Why $10M & 500K Users Weren't Enough

A well-structured cap table is critical for future decisions. Benedetta learned the hard way about cap table complications.

\"Just make sure like cap tables and contracts with investors are very clear because when they are not like...gets really messy.\"

• Benedetta emphasizes clarity in cap tables and investor agreements.
• Complicated cap tables can impede progress and decisions.
• Founders should ensure clean ownership structures from the start.

Over-reliance on one partner can risk your startup. Benedetta discusses the pitfalls of depending on one bank.

\"One of the issues we had was because we were partnered with one bank...it became really hard to unwind all the technology developed.\"

• Benedetta cautions against integrating deeply with a single entity.
• Dependency hindered their ability to pivot or sell.
• Founders should diversify partnerships to maintain flexibility.

Making tough decisions during crises is challenging. Benedetta shares her experience during COVID.

\"We had to have a different plan...it's really hard when COVID just hits...you even like fire them, and it's gonna be really tough.\"

• Benedetta struggled with delaying layoffs due to concern for employees.
• Procrastinating cutbacks can worsen financial strain.
• Founders should act swiftly and compassionately during crises.

European fintech startups face regulatory hurdles. Benedetta explains the complexities of operating across European countries.

\"Every single country has its own regulation...Europe is not a unified market, especially for regulated companies.\"

• Benedetta highlights the fragmented regulatory environment in Europe.
• Passporting isn't straightforward for fintech across countries.
• Founders should plan for country-specific regulations in Europe.

Wise fund management post-raising is vital. Benedetta advises caution in spending after receiving investment.

\"Just wait to spend the money...you're raising in seed, you have no idea what you are going to go and where you're gonna go.\"

• Benedetta cautions against rapid spending immediately after raising funds.
• She suggests conserving capital until achieving product-market fit.
• Founders should be strategic with hiring and expenses early on.

Clear decision-making structures among co-founders are crucial. Benedetta discusses challenges with a 50-50 equity split.

\"When things get hard, you need one decision maker...I still believe the fifty-fifty rules that a lot of VCs try to push is not the best.\"

• Benedetta advocates for having a single decision-maker in tough times.
• Equal equity splits can complicate decision-making processes.
• Founders should define clear leadership roles from the start.

Engaging directly with customers can provide invaluable insights. Benedetta emphasizes the importance of founders handling support.

\"We always put our own face behind the app...we always did customer support. I never stopped doing customer support in my companies.\"

• Benedetta believes founders should be involved in customer service.
• Direct interaction helps understand user needs and build trust.
• Founders can improve their product by listening to feedback firsthand.

Taking investment from corporate VCs can complicate your startup's trajectory. Benedetta shares her experience with a banking investor.

\"When you get the money from your partner, then you're kind of tied...they had board seats...it's very hard to get out of it completely.\"

• Benedetta found partnering with a bank investor restricted their flexibility.
• The bank's influence affected their product development and strategy.
• Founders should consider potential constraints of corporate investors.

Building a strong community can drive growth without heavy marketing spend. Benedetta explains how they leveraged community building.

\"We spent a lot of time thinking about how to acquire customers very cheaply and this was through community building and it started from the really beginning when we didn't even have a product.\"

• Benedetta used financial education content to engage users.
• They utilized Instagram live sessions and Facebook groups.
• Founders can build communities by providing value and engaging directly.

Validating your idea before building can save time and resources. Benedetta shares how they tested their fintech concept manually.

\"We spent a month kind of testing what we wanted to do by making people like put...we were rounded up by hands and then do the movements...that's a really good way of testing products.\"

• Benedetta manually tested the app concept by rounding up savings for users.
• She recommends testing ideas any way possible before coding.
• Founders can validate demand without a technical product.