True dyed-in-the-wool software pros are a valuable breed in water and Paul Hauffen is one of the best. A two-time entrepreneur, he sold his last company Sedaru, and, in a founding hiatus, is bringing his enormous experience to bear helping companies along their trajectory, partially as a BIV Venture Partner. Paul is a very wise man indeed and his insights on building solid foundations for companies, the hard yards of especially early sales and reference building, and the traps that founders can fall into are second to none. We're so lucky to work with him. Please enjoy my conversation with Paul Hauffen.

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For the full show notes, transcript, and links to mentioned content, check out the episode page here: https://podcasts.apple.com/us/podcast/the-fundamental-molecule/id1714287205

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Executive, entrepreneur, advisor, and BIV Venture Partner, Paul Hauffen, shares his insights on several valuable topics for water tech startups including common pitfalls for founders after securing funding, his personal journey into the water industry, and the development of his previous company, Sedaru. Paul offers advice on identifying and engaging early customers, outlines the benefits of targeting utilities, reflects on the evolution of software within the water sector, and shares the future of software opportunities. He finishes up by providing his perspective on marketing and sales, defining product-market fit, and emphasizing the vital role of strong customer relationships.

00:00 - Paul Hauffen: Water Tech Visionary

02:03 - The Biggest Mistake Founders Make

03:57 - Why You Shouldn’t Celebrate Fundraising

06:01 - Effective Startup Marketing on a Budget

07:38 - Why Water? A Founder’s Journey

11:27 - How to Identify a Profitable Market Opportunity

14:50 - Building Trust Through Customer Inclusion

15:21 - How to Land Your First Customer

16:32 - The $40K Napkin Deal: Winning Early Sales

18:01 - Checklist for Finding the Right First Customer

21:16 - Why Utilities Make Great Customers

24:25 - How to Win RFPs and Lock in Long-Term Contracts

26:28 - The Evolution of Water Tech Software

28:31 - The Future of AI and Software in Water

33:30 - AI’s Role in Water Innovation

36:29 - Marketing and Sales for Water Startups

39:03 - Pricing Strategy for SaaS in Water Tech

39:49 - Defining Product-Market Fit in Water Software

42:17 - Lessons from Advising Water Tech Startups

44:01 - The Customer Inclusion Loop

Links:

Burnt Island Ventures: https://www.burntislandventures.com/

Paul Hauffen: https://www.linkedin.com/in/paulhauffen/

SM Material

Key Takeaways:

"Founders often get intoxicated with marketing before proving value."

"Establish product market fit before allocating budget to marketing."

"Practical marketing is essential until product market fit is achieved."

"Build excuses to interact with customers to strengthen relationships."

"Utilities are great customers because they prioritize productivity over profit."

"AI allows us to revisit legacy workflows and solve problems faster."

"Early customers should be small to mid-size, progressive, and decision-makers."

"Balance vision with execution to turn ideas into reality."

"The customer inclusion loop is vital for growth and trust building."