Sergej Kunz, co-founder of the multi-million dollar crypto exchange aggregator 1inch, recently shared his company's origin story at a SPARK 3.0 event. It's a real story about resilience, resourcefulness, and the power of believing in your vision even when the world seems stacked against you. 

From Porsche Engineer to Hackathon Hustler 

Sergej Kunz's journey wasn't a linear path to success. He was a software engineer at Porsche, a seemingly stable and secure career path. However, the desire for something more burned brightly within him. He poured long hours into his work, juggling his responsibilities with spending time with his family. Eventually, personal challenges led to a divorce, a turning point that forced him to re-evaluate his life. 

This wasn't just a personal setback; it became a professional one too. Sergej found himself laid off, his comfortable routine shattered. Yet, amidst the turbulence, he saw an opportunity. He embraced the newfound freedom to pursue his own path. This newfound freedom sparked a hunger for something new, something that would allow him to fully utilize his skills and entrepreneurial spirit. 

Sleepless Nights and the Birth of an Idea

Fueled by a desire for reinvention, Kunz found himself drawn to the world of hackathons – intense coding marathons where developers compete to build innovative products within a short time frame. Here, he met his co-founder, Anton Bukov, another talented software engineer with a shared passion for pushing boundaries. 

Their first hackathon together was a baptism by fire. As Kunz recounted, "We were like walking around New York City and then started on a hackathon. On Sunday, late evening, I came to my small hotel room and was sleeping like for I don't know, maybe 20 hours." The exhaustion was evident, but so was their determination. Fueled by Red Bull, they toiled through the night, fueled by a shared vision: to create a better way for people to swap cryptocurrencies. 

From One-Inch Punch to Billion-Dollar Company

The project they built at that hackathon was initially named "1inch" after Bruce Lee's legendary one-inch punch. It was a metaphor for their ambition – to create a highly efficient solution for cryptocurrency swaps. Little did they know, this name, born out of a late-night brainstorming session, would become synonymous with a multi-million dollar company.

Their mission was simple: to revolutionize the way people exchange cryptocurrencies. Existing platforms were clunky and inefficient, often offering limited options and hidden fees. Kunz and Bukov envisioned a platform that aggregated various exchanges, offering users the best possible rates and a seamless experience.

Building a Community 

However, the road to success wasn't paved with gold. Fresh out of the hackathon, Kunz found himself living in his office, his personal life in disarray. He and Bukov had a revolutionary product, but lacked the resources to take it to the next level. Traditional marketing avenues were out of reach – they had no budget to speak of. 

Necessity, as they say, is the mother of invention. To build a community around 1inch, Kunz and Bukov embraced a novel approach – memes. They leveraged social media platforms, creating funny and relatable content that resonated with the crypto community. It was a low-cost, high-impact strategy that helped them gain traction and spread awareness about their product.

From Donations to Dedicated Users 

Their hustle didn't go unnoticed. The crypto community, known for its collaborative spirit, began to take notice. Soon, they were receiving donations from users who believed in their vision. Some were small gestures of support, while others were significant contributions that helped fuel their growth. One particularly heartwarming story involved a user who accidentally sent $50,000 – a testament to the trust and enthusiasm they had built within the community.

Building a Team and Securing Funding

As 1inch gained traction, Kunz and Bukov recognized the need for a strong team. They strategically built a network of talented individuals through hackathons and conferences. They weren't just looking for technical skills – they were seeking individuals who shared their passion and commitment to building a revolutionary product.

Their dedication to continuous improvement and delivery also impressed investors. Unlike the traditional pitch-heavy approach, where founders spend an inordinate amount of time convincing investors of their vision, 1inch's story spoke for itself. Here were two passionate engineers who had bootstrapped a revolutionary product from the ground up, fueled by nothing more than talent, determination, and a healthy dose of internet memes. Investors, including prominent venture capital firms like Pantera and Dragonfly Capital, recognized the potential of 1inch and lined up to offer funding. In total, 1inch secured a staggering $190 million across three funding rounds.

The Importance of Network and Mentorship

Kunz readily acknowledged the importance of their network in 1inch's success story. The connections they built at hackathons and conferences weren't just about finding talent; they were about building a support system within the crypto ecosystem. These connections provided them with valuable mentorship, access to resources, and early feedback on their product.

Another key ingredient in 1inch's success was their focus on building a user-centric company. They actively sought feedback from their community, constantly iterating on the platform based on user needs. This two-way communication fostered a sense of ownership and collaboration among users. 1inch wasn't just a product; it was a community-driven ecosystem where users felt like valued partners.

Continued Innovation and Global Expansion

1inch's story is far from over. The company is constantly innovating, expanding its product offerings beyond simple cryptocurrency swaps. They are exploring areas like decentralized finance (DeFi) and are committed to staying at the forefront of the ever-evolving blockchain landscape.

Sergej Kunz, ever the humble entrepreneur, doesn't see himself as a visionary leader, but rather as a "simple software engineer" who just happened to have a good idea. However, his journey is a testament to the power of perseverance, resourcefulness, and the ability to build a strong community. 1inch's story serves as an inspiration for aspiring entrepreneurs and blockchain enthusiasts alike, proving that with hard work, dedication, and a bit of ingenuity, even the most audacious dreams can become reality.

Practical Takeaways for Entrepreneurs

Sergej Kunz's journey offers valuable takeaways for aspiring entrepreneurs, particularly those venturing into the competitive world of blockchain startups:

1. Resilience is the Bedrock of Success. The path to entrepreneurial success is rarely smooth. There will be setbacks and challenges. What separates successful founders from those who falter is the ability to bounce back, learn from mistakes, and keep pushing forward.

2. Embrace Resourcefulness. Limited resources shouldn't be a barrier to innovation. Think outside the box, leverage free or low-cost tools, and be creative in your approach to marketing and community building.

3. The Power of Community. Don't underestimate the importance of building a strong community around your product or service. Foster a sense of ownership and collaboration among your users, and leverage their feedback to continuously improve your offerings.

4. Never Stop Learning and Adapting. The tech landscape, especially in the ever-evolving world of blockchain, is constantly changing. Successful entrepreneurs are lifelong learners who are adaptable and willing to pivot their strategies when necessary.

5. Building a Strong Team is Key. Surround yourself with talented individuals who share your vision and passion. Invest in building a strong company culture that fosters collaboration, innovation, and continuous learning.

By following these principles and drawing inspiration from the story of 1inch, aspiring entrepreneurs can increase their chances of success in the exciting world of blockchain technology.

Watch the full speech here: https://www.youtube.com/watch?v=FKLNqFlAikw