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{"id":75017,"date":"2021-07-22T07:00:15","date_gmt":"2021-07-22T11:00:15","guid":{"rendered":"https:\/\/www.beet.tv\/?p=75017"},"modified":"2021-07-22T08:49:12","modified_gmt":"2021-07-22T12:49:12","slug":"vc-relationships-are-formed-with-people-not-firms-pubmatics-rajeev-goel","status":"publish","type":"post","link":"https:\/\/dev.beet.tv\/2021\/07\/vc-relationships-are-formed-with-people-not-firms-pubmatics-rajeev-goel.html","title":{"rendered":"VC Relationships Are Formed With People, Not Firms: PubMatic\u2019s Rajeev Goel"},"content":{"rendered":"

Entrepreneurs can expect to face plenty of rejection as they seek financing from venture capital firms. For Rajeev Goel<\/a>, co-founder and chief executive of sell-side platform PubMatic, those hurdles were a sign that his company was a pioneer in advertising technology.<\/p>\n

\u201cI felt there was a big opportunity to create a multibillion-dollar technology company focused on the needs of premium publishers, and that\u2019s exactly what we\u2019ve done,\u201d he said in this interview with Beet.TV.<\/p>\n

PubMatic in December went public with a valuation of more than $1.4 billion, and its stock price has steadily appreciated since then.<\/p>\n

The IPO marked was a significant milestone for a company that Goel and his business partners started in 2006. In those early days of pitching to investors, about 20 of them declined to participate in the fundraising. Instead of being discouraged, Goel found inspiration in rejection.<\/p>\n

\u201cI knew I was onto something that was unique, and there would not be dozens of copycat companies following behind me because investors didn\u2019t understand the concept or opportunity,\u201d he said.<\/p>\n

Lessons for Entrepreneurs<\/h3>\n

Goel has learned a variety of lessons as a technology entrepreneur, including the importance of being financially disciplined. He advises against raising too much money, such as hundreds of millions of dollars before the business has gotten off the ground.<\/p>\n

\u201cIn many cases, it\u2019s before the company has figured out its core unit economics and things like that,\u201d he said. \u201cThat\u2019s a real danger because if you don\u2019t grow into that valuation that\u2019s implied by that level of fundraise, or if there\u2019s an economic cycle between now and your next fundraise, that can be a real handicap.\u201d<\/p>\n

Before raising $118 million in its IPO<\/a>, PubMatic has raised a total of $60 million from private investors, and its last round was in 2012.<\/p>\n

He also advises that startups focus on working with individuals at VC firms, rather than seeking investments from those potential partners based on their reputations.<\/p>\n

\u201cIn reality, you\u2019re going to be working with an individual, a partner who\u2019s going to be on your board,\u201d Goel said. \u201cTheir job is to represent the quality of the investment to the rest of the partners in case there\u2019s follow-on investments or time that has to be spent to move things forward.\u201d<\/p>\n

Recipe for Success<\/h3>\n

Goel attributes PubMatic\u2019s success to its focus on its team and company culture. He said company management is transparent about its operations.<\/p>\n

\u201cWe share a lot of information with our employees, whether it\u2019s good news or not-so-good news,\u201d he said. \u201cWe bring everyone into the decision-making process to the extent possible.\u201d<\/p>\n

As a provider of technology that processes trillions of bids on billions of ad impressions a day for publishers, infrastructure also has been a key focus for PubMatic. He said the company works to continually innovate in a highly competitive marketplace.<\/p>\n

IPO Rationale<\/h3>\n

Goel\u2019s goal for PubMatic was to be profitable as soon as possible to better \u201ccontrol its destiny,\u201d he said. In considering the possibility of being acquired or going public, he said it was important that potential acquirers understand PubMatic as a technology company.<\/p>\n

\u201cOne of the challenges in the category is that strategic acquirers have a hard time understanding the companies in this category,\u201d he said. \u201cBeing public gives us a level of transparency that creates confidence with those partners to build for the future and to build their business on top of our platform.\u201d<\/p>\n

You are watching \u201cInnovation, Leadership, and Value Creation: Strategies Explored,\u201d a Beet.TV leadership series presented by Progress Partners. For more videos,\u00a0please visit this page<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Entrepreneurs can expect to face plenty of rejection as they seek financing from venture capital firms. For Rajeev Goel, co-founder and chief executive of sell-side platform PubMatic, those hurdles were a sign that his company was a pioneer in advertising technology. \u201cI felt there was a big opportunity to create a multibillion-dollar technology company focused […]<\/p>\n","protected":false},"author":24,"featured_media":75023,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"mc4wp_mailchimp_campaign":[]},"categories":[8838],"tags":[3439],"_links":{"self":[{"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/posts\/75017"}],"collection":[{"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/comments?post=75017"}],"version-history":[{"count":0,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/posts\/75017\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/media\/75023"}],"wp:attachment":[{"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/media?parent=75017"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/categories?post=75017"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dev.beet.tv\/wp-json\/wp\/v2\/tags?post=75017"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}