{"id":19431,"date":"2021-03-29T17:36:20","date_gmt":"2021-03-30T00:36:20","guid":{"rendered":"https:\/\/foundersnetwork.com\/?p=19431"},"modified":"2022-02-25T12:30:18","modified_gmt":"2022-02-25T20:30:18","slug":"leading-product-strategy-into-a-230m-acquisition","status":"publish","type":"post","link":"https:\/\/foundersnetwork.com\/leading-product-strategy-into-a-230m-acquisition\/","title":{"rendered":"Leading Product Strategy into a $230M Acquisition"},"content":{"rendered":"<h3><span style=\"font-weight: 400;\">As co-founder of <a href=\"https:\/\/www.linkedin.com\/company\/telesign\/\">Telesign<\/a>, <a href=\"https:\/\/www.linkedin.com\/in\/stacystubblefield\/\">Stacy Stubblefield<\/a> recalls that the startup journey was \u201cpainful\u201d at first. But along the 15-year path from a small Los Angeles-based incubator to an eventual acquisition by BICS for $230 million, there were several lightbulb moments when Stubblefield and her team knew they were on to something big.\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The origin of Telesign was serendipitous. Stubblefield and her co-founders had an acquaintance running an online backgammon gambling website, who was dealing with the problem of players using stolen credit cards. The team built a system for verifying the cards, and \u201cwe knew we had to turn it into a business,\u201d she says. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">At a <a href=\"https:\/\/foundersnetwork.com\/function\/how-founder-stacy-stubblefield-built-and-sold-a-security-startup-for-230m\/\">Founders Network keynote<\/a>, Stubblefield shares her key learnings from founding and selling a security startup. Register at <a href=\"https:\/\/foundersnetwork.com\/\">Founders Network<\/a> for a complimentary pass, or check to see if you <a href=\"https:\/\/foundersnetwork.com\/request\/\">qualify for full membership<\/a><\/span><span style=\"font-weight: 400;\">\u00a0and get insights on how to:<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Gain credibility as an early-stage startup<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Leverage your first big client for long-term gains<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Know when to pivot or spin off new products<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Balance growth with maintaining high-quality relationships<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Use common sense to make strong strategic choices<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<blockquote><p><iframe loading=\"lazy\" title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/aLaQd5w-IOM\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe> <a href=\"https:\/\/foundersnetwork.com\/event-video-library\/?page_id=20424&amp;preview=true&amp;wchannelid=1kf2f5hdr1&amp;wmediaid=zatlxin0sw\">Click here to watch the ENTIRE video<\/a><\/p>\n<div>or explore our entire <span style=\"color: #008080;\"><a style=\"color: teal;\" href=\"https:\/\/fndrs.net\/3utK12X\">event video library<\/a><\/span><\/div>\n<\/blockquote>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">One of the early hurdles was <\/span><a href=\"https:\/\/foundersnetwork.com\/blog\/how-to-bootstrap-your-sales-strategy-with-stacy-stubblefield-telesign-co-founder-and-chief-innovation-officer\/\"><span style=\"font-weight: 400;\">acquiring customers<\/span><\/a><span style=\"font-weight: 400;\">. It was grunt work in the beginning, involving a lot of cold emails to decision-makers at various large companies. But that work paid off when <a href=\"https:\/\/www.telesign.com\/\">Telesign<\/a> landed two name-brand clients.\u00a0<\/span><\/p>\n<span class='bctt-click-to-tweet'><span class='bctt-ctt-text'><a href='https:\/\/twitter.com\/intent\/tweet?url=https%3A%2F%2Ffoundersnetwork.com%2F%3Fp%3D19431&#038;text=%E2%80%9CGetting%20a%20large%20company%20to%20use%20you%20when%20you%20have%20no%20real%20clients%20is%20a%20challenge%2C%20and%20so%20is%20getting%20them%20to%20take%20you%20seriously.%E2%80%9D%20-%20%40TeleSign&#038;via=foundersnetwork&#038;related=foundersnetwork' target='_blank'rel=\"noopener noreferrer\">\u201cGetting a large company to use you when you have no real clients is a challenge, and so is getting them to take you seriously.\u201d - @TeleSign <\/a><\/span><a href='https:\/\/twitter.com\/intent\/tweet?url=https%3A%2F%2Ffoundersnetwork.com%2F%3Fp%3D19431&#038;text=%E2%80%9CGetting%20a%20large%20company%20to%20use%20you%20when%20you%20have%20no%20real%20clients%20is%20a%20challenge%2C%20and%20so%20is%20getting%20them%20to%20take%20you%20seriously.%E2%80%9D%20-%20%40TeleSign&#038;via=foundersnetwork&#038;related=foundersnetwork' target='_blank' class='bctt-ctt-btn'rel=\"noopener noreferrer\">Share on X<\/a><\/span>\n<p><span style=\"font-weight: 400;\">\u201cThe first account was small, initially involving just one team at a tech giant,\u201d she says. \u201cBut it lended major credibility to the bootstrapped startup,\u201d Stubblefield adds.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThe first challenge was reputational: Getting a large company to use you when you have no real clients is a challenge, and so is getting them to take you seriously and not see you as a huge risk,\u201d she says.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One major client wound up acting \u201calmost as a VC\u201d for Telesign for some time, funding much of its operation as the startup landed more clients, grew and began gaining a reputation within the growing niche of identity solutions for web and mobile brands. Startup founders can benefit from brand-name clients, but ones that, unlike in certain compliance-heavy industries, are open to testing out new technology.\u00a0<\/span><\/p>\n<span class='bctt-click-to-tweet'><span class='bctt-ctt-text'><a href='https:\/\/twitter.com\/intent\/tweet?url=https%3A%2F%2Ffoundersnetwork.com%2F%3Fp%3D19431&#038;text=%E2%80%9CA%20strong%20team%20is%20very%20important%3A%20Make%20sure%20your%20co-founders%20are%20people%20you%20can%20rely%20on%20and%20say%20anything%20to.%E2%80%9D%20-%20%40TeleSign&#038;via=foundersnetwork&#038;related=foundersnetwork' target='_blank'rel=\"noopener noreferrer\">\u201cA strong team is very important: Make sure your co-founders are people you can rely on and say anything to.\u201d - @TeleSign <\/a><\/span><a href='https:\/\/twitter.com\/intent\/tweet?url=https%3A%2F%2Ffoundersnetwork.com%2F%3Fp%3D19431&#038;text=%E2%80%9CA%20strong%20team%20is%20very%20important%3A%20Make%20sure%20your%20co-founders%20are%20people%20you%20can%20rely%20on%20and%20say%20anything%20to.%E2%80%9D%20-%20%40TeleSign&#038;via=foundersnetwork&#038;related=foundersnetwork' target='_blank' class='bctt-ctt-btn'rel=\"noopener noreferrer\">Share on X<\/a><\/span>\n<p><span style=\"font-weight: 400;\">\u201cIn establishing that first major client, you\u2019re looking for a company with a good reputation that\u2019s willing to take risks,\u201d she adds.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Scaling was one of the next challenges. Telesign\u2019s co-founders discovered that their customers were asking for more and more transaction volume, and that was a difficult challenge for the then-small team, even taking them offline at one point. But after <\/span><a href=\"https:\/\/foundersnetwork.com\/blog\/getting-ready-for-growth-with-rashmi-gopinath\/\"><span style=\"font-weight: 400;\">solving that scale problem<\/span><\/a><span style=\"font-weight: 400;\">, \u201cit made the service very strong and reliable,\u201d Stubblefield recalls. Along the way, they learned the ins and out of telecommunications and what various industries need in terms of software.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWe were growing the company while maintaining a high quality of relationships with clients, and keeping a pulse on what\u2019s going on on the ground,\u201d she adds.\u00a0<\/span><\/p>\n<span class='bctt-click-to-tweet'><span class='bctt-ctt-text'><a href='https:\/\/twitter.com\/intent\/tweet?url=https%3A%2F%2Ffoundersnetwork.com%2F%3Fp%3D19431&#038;text=%E2%80%9CSo%20much%20of%20business%20is%20common%20sense%3B%20a%20lot%20of%20people%20overthink%20things%20and%20make%20bad%20choices%20because%20they%E2%80%99re%20not%20using%20their%20own%20common%20sense.%E2%80%9D%20-%20%40TeleSign&#038;via=foundersnetwork&#038;related=foundersnetwork' target='_blank'rel=\"noopener noreferrer\">\u201cSo much of business is common sense; a lot of people overthink things and make bad choices because they\u2019re not using their own common sense.\u201d - @TeleSign <\/a><\/span><a href='https:\/\/twitter.com\/intent\/tweet?url=https%3A%2F%2Ffoundersnetwork.com%2F%3Fp%3D19431&#038;text=%E2%80%9CSo%20much%20of%20business%20is%20common%20sense%3B%20a%20lot%20of%20people%20overthink%20things%20and%20make%20bad%20choices%20because%20they%E2%80%99re%20not%20using%20their%20own%20common%20sense.%E2%80%9D%20-%20%40TeleSign&#038;via=foundersnetwork&#038;related=foundersnetwork' target='_blank' class='bctt-ctt-btn'rel=\"noopener noreferrer\">Share on X<\/a><\/span>\n<p><span style=\"font-weight: 400;\">Stubblefield\u2019s words of advice for founders include making sure that, from the get go, you have great working relationships with your co-founders and early team: \u201cA strong team is very important: Make sure your co-founders are people you can rely on and say anything to,\u201d she says.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Being flexible and willing to pivot, spinning up new features and products when you see organic demand developing, is also very important to software startups. \u201cIt\u2019s okay to make mistakes,\u201d she says, \u201cbut it helps to be good at correcting them and learning from there.\u201d In the case of Telesign, the company managed to remain nimble, responsive to clients\u2019 concerns, and in touch with employees as it grew. Eventually, it was acquired by a Belgian telecoms giant for $230 million.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cSo much of business is common sense; a lot of people overthink things and make bad choices because they\u2019re not using their own common sense,\u201d she says.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As co-founder of Telesign, Stacy Stubblefield recalls that the startup journey was \u201cpainful\u201d at first. But along the 15-year path from a small Los Angeles-based incubator to an eventual acquisition &#8230; <\/p>\n<div><a href=\"https:\/\/foundersnetwork.com\/leading-product-strategy-into-a-230m-acquisition\/\" class=\"more-link\">Read More<\/a><\/div>\n","protected":false},"author":31,"featured_media":19432,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_price":"","_stock":"","_tribe_ticket_header":"","_tribe_default_ticket_provider":"","_tribe_ticket_capacity":"0","_ticket_start_date":"","_ticket_end_date":"","_tribe_ticket_show_description":"","_tribe_ticket_show_not_going":false,"_tribe_ticket_use_global_stock":"","_tribe_ticket_global_stock_level":"","_global_stock_mode":"","_global_stock_cap":"","_tribe_rsvp_for_event":"","_tribe_ticket_going_count":"","_tribe_ticket_not_going_count":"","_tribe_tickets_list":"[]","_tribe_ticket_has_attendee_info_fields":false,"footnotes":""},"categories":[144],"tags":[1348,10929,9116],"table_tags":[],"class_list":["post-19431","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech-startup-advice","tag-los-angeles","tag-product","tag-women-founders"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.8 (Yoast SEO v25.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Leading Product Strategy into a $230M Acquisition - Founders Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/foundersnetwork.com\/leading-product-strategy-into-a-230m-acquisition\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Leading Product Strategy into a $230M Acquisition\" \/>\n<meta property=\"og:description\" content=\"As co-founder of Telesign, Stacy Stubblefield recalls that the startup journey was \u201cpainful\u201d at first. 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