292 - Best of 2025! "Eat What You Kill": Why Raising Venture Capital is the Worst Way to Solve Your Startup's Problems with Erik Kaiser

2 Apr 2026 · 1 h · 31 chapters

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In short

The episode argues that “eat what you kill” (bootstrapping with constraints) is a better way to build startups than raising venture capital, which can cause repeated cash-burning to solve recurring problems. It also covers how Erik Kaiser built a multi-brand, cash-flow-funded company and launched an AI hardware product, Crush the Memory.

Guest

Erik Kaiser. He describes himself as a “dot collector” with intense curiosity and focus, not traditional ADHD. He has founded multiple companies, sells into 85 countries, created 1,000+ jobs, and owns a factory in China. He runs Glamcore Global (beauty/CPG brands) and incubates additional brands using cash flow.

Key claims

VC money often gets spent on “brain damage” problem-solving and customer acquisition (he cites ~50% going to Meta/Facebook ads), while problems recur and cash runs out. Constraints force better decision-making. Revenue is less important than profitability.

Notable examples

Crush the Memory (AI recording device for capturing ideas via Wi‑Fi to an app). Hardware/software rewrites over ~3 years; $1.25M+ spent. Kickstarter used mainly for marketing/social proof; ~2,000+ units at $149. Glamcore revenue fell from ~$18M (COVID) to ~$7M (2024) with restructuring begun July 2023.

Written by AI. May contain mistakes. Listen to the episode to check what was said.

Chapters

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The Power of Desire in Entrepreneurship

0:46 to 2:18

Discussion on how desire drives success and the importance of personal motivation.

“You had a post a while back that said, by 30, you were worth$10 million.”

Understanding ADHD and Focus

2:19 to 3:52

Exploration of ADHD characteristics in entrepreneurs and the role of focus in their success.

“And then, you know, I think for me, I never had traditional ADHD.”

The Importance of Constraints

3:53 to 5:48

How constraints can be beneficial in business and help foster creativity.

“So that leads into, I think, how I often describe myself, which would be useful for this conversation, which is I'm a dot collector, meaning every piece of information is a dot.”

Self-Funding and Financial Management

5:49 to 9:00

Insights into the 'eat what you kill' approach and self-funding in entrepreneurship.

“people too, is that I also like, I could never work a desk job, but just, I need, I need full freedom to think and do and just energize.”

Challenges of Venture Capital

9:13 to 11:55

Discussion on the pitfalls of relying on venture capital for startup growth.

“My wife and I are constantly at odds with this.”

Team Structure and Operations

11:56 to 14:00

Overview of team operations across different locations and their roles.

“We have effectively offshored a bunch of operations instead of growing them organically.”

Incubating Multiple Brands

14:00 to 17:19

Learn about the process of incubating various beauty brands and their market strategies.

“Crush will be split off soon because it is going for a capital raise, which I can explain.”

Revenue vs. Profit Focus

17:20 to 19:22

Understand the importance of focusing on profitability rather than just revenue.

“And by the way, I could care less about top line completely irrelevant to me.”

The Roller Coaster of Business Growth

19:23 to 21:32

Explore the ups and downs of business revenue and the importance of resilience.

“Anybody tells me their revenue, I'm like, I don't care.”

Avoiding the Comparison Trap

21:33 to 23:16

Learn why comparing your business to others can be detrimental and how to focus on your own path.

“I think there are so many people who are distracted by just the ups.”
Show all 31 chapters

Building a Diverse Company

23:17 to 25:58

Discover the benefits of building a company with multiple brands and interests under one umbrella.

“you don't know what the inner workings of another company is like.”

Navigating Marketing Challenges

25:59 to 28:00

Understand the challenges of marketing and the importance of innovative strategies to move products.

“People go out and they're like, Hey, I have experience in this area.”

Creative Problem Solving in Startups

28:00 to 29:10

Learn how to creatively approach challenges in startup inventory management.

Understanding Hardware Challenges

29:10 to 30:11

Explore the complexities of developing hardware products and the mindset required.

“So there's, there's two sayings that come to mind for me and they're both venture sayings.”

Building from Ignorance

30:11 to 32:30

Discover how naivety can lead to success in unfamiliar territories.

“So I hear hardware is hard and yeah, it is, it is hard if you're just some dude, you know, but here I am, you know, I'm living in China.”

Introducing Crush the Memory

32:30 to 33:59

Learn about the innovative AI recording device designed for busy professionals.

“As a matter of fact, one of the easier ones.”

The Journey from Idea to Product

33:59 to 36:53

Understand the timeline and challenges from concept to market launch.

“And this person, this individual is chock full of ideas like me.”

Funding and Control in Startups

36:53 to 39:01

Examine the impact of self-funding versus venture capital on startup decisions.

“because here we are, we're really good at hardware.”

AI in Healthcare Innovation

39:01 to 41:41

Discover how AI can streamline processes in healthcare and diagnostic settings.

“Nick, we're just now sunsetting the existing architecture that we have.”

Pivoting and Persistence

41:41 to 42:00

Learn about the importance of adaptability and funding in startup success.

Challenges of Venture Capital Funding

42:00 to 43:19

Understanding the difficulties faced when funding startups and the pivoting process.

“They can read it, synthesize it, make recommendations.”

Exploring Kickstarter as a Marketing Tool

43:20 to 44:49

Learning how Kickstarter can be used for product validation and marketing.

“project right and then people fund it and they go and do it did you need the money to go on like Why did you go on Kickstarter?”

Sales and Growth of Crush Product

44:50 to 47:11

Discussion on the sales performance and marketing strategy for the Crush product.

“You know, I have three, you know, so units really isn't the important metric.”

Transforming Crush into a Social Network

47:12 to 49:29

How Crush aims to evolve into a social platform for decision-makers.

“But now that we're a hundred percent stable, we have use cases, we've spoken to enough customers.”

Adoption of Crush in Healthcare

49:30 to 51:18

Exploring the potential of Crush in the healthcare sector and its user base.

“when they choose to make some of that, they're crushing everything.”

The Future Vision for Crush

51:19 to 54:48

Discussing the ambitious goals and expectations for the Crush platform.

“Poland and they want to run it through their hospital because they realized the value of it.”

The Evolution of Audio Communication Tools

54:49 to 56:00

How Crush and similar tools signal a shift from text-based to audio communication.

“Hardware quality will all reach parity in the next 10 months.”

The Evolution of Audio Communication

56:00 to 57:04

Explore how audio technology is transforming communication.

“And it was like, oh, this, the audio version, and it's going to be really, and it, you know, there was some pop to it, et cetera.”

The Privacy Debate Around Wearable Technology

57:04 to 57:56

Discuss the impact of technology on personal privacy and interactions.

“And, you know, what you end up realizing is that people don't want to be recorded when you're talking to them.”

Exploring New Wearable Innovations

57:56 to 58:52

Analyze potential future developments in wearable devices.

“doors and no one wants anything like that recorded ever.”

The Importance of Experience in Business Wisdom

58:52 to 59:40

Understand the value of age and experience in business insights.

“They're like, dude, how do you, do you age?”
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Transcript

Automatic transcript. May contain errors.

0:00By 30, you were worth$10 million. Today, you're worth$17 million. You're running multiple companies. You're selling into 85 different countries. You've created over a thousand jobs. You own a factory in China. You just launched this really cool product called Crush the Memory that is all over social media. How did you go from this like eight-year-old kid who is struggling with confidence and focus to building this empire? through sheer desire. You need to just have this insane desire for something and it's achievable. My whole life is about constraints. All of the companies that I've started, all done with my own little tiny bit of money, which I grew.

0:34Everything I've gone into, mortgage banking, everything I've funded myself, it's just eat what you kill. And I've learned why that is so important.

0:45I'm just going to jump right into it. You had a post a while back that said, by 30, you were worth$10 million. Today, you're worth$17 million. And you've done all of this without like a perfect academic track record. You're running multiple companies. You've got this company called Clamcore. You've got this company called Riki Loves Riki, which I love the name. You're selling into 85 different countries. You've created over a thousand jobs. You own a factory in China. All right. So you're like, you're all over the place. And then you just launched this really cool product called crush the memory that is all over social media.

1:18I have a very basic question though. How did you go from this like eight-year-old kid who was struggling with confidence and focus to building this empire through sheer desire, period. That's it. It's, it's, it really is. It's just desire. You, it's the old, you know, show me the incentive, I'll show you the outcome. My incentive was so high. And it was a function of my desire. That's really it. And I think that's an important piece of information for people to understand because you do not need to be scheduled in life. You need to just have this insane desire for something and it's achievable.

2:00and as soon as you have that people get it when you don't have desire everything looks like everybody else is lucky that's the those are the people who use the word luck like isn't he lucky like you how fortunate that person is really desire is at the heart of probably everything that i've ever done at what age did you realize you had adhd i really don't you know i think it was, I think when I was a kid, people thought that you do and giving kids medicine is really, you know, great for schools because they can calm you down, but really over time, you can train yourself to have insane focus. And then, you know, I think for me, I never had traditional ADHD.

2:49I don't have, I don't think I do. What I do have is a complete and total desire to succeed. And that, that is very narrow. Well, I asked the ADHD question, not because you've ever said that you have ADHD, but I talked to many entrepreneurs. I have ADHD. There's a strong undercurrent of, of entrepreneurs having a, a very similar personality with many of the ADHD characteristics. And there are kind of like, there are different types of ADHD. There are the, like, I hate authority. I'm a, I'm bad behavior. I'm going to, you know, give you the middle finger and do whatever I want to do. And then there's the type that I had, which is a little bit quieter, but you can't focus.

3:23I barely graduated high school. You're constantly trying to figure things out, but you have an ability to hyper-focus or hyper-zoom in on things. And you're like maniacally focused on different outcomes, but you need different things to sort of satiate your curiosity. And that's kind of where I'm drawing it from. It's like, you got a million different things going, but you are hyper-focused. You've got a lot of really good energy. And I think that those are pretty common characteristics in many entrepreneurs. That I would agree. I think if you're classifying in that way, I'm a very, very curious individual who needs a lot of intellectual stimulation.

3:58So that leads into, I think, how I often describe myself, which would be useful for this conversation, which is I'm a dot collector, meaning every piece of information is a dot. And then effectively over time, you start connecting the dots. And I'm a dot collector. I love learning. I'm constantly reading. I'm investigating something that's interesting. You know, today, this morning, like 4.30 in the morning, I put in a freedom of information request for information on airline security. Like, you know, I have an interest in something. it's a brewing there's a there's a data point I want to know what the data point is and I'll end up publishing it when I get it all done but but there's a data point right and so you know I'm not a very good person when I'm bored you know I know a lot of people say like you know you get bored you get your best ideas and all the rest of the shirt you know I I understand that but when I get bored I get stupid it's when my brain is engaged where I'm really you know moving.

5:02So I'm not, I don't have ADHD. I've never claimed that, but I do see how you would say like some of those features are ADHD ish. And I think my curiosity would probably lean me toward that, toward that direction. I've had similar problems. My wife's always like, why can't you just stay at one place and work at that company for 30 years and be in one position? And I'm like, I, I wish that I could, I, I do sometimes wish that I could just be the guy who clocks in, clocks that was there for 30 years builds up his nest egg, but I need to be overstimulated. Like I need a lot of different things going on in order for me, for me to be my best and most productive self.

5:37It's when I have less things going on that I'm actually not great. I'm not productive. You would think you would think it'd be the other way around, but it's like Parkinson's law. Yes. That's where I am with it. I have a good anecdote to help answer that question for some people too, is that I also like, I could never work a desk job, but just, I need, I need full freedom to think and do and just energize. However, I have a very close colleague at the company whose parents are entrepreneurs and run a business and she's super bright. And she has told me, she's like, I don't ever want to run a business.

6:12She's like, I see what it does to families. I looked at what it did to my family and how, and I, and I never forget that. And I'm like, you know, So, you know, she understands she's super smart, but she understands also that there is a cause and effect. And she was she gets to make a choice. You know, she she absolutely gets to make a choice. And she made a choice. She's like, no, I don't need I don't need or want that. I don't want that same outcome. I want something different. And so, you know, you worry about that stuff after work all night, every weekend. Yeah, 100 percent. I'm not going to, you know, pay me to do what you need me to do.

6:46but it's not at the end of the day, it's on you. There's a difference. You know, people can make a decision about that. Are you a lifelong entrepreneur? Have you always been an entrepreneur? Oh, I've only had one job and it was working during summer between high school and college for two summers working at a, at a boutique bond trading company in New York, because I had this, this aspiration to become an index options trader from when I was a little kid. And I quickly exited any interest in Wall Street after having worked there and only started up businesses, including from when I was in college doing startups.

7:25Okay. So one of my favorite things that you do is very similar to my business partner, best friend, Chris Kerner, mobile home park guy on Twitter. He loves to just say like the mantra over and over, like constraints are a blessing, constraints are a blessing. And obviously you've been hyper successful. You've launched a lot of businesses. Most recently you've launched this thing called Crush the Memory. And the way that you've launched it, there it is. It's right around your neck. The way that you've launched it, it's like there are a lot of constraints. You didn't go out and spend a million dollars on ads.

7:54You created the distribution effectively. Has that been a mantra throughout your career? Have you always been sort of focused on the bootstrap, having constraints, or is that something you've developed over time? my whole life is about constraints really yeah there are no so all of the companies that i've started all of the industries into which i've gone are all done with my own little tiny bit of money which i grew and some loans from my mom just you know as a very rough way to try to describe the early stage everything i've gone into mortgage banking everything i've funded myself And I continue to fund it myself.

8:33We have no investors. We have no debt. We have no nothing, right? It's just eat what you kill. And I've learned. Well, next month, it'll be a year since I started this podcast. I've had over 100 interviews. It's been a ton of fun. But I promised my wife at some point I would decide whether or not this was going to be a business or we would just continue to pay for it out of our pocket. And I'm exploring monetization, to be honest with you. There's not a ton of costs, but I do want to figure out a way to cover the editing and the packaging and the promotion costs of putting this podcast together.

9:02So I am looking for sponsors. I don't know what that looks like. If you've enjoyed this podcast and you've ever found some value and you want to sponsor, reach out to me, nickatcofounders.com. And let's get back into it. Why that is so important. My wife and I are constantly at odds with this. Why don't you just raise money to do this? Or why don't you just raise money to do that? And she's not wrong. She's absolutely not wrong. She's right, except that I know that when there is a pot of money into which you can dip your hand to quickly solve a problem, the problem usually still exists. And all you've done is reduce the available cash and delay the decision making about what needs to be done regarding that specific problem.

9:45Rinse and repeat that process multiple times and you find all of a sudden your pot is low and you have all of these problems still exist still and so i'm i'm very much an eat what you kill guy and everyone at the company knows that like we don't have this line of credit we don't have anything we just have our cash and we have to make every decision we make has to be based upon is this the right decision or is this some stupid risk because we have to use our own cash and our and our staff is really pretty respectful of that, quite honestly. Have you ever raised money? Like, is that, is that frame of reference from experience or is that just you thinking, Hey, that's usually what happens is if you have money, you're, you're making stupid decisions and then you still have problems even after you spent it.

10:30When I was in real estate developing multifamily properties on a commercial scale, large buildings, not like three unit buildings, but like, you know, 50 unit buildings or more 70 or a hundred unit buildings. I would raise equity through, you know, relationships that I had. That's raising money to get a deal done. I'm still taking on the debt. I'm still taking on the construction risk and all the rest of it. When companies raise money from a VC, for instance, they will be using that money for a variety of different purposes, of course, you know, with all with the intention of growing the business.

11:08However, often businesses encounter lots of problems and they do not have a solution. The brain damage it takes to try to create the solution or figure out how to solve something so high that there's usually a slug of cash that can be thrown at it to help the problem go away, but usually recurs. And so I'm not really an advocate for just dumping money on people and saying like, you'll figure it out because usually what happens is, and why there's such low success in the venture capital world is that people will spend the money to solve problems and grow. And as they grow, the problems exist and it eats up the cash and then it just goes flat.

11:54How big is your administrative team? You said our team, my team knows. What does that mean exactly? We have effectively offshored a bunch of operations instead of growing them organically. So in the United States, we have about eight people. Then we have an operation in Columbia, which is about 10 people. We have an operation in the Philippines, which is about 10 people or so. And then we have our factory in China, which has, of course, you know, a white collar staff and then the blue collar assembly. And we have, I think right now, we're probably 40 people there or so. What does each one of those units do, I guess?

12:37So like, what does the team in the States do? What does the team in Columbia, Philippines, and China? In the United States, we do engineering. So our crush engineering is all done in the US. It's not something you just want to hand off to, you know, people in foreign countries all the time. That doesn't mean that it's better. We really do need a good team and we've got a team here. We have operations, global operations in the United States. We've got global marketing in the United States. And we have a paid, so our marketing team, effectively our big marketing team, all the head of marketing is in the United States.

13:12Then in Colombia, it's all of the email marketing, graphic design, video editing. All those people are in Colombia. And then in the Philippines, we have mostly customer service and some operations. And then in China, we have some operations, some customer service, and then our product development team. So all that team has crushed the memory. That's not the other company. No, no, no. That's globally. So the way you can kind of think about it is I have this organization, this structure of all these business units that all work. And we incubate brands. And from the infrastructure that we have, the incubation is easier because each startup is almost incremental.

13:56everything exists erp systems operations shipping warehousing all that stuff and then it makes it easier to incubate the brands and then people get dedicated to the brands okay so you're incubating these brands and then you're funding the incubated companies with the cash flows of the brands that you've already launched that's correct so how many brands do you have so outside of crush the memory like how many companies do you have within this i'm not going to say hold co because it's well It's not exactly. It's not a whole co. It's one company with multiple brands. Okay. Crush will be split off soon because it is going for a capital raise, which I can explain.

14:34But we have a company called Glamcore. The name of the company is Glamcore Global, but that is our primary brand. That's the brand with which I started. Then we incubated Ricky Loves Ricky. And these are in the beauty industry. So most guys don't really know it, but a lot of women do. But we have professional beauty lighting products and we have consumer products that you can find in like Nordstrom's and Bloomingdale's and stuff like that. Then we incubated a brand called Tyco, which is a CPG brand, which is still in its hardest road right now. We haven't made any real traction with it. And there's a reason for that.

15:10But it sells a shampoo, conditioner, body wash in bottles that are refillable that you can put in your shower. And it's a great brand. We were attempting to turn it into an Amazon brand and it did not compete well on Amazon for how much money is required to invest, let's just say. So we've switched tune with that. We just pulled that. We just changed our strategy in Q4 last year with that. Crush, we just incubated Crush. We just incubated Best Combs. This is a comb line. It's very interesting that we engineered using our team. and we have another that's just coming to market literally this week literally that's amazing we did it on kickstarter we just put it on kickstarter to see what would happen without any marketing or anything we did it stone cold and did like 10 grand or a little bit more but just say 10 000 bucks and people buying combs because of the story behind it and then we have another brand called lollipops which is which is landing in my warehouse at the end of the month so sometimes leak it will land and that is a that's a j the best combs is a jv and so is this other lollipops brand and they all have different strategies like best combs is a very completely is a totally different strategy it's very focused on one job one goal we know exactly what we want we know exactly how we're going to go get it lollipops same deal so there so i have all these different brands that get incubated and launched and two are right now literally this month can Can you give me an idea of, let's say, all the brands or that company, top line revenue, like just size?

16:49So we are now in a downward trend. So over COVID, let's just say we did about 18, it was more, just say$18 million. And then since COVID ended, we had a sharp decline in revenue. Some of it is related to the iOS 14. And then some of it is just related to consumer demand. demand for our products picked up tremendously during, during the pandemic and then fell off. We're okay with falling off. And by the way, I could care less about top line completely irrelevant to me. It means nothing to me. The only, the only part of a revenue stack that matters is what the profit is and show me that you're profitable.

17:31We'd like more profits of course, but even still in, in the year following COVID we did, I think 17 million and lost a million or something that year. Wow. Yeah. So, you know, that's why I don't like chasing top line. I like chasing bottom line. And however, this past year, we just closed, to tell you how far the drop goes, we just closed 2024 and the total revenue was over seven. It was somewhere a little above$7 million. You know, you're talking about a huge drop. However, with that, our profitability dropped still. we've been losing money for over a year and we're at, and I started restructuring the company back in July of last year.

18:16And we're at the, we're at the last quarter of restructuring it to get right side up again. And, you know, what's funny is we'll, we'll do, I don't know how much we'll do this year. I've stopped predicting five, 10 million. I really, I don't know. Really. Everybody's like, well, what are you going to do this year? I don't know. Like, you know, I don't know. I really don't like, you know, we eat what we kill. My only job is to make sure, you know, we have enough profits coming in and we don't burn through all of our cash constantly. Right. That's, that's the job in terms of revenue. I really don't care about revenue.

18:47I've never been like, Oh, we got to get more revenue, more revenue. We did that at one point and lost money. I'm like, okay, great. What's the point? Like you can really spend a lot of money on ads. They, they'll, they have a very liberal policy on taking your money. But you know, if you're not making profits, you're not in business effectively. Totally believe the same thing. If you're chasing top line, it doesn't mean anything. You can have a business doing$30 million a year, losing money, and you can have another business doing$2 million a year in top line, and they're making a million dollars a year.

19:17That's correct. Which one of those businesses is better? I only focus on bottom line. I don't care. I don't care. Anybody tells me their revenue, I'm like, I don't care. It's just like in real estate, when I used to build buildings, it'd be like, oh, I'm building a hundred units. I'm like, all right, I'm building nine. And then when you get down to it and you look at the whole cap stack and what they've actually invested, even if they've invested less than you, you're probably, I'm doing nine units on my own. I'm getting all the profits and I'm making maybe the same as them. And they're doing all these bigger units and buildings for all this risk when, when really they're not getting anything out of it.

19:53I've been on both sides. I prefer revenue just because it helps me understand how big of a project or how big of a company, because healthcare, for example, I can have a business doing$20 million a year in healthcare, but we're doing maybe$2 million a year in profit. So then you have another business doing$8 million a year in e-commerce and they're doing the same amount of profit, right? But it tells me if you're doing$20 million a year in revenue, it's like, oh, you've got a big team. There's a lot of operations there. It at least gives me an idea of the size and scope of the business that you're operating as opposed to just looking at profit.

20:28But plus people are a little bit less as it are a little less likely to tell you their profit as opposed to their revenue. They'll at least open up about the revenue piece. But you're touching on something that I think is really interesting. And it's this. When people invest in the stock market and they say, hey, put your money in an index fund, they say you're going to make 10 % a year over the next 30 years. Which is true. On average, that's been the historical average. And moving forward, you'll probably make 10 % a year on your money. But it doesn't look like this. it looks like this. It looks like a roller coaster, right?

21:01There's pops and there's dips and there's pops and there's dips. And anytime that the market goes up and has an all-time high and it comes down and it consolidates and then it builds back up again, the same is true in business, right? You have years that are high watermarks and they're phenomenal years. And then you have years where you've got to invest. But the hope is that over time, that value continues to rise and go up. It sounds like you're just in a consolidation period with your companies. This is why I have no problem about it. You know, come see me in five years. Like, it's just business goes up and down.

21:33It just does. I think there are so many people who are distracted by just the ups. Because the stories are so awesome. You just hear about these companies. They start growing, growing, growing. And then, you know, all of a sudden, amazing exits. And then all of a sudden, you start looking around. You're like, oh, I must be doing something wrong. That's just not true. I did think that at one point, too. But I look around, and it's funny. when you start, there's a, there's a great quote and I reference it off often from rules for a night that Ethan Hawke published. And one of the great quotes in that book to me is, you know, when you compare yourself to anyone or anything, you end up with only two variables, vanity or bitterness.

22:12And it's true. And when you think about it, it's like, you know, you start comparing yourself to these companies that go straight up, they've got, you know, they're unicorns, whatever, whatever acronym people want to use for description adjective doesn't matter like don't compare yourself to them compare yourself to like no one else just do your job like whatever it is if your revenue is great great if your revenue is down great whatever like just keep going just continue to iterate i agree with that i do also understand like it's hard you want to know if you're doing a good job you want to know how am i doing compared to other people especially in the beginning, right?

22:50As you're getting established, once you've had some success and you've been established and you're like, oh, okay, I know what success looks like. I've been down this road before. I'm not worried about comparing. Then you have perspective that can ground you and you can be more mature, but definitely as you're getting started, you want to know, am I on the right track? Am I doing the right thing? So I do understand the comparison game, but it's a losing game. There's always going to be someone smarter than you. There's always going to be someone better than you, more successful, better looking, better in shape, right?

23:15There's no end to that. There's also an enormous amount of distraction in it because you don't know what the inner workings of another company is like. You don't know their profitability, really. You don't know anything. You're just hearing, you're filtering out for what's better about them than you and your own opinion. And that's very toxic. And I, my wife goes to this all the time, you know, we work together and I'm, I'm always, you know, steering the boat looking and I'm like, I know there's a new M &A wave coming at some point rates are going to come down. Like there's going to be a big M &A wave at some point I'm building into that M &A wave and so you know she's like she looks at all these other companies and all of a sudden one is just gone it's like the company's gone like wait a second I thought they were doing amazing well apparently they weren't and apparently they ran out of VC cash and now they're no longer in business and all of a sudden you know it was a topic of conversation for years how amazing they were and how stupid we were look at what they're doing and i'm like well look we're here and they're not and so that's a common that's very common like keep your eyes open for that before i get into crush the memory my last question it sounds like you've built this really cool company that has a bunch of different brands what made you decide to do that i think it goes back to the beginning of our conversation was like okay i have all these different interests you know i'm i'm a problem solver by nature that's what I do.

24:40I, and I solve with design and form and function and engineering. It's just who I am. I'd like to see the solution to something. Why we have incubated all these different brands is because we can, what's really hard is the initial startup, getting lift, getting off the ground, building an organization, having cashflow, and then having enough where you're like, Hey, I've got another idea. Why don't we try this? And you can go in, you can go into that direction. you need to build that first company solidly and and so here i have this factory in china like think about it like when you sit back you zoom out for a second like oh wait you've got a factory in china you've got an operations team you've got warehousing you've got design you've got engineering you've got all this stuff like what else can you do right and all of a sudden you're you're like well you know i see another problem here in the market let's let's look at attacking that.

25:29And the difficulty with every single exploit goes down tremendously. So you could literally incubate a brand on this call. And within a couple of days, we could have kind of collateral. And now with AI, stuff moves very quickly. And all of a sudden, you just, you can form a brand, an image, you can have actually product renderings, and you can actually go to market if you really wanted to. Like, that's how quickly it can happen. there are VC incubators, right? People go out and they're like, Hey, I have experience in this area. He has experience in this area. She has experience in that area. We would like to launch consumer products because of our shared experience.

26:08And they raise money and then they have an incubator that they incubate companies and spin them out. You didn't do that. You built companies. The cash flows from those companies then fund the incubated ideas. So it's, it's, it is different. And I will say, as we were talking about venture capital, this was an eyeopening statistic for me. it goes back to constraints. We see all these stats. Oh, this company raised a billion dollars at a$10 billion valuation, whatever. Do you know what 50 % of that money is spent on? It's spent on Facebook and meta acquiring customers. That's what 50 % of their money is spent on.

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26:42And it just blows my mind that that's what they're throwing money at. You effectively have figured out, all right, I think I can understand the distribution. I know how to design things. Let's have an incubator because I've got some secret sauce or secret sauce might be too strong, but you have a competitive advantage in the ability to get stuff to market and a distribution channel to sell it through. Yeah. But you still end up, unless you have a product that sells itself and is in such high demand, you still need to use ads. You know, for this Tyco brand, we tried some ads, we didn't get much traction.

27:16We went to Amazon and now we're going to do it completely differently. And I really think this is important. It's so easy to throw money at ads and people do, and some people are successful. Some, most people aren't really not, but when you do that, you do constrain yourself to then just ads. And we've had this Tyco brand and we're sitting on inventory. The inventory expires at the end of this year. So now we've tried different ads we've tried amazon we've we've tried some stuff now it's like no now you have to be more creative you're like now let's find another avenue like i don't give up on anything there's no there's not like oh well fuck it just shelve it and you know whatever like that that's not me i'm like i will because each of these like how much do you have sitting in inventory oh it's like fifty thousand dollars worth of profit it's like i don't know like twelve thousand or fifteen thousand units of stuff it's you're not talking about anything crazy but i'm not willing to just let it die in the vine for 50 grand i'm like no it's not right i spent 30 000 on the domain itself okay so what i'm trying to get it is you have to continually think about more creative ways to access channels create channels find a way to to move it you know so now i have another idea i'm like okay hotels airbnb like i'm constantly and one of those keys will unlock a door that we would never have thought of earlier if you know we were just doing like a row as 2.3 on meta and just like clicking by and then like something more spectacular will happen as a result of of these constraints right and so so that's where i'm at so i'm like i'm super energized about this brand because it's done really not much i mean like not much that 10 10 000 or something i mean we're talking just not a lot and no one's focused on it because we have all these other jobs so yeah that's that's something else, resource, you know, resource attribution.

29:12Okay. So there's, there's two sayings that come to mind for me and they're both venture sayings. The first one is first time founders focus on product and second time founders focus on distribution. I think you focus on both, but it's obvious you have, you're very concerned with the distribution piece. The second saying is hardware is hard. So I want to know this crushed the memory. It's an amazing idea, but walk me through. Okay. First of all, what is it? Where did the idea come from? And if hardware is hard, why did you decide to make a hardware product? Well, I didn't know hardware was hard.

29:48So I'm ignorant. No, I'm just telling you, I'm an ignorant person. I'm very naive. I'm not, I'm not interested in, you know, I just do stuff like going to China. I just moved to China. Like, like, I didn't, I didn't know it was hard or it's just a challenge. Like you just, I just, that's just what I do. I see what I want and I go get it. So I hear hardware is hard and yeah, it is, it is hard if you're just some dude, you know, but here I am, you know, I'm living in China. I'm building products that I've never built before that I find are much easier than building a building because it's only a certain number of parts.

30:31You get your hands around products, you get some experience and then you start understanding. And all of a sudden, if you keep looking at something long enough and you keep having a conversation like, oh, that's what it is. Oh, interesting. Okay, cool. And then you start developing it. And I can just give you an anecdote and then answer your question more directly, which is when I first started working in China back in 2010, I would visit factories and they would make electronics. When I used to see these assembly lines for the electronics, they would blow my mind. They're so complex and so technical and so beyond my understanding at the time and i was amazed i was like i was like wow that is like that's cool stuff guess what you know i have one of those those assembly lines now and it just you know time after time more visits more factories asking a question like what does this machine do you're like oh that's what it does oh it's a feeder oh okay that's what that is what does this do oh it does that and then you see how it all goes together and over time all longer it's not a mystery all of a sudden it's like oh well, we can just get our own.

31:33Like, why don't we do that? We just need to hire the right operator. And so you do. And so now I've got a very technical SMT line that assembles. What's SMT? A surface mount technology. So when you get a electronic, it has a circuit board in it. That's called a PCB printed circuit board. And you, all those components have to go on the circuit board. That's done with a very high speed, technical, expensive machine and a line that takes it and puts a solder mask on and drops components and picks the components super fast and then puts it through a reflow of and it just like all that stuff was foreign language to me now it's just it's what we do it's my favorite process and i own so getting familiar with something makes it easier and then you see that oh i can do that so when people say hardware is hard yeah like when i first got into china hardware was hard i had to rely on all these people processes i didn't understand and kind of like go with it like yeah that sounds fine to me making decisions about so this isn't the first hardware that you've that you've developed okay Not at all.

32:30Not even close. As a matter of fact, one of the easier ones. Where did the idea come from? From speaking to an individual about... So for those who don't... Sorry, sorry. For those who don't know, Crush the Memory is... It's an AI recording device. And you just literally press a button, speak into it, press it again. And that audio file will go from your device through Wi-Fi into a backend server, secure, encrypted, transcribe, and give you a note in our Crush app on the phone. And that note is actionable. That can be searched with AI. It can be put into folders. It's a phenomenal piece of software.

33:11But the hardware itself is there to capture ideas and thoughts and conversations when they occur. It's not for most people. It is what I've learned is it is for effectively the C-suite and independents who are running businesses and depend on their thoughts and ideas in order to advance their lives and careers. It's not for an Amazon driver who's watching, looking to clock out and get a 12-pack and chill out. I've got an amazing vertical for you to sell into that I'm excited to talk to you about, but I'm going to let you, how did the, how did the idea come about in the first place? So I was talking to somebody who was writing and I said, what are you writing?

33:54And they said, well, I have to write down everything or else I forget. And then it just developed into a conversation about where you get ideas. And this person, this individual is chock full of ideas like me. And we were joking about how that, you know, you get so many in the shower and we were laughing about that. I'm like, you know what? I think I'm going to go on Amazon and go buy something to that's commercially available. That's has, you know, is a solution to this problem. and put it in my shower because I get tons of ideas in the shower. And like, it's always a place. And I'm always like, Hey Siri, you must first unlock your phone.

34:24You're like, you're like, what that thing? Like you can't, you can't do anything really. It's, it's a wildly inconvenient place. And then through some discovery, you learned that not only were there, was there no actual solution? There's no, there was no solution in the market to be able to just capture thought really quickly. People have attempted, but it didn't exist. And so I said, hmm, I said, I need this. I'm going to develop it and I'm going to make it commercial. I'm going to commercialize it because I'm not the only person who needs this. And there are dementia patients who purchase from us.

34:58We have mostly C-suiters. That's really our biggest audience and independent individuals, you know, who are either running companies or they are, they're, they're solopreneurs. They're people who are completely dependent on oneself in order to advance. So what was the timeline between having the idea, oh, this would be really cool, to product in hand of consumer? The hardware was done first. The hardware was like, yeah, we knew exactly what to do. We looked at different chipsets. We're like, okay, what about this? Let's get some SDKs. Let's put this together. Let's program it. All right, we have to figure out the programming.

35:32We used a chipset that required us to learn new programming, so that slowed us down a bit. But the hardware was there, and then we're like, all right, I did the UI. I'm like, let me design this app. I'm a person who's very focused on organization, So I'm really good at organizing, like exceptionally good at organizing. So I'm like, this is where I can shine. I'm like, I can create an app that is so simple on purpose, very complex when you look behind, but it's very simple, it's very familiar, has great organization tools that anybody can use. I'm like, that's the challenge. So let me dive into that.

36:04So I did that. I created the UI. We started coding and the understanding of how this can be used continued to evolve and change and conversations with people and we pivoted and we got to a point where we we had to rewrite from scratch and completely just scrap it so the timeline was october 21 i got the idea and started doing research and discovery by the end of december i had a ui we had a conceptual piece of hardware designed on paper and we didn't launch we didn't ship until just say october of 24. Think about that. Oh my gosh. Three years. The challenges were awesome. Let me just say, because here we are, we're really good at hardware.

36:57We can do lots of hardware stuff, but now there's this entire new backend that we had to go and learn. And we, you know, I know how to code, but I don't code anymore. And I started doing some, was it the software layer or was it The software layer was a major challenge for us, major. And for other people, it's not. You know, some people are like, oh, the software, you can do this, that, and the other. The problem with the analysis is that we know software too, like we understand, except that what is the, into what will this evolve? What we're going to spend money on now, will we get a return out of it later?

37:33Will we need to pivot? it. We had a developer who, who didn't understand ultimately that this was, they thought this was just like a DIY kind of project and completely misled us. And what the best way to go about it was had to scrap that rewrite. And then we got smarter and smarter and smarter along the way to the point. Now we're like, so smart with this stuff. After three years, I had a brilliant engineer, by the way, his name is Josh. And he and I, you know, lead this team. And we learned over the course of years and trial and error what the right model is for this. And we now understand why other people failed at this.

38:11We learned along the way that somebody else had tried almost exactly the same. I mean, it was crazy. We were shocked when we saw it. It was a patent search and it was expired, but we never saw it ever. And it was like, it was uncanny. They completely failed. We totally understand why they even documented like we have to start over and we need money to start over. I'm like, oh, I get that. We did that three times. I'm like, I understand why these companies fail. I understand why some of these other big people who are doing this are not even in the market yet. You had to start over three times. In 2021, I mean, AI was known at the time, but it was not, I want to say ChatTPT came out in 2023, right?

38:49So it's like, this was early for AI and it's now like you're now positioning it as an AI device. Was that the thought at the time or has it evolved because AI came out? Totally evolved. Oh my God. Nick, we're just now sunsetting the existing architecture that we have. We're about to launch next month. A whole new architecture. We know where we're going now. It's so clear. You know, we rewrote again. We saved a lot of the code base, but we've moved databases. We were like, now we know what the future looks like. Before it was like, to where you were and they're like oh we can integrate the the you know ai into it now and like oh it's expensive the price we now we've got this unlocked now i'm like oh i'm extremely clear on where we're going i'm extremely clear on what we're doing i know exactly how to do it now it's the real opportunity right the ai is taking us there when you started how much did you think it was going to cost you to go to market and how much has it actually cost you to get to this point like what are you invested into the company in the beginning like 250 grand and we'll get us into the market.

39:56We'll start making money. No problem. I know it's over a million dollars now. I don't know how far over. I stopped counting. But if I run a report, NetSuite is probably going to be like a million 250 or a million three. And so we've gotten some revenue. Of course, we did our Kickstarter campaign. We have sales coming in. Do you think if you would have raised VC money, you would have been able to get to this point? Yes, I would have. Absolutely. Okay. From the perspective of when you're in control of your own destiny, you can fail a couple of times and you can continue to fund it. But when you've got investors backing you, when you failed that first or second time, even they're like, are you the guy?

40:30Are you able to figure this out? Oh, I don't know about this. Right. And so they stop writing the checks. That's more why I asked the question. I think if you, if you put it into that framing, I would say 70 % of the people would have bought the balance of the story. By the way, take this all the way back to the very beginning of our conversation when you and I were talking, maybe even before, you know, we started rolling is that this is why I like to fund my own jobs because I can get them off the ground. I have to make decisions. I have to make the right decisions and I have to eat it. It doesn't work.

41:02It's mine. I own it. You know, I can't complain to anybody else. So it forces you to be very clear on exactly what you're doing. You must figure it out. You have to make the right decision. If you don't, you pay for it. You got to go make the next right decision. There's a process. Some VCs I know understand that process. I could always show something for my work. There was nothing, it wasn't like, it doesn't work. It does work. It's just that to really make it scalable. And I say scalable in the true term of it, meaning bring a million users on from zero and not having it break. You need to do something better.

41:38I have this AI product right now. So my background is healthcare. In fact, it's one of the things I wanted to talk about with question memory with you and exited a few companies and decided to fund this AI healthcare startup where we help, the long and short of it is we help skilled nursing facilities identify diagnoses upfront because they get faxed hundreds of pages of documents and the nurses, they literally cannot read through all those documents. And so AI is really good at that. They can read it, synthesize it, make recommendations. It's great. But over a year and a half span, two years span, I put$100 ,000 into it.

42:12And like I had to write the check. And it was getting to the point where I'm like, is this worth it? Are you the guy? Like, can you figure this out? Well, we had an operator who was working on it. And he has now turned the corner and it's going well. And it's being, stuff's really good. But, you know, I know that from personal experience where you're looking at something that you're funding and thinking, should I keep going with this? It's just a hard place to be. I know how difficult it is to make money as a VC. it's hard to know that it's difficult to make money and have to keep footing a bill for changes, you know, especially when it changes completely, you know, the original, the company that I started Glamcore was, was supposed to be a makeup company.

42:52It's not, it turned quickly into a lighting company. Like, you know, who would have never let me pivot. Right. Exactly. You know, so however, crush i've broken off crush and crush is going to go out for a raise after i launched the next iteration where we where we're ready to like feature add and we start adding the new features this was going to be my question i've always viewed kickstarter as somebody who puts the product on there that's like hey i don't have the money to produce this let's kickstart this project right and then people fund it and they go and do it did you need the money to go on like Why did you go on Kickstarter?

43:29So I'm a product developer and a successful one. And I had never launched a Kickstarter campaign ever. And I was always curious about it. And I was like, hmm, and I know it's a great marketing platform, if anything. I'm like, I want to learn it. And so I decided along the way that I saw some other, like Plod was on there and there are some other recording devices. I'm like, you know, look, there's an audience here. clearly. Let me at least learn Kickstarter. And I have no downside to putting it onto Kickstarter. And all I need to do is learn it. So I hired an agency to help me understand how to do this and how to launch on Kickstarter properly.

44:13It was like 9 ,800 bucks or something. Best 9 ,800 bucks I spent. I completely understand how to launch on Kickstarter. Everything. We've launched three campaigns now on Kickstarter of Crush being one of them with all that. Do you like Kickstarter because of the ability to validate your product? I think I like Kickstarter because I'm not at risk of not being able to deliver. Interesting. Yeah. For me, it was like, and I put in my copy, I guaranteed to deliver because I had the product. I didn't need to go make a mold. I mean, I've got tooling I already have. I'm done, right? I'm just like, just make it.

44:51so yeah it's almost like another marketing channel that's what it is it to me it's a marketing channel and it helped with social proof and it helps kickstart the brand you know effectively and so you know using that is helpful in getting people to take a look right and that's what i definitely take a look so how many units have you sold of crushed memory like what does that look like roughly about 2 000 more than 2 000 it's really okay it's not units that matters It's really customers because, you know, one customer could buy 10, right? You know, I have three, you know, so units really isn't the important metric.

45:30Why do you have three? I have one in my shower, one with me, and then I have another one floating around. As a backup. You know, it just floats around and you'd be surprised. Like I used it this morning. Why it's being charged? I used it this morning because I got up at 3.30 in the morning and I went to the bathroom. I didn't have my crush. it was on the bedside and i was like oh yeah right like this one would happen to be in the bathroom not in the shower like you know so like there's one that floats around does your wife does your wife ever find it around the house and just say like remember to stop by the post office and pick up the kids the kids the kids with so many three kids they they're the kid and i saved them i saved the audio and i saved her i put them in the file oh it's adorable it's adorable yeah that's so fun We got our kids Apple watches for Christmas, the two older boys, and they've started sending me text messages and voice notes.

46:22Oh, it's so funny just to hear what they're saying and the conversations they're having. Okay, so 2 ,000-ish units. How much do they cost per unit? $149, effectively. Okay. Yeah, so that's what it really is. What is that? $300 ,000,$400-ish thousand dollars of top-line revenue since launch? Yeah. Wow. And when did you launch? This hasn't been that long. I want to say it's only been maybe six months. We put it on Kickstarter in July and it closed in August. We have been selling it since. We're not doing any marketing. I have to also make sure you understand the strategy here. We're doing some paid ads, little stuff.

46:58We're poking around, seeing what kind of resonates with people and effectively driving resonates with people. I'm we're going to start turning on marketing after we launch the new app because there are features in there that make marketing a lot easier and so we also want to get to the point we're making sales every day we don't have a problem making sales but they're or they're fully organic sales they are like people find will listen to a podcast or they'll see it with somebody and go order it or finally you know i i send out dms on x to our uh followers of crush the memory and engage with them and then they'll be like oh listen thank you and they'll you know they'll buy i'm really focused right now on understanding customer use cases making sure we're fully debugged we're mostly debugged like we were mostly debugged in december there's some edge cases that we're continuing to work on.

47:57But now that we're a hundred percent stable, we have use cases, we've spoken to enough customers. We're going to go get testimonials now, build some new content, and then we're going to start marketing it, you know, pretty significantly. And that's where you'd raise money, right? Like that's where it's like, yeah, we want money to throw on the ads, the paid ad side and expand our product offering. Cause now you know what you're doing. Now we know what we're doing and I can, I can prove it, meaning I'm not going out saying, hey, listen, let's just speak in terms of real dollars for a snooking. Effectively, we're turning this into a social network.

48:30And I know it's going to be hard to connect, like, how do you get from this to a social network? And the way you can kind of think of it is that our customer base, now that we know who they are, because there was a question about who they actually were. We did a 10 ,000 person user study that led us to believe it was construction people last year. At the end of the day, it's C-suite. That's effectively who they are. And for the most part, independents who are responsible for their own growth. Now that we know who they are, we don't know what they're collecting, but we know that they're using it to create information and to make decisions.

49:05That's a universe of knowledge that's not available to people. You're not going to find it on X. You're not going to find it on Google or anywhere else with which it is to make a note is so high. There's no friction that they tend, like you look at our chart of how many people are making notes. It keeps going up and up and up because people are getting used to using it now. Now they're, they're crushing everything. And so when they choose to make some of that, they're crushing everything. Is that the verb? Is that the verb now? Yes. That's right. Hey, did you crush that idea earlier? Oh yeah, I crushed it.

49:39Yeah, that's part of a - I love it. Yeah, yeah. That's right. That's correct. It's an adjective. So when people are crushing their ideas and they make them eventually public, they can say like, everything in this folder, I'm going to make public. This is going to be my public crush profile. Then it's become searchable through the AI in Crush. That starts connecting people. We have a chat feature, so now you can talk to other people. And now it's like a pre-X social platform of a body of knowledge that's available nowhere else that is very compelling and to make that fly the money needs to be spent on getting high levels of adoption at the sea level man eric fascinating there's like a million more things i want to talk about okay a question for you why is this not in healthcare it's it's starting to be in healthcare we have i think it's the yeah i think it's the perfect use.

50:36So home health and hospice is my background and experience. Eight years ago, we had clinicians who would dictate into their phone, their notes, send them over to the Philippines. We'd have some scribes enter them into the EMR and they were done. This is effectively eliminating the need for a scribe. You could, you could through AI sort of have these automations set up, but no clinician wants to sit down and just type out their note. They want to dictate it either bedside right after the visit or encounter whatever. I would think this would be perfect for the healthcare setting. It sounds like you do have some adoption there.

51:09Yeah, we do. So in terms of the cohorts, healthcare for certain doctors, we already have a, there's a Polish, since this works in every language, mostly we have a user base in Poland and they want to run it through their hospital because they realized the value of it. Wealth managers, lawyers. Yeah. Lawyers. That makes sense. And then a small one, this is going to be really interesting the clergy priests because they're content creators they have to remember their oh that's true yeah information for sermons so this is how some of them are capturing that yeah really interesting yeah very interesting i thought i thought it was a fluke i'm like like you know occasionally you go and spot check and earlier on i would look at lots of different people like who are they because you need data you're like who are these people who's buying you're like okay where where do you pivot like like what's the conversation what are people thinking like how do i discuss this and i kept finding priests i'm like priests i'm like okay we're next priest on priest and then all of a sudden i'm like i connected i'm like oh i get it i completely get it they're con they're they're content creators yeah that makes total sense yeah that makes total sense how big do you think or what's your goal with crush?

52:21Where do you want it to be? This is a very massive expectation of mine. This is like billion dollar expectation because this is not just a recording device. This is a tool and it's going to matter to only some people, but the people to whom it matters are the decision makers. And what's already happening and why, what we see is that decision makers are getting this. There's some of them around X talking about it. Then they're requiring their staff to use the software because they can dictate into this and it can route directly into a folder and they can get that info their staff can get the information without them having to go type or do anything extra yeah so i can just i can do that right now i can and i can have a note sent to my dev team just on this call it's almost like sending a text like hey i have an executive assistant kelly hey kelly make sure to follow up with xyz that is exactly how it gets used so all of a sudden the points are so low you're not slacking somebody you just you can just say he's like you know folder assistant you know give me a cup of coffee and done and then your coffee shows up like you know and i know that's a little bit low res but you can think about it and and so now it's starting to be built for be used for teams so now all of our so why we're relaunching everything next month is that we have now the ability for teams to use it you can chat you can work on tasks together like all of a sudden we're we're we're going to replace slack at our company with crush this year and we're replacing a project management software that we have called Wrike.

53:52By August, we'll have that completely replaced. Interesting. And then you can create external facing website profile. We're going to link this into different other software like Notion and others. And then eventually use, wherever people are using this for Notion, we will eventually adopt and create Notion lookalike features. And then we'll cut off at some point later, you know some sort of access to it unless you pay for it this is a very interesting backdoor into the decision-making community do you think crush becomes your only thing pretty quickly here or will you continue to do like different projects and ideas it's my 95 well it just sounds like there's so much within crush that you could do that's why it's so exciting you can see how amplified i get when i talk yeah yeah i'm i'm that's how much i clearly see what's going on All I have to do is play out what's going on right now and stay ahead.

54:48That's why everyone's like, Oh, there's a recording device. I don't care about recording devices. Hardware quality will all reach parity in the next 10 months. Like we're building a next version. It's not this. This is just to get from here out. It's not this. It's the software and no one's focused on the software. Everyone's focused on hardware, hardware. like everyone i i mean i literally am like driving around the crowd i'm like i'll see you guys at the front of the line everyone everyone's like oh we can use chat gpt and use whisper and transcribe it and you can get your notes and then you can have a mind map that no one uses like no one cares people really need collaboration tools that's what they want they need the ability yeah you and me to connect our brains through this software and be like wait a second you learned about this guy how did you learn about this oh it's i use i'm on this crush well how do i get to learn about that guy well, you have to go crushed.

55:39That's the only place he has it. Effectively makes team communication easier. That's the goal of this is to make communication easier as opposed to, you know, your mental models or, or, you know, having your proprietary way that you think about things necessarily. I think that totally makes sense and resonates with me. Do you remember, I think this was like two years ago. Remember when clubhouse came out? Very much. Okay. And it was like, oh, this, the audio version, and it's going to be really, and it, you know, there was some pop to it, et cetera. But I started hearing around that time that audio was going to be sort of replacing this text-based communication that we typically, that we have right now.

56:14And this seems like that iteration, right? It's like audio is now, because we have the technology to be able to transcribe it and send it and dictate it, and then create the software on the back end that allows for the organization. Now you can use the audio in order to more effectively communicate. It doesn't have to be from an email. It doesn't have to be from your phone necessarily. It can be through these devices. That's correct. Yeah, you're absolutely correct. Clubhouse was a very interesting launch. And something that I remember, and I remember all the time now, is Google Glass. There's a comparison there.

56:51And Google Glass in a presentation for VC money, let's just say, would be wildly interesting. Right? Oh, my God, this is going to take over. Like Segway was going to take over. Oh, gosh. Right? Yeah, yeah, yeah. And, you know, what you end up realizing is that people don't want to be recorded when you're talking to them. People value their own personal, independent, where they are privacy. You know, in public, you have a different kind of situation. But in a private setting, like if you and I go out to dinner, we have some steaks and we're smoking a cigar on the back deck and we're having a, you know, a shoot the crap conversation.

57:26You don't want me recording. Like we're free thinking and we don't want to be documenting what we're thinking. and it's why google glass you know failed it's why so many people are thinking that you know oh this wearables in the future no i actually don't think i think your watch is the max wearable you're ever going to get i don't think people want to compromise who they are or their ability to think as a function of technology recording their every move so we haven't gone into this like 24 hour recording or record everybody and everything it's like think about what happens behind closed doors and no one wants anything like that recorded ever.

58:04Look, you're the product guy. And you've thought about this way more than I have. I could see this going in the direction of what Meta has done with Ray-Ban. Have you seen those glasses that they have? Where it's like, or, or AirPods, right? Where it's like, Hey, you and I are talking or I'm by myself and I have glasses and I just tap here. And it's like, Hey, remind Kelly that I need to talk to so-and-so tomorrow at three o 'clock. So it's like a click on click off type of thing. I could see that being a wearable. I can't see the AirPods being a wearable all the time. It's just because it's such a signal that I'm not available.

58:38I'm wearing glasses. It doesn't signal to the other person that I'm unapproachable or I'm unavailable AirPods. It's like, Oh, he's listening to something. I don't want to disturb him or, Oh, you know, it's just a, it's just a different notification than, than having glasses on. So wise observation. Yeah. Very good. So anyways, Eric has been fantastic. Is there anything I didn't ask that you wish I would have asked how old am I how old are you 54 54 why did you want me to ask that because everybody thinks I'm like 40 you know I I don't say that jokingly it's like true it's like because you see all of these these younger people who claim to have all this wisdom who are like 29 years old and you're like wait a second you're 29 years old like how much wisdom could you possibly have it's Like I, I know what I know because of my age and I'm not, people look at me like friends of mine.

59:27They're like, dude, how do you, do you age? You look like, you know, so you and Brian Johnson, apparently. Vampire Johnson. Yeah, I know. Yeah. But it's like, you know, I'm not, I don't have gray hair or anything. So it's misleading sometimes. And so it's important for people to know the context that I'm not, I'm not, I didn't just start out. I've been doing this, you know, for all my life.

From the publisher

MY NEWSLETTER - https://nikolas-newsletter-241a64.beehiiv.com/subscribe


Join me, Nik (https://x.com/CoFoundersNik), as I interview Erik Kaiser (https://x.com/ErikKaiser). In this episode, we dive into the incredible journey of how Erik built a $17 million empire entirely from scratch—without taking a single dime of Venture Capital. We explore his powerful "eat what you kill" philosophy, why he believes chasing top-line revenue is a complete trap, and how focusing strictly on bottom-line profitability keeps a business truly healthy.

Erik also shares his fascinating approach to running a global brand incubator and gives us the inside scoop on his massive $1 million personal bet: a revolutionary AI hardware device called Crush the Memory designed specifically to help C-suite executives capture their thoughts effortlessly.

It’s a fantastic conversation about the reality of bootstrapping, why financial constraints are actually a blessing, and the relentless drive required for hardware innovation.

Questions This Episode Answers:

  1. Why is raising Venture Capital often the worst possible way to solve your startup's problems?
  2. How can entrepreneurs use financial constraints to fuel creativity, distribution, and growth?
  3. Why is tracking bottom-line profitability vastly more important than chasing vanity top-line revenue?
  4. What are the surprising advantages of building physical hardware and owning your own manufacturing line in China?
  5. How can established brands use Kickstarter as a highly effective marketing channel rather than just a funding source?

Enjoy the conversation!

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Love it or hate it, I'd love your feedback.

Please fill out this brief survey with your opinion or email me at nik@cofounders.com with your thoughts.

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This week we covered:

00:00 Introduction and Achievements

01:19 The Power of Desire

02:16 ADHD and Entrepreneurial Traits

03:50 The Importance of Intellectual Stimulation

07:29 Constraints and Bootstrapping

11:57 Team Structure and Operations

16:49 Revenue vs. Profit

21:00 Navigating Business Ups and Downs

24:30 Incubating and Launching Brands

29:32 Challenges and Opportunities in Hardware

32:21 Navigating the Unknown: Early Challenges and Decisions

32:35 Introducing Crush: The AI Recording Device

33:52 From Idea to Reality: The Development Journey

35:16 Overcoming Technical Hurdles: Hardware and Software

39:47 The Financial Reality: Costs and Investments

43:18 Kickstarter Experience: Learning and Marketing

45:14 Market Response and Future Plans

50:33 Exploring New Markets: Healthcare and Beyond

52:22 Vision for the Future: Crush as a Social Network

58:58 Final Thoughts and Personal Insights

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292 - Best of 2025! "Eat What You Kill": Why Raising Venture Capital is the Worst Way to Solve Your Startup's Problems with Erik KaiserNikonomics - The Economics of Small Business · 1 h
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