The myth about pivots is that they are an exception: something undesirable that happens because a startup went seriously awry, and which you should strive to avoid. In reality, pivots are an integral part of the entrepreneurial process. Whether you’re pivoting in the early days because you haven’t yet found product-market fit, or you’re pivoting by reinventing yourself later on, all companies – if they’re going to become and stay successful – are going to have to pivot. You have a brilliant idea, hopefully you’re in the right place at the right time, you execute like crazy, and it either works or it doesn’t. (source)
So how do you know when it’s time to pivot?
This is the case with Multis, a startup building the financial backbone of crypto-native organizations which has pivoted and experienced being kind of too early in its markets. Mid-Feb 2022, French startup Multis announced it had raised a $7 million funding round led by Sequoia Capital, about the VC firm’s 3rd investment in France after Pennylane and Upway. Originally designed as a neobank for companies working with cryptocurrencies, the company has completely altered its product vision as it offers now the software layer helping web3 organizations manage their crypto finances.
Co-founded in 2018 by Thibaut Sahaghian, Y-Combinator (YC S19) and eFounders (EF18) alumni, Multis is an all-in-one crypto finances management tool that works in concert with Gnosis, a highly trusted platform for managing digital assets on Ethereum.
Sequoia’s Stephanie Zhan explains that
Thibaut recently declared to Tech.eu
In this 56th episode of "Runway Series Originals",
Thibaut reflects on the early days and assumptions of Multis and shares with us his learning from building too early in the dark a crypto-company in 2019,
the toxic validations they got early on,
why they stopped building the product in order to pivot while experiencing a critical change in the co-founding team.
Thibaut also shares his findings during the conversations held the VC in their captable as the company was facing tough challenges to find product-market-fit,
and why vulnerability is key when building a transition plan, switching a challenge to an opportunity and building a narrative.
We also talk about
Finally, we discover the road ahead for Multis, Thibaut’s take about hiring in web3, and learn about the next milestones for the Multis product
I am sure you will enjoy the episode!