In this episode of "20 minutes VC," host Harry Stebbings interviews Ariel Cohen, the co-founder and CEO of TripActions, a company that has felt the severe impacts of COVID-19, leading to the layoff of 350 employees. Cohen discusses his journey from Israel to Silicon Valley, his previous startup experiences, and the inception of TripActions, emphasizing the importance of business travel for human connections and the challenges of maintaining company culture during crises. Despite the pandemic's toll, Cohen is optimistic about the future of business travel and the role of TripActions in facilitating it once safety can be ensured. He also shares insights on managing startups during uncertainty, the significance of investor relationships, and the necessity of adapting to a new reality, all while keeping a mission-driven focus and transparent communication with the team.
We are back on the 20 minutes VC with me, Harry Stebbings, and if you'd like to suggest either guests or questions for future episodes, you can on Instagram at H. Debbings 1996 with two B's.
This quote introduces the podcast episode and Harry's Instagram for audience engagement.
To date, Ariel has raised over $980,000,000 for trip actions from some of the best in the business, including Lightspeed or and Zeve Andreessen horrors, to name a few.
This quote highlights Ariel Cohen's success in raising funds for Trip Actions and mentions prominent investors.
I'm originally from Israel and I've moved in nine to the US. And the main purpose, I've moved through HP after we got acquired in HP, but I've moved because I really wanted to move to the entrepreneurship side and really start startups.
Ariel explains his motivation for moving to the US and his transition from corporate to startup life.
I know that a lot of people that right now are saying, hey, maybe doing everything through video conference, that's the solution. I think it's an amazing workaround, and I think it's actually fairly efficient workaround, but it also remove a lot of things from the cultural aspect, the in person connections aspects, the thing that really drive businesses.
Ariel discusses the limitations of video conferencing and the importance of in-person interactions in business.## Adjusting for the Long Run Post-COVID
"So we'll be here in a year from now, in two years from now, in three years from now. That was kind of what I was looking at. How can I make sure that we will be alive in the long run after Covid? And unfortunately, to do that I needed to do layoffs."
The quote reflects Ariel's forward-looking strategy to keep the company afloat during uncertain times, which regrettably involved layoffs.
"You start a meeting, you end the meeting, you don't really know what happens in the five minutes afterwards, the five minutes before that, all of the body language and so on."
Ariel criticizes the limitations of Zoom for not providing a complete understanding of the other person's emotional state during layoffs.
"You are crossing a certain trust line when you do that."
This quote addresses the damage to trust when employees who perform well are still laid off, which can have a profound effect on company culture.
"If you believe in the product that you have in the offering that you have in your company, right, in your mission, believing in it also means that you have to be very responsible."
The quote suggests that entrepreneurs must balance their belief in their company's mission with the responsibility to make difficult decisions during crises.
"We should use this time so when we are back, when the users will get back, they will have even a better experience with us than what they had before COVID."
Ariel stresses the importance of using the crisis as an opportunity to improve the company and prepare for a strong comeback.## Getting Back to Business
And really what I've told the team is it's all about getting back to business. It's us getting back to business, but it's also helping our customers to get back to business.
This quote highlights the focus on reviving business activities both within the company and for their customers, acknowledging the interconnected nature of business success.
But being transparent means of let's not communicate false hope to the employees, let's actually share with them the situation. Let's be very transparent on how much money do we have in the bank, how much are we burning, by the way?
This quote underscores the commitment to honesty in internal communications, specifically regarding the company's financial health, to build trust with employees.
Even all hands, you don't have the people walking into the room and walking out of the room, you cannot really see their faces. It's something that reduces the human element to minimum.
This quote expresses the challenges faced in remote communication, such as the inability to read body language and the reduced human element, which are critical for understanding and connection.
Talking with people, we see our families much more. Talking with my wife, even with my kids, right. My son always like to better understand our business. So talking with them on everything, I think that helps a lot, at least for me.
The speaker shares personal experiences and strategies for coping with the stresses of entrepreneurship, emphasizing the value of family and trusted relationships.
For me, as a CEO, as an entrepreneur, it's very important to see, to feel that our investors trust me to weather the storm, but also challenge you, asking you some questions, right?
This quote reflects the need for a balance between trust and critical support from investors, highlighting the importance of feeling trusted to manage through difficult times.
I think that once they'll know that it is safe to travel, they'll get back to the efficiency, right. To close a deal, you need to meet face to face.
The speaker predicts a strong return to business travel post-crisis, contingent on safety assurances, and underlines the tech industry's role in facilitating this return.
I think I'm actually very consistent on my thinking regarding to thi
Although the quote is incomplete, it suggests that the speaker has a consistent philosophy regarding fundraising and managing dilution, emphasizing the necessity of cash for business survival.## Importance of Choosing the Right Partner in Funding Rounds
"I think that what's important when you do a funding round is not the dilution level, it's actually the partner that you bring to the table and whether this partner is aligned to your vision or not."
This quote emphasizes the significance of the investor's compatibility with the startup's vision over the percentage of ownership lost in the funding round.
"Are you putting weights on your startup right now that will prevent you from growing in the future?"
This quote highlights the importance of considering whether the terms of funding could create obstacles for the startup's growth in the future.
"I'm constantly looking at what we have the options out there in terms of financing, and that is one of them."
Ariel Cohen states he is always exploring various financing options to maintain a strategic approach to managing the company's finances.
"I'm very decisive and mission driven person. Right. So I think that's very important."
Ariel Cohen identifies decisiveness and a strong sense of mission as his entrepreneurial superpower, which drives the company forward.
"There is always a way, and there is always a way to achieve your dreams."
Ariel Cohen shares his personal motto, which reflects his optimistic and determined approach to overcoming challenges and pursuing goals.
"The first company that ever booked in tripactions are Netsco... And I remember their CFO calling me so excited that everything worked."
This quote recounts the memorable moment of tripactions' first client booking and the positive feedback received, which was a validation of the company's service.
"In five years from now, I hope that we'll be able to bring this experience, the experience that we create through trip actions, to as many people as possible."
Ariel Cohen expresses his aspiration for tripactions to facilitate human connections on a larger scale in the future.
"It's about teaching you that you can fly. And for me, as an entrepreneur, it's really, really. I think I relate to this in terms of the hassle, the ability to fly, and also the need to stay humble while you're doing that."
Ariel Cohen explains how "Mr. Vertigo" has influenced his entrepreneurial mindset and approach, emphasizing the balance between ambition and humility.