First Time Founders with Ed Elson – ft. Tyler Denk of Beehiiv | The Prof G Pod with Scott Galloway

Intro

In this episode of “The Prof G Pod with Scott Galloway,” Scott Galloway interviews Tyler Denk, the founder of Beehiiv, a platform for email newsletters and software. They discuss the importance of building a talented team, the value of newsletters in business, and the challenges and successes of being a first-time founder.

Main Takeaways

Investing in a Startup

• When investing in a startup, look for a team of talented people who get along well and work hard together.

The Rise of Newsletters

• Newsletters have become essential for business, with significant investments and large subscriber bases.

From Morning Brew to Beehiiv

• Tyler Denk, an expert in newsletters, founded Beehiiv after leading growth and product at Morning Brew.
• Morning Brew is a daily newsletter covering business news and finance, aimed at a younger demographic.
• After leaving Morning Brew, Tyler identified a gap in the market for email newsletters and software that could replicate what Morning Brew did well.
• He recognized the demand for visually appealing and shareable emails, integrated advertisements, growth tools, and analytics.

Building a Robust Platform

• Building a robust platform through trial and error over three and a half years provided valuable insights.
• Morning Brew’s core value proposition lies in understanding the audience and creating the best content.
• The key differentiator in competing with Substack was flexibility and customization for writers.
• Revenue comes from a traditional SaaS model, ad network, and transactional growth tactics.

Lessons Learned and Future Goals

• Building in public has been powerful for Tyler, who openly shares numbers, metrics, and the upsides and downsides of their business.
• The founder believes in the importance of realizing success as a broader opportunity, whether it’s for investment or attracting new customers.
• The company has been profitable and aims to achieve profitability again in 2024, with the goal of not raising funds again in the future.
• The founder’s motivation is to build a business that can set them up financially for the rest of their life, aiming to achieve a multi-billion dollar business that would constitute financial success.

Overcoming Challenges

• The journey as a founder involves facing extreme highs and lows, with unexpected challenges and losses.
• The unexpected passing of a key team member had a significant impact on the company, both personally and professionally, presenting a major challenge.
• The CEO felt the need to work twice as hard to ensure the company’s survival, while also balancing vulnerability and assurance.
• After experiencing a friend’s passing, the speaker gained a broader perspective on entrepreneurship and found a deeper motivation to build a successful business.

Single Founder Advantage

• The speaker believes being a single founder is a significant competitive advantage due to the undivided focus and dedication it allows.

Summary

Investing in a Startup

When investing in a startup, it is crucial to look for a team of talented individuals who not only have the necessary skills but also work well together. A cohesive and hardworking team is more likely to succeed in building a successful business.

The Rise of Newsletters

Newsletters have become an essential tool for businesses, with significant investments and large subscriber bases. They provide a direct and personalized way to communicate with customers and offer valuable content and insights.

From Morning Brew to Beehiiv

Tyler Denk, having worked at Morning Brew, recognized the potential in email newsletters and software. He founded Beehiiv to provide a platform that allows users to create visually appealing and shareable emails, with integrated advertisements, growth tools, and analytics.

Building a Robust Platform

Building a robust platform takes time and effort. Morning Brew’s success lies in its understanding of the audience and creation of high-quality content. Beehiiv differentiates itself from competitors like Substack by offering flexibility and customization for writers. The company generates revenue through a combination of SaaS, ad networks, and transactional growth tactics.

Lessons Learned and Future Goals

Tyler believes in the power of building in public, openly sharing the company’s journey and insights. The goal is to achieve profitability by 2024 and build a multi-billion dollar business. The founder emphasizes the importance of realizing success as an opportunity for investment and attracting new customers.

Overcoming Challenges

Being a founder comes with its share of challenges, including unexpected losses and setbacks. The passing of a key team member had a significant impact on the company, but the CEO worked hard to ensure the company’s survival. The experience provided a broader perspective on entrepreneurship and a deeper motivation to succeed.

Single Founder Advantage

Tyler believes that being a single founder provides a competitive advantage due to the undivided focus and dedication it allows. With no distractions, a single founder can fully commit to their vision and drive the company forward.

Conclusion

Tyler Denk’s journey as a first-time founder highlights the importance of building a talented team, recognizing market opportunities, and overcoming challenges. Beehiiv’s success lies in its ability to provide visually appealing and shareable email newsletters, with integrated advertisements and growth tools. By building in public and setting ambitious goals, Tyler aims to create a multi-billion dollar business that will set him up financially for life.