People are our core Product

Bootstrapping and external funding

Why did we bootstrap and not raise any VC funding?

Nuclei is our 4th startup we are building in the last 15 years, and having raised VC funds for the previous three, we understand the upsides as well as the downsides of raising external capital. In most startups that raise capital, we have seen that the incentives are aligned only in the short term, concentrated between the founders and the investors. This is not sustainable.

Additionally, raising venture capital gets you into a cycle of raising a new round every 12-18 months. This again compels founders to take short term decisions instead of focusing on the long term growth. It also distracts them from the core business and forces them to spend a lot of time on raising capital.

Overall, this did not align with how we wanted to build Nuclei. We wanted to focus on the long term growth and build a sustainable business. And not to sell it in a few years. That drove our decision to figure out a way to bootstrap our journey and remain profitable.

But that’s just our story and opinion.

How are we bootstrapping?

To us, more capital does not always translate to growth. We don’t want to grow our “numbers” (or vanity metrics) just for the sake of growth. We don’t report “GMV” or extrapolate one day’s revenue to ARR, instead we report actual booked revenue and profits. We want to grow at a high rate, sustainably. This does not mean that we are ok growing slowly, it just means that we are pruden and transparent when it comes to growth. We are planning for the next 20 years, not 3.

All of us have seen numerous examples of companies which grew like a “rocket”, only to crash and burn. They were all flavors of the season for a few months; that’s not what we are after. We don’t want to be anyone’s flavor and are happy to quietly build a sustainable and profitable business, which gives high RoCE.

How much excess capital does one think we require to grow rapidly? In B2B business, growth is primarily driven by the Business Development Team, which includes sales, partnership and marketing. A small but impactful team is more than enough for a geography - think Europe, APAC or the Middle East. If we have to simultaneously grow in all geographies, the cost of such a team is currently a fraction of the profit we make. So bottom line - we have enough funds to grow rapidly, without requiring external capital!

Best way to fund your company is from the revenue you make!

Will we ever raise external capital?

Never say never. If raising external capital is good for the company’s future, why would we shy away from it? We are not control freaks, who want to theoretically own 100% of the company and therefore not raise external capital. We have not raised it till date, because it did not make sense for the company to raise it. If it absolutely makes sense for us to raise and we get the right partner for our journey, we will do it.

Is raising venture capital bad?

Absolutely not! Nothing is absolutely bad or absolutely good in this world. It all depends on your context, perspective and situation.

Venture capital is high risk capital, so it is good for those companies where the risk of failure is very high. It is not necessarily good for those companies which are already profitable & sustainable, and can fund their own growth from internal accruals.

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Our guiding principles

Nuclei is the product of experience, both successes and failures. Our previous ventures (2 exits, 1 shutdown) were a courses in startup realities. Our learnings created the roadmap for us and the company.

Think Long Term

Our nature forces us to solve the urgent issues first and settle for short term returns. We promised ourselves to take decisions always keeping the long term impact in mind. Be it for the products we were developing or the people we were bringing into the team - build for long term.

Think big, Think global

We will not be limited by our imagination. We will not be afraid of reaching for the larger piece of pie. We wanted to go global from the get go. That put (good) constraints on our products and skills. We design products that can scale geographies and industries effortlesslyBuild a sustainable business: We solve for self-sufficiency. We have been profitable from year 1 and have continuously increased our PAT margins year-on-year. Being independent of external capital liberates us to take difficult long term decisions and not optimize for short-term vanity metrics.

Distribution is key

A good product without distribution will remain short of success. A decent product, with good distribution, can always be developed and made successful. We knew that even great products need reach. So we decided to optimize available distribution and took the B2B2C route.

Revenue over cost

From a customer’s view point, products which help increase revenues are always more appealing than those that save costs. Our products always grow existing revenues or be a source of new revenue.

Diversification

To remain sustainable we diversify across geographies, products and industries. Our senior management’s primary responsibility is to mitigate risks, by diversifying our revenue sources and reduce concentration risk. The same goes for our team - we're expanding globally.

Build the right team

If we bring together the right people, then 90% of the work is done. Success will just be a matter of time, synergy and some luck!

At Nuclei, our team is our core focus.. And like any product, we are constantly ironing out the kinks and working to make it better.

Our features include, and are not limited to

• Fully remote - Work from anywhere
• Culture based on freedom & responsibility
• Culture based on continuous learning and constructive feedback
• No leave tracking - We trust you to manage your life and work with equal responsibility.
• Growth focused culture - Friday 2nd halves are reserved for personal development.

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We are on a mission to constantly update the version, both by adding new elements to it and improving existing features! :)

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We prioritize lifelong learning at Nuclei. We believe in building sustainable habits that fuel long-term growth, not short-term bursts. We encourage activities like reading and working out, knowing consistency is key to reaping the benefits.

To foster this culture, we dedicate the second half of Fridays to self-development. We offer book clubs, tech talks, chess tournaments, expert speak, and more, sparking new ideas and fostering a habit of continuous learning.

Books are a cornerstone of our learning strategy. We believe they offer invaluable knowledge, perspectives, and mental models. We strongly encourage each team member to be a voracious reader and participate in our weekly book club to discuss and share opinions. This ensures everyone is continuously learning and growing together.

Freedom and responsibility go hand-in-hand

At Nuclei, trust is paramount. We trust the everyone to  prioritize the team's needs over their own and to make the right decisions in the team’s best interests. We empower you to manage their your effectively, ensuring,

• Your absence doesn't block colleagues or disrupt deadlines.
• You communicate plans and handoffs clearly in advance.
• You prioritize team needs and fulfill your responsibilities.

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This freedom comes with ownership. You're trusted to manage your workload and schedule for optimal productivity. Open communication keeps everyone informed.

And Nuclei takes responsibility for your well-being. You choose your work environment, whether it's Bali, the Himalayas, or your home office. A stable internet connection and a comfortable workspace are all we ask. This flexibility fosters productivity and a happy work-life balance.

Some places you can work from.

Why is culture fit while hiring important to us?

Culture does not operate on a laissez faire, this is an experience we have been through as a team. To build a culture we desire, we are putting in 100% of our efforts, which starts at hiring

A Culture fit for us is a person who knows what freedom, responsibility and ownership means and has a strong bias for action; someone who is humble & respects others and does not fear failure.

Skills to do the job well will only make the person a fit a role but their attitude makes them a fit for the team and culture we are trying to nurture in Nuclei.

Scaling Startups is not everyone’s cup of tea! It not only takes hard work but also persistence to keep trying. We always look for people with high energy and passion to prove themselves with a team first attitude.

Industry best SARs (equity) program

We designed our Stock Appreciation Rights (SARs) program with two key goals: flexibility and value for our team. After extensive research and evaluation of various options, we chose SARs over ESOPs due to their superior flexibility in aligning rewards with team performance.

Here's what makes our SAR program stand out:

Generous Grant: We offer a 25% SAR pool, significantly higher than the typical 10% ESOP pool in startups.

Transparent Vesting: Your SARs vest monthly, ensuring you start building equity immediately.

Exits and buy outs: You leave with your Vested SARS whenever you choose to with unlimited exercise and holding period

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Third-Party Management: A secure platform (Trica.co) simplifies managing your SARs.

To put things in perspective, most of startups assign a 10% equity pool for their ESOPs, that too only when VC funded, issued at high valuations and run the risk of losing value due to a down round.

We instituted our first buyback in Sep 2021. It is not necessary for a SAR-holder to sell their SARs during such buybacks. To remain invested into the company is each individual’s prerogative.

Our SARs value grew 467% in 2 years.

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Path to success is riddled with failure

Over the past 12 years, we have failed multiple times and worked hard to pick ourselves up multiple times. Thankfully we also built up our immunity towards failure while learning from our mistakes.

We accepted the fact that the path to success is not a straight road and this winding road will be full of potholes, which will force us to fall and fail again. The only thing we promised ourselves every time we failed, was to get up, dust off and go again!

Perseverance is an absolute must in order to win this game and we ordered it in bulk :)

We take