Mike Thanos on being a mentor

An interview with Mike Thanos, Co-founder & General Manager at Insight Data Solutions.

Tell us a bit about yourself and why you founded Insight Data Solutions (IDS).

My background is in law, and mortgage and banking technology. My co-founder's background was in valuations solutions and customer acquisition technology.

We founded IDS to provide real estate data, valuation and analytics solutions to governments and corporations. That includes all property types; residential properties, rural, commercial and industrial. We service the government and banks, mortgage brokers, insurance companies, fintechs and more.

Our opportunity to enter the government market opened up when we acquired a solution from a business called Thomson Reuters in 2018.

IDS was acquired by Domain. Can you tell us a bit more about that?

The acquisition closed in October 2021, and we became a wholly owned subsidiary of Domain Australia Holdings (ASX: DHG). Domain is most well known for its real estate listings portal; but they also had customers in the banking space. So we knew Domain well, competing at times, but they were also a long standing data partner of ours.

The acquisition came about when we were raising capital through mid–2021. We decided that we preferred a strategic investor, rather than just a financial investor like a PE or a VC fund. And what had started as a capital raise turned into an acquisition proposition, because everyone we talked to, including Domain, indicated that it was their preference to take the business out as we fit strategically into their broader business. For us, that made sense provided they were prepared to value our business at a sufficient premium to justify the exit. Then by mid-September, we executed a binding agreement with Domain and closed the transaction mid-October. It was exciting and nerve wracking at the same time.

What the acquisition meant for IDS was that, firstly, we got access to fantastic data already established within Domain. Secondly, we received the capital backing we needed to grow the business. And lastly, being part of a larger, listed organisation with a highly recognisable brand, it helps us when dealing with new customers, getting them comfortable with the idea of outsourcing technology and partnering with us, whether that's banks or governments. It has also made it easier to attract talent as joining a startup is not necessarily for everybody, especially those conscious of job security, and Domain’s household name helps us to persuade potential employees to come and join us.

What’s it like moving from a startup to a corporation?

When you’re in a founder-led business, you mostly experience fear. When you move from a startup into a large organisation, you don't deal with fear so much as with frustration. Fortunately, we've encountered only a little bit of frustration, which is an inevitable part of working in an established corporation with processes and policies.

We negotiated the acquisition in such a way that protected our ability to continue to operate and grow the business, which is why we weren't immediately fully integrated into Domain. Because we have a five-year commitment, it’s essential that we get the ability to execute and not be slowed down. So I think we got the balance right. In fact, the corporate part of the business ended up integrating faster than we thought it would, mainly because there's an overlap of customer bases. On the other hand, the part of the business with the most growth potential lies within the government segment. That's where we're running a more independent race but still with all of the support from the Domain group.

Why did you join Stone & Chalk?

We joined Stone & Chalk through an accelerator program up in Sydney called Fueld, arranged in partnership with Data Republic, which was one of the early residents at Stone & Chalk. Westpac was the corporate partner in that accelerator, too. When we finished the program, we moved into Stone & Chalk's new office at Wynyard. It wasn't long after that the Melbourne hub opened, and we acquired a business in that state and suddenly had a bigger team in Victoria. We moved into the Goods Shed, the former location of Stone & Chalk Melbourne startup hub.

How was your experience at Stone & Chalk?

Being able to join Stone & Chalk was great for us for a number of reasons. The first thing is that as a startup, just being part of a community and being exposed to more people is a good thing.

There’s also the connection with other startups and people who are on the same journey. We helped each other a lot. We formed business partnerships with a number of other residents.

In addition, Stone & Chalk was always helping us gain exposure to different parts of the ecosystem, through networking nights or talks and meetups.

What led you to become a mentor?

Part of my motivation is giving something back to the startup community. I've had mentors throughout my career who have been very helpful and in some cases we’ve become friends.

I know that being a founder is a tough journey. It has its ups and downs. And one of the things that founders can do as mentors is helping other founders think through that and even feel through it, because it can be difficult at times. With over 20 years of being a founder, I've seen a lot of those situations. I enjoy being a mentor from that point of view as it’s all at a very personal level.

And then, at a more technical level, I like starting businesses, I like to hear what people are thinking about. I like learning from them – and you always learn by talking to founders. By nature, they are creative people, and I often find that I get as much out of the mentorship as they (hopefully) do.

Sometimes I can just share stories, and maybe they resonate. They may help them see things in a slightly different way. But, I won't pretend I’ve done everything. There are definitely areas where I’ll openly say I just don’t know, but part of it is being able to connect founders with other experts, because a lot of it comes down to having those networks.

Any tips you’d like to share with existing founders?

The easy thing to say is, keep your head down and keep going. The key to success is staying alive. If you can survive those inevitable hiccups and bumps on the road, or even take a step back to re-evaluate and change course, then your chances of being ready when the opportunity comes along are maximised.

If you stop, you'll never get the chance. But at the same time, that's not to say that you shouldn't sometimes reflect and really have a good look at whether you should keep going. As you know, most startups don't succeed. So you’re better off pursuing something with a high chance of success. Consider putting your energy and your capital into something different if the path you're on is not where you want to be. I guess that's where the uncertainty comes in. Nobody's got a crystal ball. You’ve got to trust your gut but also stay level-headed.

What about some advice for those wanting to start but nervous about the journey?

Being a founder is not a life for everybody. I think that's a very personal decision. One observation I have from my own experience is that I've never been a solo founder. I've always had at least one partner.

I think you need to choose your partners well and look after the health of that relationship, because often the challenges that startups have start with the founders. When looking for a partner, make sure you understand each other well, that you're on the same page and you've got complementary skill sets, because that's the reason you need co-founders. Personally, I would rather be on the journey with co-founders rather than doing it alone.

On my journey with my co-founders, Louie Psaroulis and Chris Spanos, at different times we thought it might not be worth it. Fortunately, at those times, the others would be there for support and optimism, and we soldiered on. If I'd been a solo founder during those times, I probably would have given up. So, think carefully about whom you choose to start up with.