Yipit Co-Founder Shares Wisdom, Experience

One half of the founding tandem behind Yipit—a deal aggregator along the lines of Groupon—was gracious enough to enumerate those crucial factors that gave their startup the edge (and $1.3 million in funding) in a recent article. Vinicius Vacanti begins the rather lengthy piece by admitting that when he and his partner Jim Moran quit their Wall Street finance jobs for an adventure into the unknown, they had no prior experience. However, the rather detailed list shows exactly what made Yipit succeed on its own terms. Here are a few choice cuts:

1. Traction- The Yipit guys did their darndest to nurture user growth and let the numbers speak for themselves when it came to pitching investors.

2. Keeping in touch with investors- If you’re inexperienced and don’t know anyone (like the Yipit guys), it’s still best pratice to at least meet investors. Why? So they know what you’re up to. Vacanti shares how this actually got Yipit’s first two investors on board at a time when he and is partner weren’t even pitching for money.

3. Pivot your brand- When Vacanti and his partner hard at work on their prototype, GroupOn exploded. The result? They retooled and redirected Yipit into a straightforward aggregator. The moral of the story is when the pool gets a little too crowded, be a little different from the rest.

4. Seed- To have the necessary capital for the next 18 months of expansion, Yipit reached out to the investors it had been talking to since day dot. No cold calls/emails, just good old fashioned networking. Vacanti and co. netted a cool $1 million.

5. Experience counts- Really, it’s tough to be on your own in the startup world. Risk simply has this awful habit of scaring investors away. What did Vacanti and his partner do? Why, they simply admitted to investors the risks they were likely to face and constructively mapped out how they intended to mitigate these. It earned them something more than cash: trust.

For the full skinny on the Yipit saga, go here or click the source link.

Via: Business Insider