We turn the spotlight on the startup odyssey with Emmett King, a founder who has adeptly traversed the vibrant and demanding startup landscape across continents. Beginning with his early business endeavors in the United States and extending to his significant impact in Romania, King shares decades of experience and distinctive insights into starting and expanding businesses, angel investment, and the cultivation of startup ecosystems.
Can you describe your experience co-founding startups and the specific challenges you faced in the industry?
Three decades, when I started founding firms in the U.S., they were not called startups, we just started a company! Over 15 years, I founded or was part of the founding team of 10 companies in 8 different domains. I like to challenge myself to learn new things, and it always helped when starting a firm with a partner or two, who are already experts in that domain. Most were small or medium-sized businesses, although my largest two were multi-million-dollar enterprises, one of which we took public in NYC on NASDAQ using a “reverse merger procedure”.
Since moving to Romania in 2003, I have found it quite different in terms of incorporating a company. The laws for businesses, the need for expert advice, and the accounting system in Romania were very different from those in the U.S.
The first business I started was an adventure camp company for kids aged 3–18. It was much harder to incorporate a company back then. Even though I’m no longer involved, I’m proud that this 1st company continues to deliver great experiences for children today. More recently, the startups in which I have been either a founding member, founding investor, or a simple angel investor have all had good experiences with teams of people I like and to which I add value. The founders range from beginners to experienced businesspeople. Each one brings its own challenges and earning experiences.
How has your experience in Romania influenced your approach to entrepreneurship and business development?
Learning is a lifelong endeavor, and so I’m glad to have learned from all of my companies over the two decades of entrepreneurship in Romania. A major difference in Romania that I have encountered is the lack of deep sales and marketing experience. Thankfully, with each year this shows improvement.
How do you balance the demands of being involved in multiple ventures across different industries?
I enjoy the intellectual stimulation of working in various domains, as well as having different roles on different teams. This requires constant prioritization and re-prioritization throughout my work week. In addition to balancing my projects, I also focus on balancing my week to ensure I have time for myself and my family.
Could you describe the vision and impact of the Transylvania Angels Network (T.A.N.) on the Romanian startup ecosystem?
T.A.N. is a brand of ClujStartups, an NGO that began back in 2012 – quite early in the Romanian ecosystem. When members join, their membership fee goes to the NGO for the purpose of covering the yearly expenses of T.A.N. The vision is twofold: one is to help people learn about angel investing and understand that while it is risky, it has a place in the asset allocation of their portfolios; and second, to help all founders and startups, even those we do not invest in, grow their businesses in the best way possible.
We accomplish both aspects of this vision through our collective experience in business and startups here in Romania and outside too. In addition, we organize educational events all year long with special guests from Romania and many other Western markets with experience in startup ecosystems, as well as angel investors and venture capitalists.
How do you assess and decide on investment opportunities in startups, particularly in the tech sector?
There are a few key factors, including:
- The Founder and/or the Team – Passion for the problem (more than their solution), knowledge of the market, experience, division of roles, coachability, ability to pivot when needed, perseverance, etc.?
- The Timing – Are they too late or too early?
- The Market – Does it exist – are there clients willing to pay? And is it large enough, where is it, who are the client archetypes, etc.?
- The Go To Market Strategy and Business Plan -Do they have each of these, are they based on reality, can they be achieved, do they have the right people to execute it, etc.?
- The Competition – Who, where, how strong, is their product much worse or better, similar strategy or not, clients, etc.?
What are the most effective strategies for securing funding in the early stages of a startup?
- Demonstrating that they have: passion, knowledge, GTM plan, determination, persistence, etc.
- Having clients already paying them or at least potential clients testing their solution (product or service)
- Having a good business structure, plan, MVP, idea
- Having a good co-founder or two
- Having a team, if needed
- Solving a big problem for many clients
- Having a unique/smart/correctly priced solution for solving that problem
- Knowing how much investment they need and knowing exactly what it will be used for and for how long it will last
- Having a good pitch deck and pitch, which intrigues investors to want to learn more in a follow-up meeting
What are the most common challenges startups face when scaling, and how can they be overcome?
- Handling problems among the founders and team members as roles and responsibilities need to change – constant communication.
- Knowing how and who to hire as their earliest employees as well as when they grow – learn how, get mentored and/or find a good recruiting firm.
- Learning to hire slow and fire fast – thinking ahead of time about this aspect and doing it.
- Managing operations and people outside of Romania – learn how, get mentored and/or find good sales channel partners.
- Not seeing changes in the market or problems that necessitate a pivot – taking time to talk to clients, taking time away from day-to-day to think about future changes, and having good advisors to help them look ahead.
How can startups incorporate sustainability and social responsibility into their business models from the beginning?
Understanding the meanings and implications of these terms is the first step in integrating them, as is recognizing the areas in which they can benefit their business operations and the areas in which they can be an advantage with certain clients.
What role does AI play in your approach to business development and growth?
AI is many different things, not just the latest fad over Generative AI. All companies need to decide where and how it can be implemented, and all employees need to understand where AI can help them be more efficient and effective in their roles.
As someone with extensive experience in startups, what advice would you give to entrepreneurs looking to expand their businesses?
- Build a very good team; sales & operations & management/leadership.
- Find various types of sales channel partners to help you sell.
- Be sure to have some advisors with scaling experience in your domain.
- Experiment with A/B testing to discover the best markets and/or types of clients.
- Find and grow with key clients; Pareto Principle – 20% of them will bring you 80% of your revenue.
Keep in mind that in the ever-changing world of startups, innovation and adaptability are essential, and a deep understanding combined with strategic angel investing can greatly impact the growth of your business.
