In this episode of the 20 minutes VC, host Harry Stebbings interviews Virta Health founder and CEO, Sami Inkinen, who shares his journey from a Finnish farm to Silicon Valley, detailing his experiences from co-founding Trulia to tackling type two diabetes with Virta Health. Inkinen emphasizes the importance of learning from success, managing one's mental and physical health like an athlete, and maintaining focus and discipline in both business operations and personal life. He also discusses the nuances of fundraising, advocating for raising only as much capital as needed and ensuring a strong business foundation over tactics. Inkinen's unique perspective on entrepreneurship, health, and leadership underlines the episode, providing insights into the mindset and strategies that drive successful startups.
"I'm thrilled to welcome Sammy Inkinen, founder and CEO at Virta Health, the startup on a mission to reverse type two diabetes for a hundred million people by 2025, and they've raised over 35 million in funding from the likes of previous guests S. Levchin, EV Williams's obvious ventures, PayPal, Ray Thompson at Caffeinated Capital and previous 20 VC guests Bob Kocher at Venroc."
This quote introduces Sammy Inkinen, his company Virta Health, and their ambitious mission, as well as highlighting the significant funding and support from high-profile investors.
"I grew up on a farm in Finland, so very far from any kind of startups. And what got me into computers, and I guess excited about building something for people to use, was my very first computer, Commodore 64."
Sammy explains his early life on a farm in Finland and how his interest in technology and building for others began with his first computer.
"So how did I got into Verda? I actually have to admit that after truly IPo, I thought I'd be just advising and investing in other entrepreneurs, but completely accidentally, around 20, 12, 13, through personal health problems that I had, I discovered that this quite horrible and irreversible disease called type two diabetes could actually be cured."
Sammy shares his unexpected journey from planning to be an advisor and investor post-Trulia IPO to founding Virta Health due to a personal health revelation.
"But I do think that you learn much more from a successful venture for a number of reasons. First of all, I think successful ventures usually last longer, so you simply have more time and more experiences to learn from, versus often a faster failed attempt."
Sammy argues that success provides a broader and longer-term range of experiences from which to learn, making it potentially more valuable than learning from failure.## Probability of Success
If you've never done one, it might seem like a near mission impossible, but after you've done your first marathon run and you finished it, it's actually pretty easy to just repeat it.
This quote illustrates the power of firsthand success in transforming a daunting task into something manageable, using the metaphor of running a marathon to highlight the self-confidence that comes with achievement.
And as a CEO and founder, most likely you should be thinking about the really big stuff.
Sammy Inkinen suggests that CEOs need to prioritize their mental capacity for strategic thinking and crucial business aspects, rather than getting lost in the minutiae of daily operations.
So the operating system can be pretty simple.
Sammy Inkinen emphasizes that a company doesn't need complex infrastructure to succeed, but it does need a fundamental operating system to guide its operations and maintain focus on outcomes.
No company is ever going to operate in an unlimited resource world.
Sammy Inkinen warns against the dangers of having too much funding, advocating for a disciplined approach to resource management that ensures long-term sustainability and success.## Capital Raising Strategies
"You should raise the amount of capital that you need to achieve the milestones which will justify the valuation for your company."
This quote highlights the importance of raising only as much capital as necessary to reach specific business milestones that support the company's valuation.
"There are situations where you absolutely, totally need that capital."
Sammy Inkinen acknowledges that in certain industries like biotech, substantial funding is absolutely critical for product development.
"It is a mortgage, you have to pay it back."
The quote draws a parallel between raising capital and taking out a mortgage, emphasizing the obligation to generate returns on the investment.
"Great companies with great teams and great results, they will practically always find funding."
This quote suggests that the fundamentals of a strong company, team, and performance are the most critical elements in attracting investment.
"You want to be very clear when you're fundraising and when you're not."
Sammy Inkinen emphasizes the importance of strategic timing and clear distinctions in the fundraising process.
"How do I think of capital, governance and advice?"
The question posed by Sammy Inkinen encourages entrepreneurs to consider the multifaceted role of investors in early-stage companies beyond just providing funds.
"If you are in any kind of a startup leadership role, that 100% of the time you have to be able to be creative and strategic and fully aware of what's happening."
Sammy Inkinen stresses the need for CEOs to be consistently at their peak performance to fulfill their roles effectively.
"That kind of grinding through stuff, tired and half sleep, that's basically a $10 an hour job."
The quote criticizes the practice of working while exhausted, likening it to low-value labor that does not leverage a CEO's capabilities.
"Sleep is the best performance enhancing drug before you start taking stimulants like caffeine and whatnot."
Sammy Inkinen advocates for the importance of sleep over stimulants for maintaining high performance.
"It's very important to realize that your body reacts to all kinds of stress the same way."
The quote underscores the need for CEOs to manage different types of stress in a holistic manner, similar to how athletes manage their training and recovery.## Inspiration from Literature
My current favorite book is the Laura Hillebrandt's Unbroken, and the reason it's most important or most influential to me is a couple of reasons. One, it was a book that inspired me to row across the Pacific Ocean completely unsupported with my wife, which for the record, took 45 days, 3 hours.
This quote explains the significant impact that the book "Unbroken" had on Sammy Inkinen, inspiring him to undertake a challenging and lengthy ocean rowing adventure with his wife.
Well, my viewpoint is that, first of all, in any VC venture capitalist environment, you're surrounded by extremely thoughtful and extremely smart people who can poke holes into any idea that's not completely logical.
Sammy Inkinen expresses his view that the VC environment, while intellectually stimulating, might suppress the unconventional thinking required for entrepreneurial innovation.
Obesity and type two diabetes epidemic has actually nothing to do with lack of willpower? Or that all these obese and diabetic people can only blame themselves for their condition.
Sammy Inkinen refutes the common belief that obesity and diabetes are solely a result of personal failure, pointing instead to systemic issues in science and food production.
I've become a huge fan of this podcast, intelligence squared, because you'll always hear from two or four world class experts who debate both sides of the topic.
This quote highlights Sammy Inkinen's appreciation for the podcast "Intelligence Squared," which he values for its comprehensive and balanced discussions on various subjects.
The probability of a massive success early on is several orders of magnitude less than most founders think about it, it's almost like first crater playing football and hoping to get to NFL.
Sammy Inkinen points out the unrealistic expectations of startup founders regarding their chances of significant success, likening it to a child aspiring to reach the NFL.
In five years, I think the rest of the world will finally go from, no way, guys. That's impossible. You guys are crazy. To more something like, wait a second, that's totally obvious. That's how you cure diabetes.
Sammy Inkinen shares his hope that in five years, the innovative approach of his company, Verta, will shift from being seen as impossible to being universally accepted as the obvious solution to curing diabetes.
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