20VC: $0-$260M in Revenue in Three Years: How We Did It | You...

Alan Chang details how he got his first job at Revolut through a quick Facebook application and an interview with Nick Storonsky.

Chang explains how he realized Revolut's potential by observing the team's intense work ethic and Nick's ambition to beat JP Morgan.

Chang highlights ambition and speed of execution as key differentiators for Revolut against competitors.

Chang shares his strategy for creating speed of execution: small, independent teams with clear goals and continuous monitoring.

Chang discusses Nick Storonsky's lessons on managing people, focusing on self-driven individuals who can identify and hit goals.

Chang attributes Revolut's rapid growth to a "get-shit-done" culture and emphasizes amplifying urgency and intensity.

Chang explains his approach to keeping people on their toes by constantly pushing for more results and higher execution levels.

Chang identifies speed of execution as the primary problem when Revolut was off target.

Chang discusses the need for continuous self-review and asking oneself if more could have been done.

Chang shares the "gun to your head" analogy to push his team to evaluate their performance and efforts.

Chang responds to work-life balance concerns by stating there's nothing wrong with it, but building a generational company requires a strong work ethic.

Chang reflects on Revolut's culture, taking the "Never Settle" ethos while discarding an excessive number of cultural values.

Chang applies the "never settle" principle selectively, believing in picking battles and choosing where to be fully committed.

Chang's biggest disagreement with Nick was the overuse of KPIs, arguing that incentivizing metrics can lead to negative outcomes.

Chang explains what shouldn't be a KPI, focusing on avoiding second-order consequences like a recruiter lowering hiring standards.

Chang discusses Revolut's product diversification as a key to success, citing the COVID period where trading revenue offset interchange revenue loss.

Chang agrees with Nick that Revolut should have pursued a banking license earlier, noting regulatory caution with larger companies.

Chang discusses how incumbents and regulators became aware of Revolut's success, with incumbents unable to effectively respond.

Chang believes having an "enemy" is important for a startup as it provides a common goal, which for Fuse is delivering energy without trade-offs.

Chang argues against the "green movement's" message of using less energy, advocating for more energy consumption to improve quality of life.

Chang states that the energy crisis is already here, with the UK facing the most severe issues due to declining consumption and high prices.

Chang attributes the UK's energy problems to over-regulation and the lack of sophistication in existing energy companies.

Chang suggests deregulating physical building and removing subsidies to let the free market drive energy costs down.

Chang identifies China as an exemplary country for energy policy due to its low energy costs, high per capita consumption, and integrated energy infrastructure.

Chang believes the UK has good talent but faces short-term bearishness due to government policies and a lack of action on growth.

Chang disagrees with the idea of long-term bullishness on the UK given the cyclical structural decline.

Chang questions the assessment of the UK's populace and suggests that the next government's will to deregulate is key.

Chang admits to feeling politically lost, not aligning with current conservative or reform party stances.

Chang believes talent in the UK is good and higher education is world-class, despite short-term concerns.

Chang discusses what makes him optimistic about the UK: the presence of common sense and the hope for a more sensible future government.

Chang highlights the importance of talent in the UK, believing it's a key ingredient for success, despite current political climate.

Chang discusses identifying talent in interviews by looking for candidates who lean in and show genuine enthusiasm for the company's mission.

Chang dislikes fluffy CVs and prefers detailed, data-led achievements, advocating for a one-page CV.

Chang advises structuring hiring by defining required skill sets and assigning experts to assess them individually.

Chang explains his company's unique salary approach: basing offers solely on interview performance grades, not market rates.

Chang clarifies that a "B" grade in their hiring process still warrants an offer, but at a lower compensation, while "A" grades receive top offers.

Chang explains that they give verbal warnings before termination and don't believe in formal PIPS, as most hires are self-aware of shortcomings.

Chang admits to previously overvaluing IQ and undervaluing the importance of deeply caring about the company's mission in hiring.

Chang believes hiring is not a game of luck but depends on asking the right questions to gauge a candidate's commitment and alignment with the company's tough journey.

Chang identifies big red flags in title expectations, stating they only give head positions based on performance, not prior titles.

Chang explains that salary expectations are secondary to interview performance and company performance, with top performers receiving top-of-market pay.

Chang does not tolerate excuses for failure from leaders, emphasizing that outcomes are paramount.

Chang doesn't worry about being perceived as too harsh, prioritizing outcomes and directness over personal feelings.

Chang explains that his direct feedback is not about hiding information but about encouraging top performers to internalize feedback and improve.

Chang believes giving negative feedback is crucial for growth, but stops when someone consistently fails to improve.

Chang acknowledges that people might be scared of him but asserts that a culture of truth-seeking is essential, allowing team members to speak their minds.

Chang identifies specific product or strategy decisions like moving into crypto and enabling trading as key to Revolut's success.

Chang counters the advice to focus on a narrow customer base, arguing for ambition and the expansionist mindset of hiring more leaders to pursue more opportunities.

Chang leans towards Jensen Huang's model of increasing surface area and viewing reports as self-motivated individuals once targets are agreed upon.

Chang explains Fuse Energy's choice of Canary Wharf for its ability to accommodate expansion and its distance from distractions.

Chang believes discipline is crucial for entrepreneurs but acknowledges the temptation for team members when working in a distracting environment.

Chang expects people to work weekends, emphasizing that work ethic is the only way to compete against larger companies with fewer resources.

Chang advises founders that significant capital is not always needed to start, citing Fuse's MVP built with minimal resources by creatively acquiring necessary assets and expertise.

Chang shares the story of his audacious approach to raising the first seed round for Fuse, arriving at Balderton with Ferrari parts and asking for $60 million.

Chang regrets accepting the first term sheet too early, believing he underestimated the company's valuation and could have raised at a higher price.

Chang explains the $75 billion valuation was justified by Fuse's rapid revenue growth, achieving $260 million annualized revenue in three years.

Chang identifies the speed of hiring quality engineering talent as the biggest barrier to reaching a billion dollars in revenue.

Chang prefers Eastern European engineers due to their cultural emphasis on technical education and strong work ethic.

Chang sees money as a means to buy back time and reduce personal consumption beyond a certain level, rather than an end in itself.

Chang recounts his first significant financial gain as a 1000x increase in his Revolut account overnight.

Chang has largely held onto his Revolut shares, only selling for personal consumption due to his bullish outlook on the company.

Chang estimates Revolut could reach $250 billion without the US, and $500 billion or even a trillion with it.

Chang believes timing, talent, and luck are the most important factors for startup success, with timing being critical.

Chang identifies leaving Revolut as his hardest career decision, a moment he confirmed three times to Nick Storonsky.

Chang reflects on the pros of being a CEO, like choosing projects, but notes the con is relinquishing that choice to empower other leaders.

Chang expresses a desire to delve deeper into engineering and hardware, areas he's unable to focus on as CEO.

Chang compares Fuse's potential to major energy incumbents like Shell, which generate billions in revenue daily but have lower market valuations.

Chang suggests listing in the US would increase Shell's valuation, and Fuse would likely also consider a US listing if they went public.

Chang doesn't see an immediate need for Fuse to list publicly, citing sufficient liquidity in private markets.

Chang allows for secondary sales for team members, aiming to provide liquidity opportunities, unlike Revolut's tighter approach.

Chang's ultimate excitement for the next 10 years is building a world with cheap, abundant energy that enables further innovation and economic growth.

Chang expresses his appreciation for the host and their friendship.