In short
My First Million - Episode Notes: I failed 22 times... then I built a $2.5B Company | Christina Cacioppo from Vanta
Podcast Overview
- Title: My First Million
- Hosts: Sam Parr and Shaan Puri
- Guest: Christina Cacioppo, Founder of Vanta
- Episode Number: 646
- Release Date: Not specified
- Description: Shaan Puri interviews Christina Cacioppo about her journey from quitting her stable job to founding Vanta, discussing the challenges, insights, and lessons learned along the way.
Key Themes and Insights
- Transitioning from Stability to Entrepreneurship
- Quitting a Good Job:
- Christina had a stable position at USV but felt unfulfilled and wanted to pursue her own ventures.
- Emphasizes the difficulty of leaving a secure path to pursue uncertain opportunities.
- The Journey of Failure
- Embracing Failures:
- Christina talks about facing multiple failures (22 in total) before finding success with Vanta.
- Reflects on the importance of understanding that most successful entrepreneurs have had many failed attempts.
- Learning and Iteration
- Self-Directed Learning:
- After leaving USV, Christina dedicated time to learn coding and product development.
- Her approach involved building various projects, none of which were successful initially, signifying that early failures are part of the learning process.
- The Idea Behind Vanta
- Identifying Market Gaps:
- Vanta was founded on the insight that startups often lack the security tools that larger companies have.
- Christina wanted to simplify compliance and security for startups, which she recognized as an underserved market.
- Startup Advice and Mindset
- Managing Your Mind:
- Christina emphasizes the importance of mental health and self-awareness for entrepreneurs.
- Encourages staying connected to personal hobbies and interests to maintain balance and clarity.
- Negotiation and Business Strategy
- Negotiation Skills:
- Christina highlights that effective negotiation stems from confidence and a well-defined understanding of one's position.
- She shares strategies for staying resolute during negotiations and pushing past objections.
- Marketing and Growth Strategies
- Outbound Marketing:
- Describes how she engaged with early users through targeted outreach to increase awareness of Vanta.
- Utilized word-of-mouth and referral channels to build brand recognition organically.
- Controversial Opinions
- Consistency vs. Flexibility:
- Christina challenges the notion that consistency is always beneficial, arguing that flexibility can sometimes lead to greater innovation.
- High Standards:
- Discusses the idea that setting high standards can create pressure but can also drive excellence if managed well.
Notable Quotes
- “The function of the overwhelming majority of your artwork is simply to teach you how to make the small fraction of your artwork that soars.”
- “You have to live it almost to really internalize it.”
- “Managing your own psychology is one of the most important things.”
Concluding Thoughts Christina Cacioppo's journey from employee to entrepreneur is a testament to the resilience required in the startup world. Her insights on managing failures, learning continuously, and fostering a strong mindset provide valuable lessons for aspiring entrepreneurs. The episode emphasizes that success is not linear and that embracing the process, including failures, is crucial for long-term success.
Links
- Vanta Website: [Vanta.com](https://www.vanta.com/)
- Check Out Shaan's Recommendations:
- [Shepherd](https://bit.ly/SupportShepherd): Hiring service for developers and designers
- Check Out Sam's Ventures:
- [Hampton](https://www.joinhampton.com/)
- [Ideation Bootcamp](https://www.ideationbootcamp.co/)
- [Copy That](https://copythat.com)
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This podcast episode showcases not just the entrepreneurial spirit but also the practical steps, mindset shifts, and resilience needed to navigate the rocky terrain of starting a business. Christina's experiences serve as a guide and inspiration for anyone looking to forge their own path in the world of startups.
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Transcript
Automatic transcript. May contain errors.0:00And at the time, my email was Christina at usv.com. and it was like the right side, that usv.com is way more powerful than the left side. And now you're giving that up. And so what are you? You're betting on the left side. You're betting on the left side. And like, why would you do that? And like, what do you think will happen here? I feel like I can rule the world. I know I could be what I want to. I put my all in it like my days off. On the road, let's travel. I don't know if you know this fun fact. Do you know what you, Katy Perry, and Syringa Williams have in common? I've got nothing. You're all on the Forbes self-made women list.
0:34I hate that list. And you are ahead of them. Isn't that kind of amazing? I would have preferred that list never existed. Yes. You have that Midwest modesty. Yes. Nothing good will come from that list. Yeah, yeah. Those lists are sort of made for the wrong type of people. Yes. Or jail time later or something. I don't know why I laughed at. I was never on 30 Under 30, and I'm deeply glad about that now. Yeah, that turned out to be an anti-signal. You know, when I was thinking about this episode, the way I think about it is like where you are today is where a lot of people want to be. You have a company that's working.
1:06It's got like a cool startup name. It's a cool office in San Francisco. Last valuation, I believe$2.45 billion. But who's counting? Today, you're at where a lot of people want to be. But if we rewind the tape, to me, when I looked at your story, I think the through line for this is not counting yourself out. So I'm going to put that out there. That might be true or might not be true. But the basics of it is you had a good job and you quit to try something new, to try to make it on your own, which a lot of people want to do, but they don't take the leap. You took the leap. And it's not like it hit right away and you created Vanta and you created this, you know, multi-billion dollar company right off the bat.
1:44You did like 35 things wrong or 35 projects that went nowhere. And I love that because I spent eight years of my life banging my head against the wall with failure after failure after failure. each time believing this is the time. Let's start where you have a good job. Yeah. You have the job at USB, which I think you kind of hustled your way into. I would say stumble hustled. Okay. I didn't like hustle, hustle. They announced that job. Like they do all their jobs on the internet and said, hey, fill out this form if you want this job. Send us some links to your web presence. And so I literally sent them three links to my web presence.
2:25and didn't email anyone who knew them. Didn't, you know, turned out I like knew people from school who didn't pull anything. Just sent them links and put them in a form and was like, well, now I'll go back to making slides. What kind of links? It was Twitter, Flickr, through the era of this. And I had started a design blog a couple months before and I lived in Berlin because I wanted to be like a designer who lives in Berlin and those people seem to have design blogs. So I started one and that was it. And they hired me, which is crazy.
2:59And I read something that was like, maybe Fred or somebody at the USB team was telling you, you should specialize in crypto. You should become a crypto VC. Is that true? Kind of. It was actually when I was leaving. So this was end of 2012. I had a lot of angst because this job was great. They were great. You know, like, haven't you made it? And I'm sort of like, but I don't think I like it. And again, what's going on? And one of my hangups was, you know, what have I done? Why would anyone take my money? Right? Who's going to take a check from me versus, in my head at the time, Matt Kohler, this GP who's no longer a benchmark but had this, like, illustrious Silicon Valley career of, like, LinkedIn, Facebook, Benchmark.
3:40You know, and you're like, me versus Matt Kohler. Everyone will choose Matt Kohler, like, 100 out of 100 times. Which is, let's say, maybe partially imposter syndrome but also maybe hyperlogical also. Yeah, I think like, yeah, but like also true. Anyway, and I basically said that to Fred and he said two things, which, or he said a couple things that were deeply insightful. One was like, well, you know, one, Christina, you've got to like get over that. And you can either get over that by sort of out hustling people and like kind of the fake it till you make it strategy. And you're sort of like, look, I've seen you in the office for two years, worked with you for two years.
4:12Like, you're not, you're not going to be going to send. So you probably shouldn't try that one. The other strategy is pick something, go deep in it, and be the expert where no one else is. And in the fall of 2012, I recommend you choose crypto. Really good advice on a bunch of dimensions. Right. I didn't take it, but like. Because you didn't believe in crypto or you were just like, that's not me? I'm just like, I don't know if I want to be an investor. Okay. Even though it's great and it's wonderful and all these great attributes and like everyone else wants to be a VC, but like I want to go make things.
4:40So you decided to go make things. Take me back to that decision. Was that easy? No, I was so angst. Was everybody patting on the back and saying, you're going to make this happen? Definitely not. What I did and what my plan was, was I'd saved my bonus from the prior year and it's kind of like a finance bonus. And I was going to live off of that as long as I could. So like no job, but a bunch of structure, learn to code, learn to make products. Hopefully something would come out of that. And very much pitched as that. It was not pitched as I am going to start a startup. It was pitched as I am going to teach myself to code.
5:09Because that's how I saw it and thought about it. And like, yes, I wanted to start a startup, but I'd seen over the two years at USV so many people start startups to start them and then get into them and then be like, I don't want to work on this. But now I have people in office, investors, like I can't stop. But I think there was, I think people took that conservatism as, oh, you shouldn't be doing this. And so specifically there was a, I mean, there was a bunch of like, why, no one leaves USV who has the option of staying. Why would you do that? or don't you want to work at some other venture firm or, oh, you want to code, why don't you go to grad school?
5:47Stanford has a great graduate program in computer science. Why don't you go work for somebody else because clearly you don't know what you want to do? And then some amount of, like, kind of the tougher stuff, I think, where one person in particular had been close to and who was very, like, just the left side and the right side of your email address. And at the time, my email was Christina at usv.com. And it was, like, the right side, that usv.com is way more powerful than the left side. and now you're giving that up. And so what are you? You're betting on the left side. You're betting on the left side.
6:15And like, why would you do that? And like, what do you think will happen here? So you have the good job. Yep. You quit. You hear the, look, you took the right side of the email, which was the powerful part. You threw it away. You're betting on the Christina part, of which there are many. And your plan is not even to go start a company. It's to learn how to code. And you're going to teach yourself how to code by going online and learning how to code that way. And my understanding is that worked because I went to your website. Well, you have this like list of projects. On purpose. I built all these things.
6:44Yeah, none of which you've heard of. Yeah, mostly went nowhere. There's something romantic about that too. Like I'm going to go in a cave and I'm going to reinvent myself and learn this magic superpower and I'm going to train in the mountains where nobody's looking and then I'm going to come back stronger. Yep. It may not have felt that way at the time. It like, I kind of knew it was supposed to feel that way. And then day to day, there was some amount of like, I spent more than my like daily cash allowance, you know? But, like, I kind of knew that's what a better version of me would feel. But practically, I knew I was a person who benefits from structure and isn't always great at doing it for myself.
7:19So what I did was a friend of mine had just sold a company to eBay New York and opened up this big space in New York. It was actually right across the street from the USV office. And so I got up every day and I got trips for my job. And I basically walked to the same place, but I went in a different door. And then I sat with those engineers and they did their stuff. Did you actually dress up, by the way? Because I feel like there's psychologically something to actually dressing up like you're going somewhere to do something. Yeah, I mean, tech dress up. But it was like, I did not wear pajamas.
7:48Right, right. Like, yeah, yeah. And then I'd go and I'd, you know, show up in the morning and I'd, like, do my Udacity tutorial or try to understand Jeno JavaScript to varying degrees. And then, like, go home at, you know, 6 p.m. or 7 p.m. and then often I'll keep doing stuff. But basically it was like tricking myself into acting like I had a job so that I got up every day. I was there by 9. You know, I was just doing the things. And I do remember there was a time my family took a vacation that I went along with in January and I came back tan. And everyone was like, where were you last week? Like basically like why weren't you at work and why are you tan?
8:24And I was like, I'll get paid for this. You know, like I'll a job. Everything is PTO to me. But it was like also like, oh, yeah, I got this. Like that's, that was kind of like a fun, fun moment too. Yeah, I like that. So you have this era, which is kind of like in the movies, it's the montage. It's, they just fast forward through this part. It takes two minutes, even though in real life it's two years. And you have this thing written on your site that I love, this quote. And I think in my research, this was my favorite thing I pulled from you, which was at the top of your site, it says, the function of the overwhelming majority of your artwork is simply to teach you how to make the small fraction of your artwork that soars.
9:01And this is from a book called The Art of Fear. Can you, I love that. Can you explain that? Yeah, I think it's deeply true of creative projects. And I think startups or businesses or, you know, internet art is like, they're all creative projects. One thing I learned at USV, seeing people bitch, but then like hearing the stories behind their big, you know, Tumblr, Twitter, Foursquare, whatever, all the big successes of the era were, when I walked into USV, I was like, everyone is Mark Zuckerberg. Not actually, but like everyone, you know, like startup founders are people who have an idea. Visionary.
9:34And they go into their room and they build it and everyone uses it. And it's like the first or second thing they've done. And like Facebook BiggerPath has kind of all of Mark's projects. And so like that's the way, you know, and like, shoot, I'm like not, it's never worked for me. So I'm probably not one of them. And USV was just so helpful in disabusing that notion and being like, look, some people, like a very small number of people can do that. And that's incredible. I wish I were them. I'm not. Most people actually try a bunch of stuff and eventually something might work. But it's like at best thing five and it might be thing 55.
10:10But no one really talks about that because it's both because it's like painful and kind of not fun. And, you know, it's supposed to be romantic, but actually just kind of sucked and I'm hungry for two years, literally and metaphorically. and it's so much nicer like you get so much praise for sort of being like the brilliant person right and that's the expectation too I think I just had a like well yeah but like that's discouraging so many people from starting it's sort of like when you watch a bunch of movies about love and then you're like this is what it's like yeah I will bump into a stranger our papers will fall on the floor we'll swap a paper we'll swap a paper he'll have to come find me but then I'm not into him but he just pursues me anyway and it's like if you have that notion that that's how it goes you'll almost count yourself out of other things that could have worked otherwise.
10:55Yes, it's like very that. If you watch the social network, you're like, that's just how it is. Brilliant genius, has a vision, does it, takes off, and then he rides that bull at the rodeo. We actually, after I read this quote on my team, we started using this phrase just called bad art. So I'll hit up my team in the morning. I'll say, hey, let's make some bad art. Like intentionally, just almost lower the stakes. Instead of we have to find the next big winner idea. Let's just make some bad art today. Yeah. And the analogy I gave them, I said, imagine like, you know, you go to a hotel or a motel, you're doing something, you're going to a place that you've never been before.
11:26Maybe nobody's been there before. When you turn on the tap, like it's muddy water at the beginning. Yep. If you look at that and you're, it's like, you're mortified by it. It's disgusting. You'd turn it off right away and be like, ew, bad. Right. Leave. But if you know that actually that's the process, that you sort of have this muddy water of bad ideas and bad skills at the beginning, get it out of your system, then suddenly the water starts running clean. And I think that. framework is just very useful for anyone who's doing either creative endeavors or startups, which are a pretty creative endeavor too.
11:56Do you know the story about making pots? No. From the same book. So, and I think it was like around the chapter that quote was, but anyway, there's an art teacher and he said, okay, art school, pottery class, you have one assignment all semester. You have five weeks to make the perfect pot. You can turn in as many pots as you want, but I will judge them all, and the highest grade will go to the person who has the best pot. And student one spends all semester crafting the perfect pot and hands it in at the end. And student two makes two pots a day, and they're all bad for a long time, right? But over the course of the semester, he hands in whatever, like 300 pots.
12:37And, like, who gets a better grade? Of course. 300. Right, yeah, yeah. But it's like that concept. Yeah. It's like so true. You have to live it almost to really internalize it. Actually, a great thing I did once with my company, you've probably seen the marshmallow test, like the psych test with kids. It makes a good point, which is you give a bunch of supplies to, you break your team into a bunch of groups, groups of maybe four or five. And they get sticks of spaghetti, one marshmallow, and there's something like maybe a string and two other things, like a piece of tape. And so the idea is, hey, you have an hour.
13:10At the end of the hour, I will come around. I will measure whoever from the tabletop has the highest marshmallow. So whoever could build the biggest tower wins. And what most people do, what my team did, and everybody who does this the first time pretty much, is you immediately go into like the way we do most things in corporate life. So it's kind of like, okay, you're in charge. You do this. You sort of segregation of duties. You start trying to like plan. And then you, so you sketch a little bit. Then you start building the tower. And at the very end, you're like, okay, okay, it's almost time.
13:40Put the marshmallow on. and the entire thing collapses because even though a marshmallow looks so small and like light, compared to spaghetti sticks, it's way too heavy. And you don't realize that because you didn't like, you like backloaded the possible failure, you know, the failure mode or the sort of test of the idea. You spend all your time kind of planning and architecting this brilliant, beautiful thing. And the cool thing that they've shown in this is that when they do it with kids versus adults, the kids right away either eat the marshmallow or put the marshmallow on right away. And they're like, oh, it's too heavy.
14:12You have to have like five spaghetti sticks to hold this thing up. They figure that out right away. They don't kind of save that to the end to try to perfect it. And that sort of iterative thing about testing the riskiest assumption is maybe important. It seems like for you, did you make that mistake of kind of like overanalyzing, overplanning at the beginning, like not testing with customers? Less the very beginning, because at the beginning, I was just built. I built a book website. It was like good reads, but better. But it was actually worse because I didn't know what I was doing. But, like, it was something for me.
14:44This confused everyone else, right? Because they'd be like, well, you're not, you know, what are you doing without having a job? And I'm like, I'm building a book website. And they'd be like, are you going to compute with Amazon? No. Like, are you going to compute with Goodreads? And you're like, well, you know, with my friends. But, like, no. You know, and then they'd be like, well, what would you say you're doing? You know, and you're, like, mostly battling JavaScript errors. Trying to, and, like, spending a lot of time on Stack Overflow. You know, but anyway, it was just a whole confusing thing.
15:08But at the beginning, it was just, I like, like, when I would go visit a friend's apartment, I'd always, like, be drawn to their bookshelf. You want to see what's on their bookshelf. Anyway, so I was like, okay, what if I can get everybody's books online? But he was like, clearly this is not a business. Like, best case, I'm making, like, 50 bucks a month, you know, Amazon referral fees. Like, not a business. But you did it anyways. Why? Because I wanted it. And it was a good, it wasn't, you know, like, you do their initial coding tutorials and you, like, are making whatever the other person wants to make, which is not what you want to make.
15:37And, like, I actually wanted this thing. And it, like, forced me to be like, oh, you know, now I want, like, an animation when you shelve the book. So, you write, and then you'd, like, learn about CSS animations, whatever it is.
15:51And so you started building stuff for yourself. Yep. Did you ever switch gears to, okay, now I'm going to do the startup startup. I'm going to do the thing that might actually, you know, get me out of poverty. Right. Like, self-induced poverty, basically. So at that point, I was very like, look, I just taught myself how to code. And like, you know, am I that good? No. But learning how to do some of this is much harder than it should be. And a lot of it's because our programming tools make us like hold everything in our heads. And you have to teach yourself to think like a computer and like read through code.
16:21Just like not how a person, you know, you think like a computer. And once you have that, everything gets easier. But like, why? We are typing on computers. And so I kind of got on this, like, if we could make our programming environments better, you can like more, they will just make more sense and more people will like learn to code. And so, you know, I was really into that personal problem. Also the like, you know, live in the future and build back, you know, whatever, all the startup trope advice. I'm curious about that. What startup trope advice actually helped you? I think the build something you want is a bit of a red herring.
16:55It works in some cases, but you're also very limited to your experience. It's kind of like when they tell writers, write what you know, and then you like, you know, it's like a 14-year-old who's had a charmed life, and like they just don't know that much. And so like what are they going to write about? And so my version of that is like, look, if there is something personally meaningful, like by all means go for it. That's top ranked. Totally. But like second best is like find someone else with the problem and deeply, deeply understand them. I think there's a vertice, the shut your eyes, imagine the future.
17:28What's it look like? Build that. I think this makes sense in retrospect. I think in the moment, it's pretty hard to generate reasonable startup ideas during that. Right. But I can tell you a story about Vanta, where Vanta fits that. Yeah. And it does, but it's not a fact. But that's in retrospect, yeah. Yeah. So what was the actual, in the moment, way that you stumbled into this idea of Vanta that now seems obvious, as all great ideas do, once they exist. Listen, now there's you guys and some competitors trying to do the same thing. But that was kind of a novel idea, and it was a new part of the market at least.
17:59What was the insight for that? The insight was I wanted to start a security company that started serving startups. There seemed to be, like, security was this huge market, but no one was really focused on startups and startups didn't use security tools. And I was sort of like, why? And, like, when does this become a$90 quadrillion? Like, go from a zero TAM to, like,$90 quadrillion market size in precise terms? Yeah, that's the official number. Yeah, exactly. But wait, why security? Because like, you know, when I'm talking, I've been talking to you for, I don't know, 20 minutes now. You don't strike me as somebody who's like, I wake up every morning and I was thinking about security during that year off.
18:33Why did you even think about security to begin with? It seemed really interesting. It seemed like this kind of competitive cat and mouse thing with attackers where there's like kind of a real dashboard. I mean, one of the things I've, I mean, I guess I knew, but I didn't really know. Like I'm very competitive, should have played more sports as a kid, didn't through Vant to have an outlet for a lot of that energy, which is great. And I think honestly, when I was at Dropbox, I worked with this product security team and they were great. They were super fun and they were really good educators. And it's not like they'd hosted, you know, seminars on things.
19:06It's just like they wanted you to fix something, but they'd come over and sit next to you and explain why it was important and how and all that. Anyway, they were just great. And so in coming up with startup ideas, there was a bit of like, well, this actually seems like a deep enough, interesting enough space that if I work in it for years, there'll be lots of things. And if I can't come up with anything and end up burning, you know, 18 months of my life learning about security on the internet, could have been worse. Yeah. Right? Like you kind of look back and be like, okay, worst case, nothing comes out of this.
19:34But like, you know, I'll feel as good as I will or would. Well, connect the dots for me. So you took the year or multiple years off to teach yourself, two years. Yeah. But then you go to Dropbox. Yeah. So you go back to getting a job. Yeah. So I feel like we, like, there's a part of the story that's like, I iterated, iterated, iterated, finally I found it. No, no, no. Finally you found a job at Dropbox. Yeah, because I was kind of like, okay, now I can code, but I've never had a real job. I've never worked at a company. I've never worked with people. Also, my, like, friends are kind of getting promoted and, like, I can, you know, like, it's unclear if I'm employable.
20:07Like, this seems bad. And I was really frustrated because, again, like, I wouldn't tell people I wanted a startup to come out of that. But, like, I did. But I also at the time was like, well, nothing I've worked on should be a startup. Right. So what was that story you told yourself? So you spent the two years. You bet on yourself. Yeah. Which sounds amazing. That's a great T-shirt. Bet on yourself. Yeah. But the reality of it, I do it for, I told you, I did it for eight years. Yeah. And I was delusional enough to keep going. Yeah. But also, objectively, it was bad. And I should have, I had to tell myself certain stories in order to either keep going or to like just maintain a sense of confidence beyond that.
20:47Because the evidence was telling me you suck. Yeah, yeah, yeah. And I just couldn't tell myself you suck because then I definitely suck. Yeah. What were you saying when the evidence kind of said you suck? This is very silly. I had this like survey I would fill out, a Google form I'd fill out for myself every Sunday or every weekend. What are you working on? How do you feel about it? What are you going to, like, what's your next goal? What are you going to do to move forward? You made that for yourself. Made it for myself. It was like a personal accountability thing, right? Okay. And I asked a bunch of questions.
21:16They were all useless. The only question that ended up mattering was, what would make you stop working on what you're working on right now? And to your point, it turns out my present self always thinks I should keep going. But my past self sometimes thinks current self should stop, right? And so I was actually, like, looking at those answers and being like, two months ago, I said I should stop if I got to the point I'm at now. I don't actually think I have countervailing evidence. I just have stubbornness. Shoot. I should probably stop. And so that's how you were stopping those projects. I sent you some questions ahead of this to try to understand what you think is important to talk about, what you think is insightful.
Read the full transcript
21:57You said something that I really resonate with, which is managing your own mind, managing your own psychology is one of the most important things. Yep. How does one do that? And what's like, how would you teach that to somebody else? Or how would you talk about that to somebody else? It's, I think, hard to do, hard to teach. I think what I try to tell people is figure out what, like it's personal and not personal sensitive, but like personal, like specific to you. and figure out what makes you happy or centered, whatever those things are, and like do not give them up. And so for me, for years, it was like, you know, running three or four times a week.
22:40And like exercise, sure, but it was actually just like the mind-clearing catharsis kind of meditative, like running. And, you know, it was like running for me, but like whatever for someone else. And it's like whatever that thing is, do not give it up, and I don't care how busy you get, but sort of know what makes you feel like you and don't drop those things. Know what things make you feel like you, which is kind of like what you're talking about is habits and hobbies. Is that more of what you're thinking about? It's just like that feeling where you're moving through the world and you feel like you're at your best, like you're the best, shiniest version of yourself.
23:14It's like, what brings that on? So for you, running is one. Running is one. Reading, like not in any, I mean, kind of an elegant intellectual way, But actually just because it is something I have done since I was six years old. Right. And so, like, if I think of, like, hobbies or anything I've done through my life, reading is actually one of the biggest through lines. Right. And so there's a part of that that just feels like me. Yeah, because I was looking. You read, like, I don't know, 30, 50 books a year or something. Yeah, but it's like, I mean, yes, I want to learn things and, like, blah, blah, blah.
23:42But actually it's just, like, it is centering. I feel like me. How do you do that? When I was running a company, and by the way, mine was not a$2.45 billion company, I was like, I have no time to read. Are you kidding me? There's problems everywhere. I'm drowning in problems. And did you just replace TV with reading? Is something as simple as that? Yeah. Like, actually. Eric told me that you are, like, extremely quick with reading. He's like, she would take a bus to work. Yeah. And read the book. And read the whole book on the bus ride. Yeah. I mean, over the course of a week or so. But yeah, like, actually to this day.
24:12The way he said it was more legendary. He was like, to and from, cover to cover. No. I wasn't at it. You should roll with that. I actually still take a bus to work. part of it so I can just sit there and like... You bus to work? Yeah. Because look, if I take a car, I'm just going to like sit in the back with my laptop writing emails, you know? And then a bus, like, I want a San Francisco bus. I'm not pulling on my laptop on that unless something's like really gone wrong. And so it just forces me to like sit there and have 20 minutes between home and work. And I like that much more. You know how people are like obsessed with cold plunges?
24:45Yes. I think the more hardcore version is take a San Francisco bus to work. It's like, wow, you can endure a 18-minute bus ride It was like. That's why the buses aren't bad. 5R used to be my bus. 5R is a great. Dude, I used to take the 38, and the 38 is like an actual zoo. It's like anything can happen. Yeah, yeah, yeah. No, 5R, great bus. I miss it. I miss it. Okay, so bandaging your own psychology, you said figure out what makes you feel like you, most of you, and make sure you stick with those things, keep doing those things. It'll kind of keep you centered with it. But what about, Ben, is your own psychology when it comes to self-doubt, when it comes to getting down on yourself?
25:21Because I spent two years. I didn't really land where I wanted to land with it. Did you have a conversation with yourself there or a story you told yourself in order to? Yeah, I was so annoyed. Which, in retrospect, I was, like, being so pretentious. Like, life was good. You know, again, like, the bat nut. Like, my worst case outcome was becoming a product manager at Dropbox. The height of Dropbox is power. Like, my life was great. Could you just say the bat nut? Yeah, right? But like, my life was great. It did not feel great at the time. It was totally great. And again, I knew I was like 5 % aware of that, 10%, but that was not the lived feeling.
25:52Do you use negotiation terms like that just regularly? Hopefully not. That sounds kind of obnoxious. I'll try not to. No. No, I like that. I've always felt that if you build a great Silicon Valley company, internally in your company, you should be a totally normal person. But outside, you should have that like 10 % crazy. Yeah. It just gives you like actually like 2x the valuation. It just creates this extra aura. Totally true. Wow, she's barefoot all the time? Why? Interesting. She must be one of those real outlier types. Oh, my gosh. All right, I want to ask you about this list of ideas that you did.
26:21So I've looked back in my career, and even when I went through eras where I tried something and it didn't work, a lot of the times I look back with the benefit of hindsight now, and I think, oh, I was just sort of an idiot about it. Had I actually either stuck with it or done it differently or pivoted the market, that actually was a good idea. I'm curious, do you feel that way about any of the projects you worked on? Like, they're art projects, and I say that with deep love, but, like, they're not businesses. Okay. The voice assistant for biologists, yeah, that doesn't sound like a great business.
26:50That was just comically bad. No, yeah, there was, like, a deep lack of any commercials in nearly everything on that list, which I think is part of why Vanta has had commercials, like, baked in from the very beginning, because I'd made that mistake so many times. What about now? So if you weren't doing this or in general, like when you operate a business, you see a bunch of pain points, blind spots, maybe like parts of the market that are unaddressed. If somebody is listening to this right now and they are looking for, you know, inspiration or ideas that, you know, spark thoughts in their head about stuff that they could go do, where would you look?
27:29What would you recommend people think about? What problems do you think need solving? Yeah, I think so much of what I think about that's not kind of directly in band of the wheelhouse is something around like running a B2B SaaS or being in a B2B SaaS business. Forget running it, just being in it. There's like so many, like someone please fix the go-to-market tooling stack. There's 9 ,000 tools and none of it. And it's like you jerry-rigged them together in this Rube Goldberg machine and the marbles are all up on the floor. And like anyone wants a B2B SaaS? Just like fix that. Go full stack on all that.
28:00But for people who don't want me to be sass, which there are hopefully many, I think the process Vanta came out of, I mean, I, of course, I mean, I liked it going in, but now, of course, I really like it. But that was pick something you want to learn about and just go talk to anyone you can about, like, what their days are like, what their problems are like, just, like, what's going on and kind of try to develop a mental model of this space. The story I heard about Vanta, which sometimes we make up these retrospect stories. So I don't know. You tell, you can. I try to actually tell the true one.
28:32Like blink twice if it's true. Yeah. But it was, you're at Dropbox, you work on this thing called Paper, which was this, I remember like seeing Paper at the time. It was like this idea of this like collaboration tool. Dropbox's version of Google Docs. Yeah, Dropbox's Google Docs. You go to launch it and it's like, hey, we don't have Sock 2. So can't really launch or customers can't use it. And you were like, Sock what? Yep. And you didn't know really what that was. And you were like, so how do we get that? And you started asking questions to try to understand, like, what is this thing that blocked us here?
29:00If it blocked us, maybe it blocks other people. Dropbox had a security team that was going to be able to try to solve those problems. But, like, the average startup doesn't. And the next part of the story that I liked was even though you had just spent two years learning to code and built 35 projects and coded them up and shipped them out there or whatever, you didn't write code for this. you were like, I'm going to test this idea with an Excel spreadsheet only. And you went to one or two startups, I think YC startups that you thought might need this. And you were like, hey, if I did this for you, would that be valuable?
29:31And they're like, oh, yeah, sure. Can you, how much of that is true? All true.
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30:43The stylized part is all the Dropbox stuff happened, there was no light bulb. I was like not smart enough to have a light bulb go over my head at the end. Wish so. But it was just like, learned about the whole process, learned what it would take, and then like basically ran screaming from the room. Because it just sounded awful. Especially when we were trying to launch and even figure out if we had product market fit. So the idea of like, we're going to go two years of work to then see if we have product market fit. You're like, bad. Bad. Like, how do I find reality faster? Came back to it later, did the spreadsheet thing.
31:10And I think, honestly, it's like because it's 35 things on the list. Like, kind of at the point where you're like, okay, I can write, you know, maybe it's so much shoddy JavaScript. But, like, I can code the thing or code a first version of the thing. That's not the hard part. The hard part is does anyone want my thing at the end? And so, like, how much of the validation can you front load there? So, I think a lot of people hear that. And, like, they hear you should talk to customers. You should validate people want this. Make something people want. I don't think anyone has any idea how to actually do it.
31:39So what is the quick and dirty recipe for how you actually go? Who do you talk to? What do you really ask them? How do you make sure you're not getting these false positives just by being like eager beaver? And they're like, yeah, that would be maybe I'd be interested. And you're like, they totally loved it. Yeah. So on the false positives, anything that is not can you do this for me now, tomorrow, next week is a no. And people are really kind and they want to be kind. And so they don't say, like, rarely do they say no. But a lot of like, oh, maybe next quarter. Like, I don't need this, but my friend might.
32:11Hard nose. Yeah, you should date my friend. Totally. Hard nose. I think on who to talk to. I mean, look, we started with, like, anyone who would talk to us. And then it was just like, and then sort of ended up being coworkers, former coworkers, because you had, like, some, like, well, I don't know if you know anything about this topic, but you're kind of a nice-ish person. And so I'll, like, give you a half an hour sort of thing. and then just fan out from there at the end when they're like, well, you know, you ask them, do you have anybody else? And they list people and like say yes, follow up with customized emails, take it forward, you know, like make it easy for them and just keep going out.
32:47Yeah, I think that's an important one. Make it easy for them to do the thing they said they want to do. Oh, yeah. Like follow up and be like, thanks so much for meeting me. Like I would love to talk to your friend, Eric, who said this, like here's what I'm working on and just like assume they will, like write them an email they will forward. Exactly. Yeah. So you, have you ever read this thing called the mom test? Yes. Do you subscribe to that? Yeah, generally. Yeah, that was helpful to me when it was, I don't even actually remember what was in the book, only one line, which was, they can't tell you about the solution, but they can tell you about their problem.
33:17So all your questions need to be first about their problem. And then at the end, if you want to ask them about your solution, great. But just assume they don't really know what the solution needs to look. Yeah, I think that's true. Try to avoid yes, no questions. sounds just harder than it sounds. And there's a bunch of kind of user research tips, tricks of like if somebody mispronounces something, go with their pronunciation. Otherwise, they're going to like. Don't break rapport. Exactly. Exactly. Like a lot of that. Yeah, that's true. Actually, I think I do that. And it sort of is like a problem because it's kind of a know-it-all move.
33:50Right. And then it makes them feel like their mind goes over there. Exactly. Oh, am I being stupid? Did I say something stupid? Exactly. Where you just like want them to like stream of consciousness at you basically. Yeah, exactly. Do you have any good hustle stories for how Vanta kind of got the flywheel going? Because, you know, startups don't kind of just like explode right away necessarily. Yeah. And I've seen your like ARR chart, which looks like a beautiful hockey stick. Yeah, totally. But if you zoom in, it's like, wow, that was a year where it's like pretty kind of small. And then it started to accelerate.
34:20Was there anything you did that you felt was interesting, unique, that kind of took hustle or creativity? Tiffany. It's so funny looking back because, like, I sent a bunch of outbound emails to YC companies, but I didn't know the word outbound at the time, right? I was, like, emailing YC founders for feedback. And I legitimately did want their feedback kind of to this. But it was, like, half a, like, okay, I'm going to spend, you know, 60, 70 % of the call talking about the problem and how you're solving it. And then in the end, be like, I am building a thing. Would you like to hear about it? But it was, like, totally called outbound.
34:52You know, I just, like, didn't know that word. So you emailed a bunch of YC people. That got the ball rolling. What happened after that? Honestly, the early strategy was like just do and try everything and then see what works. So what did work? The outbound worked. There was a word of mouth. We tried actually really hard in the early days to basically build this call response and like founder Slack channels or VC Slack channels where someone said Sock 2 and someone else would say Vanta. And you just wanted this, you know, Sock 2 and Vanta. You're saying like build the brand in people's minds. Yeah.
35:24And that was great for a while. and then a bunch of knockoffs came. And anyway, there's a bunch of other ways to get socked too. And so that association... I remember you guys had a billboard. It was like, what is it, compliance that doesn't sock too much? Yeah, still up. That was good. Still up. Yeah, I joke with people. Like, we make software, but like we also make a billboard and we're equally known for both. We're like equally as important. What else? podcast advertising really worked I mean actually it still really works but like really worked in the early days I thought podcast advertising was just gonna be like sending money out the window I was totally wrong and that's what happened somebody on your team pitches you this Eric Eric was like I want 20k to go on this week in startups or something and I like rolled my eyes and said fine whatever go it totally worked he was totally right Eric is like this mythical figure to me now where I've only ever heard great Eric stories.
36:25And so I don't want to hear any, if anybody has a bad Eric story or an idea you had that didn't turn out true, don't tell me, please. No. All right. I want to ask you about a couple other of your controversial or maybe just less consensus opinions. I've seen you write these somewhere on the internet. You tell me if you still believe these and why. Consistency is overrated. This is on your website. Oh yeah. And people read a lot into this. I'm just like joking with myself because I say contact me through these four ways that are all have totally different names on them. Oh, okay. So like it's just like minor.
36:54Naming consistency is overrated. Yeah, it's just like minor self-awareness thing that I think people think is meant to be a broad philosophical statement. Do I actually think it's a broad philosophical statement? No, probably not. I think Vant has taught me consistency is actually underrated. Yeah, I was going to say, you strike me as somebody who's consistency first. Yeah. It's bad when the goalposts move. I don't know if you're saying you think this or that other people think this. I think other people, the advice tends to be right, Like, you know, if your goalposts keep moving, it's hard to find happiness.
37:23And, like, you're always finding happiness. Explain what it means. So, like, what does that even mean? The goalposts moving. Yeah, like, I mean, it's a lot in lots of forms of life. But, like, let's take startup founders just because, right? It's like you want to start a company. You want to hire some people. You want to write the seed round. You want to get to, like, a million in ARR. But then by the time you get there, you're like, actually, I want to get to 10. Right, that's it? Yeah. Yeah, and there's, like, always something you are chasing. and I think that it's generally seen as a recipe for unhappiness, right?
37:50Like, why can't you be happy in the moment? You did this thing prior you thought was great. Like, why can't you think it's great? And I think that can be true in some cases, but I actually think or I think that the trick is slash downside is if you're, like, only happy when you hit a goalpost and then you're moving them, like, you'll never be happy. if you actually just like the work. Right. That's what it doesn't matter. And I think a lot of things are more sustainable when you like the work, especially when you have a lot of work to do. My formula is progress equals happiness, which is that no matter where you are, it's sort of like the Y intercept doesn't matter, the slope matters.
38:30And so wherever you're at, if you don't feel a sense of progress in your life, you will feel unhappy and then you'll feel even worse. You'll feel guilty for feeling unhappy. Yeah. Because you're like, I guess I do have all these good things in my life, but I still don't feel this way. I'm just fundamentally broken inside. I'll never be happy. When in actuality, it's just a sense of progress. Even better, a sense of progress in a direction that you have set out intentionally that you care about. Yep. And I think that in that sense, moving the goalpost is great because you're saying, I would like to continue making progress.
38:57I enjoy progress so much. Why would I stop my progress? That stops my happiness. Yeah. It's a different way of looking at it. Do you remember, deep cut, 10, 12 years ago, Jess, who was founder of Polyvore at the time now at Sequoia, wrote a blog post about founder psychology? No. What did it say? It was like basically like why our founder is always unhappy. And she's like, especially when their companies go like this, and it was a line up into the right. And she's like, because if you zoom, you know, again, Y axis getting higher, like what is this? Because if you zoom in on the graph, it doesn't look like a, you know, 45 degree angle.
39:31It looks like a roller coaster that is going slightly higher. Right. Right. But it's like the roller coaster along the way. And, like, you know, again, even when you zoom out and you've got this lovely 45-degree line, the downs hurt every time. Yeah, it's the peak to trough that you feel. You don't really even recognize that you've gotten higher progressively each time. You also have another one, which is high standards are bad. You think that in generally – you said people don't say this, but they imply it in different ways that, you know, don't have such high standards. Right. What's the situation where that's come up for you or you've felt that?
40:04I think a lot of Vanta stuff and I think within the company and then with, you know, kind of partners or folks outside. And I mean, some of the feedback we get that like I kind of appreciate more than anything else is like people care. People respond super quickly. Like, you know, again, something might have gone wrong, but the person tries really hard to fix it. Right. And I think those things definitely don't happen everywhere by accident. And it's not to say I had, I mean, hopefully a small role in it, but I think when people join, there's a little bit of like, oh, the bar is here at Vanta.
40:42Like, kind of scary. Did I join the right place? Like, what's going on? What's an example of that? Where would somebody feel that? A couple places. But I guess in go-to-market, our expectations around quota, around attainment, they're way off industry. They're way higher. And I think if you just, if one just hears them in a vacuum, they're sort of like, what is what? Like, why would I sign up for that? Then they join and it's like, oh, because you're surrounded by people who are like into what they do, getting better every day, want to get better every day, care a lot. And that sort of environment can be like really infectious.
41:16I'm curious. Did you ever read this leaked production document from Mr. Beast? You ever take a look at that? Did you see that going around like a few weeks ago? No. You know who Mr. Beast is? Yeah, yeah. Yeah. So like right around the same time that Paul Graham put founder mode out there and founder mode, like, but wait, what is it exactly? And like, I think, yes, but what? Part of a lawsuit, Mr. Beast, like the internal doc he wrote for his production team leaked a big part. Like we've gotten to know him and become pretty friendly with Jimmy over time. And it's just like the number one thing, you go hang out with Jimmy for a couple of days, like you walk away and you're like, oh, he that's what people that's what it means when people say, you know, Steve Jobs used to have this reality distortion field.
41:56Yeah. And it's and literally he his company is based in like a tiny town in North Carolina. So like he gets people to move there. And then once you're there, you're in his bubble and in his bubble, the expectations of what work is, about what success is, about what we're able to do, about the timelines we do them on, about what it means when something says no, not possible. And he's like, one of his things, he's like, push past the no. He's like, you know, you have to be able to push past the no. You don't always have to get it to be a yes. But like, if you just come back and you said, oh, we, you know, we asked for the permit and they said it's going to take six months.
42:29And he, like, that can't be the end of the story. And we saw it on every little thing. Like, for example, we wanted to play basketball the next day and it was midnight. And somebody was like, oh man, I can't wait till tomorrow. Like I just want to play. And he goes, well, why do we have to wait? Like, well, it's midnight, Jimmy, what are you going to do? He's like, I'm sure there's a gym around here somewhere. Let's go, let's go find one. And we're like, yeah, but they're going to be locked. It's midnight. Like schools aren't going to be open. He's like, call the athletic director. He's like, just call, call all of them right now in the county.
42:55It'll take us 20 minutes and offer any of them a thousand bucks. See if they'll come open it. And like part of it was like, oh, he just throws money at every problem. But actually it's not about throwing money at it. It's yeah. Everybody else would immediately just default to like, this is not possible, not feasible, not not going to be doable. Whereas his default assumption on any given thing is like, why not? Of course we could do that. Yeah. It's just a matter of deciding if we wanted it, we'll do it. If we don't, we won't. But that's it. And you just see that time after time after time hanging out with them on big things like, you know, the videos that they're going to shoot, but the small things.
43:25And it's just a different gear. It's like, oh, your gear is like my stick shift only goes to six. Yours goes to nine. Right. If I'm going to hang out with you, I now need to decide like how I'm going to get to eight or nine because otherwise I'll just be sticking out. This won't be the right place for me. Yeah, totally. And I think there's a, I mean, I think also if you like experience that and you're like, you know what, I'm go with six. Right. Totally reasonable decision. Like not that, you know, arguably maybe a better decision in some cases. It's like totally fine. But the like, there might be, there might be a nine for any given thing.
43:58I think it's a helpful mindset. You also raised a bunch of money late, so you didn't raise early on. You got to$10 million in ARR before you went and raised your Series A. I'm not so curious as to why you did that because I'm guessing the answer is pretty simple, which is like we didn't necessarily need it. We just stayed focused on selling the product that was working. But more so when you went to go do it, what was that experience like? Oh, it was really fun. Yeah, it was great. It was really funny. So people, or VCs in San Francisco, broadly, like knew we were doing well because of kind of the Slack channel chatter, like Advantage had come up.
44:36But they sort of didn't know how well. And so there was one pitch meeting. I remember they. And sorry, you kept it low-key, right? On purpose. Yeah, kept it low-key on purpose. Because basically we were like, we have this great idea and everyone else thinks they can't even like spell what we're working on. Think it, you know, has K's and do things on your feet. and I would rather they not know because then somebody's going to start knocking this off and copying. But anyway, very smart VC, very good at his job. Like, go and pitch, and I start walking through the slides, and I get to the ARR ramp chart, the, you know, 10 at the end of it, basically, and his jaw just dropped, and he was, like, clearly speechless, and he's looking at it, and he's like, I thought you were at, like, 2 1⁄2.
45:18And you're like, no, that was, you know, 10. And he's like, keep going. And at the end, he was sort of like, we're not going to, like, we missed it. Like, we're not going to be able to do this. I can, like, try to introduce you to someone else. But, like, you know, it was fine. Like, you know, there were other people. But it was this kind of interesting pitch experience. And then, basically, I go into a meeting with another VC who's very good at his job. And he's like, you know what? I thought you were at 9.4. Because I'd, like, taken your Twitter chart and backed it out and taken the points. Yeah, I did the same, actually.
45:46And, like, counted the pixels. And I was like, well, you weren't putting your job. I did the proportions. She said 10. So if this is 10, where was she a year ago? Get 2.7 or whatever. He had basically done that. And that was also, you're like, oh, this is great. It's so good at your job. So fun. Is that who you end up going with or no? No. You're great, but Sequoia's gone. But I think actually it was, until the goalpost stuff, and I'm not very good at celebrating, but it was a moment where I took a week and I was like, no, I'm going to tell this story and what we've done and, like, I'm deeply proud of it.
46:25And I would have told you that, but now I, like, feel overwhelmingly proud of it, right? And, like, here's how the pizzas fit together. Here's how they will fit together, and I believe it. And so that was just, then it became, like, I still kind of hate fundraising, but it was talking about something I believed in. Just fun, right? Eric told me that he thinks you're great at negotiating. It's so funny. You said that's surprising to you. But he was not wishy-washy about it. He's like, she's incredible at negotiating. One of the best I've ever been around. Ask her how or why she does it. So no pressure.
47:00Yeah, no, it's really surprising. I think if I'm confident, I'm actually confident in it. And then we'll just stand and like not blink, not swerve if we're playing chicken, won't eat the marshmallow. It's like, I got it. Like, let me know when you want these terms. I'm happy to sit here and wait. And actually, truly, I'm like happy to sit there and wait at that point. So I think it's just a lot of that. It's like I won't – if I believe it, I won't flinch. Cool. Well, thank you for doing this. This has been amazing. Where should people find you, find Vanta? Maybe give it a shout. Yeah. Vanta.com, V-A-N-T-A.com.
47:34If you need any help with anything security or compliance related, we would love to help you out. Awesome. Thank you for doing this. Thank you so much.
47:49Let's travel, never looking back.
48:08All right. This episode is brought to you by Mercury. They are the finance platform of choice for over 200 ,000 companies. Shouldn't be surprised because I use it myself for not one, not two, but I have eight different Mercury accounts. I have seven for different companies that I'm a part of. And then I have my own personal account because now they have personal banking, which is a really cool feature. I highly, highly recommend it. Like I said, I use it myself. And the reason why is because the way that Mercury works is beautiful. It's very intuitive. And you could tell that it's actually made by a startup founder.
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49:01For more information, check out Mercury.com. Mercury is a financial technology company, not a bank. Check show notes for details.
From the publisher
Episode 646: Shaan Puri ( https://x.com/ShaanVP ) talks to Vanta founder Christina Cacioppo ( https://x.com/christinacaci ) about quitting her job and betting on herself.
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Show Notes:
(0:00) Stumblehustling into USV
(4:36) Betting on the left side of your email address
(8:30) The art of fear
(11:47) Making bad art
(13:30) The marshmallow test
(17:26) Startup advice to beware of
(18:16) The idea for Vanta
(21:00) The only question that matters
(22:30) Managing your mind
(27:47) How to pick an idea to chase
(29:03) The real origin of Vanta
(31:00) Building a flywheel
(36:06) Controversial opinions
(40:49) Pushing past the no
(46:17) Not flinching during negotiations
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Links:
• Vanta - https://www.vanta.com/
—
Check Out Shaan's Stuff:
Need to hire? You should use the same service Shaan uses to hire developers, designers, & Virtual Assistants → it’s called Shepherd (tell ‘em Shaan sent you): https://bit.ly/SupportShepherd
—
Check Out Sam's Stuff:
• Hampton - https://www.joinhampton.com/
• Ideation Bootcamp - https://www.ideationbootcamp.co/
• Copy That - https://copythat.com
• Hampton Wealth Survey - https://joinhampton.com/wealth
• Sam’s List - http://samslist.co/
My First Million is a HubSpot Original Podcast // Brought to you by The HubSpot Podcast Network // Production by Arie Desormeaux // Editing by Ezra Bakker Trupiano
