Throughout the year, Lalawag will be interviewing some of the most innovative and exciting startups from the LA area in our ongoing feature series, “LA Startup Spotlight.”
Alex Capecalatro is a young, up-and-coming UCLA-bred entrepreneur whose new service, Hyphos, aims to offer a fresh take on meeting new people to hang out with locally. Though Hyphos is his first startup, he’s a bright, ambitious, and knowledgable fellow who has a lot of great insights on the LA tech startup scene as well as the social media landscape.
Pitch us your service in three sentences or less.
Hyphos is a social discovery platform making it possible to find and meet like-minded people nearby. Whether you’re looking for a gym buddy, a classmate to study with, or someone to chat about political philosophy in a coffee shop, we make the experience effortless and enjoyable. We like to say Hyphos is the closest group of friends you never knew existed.
It’s almost as if it’s a dating site… but to find platonic relationships?
That’s exactly right. We are social beings and we thrive when we coalesce, but it isn’t always easy meeting new people. Think about the times you’ve been in an airport or a crowded campus. Or perhaps if you’ve ever moved to a new town. How do you meet people? There are many social barriers that make it difficult and often frustrating. But what if, like a dating site, you could, at a glance, identify interesting characteristics in others? If you want to find a running buddy nearby or just someone to grab lunch with instead of eating alone, Hyphos makes that possible.
What made you decide to focus your company on Hyphos?
I’m an engineer at heart. I’m a technologist. But I’m also a global citizen and a big believer in the power of social change. I think a lot about the convergence of technology and society and how they relate to many of the world’s biggest challenges. My goal is to consciously construct a framework that improves people’s lives and it is with this mindset that I am focused intently on building Hyphos. I believe that by connecting like-minded people and giving them a voice to share with the world, we can begin to tackle isolation, we can help form real lasting friendships, and we can induce a more social, a more congenial society where people disengage from their iPods and engage with the world around them.
It sounds like for Hyphos to work, that it’ll need a critical mass of engaged users. How are you going to ensure this happens in an age where people are wary of putting forth personal information on yet another social networking site?
In order to get a critical mass of engaged users, we’re focusing our launch to geographically constrained areas. The thought of biking, grabbing a drink, or hanging out with someone new only makes sense if you’re close enough to make it happen. Because of this, and for a few other reasons, we’re initially launching to students (UCLA as our first school). By focusing efforts on a university we’re providing a very easy way for students to find like-minded people nearby and to organize events and promote what’s going on. That said, we’re not looking to replace the other social networks, nor do we try to offer the same value. As such, we offer a very easy one-click signup process and we minimize the amount of information users need to submit.
As a young company, with most of your team members current or recent graduate students, do you ever feel like you are in over your heads?
As a young company with a young team, I feel we have a number of assets working in our favor. For one, the burdens of family life aren’t yet apparent. Financial responsibility is significantly lower. The work ethic and long hours and combined passion are inspiring. And our team isn’t yet wrought with corporate experience that could otherwise prevent the uninhibited free sharing nature of new ideas. Where we lack in experience we more than make up in hard work and determination. Thus far I haven’t felt overburdened or in over my head. We are grateful for this opportunity and for all the growth and learning we are experiencing.
How big is your team? Can you describe your company’s culture?
We are three full time (me, Jason Hsin, and Dan Wilhelm) and five part time (Garrett Johnson, Spencer Hochberg, Zach Polke, Suraja Raj, Chris Niessl). Our culture is all about technical design and purpose with a side of fun. By technical design, I refer to the sense that we care deeply about creating a beautiful and efficient, emotionally responsive product that resonates and inspires. By purpose, I refer to the sense that we care deeply not just about building another website or social network, but a product that will impact society and make people’s lives better. And in regards to fun, much of our prose and graphic design and much of what we enjoy doing here in the office is about being social, inviting, and simply having a good time.
How did your company get its initial funding? Do you have any advice for emerging startups on how to deal with funding?
Our initial investor and advisor is David Carter, who I met at a Tech Coast Angels / OCTANe event in Orange County. David has been an amazing person to work with as a mentor, advisor, and investor.
In regard to funding for startups, the first thing I would suggest is checking out a book called Venture Deals by Jason Mendelson and Brad Feld, which does a great job outlining the basics. I’m still a novice when it comes to the intricacies of effective fundraising, but a few lessons I’ve learned include:
1. Find people who share your passion and have experience in your field.
2. That said, find people who will challenge your beliefs in a constructive way.
3. Know your competition and be able to clearly explain your unique value proposition.
4. Leverage your network. You’d be surprised which classmate from college has an uncle in venture capital…
5. You’re doing the investor a favor as much as they’re doing you one. Don’t be afraid to play hardball.
How do you deal with competition? Do you keep tabs on other companies that are doing similar things?
It’s almost guaranteed we’ll pivot at some point in the early days. Because of this, it’s not always clear who the competition is and who the competition will become. Because of that, we keep a close eye on which companies are “hot” and where the industry is going. We keep an eye on who’s executing well. But I don’t get too worked up over a pitch about a similar sounding venture because execution is everything and ideas are a dime a dozen.
Tell us a little about your background? What made you want to start your own company?
I graduated from UCLA Engineering and have always been interested in the intersection of technology and societal change. Prior to Hyphos I worked on sustainable initiatives at the luxury hybrid company Fisker Automotive. In thinking through my goals and what I hoped to achieve, it became very apparent that the best way to impact society was to gather a group of highly intelligent and motivated individuals and to collectively tackle this problem of connecting people in a more meaningful way. The great thing about doing this through a company is it aligns the team’s interests, offers a good reward structure for success, and allows for incentivizing investors and advisors towards helping us on our mission.
What are your thoughts on the LA entrepreneurial scene?
When you’re starting a company in the tech space, everyone assumes that you’re setting up shop in the Valley. However, we’ve found Los Angeles to be an incredible place to start up. From recruiting talent (UCLA, USC, Caltech, etc) to meeting with investors (Baroda Ventures, GRP Partners, etc), LA has been a great place to launch. We’re seeing many more startup events taking place, such as Jason Nazar’s ‘Startups Uncensored’ and the almost weekly events that take place at Coloft. The infrastructure seems to be really coming together and we’re excited to be based in LA.
Who are your three most influential entrepreneurs? Why?
Tony Hsieh (CEO of Zappos) exhibits many if not all the qualities I admire most in an entrepreneur. He’s a strong leader and a brilliant thinker, but he’s also a visionary when it comes to company culture and pioneering a vision. If you haven’t read Hsieh’s “Delivering Happiness” I strongly suggest you do.
Jeff Bezos (CEO of Amazon) is at the top of the list because of his unabridged optimism and pioneering work carving out new markets. The number of innovations he’s pushed are hard to count and he continuously reinvents himself and his company. Bezos has been a huge influence on the way I think about business.
David Bohnett started GeoCities to “empower individuals, improve lives and build viable communities by connecting like-minded people.” In many ways I am trying to continue his vision. I am influenced by his involvement in shaping society through social activism and his philanthropic endeavors and success at positively impacting society.
What’s one of your most successful decisions? Can you share something that’s worked really well for you that you think other entrepreneurs could learn from?
Although it’s not exactly answering your question, one of the better and more difficult decisions I’ve made thus far was taking the leap to quit my job and pursue my passion. It can be very difficult to leave a good salary at a great company, but I am glad I made that choice. While I would never advise quitting your job as a blanket suggestion to all considering entrepreneurs, I think more people should question what they’d like to achieve in life and do everything possible to get there.
How do you see the social networking landscape shaping up in five years?
Five years is an eternity in the social networking landscape, and I’m sure we’ll see many short-term projects popping up. We’re seeing lots of niche sites (like Anybeat), trying to differentiate themselves from Facebook in such minute ways that they might as well not. And then there’s Google+, which has a lot of potential but again doesn’t offer a unique value over existing platforms. At Hyphos, we’re taking a long-term approach with what we’re building. We believe that the technology, platform, or device doesn’t matter. What matters is the opportunity we’re offering people. We’re making it easy interact with people around you that you never would have otherwise met. Over the next five years we see technology being an extension of our physical lives, making it easier and more enjoyable to do the things we already want to do. Our goal is to capitalize on online connectivity to enrich people’s lives by turning it from a tool of social isolation to an enabler of social interaction.
