When every YC batchmate wanted their product and investors threw money at them, Arc made the unthinkable decision - abandon the business. Learn the framework for identifying false product-market fit that saved Arc from the fate of their now-struggling competitors.
Basile Senesi is the Chief Revenue Officer at Arc, the financial operating system for growth companies. He's built multiple YC companies including Phonebox (raised $500M+), is a prolific angel investor, and owns Chateau Pavo winery in Sonoma.
In Today's Episode We Discuss:
02:17 - How Arc originated $100M in loans then killed the product
07:25 - The warning signs that made them abandon massive revenue growth
10:49 - Why unit economics matter more than investor expectations
14:16 - How to convince investors to kill your fastest-growing product
16:38 - Pivoting from lending to cash management during market chaos
19:05 - Why do the hard thing first in fintech
22:14 - Everything is a funnel: validating ideas without building
27:34 - Building operating models before you have revenue
34:50 - Why startups need pessimistic salespeople
37:00 - How to know when you're building the wrong business
40:14 - Not all revenue is created equal in venture
43:11 - Hire for the long haul, not the next milestone
46:54 - Tactics equal strategy in early-stage startups
50:49 - Learning what not to do is your competitive advantage