Opinion certainty 3/5 debate potential 3/5

Successful founders rarely self-fund their next company

Scott Paul · Wooly Hits 80 Customers, $2m Revenue Helping Brands Turn Customers Into Ambassadors · Jul 10, 2020 · at 7:31

Scott Paul, founder of Wooly, explains why he chose to raise VC funding instead of self-funding his new startup.

0:00 / 0:11exact quote · 11.3s
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“I look at most most very successful exits They'll still go and raise from the biggest venture companies on their next one. Rarely do they self fund from the observations I've had.”

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More from Scott Paul

Insight
Paying cash for referrals ruins trust and word-of-mouth marketing
“We don't think commissions paid to refers is the right idea. We think that breaks the bonds of trust and would ruin a word of mouth marketing, which is the last trusting like way that we learn about products.”
Scott Paul Jul 10, 2020 ▶ 12:30 Wooly Hits 80 Customers, $2m Revenue Helping Brands Turn Customers Into Ambassadors
Insight
Two-sided marketplaces have only a 10% chance of success
“I mean, it's a two-sided marketplace. Nothing's gonna, the chances of success are 10%. I've done this long, long, long enough to know, but if we hit 10%.”
Scott Paul Jul 10, 2020 ▶ 15:09 Wooly Hits 80 Customers, $2m Revenue Helping Brands Turn Customers Into Ambassadors
Prediction Not checkable as stated
Paul predicts Wooly's new transactional product will triple its revenue
“We're going to have a performance based transit, you know, we're going to get transactional fees from this new product we're launching, and I think it will more than triple our revenue won't be SAS revenues.”
Scott Paul Jul 10, 2020 ▶ 9:43 Wooly Hits 80 Customers, $2m Revenue Helping Brands Turn Customers Into Ambassadors
Disclosure
Paul: Wooly aims for a 5% to 10% transaction take rate from brands
“I think potentially five to 10% maybe three at the worst case scenario. And some products won't have anything.”
Scott Paul Jul 10, 2020 ▶ 14:31 Wooly Hits 80 Customers, $2m Revenue Helping Brands Turn Customers Into Ambassadors
Assertion Not checkable as stated
Wooly reached $2M in revenue with zero paid marketing spend
“We, I use LinkedIn and we have done zero marketing.”
Scott Paul Jul 10, 2020 ▶ 20:58 Wooly Hits 80 Customers, $2m Revenue Helping Brands Turn Customers Into Ambassadors
Assertion Partly supported
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“Today of all the, a brand Like stance socks or skull candy headphones, or this purple mattress, this mattress in a box company. They use us right now to Discover who's buying from them, like, who are these individuals, like, on social media, and then they actu…”
Scott Paul Jul 10, 2020 ▶ 2:41 Wooly Hits 80 Customers, $2m Revenue Helping Brands Turn Customers Into Ambassadors
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