Podcast Summary: The Hidden Pain Behind Building a $300M Tech Company

Founder's Story | IBH Media | Ep 274 — Dan Novaes, Founder of Mode Mobile
Date: November 4, 2025

Episode Overview

In this episode, host Dan of IBH Media sits down with Dan Novaes, founder of Mode Mobile. The conversation dives deep into the often unspoken challenges of building a tech company now valued at over $300 million. Novaes shares candid insights on navigating explosive growth, near-collapse, the discipline required for recovery, and the unconventional strategies—particularly crowdfunding—that fueled Mode Mobile’s resurgence. This is a raw, nuanced look at resilience, adaptation, and founder psychology through the highs and harrowing lows.

Key Topics & Insights

1. Early Aspirations and Harsh Realities

[01:36–02:58]

• From Teenage Hustle to Tech Growth: Host Dan asks Novaes if, as a 15-year-old with $1,000, he could have predicted Mode’s trajectory. Novaes reflects on youthful optimism and the difference between “hustling” and scaling.
  • Quote:

    “If you asked my 15 year old self probably would've been like why didn't you do this by the time you were 18?... But then when you actually go and do it and then learn that scaling is way different than just hustling... scaling is really, really difficult.”
    — Dan Novaes [02:16]

2. The Real Pain of Scaling and Pivots

[02:58–08:47]

• Unexpected Roadblocks: Novaes describes the cycle of building products, failing to gain traction, and the emotional toll.

  • They pivoted multiple times before Mode’s core concept emerged in 2019.
  • Early product failures taught valuable lessons about product-market fit and adaptability.

• Product-Market Fit: The breakthrough arrived after realizing a cohort of “budget conscious users” didn’t want to pay for music streaming; Mode’s offer to pay users led to a sudden surge—250,000 signups for a “fake paywall” test.

  • Quote:

    “We built this entire product, spent like a year and a half on it and like no one was using it. And then I was like, wow, what a waste of my time... But then...we had this one cohort...turns out they were like budget conscious users... And so we eventually focused in on that... we put...just a fake...signup...we had like 250,000 people sign up.”
    — Dan Novaes [03:13–04:30]

• Growth and the Cliff’s Edge: COVID drove digital adoption and Mode’s revenue skyrocketed “from $100,000 in revenue in 2019... to well over $25 million in 24 months.”
  When the market cooled and major advertisers “capitulated,” Mode faced a near-death moment.

  • Quote:

    “Then the bottom fell. All of these advertisers, the FTXs and Voyagers...capitulated, right?... We have 100 people on our payroll. And that...over almost killed the business.” — Dan Novaes [06:40]

• Discipline & Mindset for Survival:

  • The crisis forced a new level of discipline; e.g., scrutinizing payback periods, “sheer will,” and learning from gratitude and mindfulness practices.
  • Memorable Reflection:

    “There was like two or three months of darkness there for sure...read a lot of gratitude books...developed a lot of like more mindfulness practice of kind of how to think about things, which in itself...allows you to grow.”
    — Dan Novaes [08:41]

3. Crowdfunding: Unconventional Growth Fuel

[10:49–15:05]

• Massive Crowdfunding Success:
  • Mode Mobile raised over $60 million from 57,000 retail investors, making it “one of the biggest crowdfunders in America this year.”
  • Quote:

    “We have over 57,000 shareholders in our business, so quite significant.”
    — Dan Novaes [11:49]

• Crowdfunding Types & Strategy:
  • Distinguishes between small startup campaigns versus “moonshot” companies with devoted audiences.
  • The secret: passionate communities, transparent communication (e.g., public webinars with guests like Steve Wozniak), and regular “earnings calls” even pre-IPO.
  • Public Company Training Wheels:

    "For us, I look at it as kind of like the training wheels of being like a publicly traded company...this is like me playing...my college ball...before...the NFL."
    — Dan Novaes [14:20]

4. Power of Masterminds & Entrepreneurial Networks (YPO/EO)

[15:05–18:01]

• Big Bet on Proximity:
  • Novaes invested in joining elite groups like YPO and EO early—even when it was risky.

    “I’ve always made the investment to either be a part of masterminds or certain groups, even when I sometimes didn’t even have the capital to do it...proximity is power.” — Dan Novaes [15:34]

• Shared Struggles, Open Doors:
  • These networks offer advice, connections, mentorship (“you’re finding a space of other founders...dealing with a lot of the same stuff”) and unlock “access” across all areas of life.

5. Tactical Advice: Make Space for Strategic Thinking

[18:01–19:48]

• From Reacting to Thinking:
  • Novaes recommends founders schedule regular, distraction-free time for deep thinking (e.g., float tanks, long runs/walks) to unlock creative business solutions.
  • Quote:

    “Just having this. Something so simple just put into my calendar...literally unlocked tens of millions of dollars worth of ideas, worth of business opportunities, worth of problem solving.”
    — Dan Novaes [19:27]

Notable Quotes & Moments

• On Facing Unexpected Collapse:

  “The bottom fell...we have 100 people on our payroll. And that...over almost killed the business.”
  — Dan Novaes [06:40]

• On Finding Product-Market-Fit:

  “We had this like one cohort of people that was using it...turns out they were like budget conscious users that didn’t want to pay for music streaming. And so we eventually focused in on that...”
  — Dan Novaes [04:17]

• On the True Value of Community & Networks:

  “Your proximity is power...if you find other entrepreneurs, other people that have that same kind of mindset, it’s gonna rub off on you.”
  — Dan Novaes [15:44]

• On Crowdfunding as a Growth Accelerator:

  “Anytime that you’re able to tap into the retail audience...if you’re a good marketer, you can align value...the best public companies are the ones that have great financials and also have that...cult-like following.”
  — Dan Novaes [13:19]

• On Making Time for Strategic Thinking:

  “When you’re running your business, you’re always working in the business...they don’t leave enough time for thinking. I’ve found there’s like two times where I do a lot of deep thinking...I float every week...I do a lot when I run or go on walks...those have literally unlocked tens of millions of dollars.”
  — Dan Novaes [18:28–19:27]

Timestamps for Important Segments

| Time | Segment | |-------------|----------------------------------------------| | 01:36–02:58 | Early entrepreneurial mindset, expectations | | 02:58–08:47 | Scaling pain, pivotal moments, near collapse | | 10:49–15:05 | Crowdfunding journey & strategy | | 15:05–18:01 | Value of mastermind groups (YPO/EO) | | 18:01–19:48 | Tactical advice: thinking time |

Final Takeaways

• Hardship is inevitable: Even after success, significant headwinds can threaten everything.
• Adapt and be disciplined: Times of crisis can foster the discipline and innovation needed to thrive.
• Community is a growth multiplier: Both for raising capital at scale and for personal/founder support.
• Regular, deep thinking pays off: Carving out non-reactive, strategic time is key for major breakthroughs.

To connect with Dan Novaes:

• Email: dan@modemobile.com
• LinkedIn/Twitter: @danmodemobile

Episode Tone:
Candid, introspective, sometimes gritty, always practical—an unvarnished founder’s journey through chaos, pivots, and ultimately scaling with purpose.