“Don’t believe that every success is a straight line, it’s not,” said entrepreneur Billy Marshall, who went through two failed startups before founding Durham software startup ServiceTrade, which closed on $85 million last year.
On Thursday morning, successful startup founders like Marshall shared candid advice with their peers on stage, part of the Council for Entrepreneurial Development’s Venture Connect Summit, held at the Cisco campus in Research Triangle Park.
The event, which was expected to attract more than 200 investors, was a way for entrepreneurs to connect – not just with people who could fund their companies, but also with peers, people who with real-world experience of both failures and successes.
Xiling Shen, founder and CEO of Xilis, was another one of those founders, telling the crowd that relationships are critical.
Xilis, based in Durham, is developing technologies to guide precision therapy for cancer patients. It was cofounded by Duke University researcher Shen, who credited “random” connections with fueling its success. He told entrepreneurs that networking is critical – no matter how innovative your science.
“There’s a lot of serendipity, but you need to have the network,” he said. “In academia, you tend to be very targeted … you have a hypothesis. You prove it. Everything is under your control.”
But in entrepreneurship, it can be random connections that have the most impact.
Shen said momentum is vital, something entrepreneurs “really have to capture and go at it full speed.” He said he sees many of his peers as “cautious,” which can be good – provided you don’t lose sight of that momentum.
Shen told entrepreneurs to surround themselves with people who share their passion – including the investors. “I always tell people, if you don’t listen to people, you’re not going to make it,” he said. “But if you listen to everyone, you’re not going to make it either.”
Be persistent, Marshall said, and don’t let failures turn you off completely.
With a previously startup, Marshall raised millions – including $240,000 of his own money. And lost it all.
“I got $4,000 back," he said. But that didn’t stop him from taking out a second mortgage to fund the success of his latest startup. Last year, ServiceTrade raised and $85 million growth investment led by JMI Equity, with participation from existing investors, including Durham’s Bull City Venture Partners, whose co-founder Jason Caplain used to work with Marshall at Red Hat (NYSE: IBM)
Marshall's best advice? Ask for help – and take full advantage. He said to connect with people like Caplain, with your banker, with entrepreneurship support organizations. Get free advice. And go out and build something.
ServiceTrade is a $16 million company hoping to be a $100 million company. And it's "exploring acquisitions" Marshall said.
