In an inspiring and candid interview, Marty Kausas, the co-founder and CEO of Pylon, shared his journey of building a $20 million SaaS company. From navigating the challenges of startup life to raising millions in funding, Marty’s story is a masterclass in resilience, adaptability, and the relentless pursuit of success. This blog dives deep into his journey, uncovering the lessons, strategies, and mindset that shaped his path to building Pylon, a customer support platform revolutionizing B2B communication.
Pylon (Website) : https://usepylon.com/
Pylon (X) : @usepylon
Marty Kausas (LinkedIn) : @martykausas
Marty Kausas (X) : @marty_kausas
The Early Days: From Hacker Culture to Startup Dreams
1. Inspiration from Movies and Hacker Culture
Marty’s entrepreneurial journey began with a spark of inspiration from movies like The Social Network and Pirates of Silicon Valley. These films introduced him to the world of startups and the idea that he, too, could build something impactful.
“I could relate to the characters in the movies. I was nerdy, loved computers, and thought, ‘Maybe this is a path I could go on too.’”
2. Learning to Code and Building Early Projects
Marty’s passion for technology led him to teach himself coding through YouTube videos. In high school, he started building games and websites, eventually joining his school’s robotics team.
“I fell in love with hacker culture in college. Every weekend, I’d spend time writing code and building games or applications.”
3. Internships at Big Tech Companies
Marty’s internships at companies like Qualcomm, Yelp, and Airbnb gave him valuable experience but also highlighted the limitations of corporate life.
“Working at big companies taught me what not to do. They operate so slowly compared to startups. I realized I wanted to build something fast and impactful.”
The First Startup Attempt: Lessons from Failure
1. The Health Tech Idea
After leaving Airbnb, Marty worked on a health tech startup aimed at helping people with Parkinson’s disease. Despite spending a year on the idea, it ultimately failed.
“It was a terrible idea for a lot of reasons. We spent a whole year on it before realizing it wasn’t going anywhere.”
2. Pivoting Away from Failure
Marty’s first startup taught her the importance of pivoting. He not only abandoned the health tech idea but also parted ways with his co-founder.
“Pivoting is really hard. You’re going to pivot a lot, and it’s going to feel like pivot hell. But it’s necessary to find the right idea.”
The Birth of Pylon: Finding the Right Idea
1. Observing Market Trends
Marty and his co-founders, Advith and Robert, decided to focus on a big market with high growth potential. They analyzed the largest SaaS companies and identified customer support as a promising category.
“We wanted to build something really big and fast-growing. We looked at horizontal SaaS products that could sell to any industry.”
Marty noted that there are only about 76 billion-dollar-plus public software companies, and almost all of them are horizontal SaaS products like payroll, sales, marketing, and customer support. This insight guided their decision to enter the customer support space.
2. Cold Interviewing Potential Customers
To validate their idea, Marty and his team cold-messaged 40 people a day on LinkedIn, interviewing customer support professionals to understand their pain points.
“We created a cycle of cold interviewing people in customer support roles. About 7% of them responded, and that gave us valuable insights.”
This approach helped them identify emerging trends, such as the shift from email to platforms like Slack, Microsoft Teams, and WhatsApp for B2B communication.
3. The Emerging Trend of B2B Communication
Marty noticed a shift in B2B communication, with companies moving away from email to platforms like Slack, Microsoft Teams, and WhatsApp. This trend became the foundation for Pylon.
“We saw an emerging trend of B2B communication moving to new channels. That’s where we saw the opportunity.”
Raising $20 Million: The Fundraising Journey
1. The Seed Round: $3.2 Million in 6 Days
Pylon’s fundraising journey began with a $3.2 million seed round led by General Catalyst. The team created urgency by scheduling back-to-back investor meetings during their Y Combinator batch.
“We scheduled as many calls with VCs as possible in one week. We wanted to create time pressure and signal that we were in high demand.”
At the time, Pylon was only 3 months old and had $60,000 in annual revenue. Despite being early-stage, they managed to close the seed round in just 6 days.
2. Leveraging Social Proof
Marty emphasized the importance of social proof in fundraising. They got introductions from respected founders who vouched for Pylon, skipping straight to partner meetings.
“Social proof is everything at the seed stage. Investors trust founders who other founders recommend.”
This strategy helped them secure meetings with top-tier investors like General Catalyst and Andreessen Horowitz.
3. The Series A: $17 Million from Andreessen Horowitz
Pylon’s Series A round was led by Andreessen Horowitz, raising $17 million. Marty’s advice for raising a successful Series A is to focus on fundamentals: a strong team, a big market, and a product customers love.
“The best time to raise a Series A is when investors are pounding on your door. You need to show high growth potential and a clear vision.”
Building Pylon: Leadership and Growth Strategies
1. Leading by Example
Marty believes in leading by example. In the early days, he and his co-founders lived and worked in the office, grinding 14-hour days to build the product.
“Leadership at Pylon means doing the work yourself. People follow by example when they see you putting in the effort.”
At one point, Marty was sleeping in a meeting room, while her co-founder Robert had a bed in the living room. This level of dedication set the tone for the entire team.
2. Navigating the Stress of Startup Life
Being a founder is incredibly stressful, especially when tracking monthly revenue and growth. Marty’s approach is to address problems head-on and maintain relentless focus.
“The only way through the stress is by grinding really hard and staying consistent. You have to want to win.”
Pylon’s growth has been remarkable, with the company now generating $10 million in monthly revenue. However, Marty admits that the stress of maintaining this growth is constant.
3. Hiring and Building a Team
Marty emphasizes the importance of hiring people who share your vision and work ethic. Pylon’s team is built around a culture of hard work and collaboration.
“We hire people who are excited by what we’re building and are willing to put in the effort to make it happen.”
Lessons Learned: Advice for Aspiring Founders
1. Learn to Build Yourself
Marty advises aspiring founders to stop being lazy and learn how to build products themselves. With resources like YouTube, boot camps, and AI tools, it’s easier than ever to bring ideas to life.
“The world is your oyster if you can build. Learn to code, use AI tools, and start creating.”
2. Network and Learn from Others
Marty recommends immersing yourself in the startup community by working at a startup or attending events like Y Combinator meetups.
“Go to as many events as you can. Meet people, learn from their experiences, and build your network.”
3. Don’t Be Afraid to Pivot
Pivoting is a natural part of the startup journey. Marty’s advice is to embrace it and keep iterating until you find the right idea.
“You’re going to pivot a lot. It’s hard, but it’s necessary. Keep going until you find something that works.”
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