David Sinkinson, co-founder of AppArmor, shares his entrepreneurial journey and the lessons he learned along the way. He challenges startup myths and emphasizes the importance of finding the right co-founder. The conversation covers topics such as the need for funding, the psychology of being a founder, the evolution of AppArmor's product, the slow sales cycle in selling to colleges, and the impact of COVID-19 on the business. AppArmor was eventually sold for $40 million. 
The conversation explores the psychology behind valuations and acquisitions in the software business. It highlights the concept of the &#8216;mighty middle' where businesses sell for millions of dollars, but are not the multi-billion dollar giants. The discussion also touches on the challenges and opportunities of building a SaaS company, the importance of timing in seeking funding, and the benefits and complexities of working with family members. The guest also shares insights from his book &#8216;Startup Different' which offers a chronological account of his company's journey and busts 33 myths about entrepreneurship.
Takeaways
<ul>
<li>Challenge startup myths and evaluate what is truly necessary for your business.</li>
<li>Finding the right co-founder who complements your skills and provides support is crucial.</li>
<li>The evolution of a product is inevitable, and listening to customer feedback is essential for success.</li>
<li>Selling to colleges can have a slow sales cycle, but once you gain traction, customer loyalty is high.</li>
<li>Adapting to market changes, such as the impact of COVID-19, requires innovation and listening to customer needs.</li>
<li>Building a successful business often takes years of hard work and perseverance. The &#8216;mighty middle' refers to businesses in the software industry that sell for millions of dollars, bridging the gap between small startups and multi-billion dollar companies.</li>
<li>Building a SaaS company to reach a million dollars in revenue is challenging but doable, while reaching 10 million is a whole different level of difficulty.</li>
<li>Timing is crucial when seeking funding, as it's important for the market to develop and understand the product before investing heavily.</li>
<li>Working with family members in a business can be successful if there is trust, complementary skills, and effective communication.</li>
<li>The book &#8216;Startup Different' provides a chronological account of the author's company journey and offers insights and lessons for young entrepreneurs.</li>
</ul>
Find Startup Hustle Everywhere: <a href="https://gigb.co/l/YEh5">https://gigb.co/l/YEh5</a>
This episode is sponsored by Full Scale: <a href="https://fullscale.io/">https://fullscale.io/</a>
Find out more about Startup Different here: <a href="https://www.startupdifferent.com/">https://www.startupdifferent.com/</a>
Learn more about David Sinkinson here: <a href="https://www.linkedin.com/in/davidsinkinson/">https://www.linkedin.com/in/davidsinkinson/</a>
Sign up for the Startup Hustle newsletter: <a href="https://newsletter.startuphustle.xyz/">https://newsletter.startuphustle.xyz/</a>
Sound Bites
<ul>
<li>“We wanted to make sure that entrepreneurs and founders can avoid some of the mistakes that we made.”</li>
<li>“Funding might actually leave your business worse off than if you hadn't pursued it.”</li>
<li>“Being a single founder is hard. You need someone to talk to, cheer with, and pick you back up in the low moments.”</li>
<li>“Most people think of software businesses as being these multi-billion dollar huge sales that happen later coming to nowhere kind of thing.”</li>
<li>“It's relatively easy to build a SaaS company that gets to a million dollars a year in revenue.”</li>
<li>“We were extremely profitable, turning a 60% profit by our final year.”</li>
</ul>
Chapters 00:00 Introduction and Background 04:10 The Importance of Finding the Right Co-founder 07:05 Evolution of a Product: Listening to Customer Feedback 13:09 Navigating the Slow Sales Cycle in Selling to Colleges 15:59 Adapting to Market Changes: The Impact of COVID-19 18:20 Successful Exit: Building a Business Over Time 22:40 Valuations and Acquisitions in the Software Industry 25:17 The Importance of Timing in Seeking Funding 29:43 Taking the Money and Running 31:37 Insights from &#8216;Startup Different' Book
See <a href="https://omnystudio.com/listener">omnystudio.com/listener</a> for privacy information.

Matt Watson

Startup Different

David Sinkinson, co-founder of AppArmor, shares his entrepreneurial journey and the lessons he learned along the way. He challenges startup myths and emphasizes the importance of finding the right co-founder. The conversation covers topics such as the need for funding, the psychology of being a founder, the evolution of AppArmor's product, the slow sales cycle [&hellip;]