Francis Pedraza’s first startup failed due to a lack of a solid business model, despite having high-profile investors and putting in hard work. This humbling experience led him to carefully design the models for his next ventures: **Invisible Technologies**, which is disrupting the traditional SaaS subscription model, and **Infinity Constellation**, described as the first artificial intelligence (AI) services holding company.

At a Your Next Move event presented by Capital One Business, Pedraza discussed his journey from startup failure to building and running a $2 billion company with Inc. editor-in-chief Mike Hofman. Here are the key insights from their conversation.

## Selling to Customers Is Easier Than Selling to Investors

Invisible Technologies, which made the Inc. 5000 in 2024 and recently raised $100 million to reach a valuation of over $2 billion, initially faced skepticism from investors. Pedraza pitched an end-to-end, customizable IT solution—comparing it to baking a cake rather than selling the ingredients for clients to bake their own. **Customers loved this approach** because they had complex, messy problems that existing apps couldn't solve. Pedraza noted, "We were the company saying, ‘We can handle your weird, messy complexity and we’ll figure it out.’"

In contrast, investors preferred subscription models with high gross margins from the start. Pedraza saw this as a "Silicon Valley blind spot" and an opportunity to pioneer a new model, though it required being **incredibly capital efficient** to gain a long head start.

## Processes Need Humans

Invisible Technologies was launched to break down customer processes into small, manageable steps like Lego® blocks, integrating hundreds of third-party apps and layering them with in-house software to streamline systems. However, Pedraza realized that **humans played a crucial role** in automation gaps. The company built a global network of expert agents, now numbering around 20,000, to handle steps that couldn't be automated. Pedraza explained, "If third-party tools and our own engineering team couldn’t automate the Legos, we could put [another] human in to do that step and that would allow us to build an end solution."

## High Revenue Concentration Needs Resources

Pedraza highlighted that his business experienced rapid growth since 2020 by focusing on major deals with a small number of clients. He isn't overly concerned about the lack of customer diversification but warns that **high revenue concentration can consume all resources**. "All of your energy in the company, all of your engineering resources, all of your operational resources are going into making magic happen for this one account," he said.

The key to balancing this with growth is relying less on acquiring new customers and more on **referrals and deepening relationships** with existing ones, as satisfied clients can drive expansion.

## Make Smart Decisions About Where Funding Is Invested

Pedraza’s recent $100 million capital infusion came with favorable terms, but its success hinged on both investor contributions and the company’s strategic allocation of funds. Part of the investment was used to hire Matt Fitzpatrick, formerly of McKinsey’s Quantum Black Labs, as CEO. **Prioritizing leadership over sales hires** proved wise, bringing in valuable experience and avoiding costly mistakes. Pedraza emphasized, "It’s actually very hard to recover from an allocation mistake," noting that poor decisions can quickly burn through capital.

Invisible Technologies founder Francis Pedraza shares advice about crafting the right business model, hiring the right team, and spending capital the right way.

From Failure to $2 Billion: The Unconventional Blueprint That Transformed a Startup

## The Pitch Competition That Showcased Innovation

**Creativity, passion, entrepreneurship, and risk** were on full display at the Westport Library’s Trefz Forum, where a full house gathered for **StartUp Westport’s first-ever Pitch Competition**. With a total prize pool of **$25,000** on the line, five promising startups pitched their ideas in a **Shark Tank-like scenario**, hoping to impress a panel of experienced judges and a live audience.

![StartUp Westport Pitch Competition](https://i0.wp.com/06880danwoog.com/wp-content/uploads/2025/05/StartUp-Westport-Pitch.png?resize=300%2C200&ssl=1)

## The Finalists: From Healthcare to Snacks

The competition featured five finalists, selected from **77 applicants** and months of mentorship from StartUp Westport volunteers. Each team had to meet strict criteria, including a **pre-institutional funding round**, an existing corporation, a **Connecticut-based founder or strong state association**, and a **scalable business model**. They had just **6 minutes to pitch** and **6 minutes to answer probing questions** from judges Kira Vanderwert, Kal Amin, Matt Gorin, and Cliff Sirlin—all seasoned venture investors.

### ChromaShield
A team from the **University of Connecticut** presented **ChromaShield**, a wearable patch and monitoring platform designed to reduce complications from chemotherapy, such as radiation dermatitis and foot ulcers.

![ChromaShield](https://i0.wp.com/06880danwoog.com/wp-content/uploads/2025/11/StartUp-pitch-ChromaShield-1.jpg?resize=400%2C522&ssl=1)

### Nexa Tax
Created by a former **University of Bridgeport athlete**, **Nexa Tax** is an app that helps college athletes manage the tax aspects of their **name, image, and likeness (NIL) earnings**. As more athletes earn from NIL deals, this platform addresses a growing need for tax management.

![Nexa Tax](https://i0.wp.com/06880danwoog.com/wp-content/uploads/2025/11/StartUp-pitch-Nexa-Tax-1.jpg?resize=400%2C531&ssl=1)

### Mirabelle
With roots at **Cornell University**, **Mirabelle** offers a device for women to detect and monitor breast cancer, providing **breast health in your hands**. It also serves as a tool for healthcare providers in underserved areas, adding a touch of humor with beta testers dubbed "the titty committee."

![Mirabelle](https://i0.wp.com/06880danwoog.com/wp-content/uploads/2025/11/StartUp-pitch-mirabelle-1.jpg?resize=400%2C523&ssl=1)

### WheelPrice
Addressing a niche market of car wheel enthusiasts, **WheelPrice** from **UConn** aims to organize the chaotic online marketplace for wheels, with over **620,000 wheels listed**. The founder pitched it as "reinventing the wheel marketplace."

![WheelPrice](https://i0.wp.com/06880danwoog.com/wp-content/uploads/2025/11/StartUp-pitch-Wheel-Price-1.jpg?resize=400%2C530&ssl=1)

### NeuroPuffs
Developed by **Yale University graduate students**, **NeuroPuffs** are mushroom-based snacks made from upcycled food waste, coated in real powdered cheese, and packed in compostable bags. They promote "guilt-free snacking" that's "good for the brain, kind to the planet."

![NeuroPuffs](https://i0.wp.com/06880danwoog.com/wp-content/uploads/2025/11/StartUp-pitch-NeuroPuffs-1.jpg?resize=400%2C479&ssl=1)

## The Judging and Audience Vote

After the pitches, the judges deliberated while the audience voted via QR code. **WheelPrice** narrowly won the audience vote, edging out Mirabelle **34% to 31%**. The judges agreed, awarding **WheelPrice the $20,000 non-dilutive first prize** for its **impressive business model, scalability, and pitch**. The other four startups split the remaining **$5,000**, with the judges noting that all ideas were "impressive, inspiring, and solving real problems."

![Winners](https://i0.wp.com/06880danwoog.com/wp-content/uploads/2025/11/StartUp-pitch-winners-1.jpg?resize=500%2C307&ssl=1)

## A Hub for Entrepreneurship

The event drew a crowd of **400 people**, including fellow entrepreneurs and investors, highlighting **StartUp Westport’s mission** to make Westport the entrepreneurial and innovation capital of Connecticut. As a **3-year-old public/private partnership**, it continues to foster innovation with support from lead sponsor **Coastal Bridge Advisors**.

Keep an eye on these startups—they’re just getting started.

How a Wheel Marketplace Won $20,000 in a Shark Tank-Style Startup Pitch Competition

Silicon Valley insiders often dismiss Europe's startup market as too small or lacking ambition, but this view starkly contrasts with the optimism brewing among European entrepreneurs and investors.

At Helsinki's annual **Slush conference**, the atmosphere was electric, signaling a venture market on the cusp of major transformation. Many believe Europe is ready to produce its first **trillion-dollar startup**, overcoming historical barriers that have long stifled growth.

For years, European founders faced challenges like limited local customers and capital, often relocating to the U.S. or exiting early. Despite efforts by firms like OMERs Ventures and Coatue to establish a foothold in Europe post-pandemic, they have since withdrawn, with OMERs laying off much of its European team. Concurrently, Silicon Valley advocates argue that innovation thrives best in hubs like San Francisco, urging startups to retreat there.

However, the narrative is shifting. Venture investors at Slush emphasized that the idea of an undercapitalized European market is exaggerated. One investor noted a significant increase in U.S. capital flowing into Europe compared to five years ago. While some firms exit, others like IVP and Andreessen Horowitz are expanding into London, highlighting a dynamic investment landscape.

European startups are increasingly resisting pressure to move to the U.S., finding success by staying local. For instance, **Lovable**, a vibe coding platform, achieved $200 million in annual recurring revenue within a year by remaining in Europe and recruiting top talent from Silicon Valley to Stockholm.

Taavet Hinrikus, a partner at Plural and early Skype employee, observed that Europe's startup ecosystem is about a decade behind the U.S. but has now gone mainstream. Startups contribute a growing share to the region's GDP, a stark change from decades past.

Success stories like **Spotify** and **Klarna** have bolstered Europe's profile, empowering founders to delay exits and employees to launch their own ventures. Regulatory support is also strengthening, with the EU moving towards allowing startups to register across all member states simultaneously, streamlining operations despite implementation challenges.

Hurdles persist, such as European enterprises being slower to adopt startup technologies compared to American counterparts. Yet, the overall sentiment at Slush was overwhelmingly positive, with a banner proclaiming, "Still doubting Europe? Go to Hel." This reflects a collective belief that Europe is finally coming into its own, ready to shine on the global stage.

The region's startup market is hungry for its first trillion-dollar startup, and in many ways has set itself up to reach that goal.

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