Adel Haddad

Define your experience in the IMBA program in one word.

Rewarding. Super rewarding. I'm super proud because it really pushed me to the next level. I think I needed a catalyst, and IE was that catalyst for me. It completely changed the the way I do things the way I think about things and the way I do business today.

Why did you choose to study this program at IE?

It was not only the entrepreneurial focus of the school, but also Madrid.  It’s just a phenomenal city. I keep telling myself, hopefully, we manage to exit (the company) the next couple of years, and I’m going to come back and give back to IE the way it gave to me, right? Maybe teaching an elective.

And Madrid… is probably my favorite city in the world today.

What is your favourite memory from your time at IE?

I think what brought us close together I remember it was our class trip to Mallorca, and I just you know it's crazy fun. Not just that, but also because when you let loose with your classmates you get to know them on a personal level. I must admit that that trip to Mallorca was phenomenal.

Where were you when you were not in class at IE?

This is probably an answer that you get quite often from a lot of people, but there was something magical about Retiro Park. Really. Whether you go to just chill in, or getting your food there, have a little picnic and music… Everything about that park brings people together.

How did your experience at IE prepare you to land your current position at Aumet?

I did study finance and work in finance before. But what IE really helped me with was preparing me pretty well for the startup world. Also, I met Yahya, my co-founder, at IE. So, it has already given me that part. And the learning experience was really understanding how to build a startup from scratch and take it into the next level. Everything comes back to me today: measuring, how to look at cost, or building a business canvas. All those, let's call them “small things”, add up to what the learning came to be at IE. It really helps to get the understanding of how to run a business today as well. And in that sense, it was very helpful.

What kind of stories can you read from a financial spreadsheet?

It depends on when you're asking: if you're asking it today, or you're asking prior to the 2022 financial market collapse. What we did before 2022 was very different to what we did post 2022. 2021 was a year of overvaluation, extreme growth, and over-funding. Let’s say it’s the venture capitalist realm that's pushing for growth, and let's also just say it was in a sense basically a co-founder market. The valuations were just crazy, and for you to back those valuations, I think the unit metric that most VCs were really looking at was growth. But growth at what cost? Growth at the cost of ruining the company and having the idea that, no matter what, the VCs will always jump in and save us with a lifeline? Well, guess what? 2022 happened, and that’s no longer the case. And I've seen other co-founders make that mistake, not focusing on cost, not focusing on looking at your balance sheet; just growing at any cost, with massive discounts, and not making your unit metrics matter whatsoever.

We were very lucky because, although we were pushed by these investors guided by the pursue of those insane metrics, we did not abide by them. We still maintained our composure; we still maintained our costs relative to our growth. From the get-go we did have a more conservative approach than most startups, and so our metrics were always reasonable. They’re still reasonable metrics, in my opinion, and they have paid off because consistency is key to growth. When 2022 happened and the other startups in the field almost collapsed because they weren't measuring their growth.

So, the biggest story I can tell from a financial is how well a company is managing their costs versus growth.

Are startups facing difficult times ahead in light of the Silicon Valley Bank collapse?

It's interesting that you mention this, because some of our money was in SVB at the time. We went through a craze and a panic attack, but we made sure that at least we were to some extent FDIC insured (protected by the Federal Deposit Insurance Corporation), the amount that we had was less than 250 thousand dollars.

After the collapse everything is going to be more difficult, I think, at least for the next 12 months. But what we've done is that we've shifted hats by looking at other countries that are offering better conditions for fundraising. I can give you the example of Saudi Arabia. Today, if you look at all the big venture capitalists—Sequoia, Andreesen Horowitz, and the likes—they’re all shifting as well, coming to Saudi Arabia to get money from limited partners. If you're nimble enough to move around, if you don't have extreme amounts of costs, you can technically move around where the money is, and that's what we did. When we saw how Saudi Arabia was flourishing, we moved our headquarters to Saudi Arabia, and we even got a Saudi co-founder. That opened up doors.

So, if you are doing great in a country, go with it. But be nimble. The US and Europe are not markets to fundraise today, and they won't be for at least 6 to 9 months. People have come to Saudi and they have seen the other side of the of the coin. It's an oil exporting country, with insane amounts of reserves, the current price of the barrel makes sense... So, it has all the basic conditions; and it’s also investing a lot in the startup scene to grow its economy and become one of the 10 largest economies in the world by 2030. You have all the right conditions taking you there… why not go there?

So, in a nutshell, my recommendation is: be nimble, be flexible, and see where the money is. If you have a good product-market fit, it can be a good product-market fit anywhere.

With financing seemingly becoming more complex, is the CFO role becoming more complicated?

It's it to some extent, but I wouldn’t say complicated. Maybe the role of the CFO needs to be more versatile. The things you initially needed to look at were siloed or vertical in a certain domain. But now, the role of the CFO goes into data, it goes into acquisition, it really needs to be hands-on across all departments to have a proper measurement of the state of the company. The role of the CFO is to basically measure the data you have, meet the financial statement, go into databases, make all these ratios and see what works and what doesn't, and then improve your efficiency towards it and keep growing. But now, because of everything that’s happening surrounding the SVB collapse, you have to become even more of a P/E-like CFO, right? Where you need to start looking at the balance sheets of the bank where you have your money. That wasn't something that a CFO did in the past, right? You would if you did come from a larger corporate experience, but coming from a startup, that's not typically an activity you would do. But today, looking at your banks' balance sheets, looking at the stock prices, understanding the deposit-loan ratios... these are very important items that you didn't necessarily look at maybe a year ago. Those are the things that you really need to start doing additionally to your conventional CFO role. It’s becoming more versatile.

After the SVB failure, are we facing a new financial crisis?

I think the world is not going to get any better for the next 12 months, that's for sure. And I still think that North America and Europe are going to struggle for the next 9 to 12 months. But that doesn't mean there will be struggle everywhere. Some countries are doing better than others, that's why I brought up earlier Saudi Arabia. We had to wear a different hat during 2022 to weather the storm and make sure that we survive until things get back on their feet. No matter what, crises or not, if you initially had your runway for 12 months it needs to be 24 months now. That's really the toughest part, and we all have to make hard decisions. We understand that it’s difficult to either let people go or having to decrease salaries. Some companies even closed operations in certain countries because the unit metrics didn't make sense there. Whatever it may be, it's a tough decision that needs to be made for the survival of the company. But we need to always remind people in charge of these decisions that now they have to make their runway last twice as much, or maybe two and a half times as much.

You mentioned being nimble and flexible, and finding a product that's fit to market. Is there any additional advice that you can give to young entrepreneurs in the early stages of their businesses?

Yes, and it's something I learned the hard way. Business in the corporate realm is typically more subdued and compliant. It's more regulated. However, with startups, you can get away with a lot. So, my biggest recommendation is to be bold. By being bold, you have the freedom to try things and take risks that you would never have in a corporate setting. You have the space to discover and even fake it until you make it, to some extent. Be bold and you'll find that you can get away with so much more in the startup world.

What’s the most difficult financial decision you had to make in your career?

When comparing startups to corporate environments, one of the challenges is the increased risk associated with startups. However, this higher risk also offers the potential for greater returns. Along with this elevated risk comes the possibility of failures. In the corporate world, decision-making may not be as difficult as in startups. But during my own startup journey, I faced the toughest decision of all: letting go of a third of my workforce. It was far from easy. But seeing larger companies going through the same challenges emphasizes that we are not alone.

Surviving in such circumstances is tough because we deeply appreciate the efforts our employees put in. The only way we can manage this situation is by establishing personal connections, handling these matters directly, and ensuring that those who depart do so amicably. If conditions improve in the future, we would welcome their return if it aligns with our needs and objectives. This is what we're striving to achieve—managing the process in the best way possible and leaving open the possibility for a potential return when things improve.

Are entrepreneurs born or made?

It's funny because there's this book I read a few years back called "What Color is Your Parachute?" It's a great book because it helps guide you to the jobs that suit your personality the most. After doing the exercises in the book, I discovered that the number one role for me was being an entrepreneur. It took me a while to understand it, and the book certainly helped me come to that realization. It can be argued that entrepreneurship is not for everyone. However, even if entrepreneurship isn't your thing, it still requires you to be in a position where you're constantly learning. That's the one thing I always recommend: if you're not constantly learning or moving forward, you stagnate. And that was the issue I faced in the past. I was in a comfortable bubble that wasn't pushing me to learn or grow. For someone else, it could be anything else that keeps them constantly learning and evolving. The key is to never be too complacent. It affects every aspect of your life, including your personality, personal life, and work.

What is the one thing you wished you knew, when you were a student?

Running a business used to scare me. I had dabbled in a few ventures, but I had never delved into the business world from a corporate perspective. And so, starting a business was something scary. So many responsibilities involved. But then, I came to realize that it’s not scary at all. Yes, there are ups and downs, and it's not a straightforward path. However, it's not a terrifying experience either. When you put in the effort, doors begin to open. Opportunities present themselves one after another as long as you make the right effort. It's not a scary journey at all.

So, if you find yourself scared as I did, my advice is not to be deterred. Just put in the effort and you will see doors opening for you. The path may take different forms, but things will always start to look better.

What’s the most valuable lesson you have learnt throughout your career?

I don't know if it's a valuable lesson, but what happened to me was that I pushed myself into a career I wasn't comfortable with. I kept doing it because it was comfortable and it paid well, but it wasn't enough. I stayed in the same job for 4-6 years, earning a good salary, but I wasn’t learning anything new.

Being too comfortable in your job is not a good thing, in my opinion. It took me a long time to realize this. One of the core values in our company is anti-fragility: If you're not constantly learning and pushing yourself, then definitely there's something missing. I wish I had learned this lesson when I was 25, or maybe 28. But I suppose you learn things when you're meant to learn them, so I can accept that. The key takeaway is not to be complacent. Even if you have a great paying job, if you're not learning, make a change. Push yourself further. By doing so, you'll find greater happiness and fulfilment internally.

If you had a billboard that you could display to the world, what would you write on it?

What I've learned with experience is that sometimes you can put so much effort into something, and it doesn't go according to plan. And sometimes, you do absolutely nothing, and somehow it just works out. But regardless of the outcome, if you put in the effort, everything will be alright. And that's exactly what I would say:

“Put in the effort, and everything will be alright.”

TO CONNECT WITH ADEL, CLICK HERE