RAVACAN reposted this
I'm shutting down my startup, RAVACAN. 5 years after I founded it. Here are 5 lessons and reflections: ↓ 1. We don't have product-market fit - Building an enterprise-grade software is incredibly costly - No buying intent from Direct procurement - Procurement managers lack the authority to drive changes internally 2. Creating a new category is hard - Manufacturing companies prefer highly customizable solutions over SAAS - Educating the market about a new category requires significant time and resources - Buyers can't compare and feel the risk is higher 3. Why I'm Stopping This - We had minimal returns despite significant effort - We cannot build what the market needs with minimal capital, and open-source solutions exist (more on this soon!) - Manufacturers are secretive and don't share the word with their peers even when they are very happy 4. Things I Would Have Done Differently - Targeted more dynamic niches like semiconductors or raw materials - Engage smaller companies instead of enterprises - Offer the product for free to get references 5. My Most Critical Learnings - Don't build something people need, but something they want - Better be the second best than the first (Edit: Better be challenger than pioneer) - Use funding momentum and don't let it go away Richard Branson said, "The brave may not live forever, but the cautious do not live at all." I try to live by this every day. On one hand, it's tough to shut down something I've poured my heart into. On the other hand, I feel a sense of relief and gratitude. The journey with RAVACAN has been an incredible learning experience. The lessons I've gained, the skills I've developed, and the insights I've gathered are invaluable. While RAVACAN's chapter is closing, these experiences will undoubtedly shape my future endeavors. I’m eager to apply what I’ve learned to whatever comes next. Thank you to my talented and tenacious teammates Benjamin BEGUIN, Carles Ballester, to our first clients who saw the future with us, especially Mike Maloney, to our investors who supported me every step of the way Vincent Diallo, Laura Brady, Benjamin Ling, Collin Gutman, Jeff Weinstein. My mentor Gary Geschwind.