Luminate with Lan Anh Vu
00:35:17 · Lan Anh Vu, Luca Ferrari
[00:35:17] S1: you guys have raised, as you said, 70 or $80,000,000, But in total, it was like $500,000,000 between secondary sales and debt, right? [00:35:28] S0: Yeah, over, I think between debt and equity, are closer to $600,000,000 than probably $580,000,000 or something like that, historically in total. [00:35:39] S1: So what have you learned about fundraising over the process? I heard that when you opened the gate for your first ever funding round last year, it was oversubscribed almost immediately. How did that happen?
00:35:54 · Luca Ferrari
[00:35:54] S0: So I think partly there's a bunch of reasons. It was a period in time where valuations were high and people were very eager to invest. A couple of years ago, you might remember one of the most favorable, most seller friendly markets we've ever had. So that made it a lot easier. I'd like to think the, you know, the company and what we were doing and our vision for the future was appealing to investors. We were not exceedingly demanding on valuation. We wanted to be, you know, fair, but something that would leave substantial upside to investors that helped move faster. And then I think we had a good network of former entrepreneurs and investors who had been following us for a while and were eager to participate. Then I think, you know, you want to have a clear idea of what you're doing and present it well in a sharp structured manner so that people can make a decision whether to invest more easily and especially hopefully they're impressed by the fact that you can present your company well. I guess that says something about your ability to also do your job generally speaking. And then I also recommend being extremely honest about it. Although that may not make it easier for you in the moment to raise the capital, it will, first of all, it's the right thing to do ethically speaking and also it will make your life easier going forward as investors don't have bad surprises afterward. What they're buying is what you're telling them they're buying. Seems something that you would expect but I, in my experience, it's actually not necessarily the standard. There is a, there is a habit of trying to be hyperbolic with presentations about, about companies.
00:37:52 · Lan Anh Vu
[00:37:52] S1: So Luca, we have to wrap up the conversation and I have the last two questions. So what would you most want an entrepreneur or young people listening to this? What would you most want them to take away from this conversation?
00:38:09 · Luca Ferrari
[00:38:09] S0: Well, I think they'll take away whatever is useful to them but I can add that they shouldn't try to be an entrepreneur or anything really because it may look cool. It's not a smart move unless you feel a strong urge of building something from the ground up because it's truly atrociously hard work. Wouldn't recommend it. I mean, can't nobody forces you to work hard but in my experience, I've never met any entrepreneur who's had some degree of success who doesn't work like crazy. So that's not pleasant and it's not worth it unless, as I said, you truly feel like this is a vocation almost like. If you're attracted by the financial rewards that are there are much better paths or those are much more easily achieved, maybe maybe the upside of being an entrepreneur is higher. But if you weigh that by a probability of achieving it, the expected return is actually not very good. It's not something I ever considered but because I have heard, especially in the past couple of years, a lot of people considering this path because they think oh I'm gonna be a multi millionaire or a billionaire, would recommend not doing it for that reason. Generally they will be sorely disappointed I think in 99% of cases. Yeah, do it because you have a passion for either building something from the ground up or making a big impact or for a particular product that you wanna create and nobody else seems to be willing to create. Something like that that will keep you motivated for years to come, then go for it. Give it a shot.
00:39:49 · Lan Anh Vu, Luca Ferrari
[00:39:49] S1: Yeah, I love it. So you should become an entrepreneur because you're passionate about something that you have a purpose building it and not because it's cool or it's trendy, right? [00:40:01] S0: Yeah, exactly. You'll be disappointed otherwise and only get burnt. [00:40:06] S1: It's a very bumpy road, right? [00:40:08] S0: One of the bumpiest, I presume. Really bumpy, yes. [00:40:12] S1: It is. So Luca, before we go, where is the best place people can find out more about yourself and your work? [00:40:20] S0: So I don't really invest any time in, in any social media. So I think my social media accounts they exist but they're probably completely empty. Maybe I should fix that in the future. I don't know I'm afraid there is no place. You can send me an email the LFlikemyinitials@bendispoons.com and I'll try to answer if you have any questions. [00:40:42] S1: Oh, wow. You make it public. Okay. Well, Luca, it's been great having you on the show. Thank you so much for your time. I really appreciate it. [00:40:52] S0: Thank you. Thank you, [00:40:55] S1: Thanks for joining us. I'm Lan Anh Vu. If you enjoy this conversation, please give us your feedback and review on Apple Podcasts. Thanks so much for tuning in, and I see you next time on Luminate.