ENTREPRENEURIAL TECH
The One Mistake to Dodge When Launching Your Dream Company
Starting with MVPs: Lessons from My Crypto Startup Journey
My admiration for entrepreneurship was deeply rooted in my family’s history, particularly my father’s experiences. He had built and managed several successful traditional businesses over the years, although he had also learned the hard way about the perils of trusting the wrong partners. His journey as an entrepreneur, filled with ups and downs, inspired me to explore the world of business. Whether it was genetics or simply growing up surrounded by tales of business ventures, I couldn’t help but feel an undeniable connection to the excitement of discussing the inner workings of enterprises and how they transformed lives while amassing fortunes.
First Taste Of Entrepreneurship
In 2016, I embarked on my entrepreneurial journey, but it was far from the glamorous world of startups that we see today. Back then, the entrepreneurship landscape was still shedding its jargon-filled facade. My journey began with creating YouTube videos, and it took a full two years before I earned my first dollar. However, the feeling of making money through sheer effort and minimal investment ignited a passion within me—a dream of one day running my own successful company.
The Birth of CrypDeck
Fast forward to 2021, and the world is grappling with the challenges posed by the COVID-19 pandemic. As colleges shifted to 100% online learning, I found myself with more time on my hands. I began working as a community manager, took on internships, and even participated in pitching competitions. During this time, I reconnected with Kaustubh, a fellow student from my college, who would go on to become an invaluable partner throughout my entrepreneurial journey. Together, we ventured into multiple startups, with Kaustubh taking on the role of CTO, thanks to his expertise in building apps and websites.
Pitching competitions required us to conceive an empirical startup idea, and that’s when Smallcase, a company offering curated baskets of stocks and ETFs, caught our attention. Smallcase simplified investing by allowing users to invest in themes and sectors they believed would yield significant returns. As enthusiasts of both finance and Smallcase, Kaustubh and I saw an opportunity in the crypto market, which was also on the rise. Inspired by Smallcase, we conceptualized CrypDeck, a platform that curated cryptocurrencies based on themes, sectors, and the underlying technology.
Learning from Smallcase, we ensured CrypDeck wouldn’t become a broker itself but would integrate seamlessly with popular exchanges like WazirX, Binance, Coinswitch, and Bitbns. This user-centric approach seemed foolproof.
Navigating the Unexpected Challenges
Kaustubh focused on the technical aspects, while I took charge of everything non-technical, from people management to marketing and finances. The next logical step was to validate our idea with potential customers. We designed a comprehensive Google form with a list of probing questions, aiming to gain a deeper understanding of our target audience and refine our problem identification. Additionally, we conducted 10–20 one-on-one interviews with individuals at the forefront of crypto companies, reaching out to them through cold emails and messages. This process proved invaluable in shaping our journey.
However, we encountered technical challenges along the way. Most exchanges (except Bitbns) were in their early stages and lacked the infrastructure for co-authorization features, similar to the “login with Instagram” functionality. Fortunately, WazirX, a rapidly growing exchange, agreed to collaborate with us, enabling us to move in the right direction. Armed with insights from our surveys and interviews, we were ready to present our case to skeptics.
Adaptation and Community Building
Two other companies were working on similar products, each with a distinct business model, but both focused on building distribution before launching them to the masses. In response, we adapted once again. I initiated the creation of a WhatsApp community for crypto enthusiasts, eager to be our initial users and provide valuable feedback. Building a community, especially organically, proved challenging, as there were no immediate incentives for users to join. Nevertheless, we persisted, even though our product was still in development.
The Blunder
In 2021, with the startup funding scene at its peak, we were eager to secure our first investment. Ignoring traditional startup advice, we dove headfirst into the fundraising process, believing in the sheer numbers game. We spent two months crafting the perfect pitch deck, incorporating every piece of advice available on the internet.
However, we encountered significant roadblocks:
- Poor Timing: Our biggest blunder was not developing the Minimum Viable Product (MVP) before approaching investors. We failed to demonstrate our idea in action, making it challenging for investors to grasp its potential. In the startup world, ideas without a product are typically funded only if you’re a seasoned founder or possess significant credibility.
- Wrong Audience: Many Indian investors held a negative perception of crypto, viewing it as a fleeting gimmick destined to vanish within a decade. Changing these entrenched beliefs proved nearly impossible, especially considering our lack of credibility as student founders with minimal startup experience.
- Ineffective Storytelling: Our difficulties were compounded by our inability to convey our value proposition effectively. Despite lengthy discussions with potential investors using our pitch deck, they often left feeling bewildered and uncertain.
Despite our struggles, we consoled ourselves, believing that all we needed was one significant breakthrough. Unfortunately, it remained elusive.
Why build MVPs first?
- Tangible Proof of Dedication: An MVP demonstrates your commitment to turning an idea into reality. It goes beyond mere words and concepts, providing tangible proof of your dedication to solving a problem. Investors and stakeholders are more likely to take you seriously when they see a functioning prototype or product.
- Refining Ideas and Gaining Traction: Building an MVP allows you to validate your idea and understand the problem statement better. It enables you to gain traction with early users and gather valuable feedback. This iterative process helps refine your product and ensures that when you do seek funding, you have a stronger case to present.
- Instilling Confidence in Investors: Investors look for startups with dedicated and serious teams. By building an MVP, you demonstrate your commitment and determination to make your vision a reality. It showcases your team’s ability to execute and adapt, which can instill confidence in potential investors.
Not All Was Lost
Creating a pitch deck forced us to revisit every aspect of our startup, clarifying our mission and target audience. Condensing our problem statement into a single slide taught us the value of brevity while maintaining clarity. If you can’t express your value proposition in a single sentence, it’s time to reconsider your core feature. Calculating market size improved our understanding of market size and the crypto industry.
Building a pitch deck also encompassed competitive analysis, outlining our business model, and emphasizing why our team was best equipped to address the problem. Additionally, we learned how to build communities, initiate cold calls and messages, and recognize the importance of founder relationships in sustaining a startup.
The Crypto Winter
In 2022, the crypto market experienced a sudden freeze, prompting us to make a tough decision: shutting down CrypDeck.
Our most profound lesson was clear: for inexperienced founders, it’s crucial to prioritize shipping the MVP first, gathering feedback from a core community. Only then should you consider entering the fundraising frenzy, if necessary.
