Building Startups with Purpose and Resilience: Essential Insights for Founders
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In the debut episode of GorillaCast, host Ami Rubinstein is talking with Risto Rautakorpi, a founding partner at Gorilla Capital.
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As a founding partner at Gorilla Capital, I’ve spent years in the trenches with early-stage founders, seeing firsthand what drives success—and what derails it. There are a few key principles I consistently emphasize for startups to thrive. Here’s my take on what it takes to build a resilient, purpose-driven company that stands the test of time.
Start with a Clear “Why”
A founder’s “why” is everything. It grounds you in purpose, attracts the right team, and helps investors gauge if we’re aligned. This isn’t just about a product; it’s about the vision that keeps you going when times get tough and decisions get critical. Without a strong “why,” you’re just drifting. I recommend every founder take a page from Simon Sinek’s “Start with Why” and dig deep into what truly drives you. For us at Gorilla Capital, founders with a clear purpose stand out.
The Journey is About Learning
At the heart of any startup is a process of learning. Startups are not mini-corporations; they’re unique learning projects with the ultimate goal of product-market fit. Early-stage founders need to put discovery first, setting up a process to understand and adapt to customer needs. In the beginning, it’s not about scaling; it’s about testing, iterating, and adjusting based on real feedback. It’s only after you reach product-market fit that scaling makes sense.
Follow the J-Curve as a Roadmap
Howard Love’s “J-Curve” is like a curriculum for startups. I often say it’s the Bible here at Gorilla Capital because it outlines the developmental stages that every startup will encounter. Startups are like students; there are foundational stages to get through before moving on to more advanced growth phases. Following the J-Curve helps founders focus on the right things at the right time, rather than being distracted by what doesn’t matter in the early stages. This disciplined approach is essential to avoid burnout and build sustainably.
Understand Why Customers Buy
Customer understanding is a make-or-break factor for startups. I tell founders it’s not just about having a product; it’s about understanding why customers buy. To get there, you need to dig deep, even past the reasons customers think they buy, to uncover why they actually buy. This goes beyond simple market research. You need to be curious, ask the tough questions, and have the humility to take feedback at face value. Building this level of customer insight gives startups a crucial edge.
Avoid Premature Scaling
Premature scaling is a trap we see time and again, and it’s one of the top reasons startups fail. Many founders feel pressure—from investors or themselves—to push for rapid growth, but scaling too soon can be fatal. Instead, I urge founders to focus on achieving product-market fit and establishing a solid foundation before going all-in on scaling. Master the basics before aiming for high growth; otherwise, you’re building a house of cards.
Resilience is Key
Building a startup is a long road, longer than most expect. Resilience is one of the most valuable qualities a founder can have. The journey will test you through every business season, up cycle, and down cycle. I’ve watched companies that could have succeeded simply crumble because the founders ran out of steam. Success in startups is as much about grit as it is about strategy. Those who have the fortitude to keep going, even when the going gets tough, are often the ones who make it.
Think About Exits (But Don’t Rush)
Founders who take on venture capital need to understand that an exit is expected. But the exit market can be unpredictable, and trying to force an early exit often does more harm than good. Instead, focus on becoming cash-flow positive. Cash-flow positivity gives you options; it allows you to wait for the right opportunity, rather than being forced into a rushed sale that doesn’t reflect your company’s value. The best exits happen when you’re prepared and patient.
Be Smart with Fundraising
Raising large funding rounds might seem like a sign of success, but it often increases the risk of failure. More money means more pressure, bigger expectations, and a higher likelihood of poor spending decisions. I’d rather see a founder celebrate the day they become cash-flow positive than the day they close a funding round. Funding should be a means to an end, not the end itself.
Final Takeaways
Building a startup is more than creating a product or landing funding. It’s about clarity, resilience, and a deep commitment to understanding and serving your customers. If you’re an early-stage founder, take time to consider these principles. Know your “why,” keep a learning mindset, avoid distractions, and don’t let your ego get in the way. The road is long, but with the right approach, the journey can be worth every challenge along the way.