Fredrik Skantze is a serial entrepreneur on a mission. He believes business intelligence and its adjacent markets could be 10 times bigger if business people had access to better tools and could make better use of their data without having to rely on technical teams and analysts. So, he’s building the foundation and solutions to make that a reality.
In his guest appearance on the DealMakers podcast, Skantze broke down the good, the bad, and the ugly of entrepreneurship. We talked about failures and mistakes which don’t usually get shared with new aspiring entrepreneurs. As well as how to be successful in scaling and fundraising.
Falling In Love With Product
Fredrik Skantze is a Swedish born entrepreneur. Growing up he also had the chance to live and study in Germany, Switzerland, and the USA.
After attending an American school in Europe he got into Brown. He then completed his Masters in AI and robotics at MIT.
He discovered that technology didn’t have to be as bland and boring as he expected. He found the joy of inventing and product development and software as a product.
This inspired him to want to start his own company. So, after a short stint working in robotics, he came back to the United States for business school at Stanford. He respected the fact that to be successful, he needed to master the business side as well as the technical and engineering. Stanford is, of course, a great place to expand your personal and professional network too.
Fredrik embedded himself in Silicon Valley. He planned to launch his own startup on exiting Stanford.
This was at the height of the dot com bubble. Many of his classmates had received stock options at tech companies during summer internships and never returned for the following semester. It was early for AI, which really hadn’t found acceptance in many practical applications for business. Fredrik’s idea was to instead launch a toy company based on AI and robotics technology and he got hired at the world’s largest toy company and interned with the high tech group at Mattel in LA.
While artificial intelligence was still stuck in the background, the internet was taking off. He joined mobile internet company Phone.com, which turned into Openwave and was the early pioneer in the first generation of mobile internet.
Then, together with a cofounder, Skantzesaw his chance to launch his own venture. They had both spent time in Silicon Valley and independently decided to move back to Europe.
They use this as a launchpad to build something even greater.
Lessons From Failing
The company they started in Europe was called Autoquake. It raised $30M from Highland and Accel through Series A, B, and C rounds. They set out to shake up the used car business.
They saw great inefficiency in trying to sell used cars, and how expensive it was to buy new ones. So, they came up with a model to acquire vehicles from leasing companies and sell them directly to consumers. Instead of the extra step of being shifted around through other dealers.
Autoquake, the sellers and buyers could split those margins and all benefit from the service. The business model meant they could bring in money from sales without having to acquire the inventory. Investors liked that.
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