Meet Matteo Grassi from Popup
Q: Can you share the background of your journey and your company?
A: My background is in behavioral psychology, and I later ventured into marketing before taking the path of entrepreneurship. I’ve had five startups, with the first four being fully bootstrapped. The last one, however, marked my entry into raising capital and navigating the venture world. Despite being a five-time founder, raising capital felt like going back to school—it’s a whole new ball game. That’s when I started Popup, our latest venture, which secured a pre-seed round in 2021 from top-tier VC, Excel, along with support from C-Camp and several angels. Now, at 41, I’m heavily involved in mentoring startups, drawing from my experiences in fundraising, hiring, and addressing mental health challenges like burnout. I believe in sharing my mistakes and failures, as those are the moments that truly shape your understanding and decision-making in the entrepreneurial journey.
Q: How did the idea for Popup come about?
A: The idea for Popup emerged from our extensive background in e-commerce. My business partner and I, both with significant experience in commerce, initially met at Shopify. We later ventured into creating our direct-to-consumer brands. The inspiration behind Popup came from a genuine need—we were solving a problem for ourselves. As we delved into this endeavor, we recognized a fundamental flaw in how people approached commerce. This realization fueled our ambition to build a new operating system for commerce.
Our vision was grand—we aimed to reconstruct the very foundation of commerce. Drawing from our collective experience, market insights, and an understanding of customer journeys, Popup was born. It’s not just an idea; it’s a moonshot—an end-to-end e-commerce platform competing with giants like Shopify. Recognizing the scale of our ambition, we understood that such a venture required substantial financial backing. That’s when we decided to seek venture capital to turn our vision into reality.
Why Seedcamp and Initial Conversations
Q: How did you discover Seedcamp, and what led you to consider it as your founding ground?
A: In our quest for the best pre-seed and seed-stage venture capital, we turned to Google and found that Seedcamp ranked at the top in Europe. It was among the first organizations we reached out to. Seedcamp’s distinctive approach caught our attention—they prioritize founders’ market fit over scrutinizing the product. The key question for them was whether we were the right team to bring our idea to life. They understand that ideas, on their own, are mere concepts with uncertain success rates.
Venture capital is a sophisticated form of betting, acknowledging that 95% of startups face failure. Seedcamp recognizes that backing the right founders significantly increases the chances of success. When we approached Seedcamp, our company was at an early stage with minimal achievements—a conceptual idea, wireframes, and an early concept. Building an end-to-end e-commerce platform and an MVP required significant time—two to three years. Our journey parallels that of companies like Figma, taking time to secure the first paid customer in the prosumer realm, where users are also producers.
Q: Can you walk us through the process from the initial contact with Seedcamp to closing the deal?
A: The venture process typically involves an initial call, followed by subsequent follow-up calls if there’s interest. Beyond that, VCs often request conversations with clients or individuals who can vouch for the startup. This due diligence is a risk mitigation strategy—VCS aims to minimize uncertainties. For instance, they might acknowledge the strength of our product but express doubts about the go-to-market strategy. In such cases, they delve into detailed discussions, seeking clarity on crucial aspects.
The approach varies across regions. In the U.S., there’s a tendency to bet big on bold ideas, often adopting a Silicon Valley-style approach. The UK strikes a balance, incorporating elements of both big bets and caution, akin to Amazon’s philosophy. As you move further into Europe, risk aversion becomes more prominent. Founders must understand these nuances and tailor their pitches accordingly. I’ve even heard instances where, in the U.S., a simple meeting over dinner could lead to a million-dollar deal without extensive due diligence—a rarity compared to the more risk-averse landscape in Europe.
Journey with Seedcamp and Financial Dynamics
Q: What round did you raise initially, and how much capital did you secure?
A: Our first fundraising round was a pre-seed, and we managed to secure an impressive 3.5 million—a significant feat, especially considering the current funding landscape. This was back in 2021, a time marked by crazy valuations and rounds. The environment has since become more conservative.
Seedcamp played a pivotal role in our funding journey. Initially, we aimed to raise 2 million and envisioned a collaborative approach with multiple VCs. We were open to having Seedcamp as a participant in this funding party. However, the dynamics changed when Excel expressed strong interest. Initially hesitant about Excel as a fit for us, we eventually agreed, realizing that having Excel on board would attract other investors. This led to boosting the round to 3.5 million, with Excel leading the charge. It’s essential to note that VCs often prioritize equity targets over the actual amount of money invested. Negotiating on money is possible, but equity targets are generally non-negotiable. Seedcamp, for instance, had a minimum equity target of 80%.
Q: How long did the entire fundraising process take, and how much effort did your team invest?
A: I want to provide accurate information, but it’s crucial to note that the timeline I share reflects the conditions of 2021 and might differ from the current scenario. Back in 2021, the process took me four weeks, and within a month and a half to two months, we had the funds in the bank.
Presently, the landscape has evolved, and fundraising timelines have been extended. It typically takes three to four months, and in some cases, even up to five months to secure the funds. However, there’s a notable exception—AI, being a hot topic, might expedite the process to as little as three weeks. Keep in mind that the nature of your business, whether it’s in AI or commerce, significantly influences the speed of the fundraising journey.
Q: Apart from financial support, what resources and services did you receive from Seedcamp?
A: Seedcamp stands out as one of the best venture capitals I’ve dealt with. Their uniqueness lies in keeping their word throughout the journey, a rarity in the VC landscape. My advice to founders is to choose VCs you would genuinely have coffee with—invest in people as much as in the capital. The right VC for the right stage of your company is crucial; don’t be swayed by big names if they don’t align with your current needs.
Unlike some billion-dollar funds that treat early-stage investments as mere options, Seedcamp goes beyond. They offer a supportive community, events, and invaluable mentoring. The team, including Natasha for brands and marketing, Carlos Espinal, an exceptional investor, and Andy and Felix, all contribute significantly. In contrast, not all VCs deliver on their promises. Out of the 280 VCs I spoke to, only about 10% impressed me, with Seedcamp being the sole investor that consistently delivers what they commit to.
Popup’s Current Status and Future Goals
Q: What is the current status of Popup, and what are your current focuses and achievements?
A: Popup is currently facing challenges as we haven’t been able to launch a fully functional platform to the market. We’re navigating uncertainties about the future and past, evaluating our options carefully. Building a platform that aims to solve a massive problem and reinvent fundamentally makes finding an ideal customer profile challenging. The MVP is extensive, with Pop-up being 80% focused on product development and 20% on marketing.
Timing is critical in business, and we experienced a shift in trends. While 2021 saw the rise of Web3 and NFT in commerce, the landscape has evolved. Remote work, AI, and Web3 have witnessed fluctuations, with some trends losing prominence. Popup has encountered the challenges of navigating these shifts and trends in the e-commerce space.