Insights from Dheeraj Pandey's Startup Journey

In the world of tech startups, few stories are as instructive as that of Dheeraj Pandey , the founder of Nutanix and DevRev . His journey, spanning multiple economic cycles and technological shifts, offers a treasure trove of insights for aspiring founders. Let's dive into some key lessons from Pandey's experiences.

The Importance of Timing and Resilience

Pandey has weathered three major economic downturns: the dot-com bust, the 2008 financial crisis, and the recent COVID-19 pandemic. His advice? "You just have to plow through them." He sees these challenging times as opportunities to "hunker down and think about how to slow down right now so you can speed up later."

This perspective is crucial. In a world obsessed with rapid growth, Pandey reminds us that sometimes, slowing down and building carefully during tough times can set the stage for future success.

The Power of Relationships

"All sales is relationship risk," Pandey asserts. This principle holds true whether you're a startup or a billion-dollar company. He emphasizes the importance of building trust, even for small deals: "People do business with people. They're not doing business with technology."

For founders, especially those starting in a new geography, this means investing time in building relationships. It's not just about the product; it's about convincing people that you'll survive, that you won't compromise their data, and that you'll make them look good.

Product Evolution and Pivots

Pandey's experiences with both Nutanix and DevRev highlight the importance of being flexible with your product strategy. At Nutanix, they started with a vague idea of doing "something around data" and ended up revolutionizing hyper-converged infrastructure.

With DevRev, they initially built a Jira alternative but pivoted to focus on customer support when they realized it was a more immediate opportunity. The lesson? Be willing to evolve your product based on market feedback and opportunities, even if it means leaving behind work you're proud of.

The Art of Pricing

Pandey is a strong advocate for what he calls "high-high" pricing - high list price, high discount. This strategy works particularly well for mid-market and enterprise sales. It allows customers to feel they're getting a premium product and a great deal simultaneously.

He also stresses the importance of thinking creatively about pricing and packaging. "We were amazing at pricing," he recalls about Nutanix. Good-better-best strategies and capacity-based pricing can significantly impact your bottom line.

Building the Right Team

When it comes to early hires, Pandey focuses on finding people who are willing to be "investors" in the company. This means being willing to take some equity in lieu of higher salaries. He also emphasizes the importance of EQ and the ability to work well with others, even if it means passing on brilliant but difficult personalities.

The Role of Customer Support

Perhaps most importantly, Pandey sees customer support as a key differentiator and growth driver. "Founders should look at customer support as a profit center, as a growth center, as opposed to a checkbox," he advises. This focus on service has been a cornerstone of his success at both Nutanix and DevRev.

Conclusion

Dheeraj Pandey's journey offers a masterclass in startup leadership. From navigating economic downturns to pivoting product strategies, from pricing tactics to the importance of customer support, his experiences provide valuable lessons for any founder.

The overarching theme is clear: success in the startup world isn't just about having a great product. It's about building relationships, being adaptable, focusing on customer needs, and having the resilience to weather tough times. As Paul Graham might say, it's about doing things that don't scale until you can.

For aspiring founders, Pandey's story is a reminder that the path to success is rarely straight. It requires constant learning, adaptation, and a willingness to challenge conventional wisdom. But for those willing to put in the work, the rewards can be substantial.

Note: This is article #7 in a series based on my recent participation in the Amazon Web Services (AWS) and TiE Silicon Valley APJ-US SaaS Delegation. The series shares key insights for SaaS companies expanding from Asia-Pacific-Japan (APJ) to the US market