Founder's Story: Building Connectd with Royi Samuel
Episode Release Date: October 30, 2024
Host: IBH Media
Introduction
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's Entrepreneurial Journey
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:
- Behavioral Correlation: Royi identified two pivotal behaviors contributing to startup success:
- Quality and Frequency of Investor Reporting: Effective investor relations and transparent reporting.
- Access to Expert Networks: Leveraging talent networks to enhance business operations.
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
The Genesis of Connectd
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:
- Automated Reporting: Integrates with platforms like Chase, QuickBooks, and Stripe to provide real-time investor reports.
- Data-Driven Insights: Utilizes transactional data to benchmark performance against peers.
- Talent Discovery: Matches startups with relevant experts based on their specific needs and growth stages.
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
Enhancing Transparency and Accountability
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:
- Accountability Over Transparency: While transparency is vital, accountability drives founders to focus on metrics that matter.
- Monthly Performance Tracking: Regular updates keep founders aligned with investor expectations and market demands.
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
Expanding Connectd in the U.S. Market
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:
- Market Launch: Started servicing customers in Florida before moving into New York.
- Partnerships: Collaborates with accelerators and incubators to embed Connectd within startup communities.
- Business Model: Operates on a subscription basis, avoiding equity stakes or transaction fees.
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
Leveraging Data for Enhanced Outcomes
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:
- Gen AI Integration: Personalized recommendations based on business data.
- Expert Collaboration: Facilitates connections with experts to address specific growth challenges.
- Outcome Improvement: Focuses on reducing acquisition costs and enhancing customer lifespan.
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
Challenges and Market Trends
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:
- UK Funding Decline: Reduced early-stage funding and increased political uncertainty.
- Shift to U.S.: Enhanced growth opportunities and clearer funding routes in the American market.
- Educational Gaps: The U.S. market has a more established understanding of startup tools, reducing the need for extensive education.
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
Personal Reflections and Entrepreneurial Identity
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:
- Identity Shift: Exiting a company can lead to a period of self-reassessment and uncertainty about future endeavors.
- Sacrifices Made: Building a business requires significant personal sacrifices, including strained relationships and missed social opportunities.
- New Beginnings: Royi found purpose in investing and advising startups, ultimately leading to the creation of Connectd.
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
Conclusion
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:
- LinkedIn: Roei Samuel
- Connectd Website: Connectd.com
Thank you for tuning into Founder's Story by IBH Media. Stay inspired by the journeys of visionary leaders shaping the entrepreneurial landscape.