From brainstorm to breakout: Building your startup alongside industry leaders

19.03.2024 16:10, Rita Longobardi

They say it takes a village to raise a child, but what about a startup? The path from a spark of an idea to a full-fledged business can feel like climbing a mountain. That's why we're launching a series asking seasoned startup founders who've charted this course before, to act as your own personal "startup whisperer." Our first guest on this exciting climb is David Gugelmann, co-CEO and Founder of Exeon Analytics. Get ready for actionable advice to help you explore the thrilling, challenging world of getting your startup off the ground.

Market research and product-market fit
How did you drive your market discovery phase?

Exeon Analytics, a spin-off from ETH Zurich, has been researching for over a decade. Initially approached at scientific conferences, we recognized the potential for our research in a broader market. We developed an MVP based on this feedback and tested it with potential prospects. Combining customer input with our ETH research, we created a versatile software product for a global market. We prioritize bringing true innovation to the market, providing superior value to customers. Fortunately, our first customers embraced this innovation and actively contributed suggestions for improvement.

A common recommendation to entrepreneurs is to focus: Do you concur? How did you achieve product-market fit?

This is a tricky question, but let us put it like that: We’d agree that focusing on principles is very important when dealing with limited resources; yet, remaining flexible towards changing circumstances and rising opportunities is also an essential ingredient for successfully developing a product-market fit. For us, this meant that we were always focused on how we could provide the biggest value to people responsible for network security in enterprises. When it comes to concrete features and capabilities of our Network Detection & Response solution, we were far more flexible and sometimes also tactical, always maximizing the provided value in areas with the highest impact to convince customers about our offering.

Building your team
How did you know Gregor Erismann was the right person to co-found? And how did you attract key hires and choose advisors?

I have been very lucky to work with a highly talented team from the very beginning. Of course, in the early days, it was primarily people from the ETH research group. This is also where I met our CTO, Markus Happe. But soon after, key hires such as our COO Carola Hug, whom I met in the context of ETH as well, joined the company. Gregor became part of the management a little bit later, during our Series A. Bringing some very relevant leadership experience, I have always been fully trusting in Gregor’s capabilities – first as CCO, and now, for a couple of months, as CO-CEO to further scale Exeon’s business. I selected all key hires in close collaboration with our board, who gave me some very relevant guidance throughout the last few years.



Leadership and decision-making
As a founder, what leadership qualities have been essential for your company’s growth? How do you approach decision-making, especially when faced with uncertainty?

In a global market, I prioritize delivering superior quality at every customer interaction. This commitment extends beyond our Network Detection & Response solution to every consultation with clients. I emphasize this dedication to our team, striving for excellence. Being a very analytical person, I rely on data for decision-making. When data is lacking, we make initial decisions, measure their impact, and iterate until achieving desired outcomes.

Scaling and global expansion
When did you feel ready for scaling? What were the key steps taken? And what key learnings and advice would you give for this phase?

Having been focused on providing value to our customers, there was not THE moment we felt ready for scaling. We constantly refined our approach based on customer feedback, improving every aspect of our business. This ongoing evolution attracts attention in the market, fueling our expansion. Securing key Swiss clients not only validated our product but also accelerated our international growth. Understanding the varied purchasing dynamics in different markets was crucial. Recognizing the role of intermediaries like Managed Service Providers and Resellers helped us navigate international scaling effectively.

Lessons learned
What is the biggest challenge of being a founder? And what the best reward?

Let me start with the biggest reward, as this is, of course, what drives me in my everyday work. I find immense satisfaction in tackling challenging problems alongside a skilled and motivated team. Successfully solving these problems and turning them into valuable products for a broad audience is deeply fulfilling. Working with a team we've handpicked fills me with respect and gratitude. But of course, as startup founders, resilience is essential. Over nearly a decade, we've experienced both successes and setbacks, learning and growing from each experience.

Tools
Any tips for entrepreneurs who find themselves in the crucial founding phase?

Every founding story, value proposition, and target market is different; we, therefore, believe it’s very hard to give generic tips that are valid for everyone. However, there are probably three attitudes that have been very important to us throughout the last ten years:
 

• Focus on the team – they are not only the key to your business's long-term success but also the people you are interacting with every day, so it should be fun! 
• Listen to and learn from customers early and regularly – they are the most valuable feedback source.
• Prepare yourself for a marathon – always being in the sprint over this distance will become exhausting over time.

Here are some reading recommendations we’ve collected over the years:

Sales 
o    Fast Forward: Accelerating B2B Sales for Startups (Hilpert & Giese)
o    Let’s Get Real or Let’s Not Play (Khalsa & Illig)
o    The Challenger Customer (Adamson et al.)
o    Never Split the Difference (Voss & Raz)

Team
o    Mastering the Rockefeller Habits (Harnish)
o    Scaling Up (Harnish)
o    The Lean Startup (Ries)
o    Good to Great (Collins)
o    Measure What Matters (Doerr)
o    Trillion Dollar Coach (Schmidt et al.)