we only ever targeted marketing at the UK, we initially we found ourselves paying customers in over 80 countries through that customer to customer onboarding and really harnessing this product led growth groups, growth, growth loops. Right. So running into the US actually we just found that our second biggest community was already based out there. So we wanted to service the community in a better way by building technology, doing the localization and optimization that would really make it as accessible as possible for the US market. So we had good conviction that people were using it. We were building this wait list of makeshift users who wanted to use it, you know, in a way that worked fully for that market. So we spent the second half and most of 2023 really rebuilding that out and then, you know, launched it last year.
Daniel
So now I know you're, you're launching in New York City officially, I know you already serviced these areas, but you're doing like an official, hey, we're here, this is what we're doing. What do you look at in terms of the marketing that works when you want to launch in a new city?
Roy Samuel
So for us it's all about finding partnerships and partners who have already embedded themselves in those ecosystems and really see how we can help their communities by improving those outcomes. So we tend to offer startups, you know, one free year access to the platform, to the technology, to really get set up on it. For us. At the end of the day we know that early stage startups are really scrapped for cash. So being able to work with partners in that way is just a good way to show that we are trying to be a positive influence, help those businesses grow. So for us, partners is really key. And then of course we find digital marketing. And in the US the entrepreneurial mindset so strong in the UK we're quite risk averse. Naturally in the us I love how open the market is to doing business, trying new ideas. I think in the US they really appreciate it's all about speed of execution, it's all about how you can make things happen quickly. So actually a proposition like Connected seems to really land well from a, you know, message.
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Daniel
Indeed.com founders story, just go to Indeed.com.
Indeed Voice
Founders story right now and support our show by saying you heard about Indeed on this podcast.
Daniel
That's indeed.com founders story.
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Daniel
Now back to the show Jing and.
Roy Samuel
Sentiment Perspective in the US and we've actually grown six, seven times quicker in the US than we did in the uk. Obviously big part of that is down to the market size, but I think the US market just gets it when it comes to entrepreneurial and venture tooling. You know, the startup ecosystem is 20 years more mature in the US than it is in the UK. So a lot of that education piece that we have to do in the UK is already done in the US because guys seem to get it there.
Daniel
That's something that is I find fascinating too when I travel. Really the US is very big on risk and I think that is a huge separation point from other countries where many people are risk adverse and they're taught to to not question things. In the U.S. if you question your teacher, you're praised for it. In other countries you're not allowed to question authority or you know, like you have to whatever they tell you is like what you have to do. But I am seeing, you know, some changes and stuff in a lot of these, you know, emerging markets and countries. So I think the startup ecosystem in 20 years from now could be completely different, but a lot to learn from the US market. So I'm glad that you shared that because I've seen similar things. Let's go back to when you sold your company and then you were going to now figure out the rest of your life. I've had friends that have sold and they've become depressed and they're lost in life because, like, their business was their.
Indeed Voice
Baby, it was everything to them, and.
Daniel
Now they have no idea what to do with their life. How is it for you the experience of exiting your company and then figuring out what's next?
Roy Samuel
Oh, that is. That is a very good question. I mean, you're totally right. I think the exit of a company is a identity death for most entrepreneurs. Right? Especially. I was 21 when I started building Real Sports 2021. I sold it when I was 26. So for me, that was my whole identity. I never had a job. Like, I didn't know anything outside of that. And you sacrifice a lot for that business, friendships, relationships. Especially at that age where every night could be a night out with friends, but it's a night at home with a laptop instead, you know, So I think with that level of sacrifice, and then suddenly, you know, one day post transaction, it's no longer yours and you're no longer founder guy, you know, at that stage. So it's definitely a really interesting transition. You go through like a 6, 912 month period where like, what am I going to be? I was like, okay, maybe I'll become a firefighter or maybe I'll work with guide dogs. Like, you go through like the whole range of what should I do? But I started investing in startups, advising startups, and really organically I saw some of the patterns that led to creating Connected. So it happened really organically. But certainly that immediate post exit, and there's a, there's a really good podcast called the Post Exit Founder Podcast. But they dive into this a lot. And yeah, it's a story you see time and time again.
Daniel
I like that. Firefighter guide dog expert.
Indeed Voice
I mean, it makes sense.
Daniel
Like if you. I think if you have a big enough exit where you can then basically retire for a significant amount of time and you could just do whatever you want. I think we feel as if that's our goal. Right? That sounds amazing. But then when it happens, you might be lost and not know what to do. I am curious, on the data and information that you're seeing from within the organization, are there any interesting points or things that you're seeing along the way, besides like what countries people are in or geography, are there any other interesting data points?
Roy Samuel
Well, I would say that in the UK anyway, because obviously that's where our data is the most significant. The venture transaction market is being propped up by a few megadeals. But in the majority of cases, funding is down, transactions down, early stage funding is down. Things are really tough in the UK at the moment. From what we can see, there's a lot of uncertainty politically around tax regimes. What does it mean for making investments? What does it mean for exits around some of the taxes involved with that? So it's a really uncertain market. And if you isolate a couple of the bigger deals that have happened in the UK over the last quarter, like quarter on quarter, half on half, year on year, funding stats are just so down at the moment. So we're seeing a huge trend of businesses almost trying to launch in other markets earlier, especially the US because if they can get traction in that market and actually make that the primary focus rather than the secondary, the routes to funding are a bit clearer. So that's a really interesting trend that we've seen, hopefully the one that will reverse post the government's latest tax announcement once there's a bit more clarity. But at the moment it's been been quite tough in the uk.
Daniel
So how do you look at leveraging data for other products and services? I know some companies where they start off as one thing, they realize the information that they can get can really be of value as a new product or service.
Indeed Voice
Are you looking at in terms of.
Daniel
Like how you net how you launch your next product or service? Is it data based? Is it based on, you know, what customers are asking or how do you look at that?
Roy Samuel
So right now we're just hyper focused on using our data to improve customer outcomes. So we're about to launch our first gen AI offering which will allow business to input its data and understand, based on where it is in the journey and based on the experts available to them on the platform, how they can work together with that individual specifically to improve their outcomes. Whether it's reducing their cost of acquisition, improving customer lifespan, but really using their data and what we see from across the board, when individuals are working together and things that they're doing that are leading to positive outcomes, that's what we're just trying to really, really help make it as accessible as possible to all the players in the ecosystem. So right now we're hyper focused on just using that data to improve customer outcomes.
Daniel
I can't wait to see that. I Mean, I'm trying to understand exactly how that would look. It sounds amazing, like it's really, really needed. So I can't wait till you launch that to be able to test that out and try it. It sounds like you're really. I love how you're helping the startup, but you're also helping to make sure that the investors happy. And talent, which we know is so hard, right? Like, finding talent could be a make or break for an organization. Just like having the right leadership could be make or break for an organization, maybe even more so than just funding in itself. I'm curious. On a personal note, you said something before. You know, when you were 21 to 26, you had to sacrifice a lot of nights because you're on the laptop, which looking back, I wish I sacrificed nights on a laptop instead of going out. But from a personal note, you know, building a company, exiting now, building another company. Are there specific sacrifices that you've had to make in order to do this or are there anything looking back where you're like, wow, you know, that was a really tough and challenging time.
Roy Samuel
Well, in many ways, with, connected with, with, with this business, building it during COVID was, is like a builder's dream because the opportunity cost wasn't there. I wasn't missing out on anything. So this time around was a lot easier, you know, building during COVID But yeah, for sure, you know, during the real sport days, you know, you, you give up, you, you get to a stage where. And this isn't necessarily the healthy or the right way to look at it, but your identity, your ego is so intertwined with the business that you're building that you'll sacrifice things like relationships, like friendships to almost keep your ego alive, you know. And again, once you, once you go through that process and you know, you go through the sale, you go through that exit and you realize these things aren't important. And it's that almost like reassessment of self and all the. Without getting too metaphysical about this. But, you know, you go through all of those processes, that whole journey to realize that actually, you know, you don't necessarily need those things. But it's. Yeah, it's a, it's a very, very interesting topic.
Daniel
Yeah, that's why, you know, the. I always say it's not that like.
Indeed Voice
Everyone can be an entrepreneur, it's not.
Daniel
Like they can't be one. But the mental and grit and the physical toll that it takes, I think it's not for everyone, in my opinion, for that sake, not that everyone can't be it. You know, anyone can just start a company with no funding or nothing. Right? Like you can start a company tomorrow. But the grit and what goes into like you need to have like an.
Indeed Voice
Ironclad mind that can overcome the ups.
Daniel
And downs because we know there's. From the outside, you know, LinkedIn posts seem amazing, but from the inside, you know, people, many times they're like miserable and they're tired and they're exhausted and you know, they sacrifice their relationships and they're getting a divorce because their business. We had a guest on, he's pretty well known in his space and he said every business he ever started he had to. Basically he got divorced. Every single business he started, he got divorced because he had to. He had to sacrifice and choose was he going to spend time with his wife or is he going to spend time on the business? And I, that I, you know, three years ago when I interviewed him, that really stuck with me. If you want to get in touch with you though, Roy, and they want to find out more information, they want to meet you in New York and these cities you're going to expand. How can they do so?
Roy Samuel
Yeah, absolutely. I just want to say big thank you for the opportunity today. I really enjoyed coming on the show. Anyone get in touch with me via Roy Samuel on LinkedIn or come visit.
Daniel
Connected.Comman Roy, I want to see you in New York. I want to see the launch in New York or Miami. Miami, you know, it's always a fun city. But I love what you're doing. Thanks for. I'm so glad that we are connected with connected. But Roy Samuel, thanks for being with us today on FounderStory.
Roy Samuel
Thanks so much Daniel. Appreciate it.
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Founder's Story: Building Connectd with Royi Samuel
Episode Release Date: October 30, 2024
Host: IBH Media
In this episode of Founder's Story, host Daniel welcomes Roei Samuel, the founder and CEO of Connectd, a groundbreaking platform aimed at revolutionizing startup success through data-driven insights, transparency, and accountability. The conversation delves into Royi's journey from his previous venture, Real Sport, to the inception and growth of Connectd, highlighting the critical behaviors that contribute to startup success and how Connectd facilitates these behaviors seamlessly.
Roei Samuel began his entrepreneurial path with Real Sport, a venture that was successfully acquired by a gaming company in 2018. Following this exit, Royi transitioned into investing and advising startups, where he observed a strong correlation between specific business behaviors and their success metrics, such as performance, growth, and funding.
Key Insights:
Quote:
"Even though those behaviors seem to really predicate success, with Connected, we build technology that enables everyone in the ecosystem... to take part in those behaviors in as frictionless way as possible."
[01:57] Roei Samuel
Connectd was born out of Royi's experiences and observations in the startup ecosystem. The platform integrates transactional data from bank accounts, accounting software, and commerce solutions to automate investor reporting. This automation not only enhances transparency but also fosters accountability, ensuring startups remain focused on key growth metrics.
Features of Connectd:
Quote:
"We ingest all of that transactional level data so every single transaction in that business's history...creates transparency in their business. Accountability helps them really think about growth in a way that helps them understand how they're performing against their peers."
[01:57] Roei Samuel
Daniel shares his personal struggles with lack of transparency in investments, emphasizing how Connectd addresses these issues by providing comprehensive visibility into a startup's performance.
Royi's Perspective:
Quote:
"It's the accountability and the mindset of setting up every unit of operation of the business for monthly movement and monthly growth and accountability, that's what leads to success."
[05:31] Roei Samuel
Royi discusses Connectd's strategic expansion into the U.S., highlighting partnerships and localization efforts that cater to the unique dynamics of the American startup ecosystem.
Expansion Highlights:
Quote:
"We're partnering with different groups, different organizations as a business that helps startups grow...we're a pure subscription business."
[07:00] Roei Samuel
Connectd is set to launch its first-generation AI offering, which empowers businesses to utilize their data for tailored growth strategies. This initiative aims to provide actionable insights by analyzing where a startup stands in its journey and connecting it with the right experts to optimize outcomes.
Upcoming Features:
Quote:
"We're about to launch our first gen AI offering which will allow business to input its data and understand...how they can work together with that individual specifically to improve their outcomes."
[20:31] Roei Samuel
Royi sheds light on the current state of the venture market, particularly in the UK, noting a downturn in funding and highlighting the uncertainties surrounding tax regimes. This environment has prompted many startups to pivot towards the U.S. market, where the ecosystem is more mature and receptive to entrepreneurial tools like Connectd.
Market Observations:
Quote:
"The venture transaction market is being propped up by a few megadeals...funding stats are just so down at the moment."
[18:53] Roei Samuel
The conversation touches on the personal toll of entrepreneurship. Royi reflects on the identity crisis that often follows the sale of a company, sharing his own experience of losing his entrepreneurial identity post-exit.
Personal Insights:
Quote:
"The exit of a company is an identity death for most entrepreneurs...you go through like the whole range of what should I do."
[16:54] Roei Samuel
Royi Samuel's journey with Connectd exemplifies the blend of data-driven strategies and a deep understanding of the startup ecosystem necessary to foster entrepreneurial success. By providing tools that enhance transparency, accountability, and access to expert networks, Connectd stands as a pivotal platform for startups aiming to navigate the complexities of growth and funding. Royi's insights offer valuable lessons for founders, investors, and ecosystem partners striving to create impactful and sustainable businesses.
Final Quote:
"We want to be a really positive force on the ecosystem...how you find talent, how you really build a business."
[07:00] Roei Samuel
Connect with Roei Samuel:
Thank you for tuning into Founder's Story by IBH Media. Stay inspired by the journeys of visionary leaders shaping the entrepreneurial landscape.