Lessons From Two Exits + Building Electric to Automate IT Management | Ryan Denehy
The Peel with Turner Novak
Turner Novak
4.6 • 11 Ratings
🗓️ 9 August 2024
⏱️ 94 minutes
🧾️ Download transcript
Summary
Ryan Denehy is the founder and CEO of Electric, software that helps businesses manage their IT and IT support.
We talk through his first two startups from founding to exit, the early days of getting Electric off the ground, and Ryan’s frameworks for fundraising, recruiting, and sales.
Timestamps: (00:00) Intro (03:05) Building an ad network for extreme sports websites (11:07) Why a better pipeline solves all problems (13:24) Ryan’s trick for hiring executives (17:00) Selling the ad network to USA Today (18:11) Moving to SF to start a software company (21:33) Getting rid of his car to extend runway (24:23) Paying rent with credit cards (29:17) Struggling to raise a Series A (31:55) Using channel sales to grow the business (37:05) Almost running out of money before selling to Groupon (43:37) How cloud created the perfect timing to build Electric (48:33) Leveraging software and AI to automate manual human tasks (51:45) Why you should avoid buzzwords in marketing (53:57) Pros and cons of being a solo founder (56:14) Why Electric built a large initial board (01:02:41) Advice for picking lead investors (01:06:35) How VC fund dynamics have inflated Seed rounds (01:09:16) The downsides of high valuations (01:12:45) Almost wiring back the Seed round (01:16:37) Why every fundraise is a Pipeline problem (01:21:04) The reasons VCs actually pass on founders (01:26:42) Cutting the burn rate in 2022
Electric.ai: https://www.electric.ai/
Where to find Ryan: Twitter: https://twitter.com/DenehyXXL LinkedIn: https://www.linkedin.com/in/ryandenehy/
Where to find Turner: Twitter: https://twitter.com/TurnerNovak LinkedIn: https://www.linkedin.com/in/turnernovak/ Newsletter: https://www.thespl.it/
Transcript
Click on a timestamp to play from that location
| 0:00.0 | Had we waited to get all the websites signed up before pitching the advertisers, we would |
| 0:04.1 | have run out of money. |
| 0:05.1 | Startups at the inception stage, these decisions are life and death. |
| 0:08.8 | You have to figure out how do I compress what would normally take a year, two years, if |
| 0:14.3 | at all? |
| 0:15.3 | How can I compress that down into six weeks, two months, three months? |
| 0:18.9 | And this is why most companies die, not because they don't |
| 0:21.9 | have a product, but because they didn't get any traction. And it's often because you can't solve |
| 0:26.9 | the catch-22 of, I'm trying to sell the thing, but I can't until it's built, but I can't get |
| 0:34.0 | the money to build it until I have the traction. And so I think that was probably one of the |
| 0:37.6 | biggest lessons. You can thread the needle. You just, you have to sort of be thoughtfully aggressive |
| 0:42.4 | in how you go to do that. You got to make sure that the things that you're pitching on either |
| 0:45.8 | side of that equation are things that you are actually going to do. Ryan, how's it going to the show? |
| 0:53.9 | Thanks for having me. It's great to be here. |
| 0:56.1 | I'm excited to have you. I think you're the first guest that has started three companies, sold two companies. |
| 1:04.3 | A lot of stuff that you've kind of picked up on over the years. This is a, we'll start off of the listener question from Jeff Richards on your |
| 1:12.2 | board. Nice. Notable capital. Formally GGV, now notable. Yeah. So what's just been the biggest |
| 1:19.7 | lesson that you've learned founding multiple companies like this? Probably start on the personal |
| 1:26.7 | side. |
| 1:28.3 | Managing your own psychology is one of the hardest things, but also one of the most important |
| 1:35.4 | things to get right. |
| 1:36.4 | I think what I realized in probably midway through my second company was that I am my own |
... |
Please login to see the full transcript.
Disclaimer: The podcast and artwork embedded on this page are from Turner Novak, and are the property of its owner and not affiliated with or endorsed by Tapesearch.
Generated transcripts are the property of Turner Novak and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.
Copyright © Tapesearch 2026.

