How I Built a $3.5B Company: Insights from Verkada's CEO

What inspired you to start your first company?

Filip Kaliszan's journey began during his time at Stanford University. He noticed a problem with course registration—a process that relied on a large, outdated book.

This inefficiency drove him to create a digital tool, CourseRank, as a class project. It quickly gained traction, starting with his roommates and spreading to the entire dorm.

Seeing its popularity grow, Filip realized the potential impact. By the time he graduated, CourseRank boasted widespread adoption among Stanford undergraduates.

This success not only validated the idea but also ignited his passion for building practical tech solutions.

How did the acquisition of CourseRank by Chegg influence your career?

The acquisition of CourseRank by Chegg was a turning point in Filip Kaliszan's career.

Initially, he was skeptical about the acquisition, as CourseRank wasn't yet profitable. However, after evaluating the offer with his co-founders and advisors, they agreed on a deal.

At Chegg, Filip's role involved scaling CourseRank within the company. This opportunity allowed him to lead product integration efforts, gaining valuable experience in merging products and teams effectively.

He learned firsthand about the complexities of integrating acquisitions and the importance of team dynamics.

These experiences were crucial in shaping his skills in scaling businesses and maintaining cohesive team environments, which later proved invaluable in building Verkada.

What were the initial steps in founding Verkada?

Filip Kaliszan and his co-founders took a bold approach to start Verkada. They decided to take a year off to explore various ideas. During this period, they brainstormed, prototyped, and gathered feedback from potential users.

To validate their concept, they built a basic prototype using Raspberry Pi computers. They manually assembled around 60 to 70 units in Filip's living room and distributed them to friends and willing participants. This hands-on approach allowed them to understand real-world challenges in video streaming and storage.

Collecting early feedback was crucial. It helped them refine their product and align it with market needs. This iterative process laid a strong foundation for Verkada's development.

What challenges did you face in the early days of Verkada?

Developing the first prototypes of Verkada had its hurdles. The founders initially built cameras using Raspberry Pi computers. They assembled them manually in Filip's living room, creating around 60 to 70 units.

Managing limited funding was another significant challenge. The team had to be thrifty with their resources, which meant launching the product sooner than they might have preferred. This pressure turned into an advantage, pushing them to market quickly.

The launch was crucial. By shipping the product early, they gathered valuable feedback from customers. This input highlighted the features that resonated most and those that needed improvement. It accelerated their path to a successful product.

How do you foster a productive and innovative company culture?

• In-Office Culture: Emphasize the importance of being physically present to interact with products and teammates.

• Team Dynamics: Encourage collaboration by having engineers, product people, and the sales team under one roof.

• Communication Practices: Conduct frequent all-hands meetings and small group get-togethers to foster transparency and engagement.

• Engaging Environment: Offer varied snacks and drinks on different floors to encourage movement and spontaneous interactions.

• Touchpoints: Create opportunities for employees to connect and share ideas, contributing to a vibrant and innovative atmosphere.

What were some mistakes made and lessons learned along the way?

One of the significant mistakes Filip Kaliszan made was not addressing inappropriate behavior promptly. In 2019, Verkada faced issues with team members engaging in gross misconduct. Initially, Filip thought he could resolve it through first principles, but this led to confusion about company values.

The lesson? Act swiftly and decisively when team culture is at stake. Ensure clear communication of values and expectations.

Another crucial insight was understanding how you're perceived, especially as the company scales. When Verkada grew to hundreds and then thousands of employees, Filip realized the importance of consistent communication.

• Regular all-hands meetings
• Small group get-togethers
• Open lines of communication

These strategies helped maintain a cohesive culture and strong leadership, essential for company growth.

What advice do you have for aspiring entrepreneurs?

Filip Kaliszan emphasizes three crucial aspects for aspiring entrepreneurs:

1. Persistence: Building a successful startup demands unwavering persistence. Challenges are inevitable, and the ability to push through difficult times is essential.

2. Building Skills Through Experience: Just like mastering a sport or an instrument, honing entrepreneurial skills requires practical experience. Spend countless hours building and refining your product. This hands-on approach is invaluable.

3. Staying Positive and Resilient: The startup journey is cyclical, with highs and lows. It's vital to remain positive and store energy during good times. This resilience helps navigate unexpected challenges, like market shifts or global events.

By focusing on these principles, entrepreneurs can better prepare for the rollercoaster ride of starting and sustaining a business.