Episode Summary: Bootstrapping Clean Energy with Vessel's Zara Hargan Iliff

Podcast: The Unshakeables
Host: Ben Walter, CEO of Chase for Business
Co-Host: Kathleen Griffith
Guest: Zara Hargan Iliff, Founder of Vessel
Release Date: February 18, 2025

Introduction: Overcoming Financial Hurdles in Entrepreneurship

In this compelling episode of The Unshakeables, host Ben Walter introduces listeners to Zara Hargan Iliff, the tenacious founder of Vessel, a pioneering company in the clean energy sector. The episode delves into Zara's journey of bootstrapping her business amidst financial constraints and a challenging fundraising environment.

Ben Walter [00:10]:

“You always, no matter what, need cash. When Zara Hargan Iliff launched her company, Vessel, she had all of that except the cash.”

Zara’s initial attempts to secure funding were met with repeated rejections, leaving her disheartened but not defeated.

Zara Hargan Iliff [00:40]:

“When you're building a small business, you need the money now... somewhere between the 5th and the 10th rejection, it was like, ah, yeah, this is not gonna work. It was very defeating...”

Despite these setbacks, Zara’s determination to make Vessel a success set the stage for an inspiring narrative of resilience and innovation.

Building the Vision: From Construction to Clean Energy

Zara’s background in construction profoundly influenced her approach to building Vessel. Her commitment to sustainability and efficient use of materials became the cornerstone of her business philosophy.

Zara Hargan Iliff [03:05]:

“I come from a construction background... if we're gonna make waste of time or materials. So if there's materials there that can be reused, let's use them.”

Her vision extended beyond aesthetics, emphasizing the functionality and sustainability of energy systems.

Zara Hargan Iliff [04:14]:

“In a complete clean energy system, you generate the energy, you store it, and then you can use it. That's the future of the clean energy transition.”

This holistic approach positioned Vessel to address the complexities of clean energy generation and storage, aiming to create microgrids that empower local communities.

The Struggle with Venture Capital: Navigating Rejection

Zara’s journey was not without significant challenges, particularly in securing venture capital (VC) funding. Despite her innovative approach, traditional VCs were hesitant to invest without proven market traction.

Zara Hargan Iliff [12:00]:

“Not a dime. Not a dime. I tried... and then quickly learned that that was not gonna happen for me and for Vessel.”

The pandemic further complicated her fundraising efforts, limiting in-person pitches and feedback. This lack of support from VCs forced Zara to explore alternative funding avenues, ultimately leading her to seek innovation grants.

Pivoting Under Pressure: The Innovation Grant Conundrum

Zara secured a $48,000 matching grant from the state of Minnesota, but stringent conditions rendered much of the funding unusable. Her inability to spend the grant as intended due to supply chain constraints resulted in forfeiting $17,000 of the grant.

Zara Hargan Iliff [14:20]:

“I actually had to give back a significant amount of the grant that I received, about $17,000 because I couldn't spend it.”

This setback was a pivotal moment, compelling Zara to adopt a more scrappy, self-reliant approach to sustain her business.

Mindset and Resilience: The Secret to Survival

A recurring theme in Zara’s story is the critical role of mindset in overcoming entrepreneurial challenges. Her internal resilience and refusal to give up were instrumental in Vessel’s eventual success.

Kathleen Griffith [10:14]:

“She's attacking this massive category. She seems completely undeterred and totally optimistic about it.”

Zara developed unique coping mechanisms to maintain her focus and drive, including what she termed a "spite speech."

Zara Hargan Iliff [24:08]:

“I have a spite speech... that made me feel better and helped with being like, okay, it'll be fine. Have some resilience. It'll be okay. Keep marching.”

This mental fortitude not only kept her motivated but also fueled her determination to push Vessel forward against the odds.

Breaking Through: Securing First Sales Through Networking

Zara’s turning point came through effective networking, which culminated in her first significant sale to the Kachil Dehe tribal lands in California. This project marked the beginning of Vessel’s revenue generation and established its credibility in the clean energy market.

Zara Hargan Iliff [26:45]:

“I made that sale through networking.”

Relying heavily on referrals, over 90% of Vessel’s completed projects were secured through word-of-mouth, highlighting the importance of building strong professional relationships.

Growth and Future Plans: Scaling with Proven Market Fit

With initial sales validating her business model, Zara began exploring more traditional financing options, such as debt financing, to support growth. Her focus shifted from relentlessly pursuing venture capital to leveraging proven revenue streams to scale Vessel sustainably.

Zara Hargan Iliff [27:54]:

“We're definitely in the growth phase now. I'm going the more traditional financing route with banks for growth.”

Looking ahead, Zara envisions expanding Vessel’s impact by continuing to work with tribal entities and other communities seeking clean, sovereign energy solutions.

Zara Hargan Iliff [28:13]:

“I hope and I will be getting involved in more of those projects. It's very exciting.”

Advice for Entrepreneurs: Emphasizing Mental Health and Flexibility

In her concluding remarks, Zara offers invaluable advice to aspiring entrepreneurs, emphasizing the importance of mental health and adaptability in business planning.

Zara Hargan Iliff [28:51]:

“When you're starting your business, immediately go get some type of counseling, therapy, mentorship...”

She advocates for regularly revisiting and tweaking business plans to stay aligned with evolving market conditions.

Zara Hargan Iliff [28:53]:

“I'm four plus years in every six weeks or so. I go back to my business plan and I tweak it. I found that exercise just to be fantastic.”

Discussion: The Intersection of Mindset and Business Strategy

Post-interview, Ben and co-host Kathleen engage in a thoughtful discussion about the pivotal role of mindset in entrepreneurship and the broader cultural emphasis on scaling to unicorn status.

Kathleen Griffith [30:26]:

“Founders start focused on skill set... and then they try to build their mindset... It's everything.”

They reflect on Zara’s balanced approach, which prioritizes mental resilience alongside strategic business maneuvers, offering a refreshing perspective compared to conventional entrepreneurial narratives.

Championing Women in STEM: Turning Challenges into Strengths

The conversation also touches on the unique challenges faced by women in STEM fields, with Zara’s experiences serving as a testament to overcoming gender-related hurdles in a traditionally male-dominated industry.

Zara Hargan Iliff [16:17]:

“I feel like I am asked to explain myself when I feel like there's other people in the room that don't have to explain themselves.”

Despite these challenges, Zara remains undeterred, positioning herself as a leader and role model for other women aspiring to enter STEM and entrepreneurship.

Conclusion: A Testament to Resilience and Innovation

Zara Hargan Iliff’s journey with Vessel encapsulates the essence of what it means to be unshakeable. Her story is a powerful reminder that resilience, innovative thinking, and a strong mindset are just as critical as financial resources in building a successful business.

Ben Walter [29:59]:

“She understood better than many people... having that mental clarity and focus is something you can't pull apart. They all go together.”

Through her unwavering determination and strategic pivots, Zara transformed Vessel from a cash-strapped startup into a promising player in the clean energy landscape, embodying the spirit of The Unshakeables.

Key Takeaways

1. Resilience is Crucial: Persistent rejection, especially in funding, requires a steadfast mindset to continue pursuing your vision.
2. Mindset Over Money: Mental health and adaptability can be as important as financial backing in navigating entrepreneurial challenges.
3. Networking Matters: Building strong professional relationships and leveraging referrals can open doors that traditional funding avenues might not.
4. Regular Reevaluation: Continuously updating business plans ensures alignment with market changes and fosters adaptability.
5. Embrace Being an Outlier: Women and minorities in STEM can turn perceived disadvantages into unique strengths, fostering diversity and innovation.

Notable Quotes

• Zara Hargan Iliff [00:40]:

  “When you're building a small business, you need the money now...”

• Zara Hargan Iliff [03:05]:

  “I come from a construction background... if we're gonna make waste of time or materials.”

• Zara Hargan Iliff [24:08]:

  “I have a spite speech... that made me feel better and helped with being like, okay, it'll be fine.”

• Zara Hargan Iliff [28:51]:

  “When you're starting your business, immediately go get some type of counseling, therapy, mentorship...”

Final Thoughts

Zara Hargan Iliff’s story is a beacon for small business owners facing similar struggles. Her ability to navigate financial constraints, coupled with her unwavering belief in her vision, underscores the importance of resilience and adaptability in entrepreneurship. This episode not only highlights the challenges of bootstrapping a clean energy company but also celebrates the indomitable spirit of The Unshakeables who turn adversity into opportunity.