In a dynamic and insightful fireside chat moderated by Indeed Ventures, Chris Bakke shared his journey from a real estate professional to a serial entrepreneur in the HR tech space. Bakke’s narrative is a testament to the power of accidental innovation, strategic thinking, and the relentless pursuit of solving real-world problems.
The Accidental Entrepreneur
Bakke’s journey into the tech world began serendipitously. After seven years in real estate, he found himself venturing into the HR tech domain in 2015. His first company, Interviewed, was born out of a necessity to streamline the hiring process for non-technical roles. “We were hiring non-technical people in a very manual way,” Bakke explained. “The idea was to productize this process.”
Interviewed’s growth trajectory was remarkable. India became one of their largest customers, eventually leading to the company’s acquisition by Indeed. This success, however, was not part of a grand plan. “It was very much about solving our own problems at this real estate startup,” Bakke recounted.
The Birth of Interviewed: Solving a Common Pain Point
Bakke identified a gap in the market where companies were relying on traditional, unstructured methods to hire non-technical staff. Inspired by Laszlo Bock’s book on Google’s HR practices, Bakke and his team set out to create a structured approach to hiring non-technical roles. “We thought, if we build a product that structures this process, people would want to buy software that tells them how to do a thing,” he said.
This approach resonated well, and Interviewed’s success underscored the importance of addressing a clear and present need in the market. Their focus on structuring the hiring process for non-technical roles filled a significant gap, especially as companies increasingly recognized the importance of structured hiring practices.
Transition to Full-Time Commitment
Deciding to go full-time with Interviewed was a mix of serendipity and external validation. Bakke and his team won a hackathon, which led to significant early investment from prominent figures like Sian Bannister and Jason Calacanis. “Winning the hackathon was a forcing function,” Bakke noted. “We had to put in our notice at our previous jobs and commit full-time.”
This experience highlights a crucial aspect of entrepreneurship: sometimes, external events and opportunities can accelerate decision-making and commitment. For Bakke and his co-founders, the hackathon win provided the necessary push to transition from a side project to a full-time venture.
Navigating Funding and Strategic Partnerships
Bakke’s strategic approach to funding and partnerships played a pivotal role in Interviewed’s success. The company raised a substantial seed round, including investments from strategic partners like Indeed and Workday Ventures. “We wanted to avoid signaling risks by not relying on just one strategic investor,” Bakke explained. This diversification of investors helped mitigate risks and provided valuable strategic advantages.
One of the key takeaways from Bakke’s experience is the importance of strategic partnerships. These relationships can lead to future acquisitions, channel partnerships, and significant business opportunities. Founders should carefully consider their investors and seek to build relationships that can provide long-term value.
Preparing for Acquisition
Bakke’s approach to preparing for acquisition is both practical and insightful. He emphasized the importance of maintaining relationships with potential acquirers from the outset. “For most companies, there are only 20 to 30 potential buyers,” Bakke said. “Keeping them up to date with your business is crucial.”
This proactive approach paid off when Interviewed was acquired by Indeed. By regularly updating potential acquirers, Bakke ensured that his company was on their radar when it came time to sell. This strategy is particularly valuable for startups aiming for an acquisition rather than an IPO.
Building and Selling Lassie
After his time at Indeed, Bakke co-founded Lassie, a talent matchmaking company. This time, he and his team took a more methodical approach, conducting extensive customer development to identify the most pressing problems they could solve. Despite some false starts, their persistence and focus on solving significant issues in the talent space paid off.
Lassie was started during the tumultuous times of 2020, when hiring and talent management were top of mind for many organizations. Bakke’s ability to pivot and address these pressing needs underscores the importance of timing and adaptability in entrepreneurship.
Lessons from a Serial Entrepreneur
1. Solve Real Problems: Successful startups often begin by solving the founders’ own problems.
2. Be Open to Serendipity: Opportunities like hackathons can accelerate your path to full-time commitment.
3. Strategic Funding: Diversifying investors and seeking strategic partnerships can provide significant advantages.
4. Prepare for Acquisition: Maintain relationships with potential acquirers from the outset.
5. Adaptability: Be ready to pivot and address emerging needs in the market.
