Interview with Alex Baghdjian from Funday
Hi all,
Continuing our interview series, we had the opportunity to speak with Alex Baghdjian from Funday this week. I met Alex through Vahe Stepanian, a mentor at Hye Combinator. Alex has a fascinating background and has lived in 7 different countries. He is now based in Yerevan running Funday, a marketing agency.
My interview with Alex below…
HC: Thanks for taking the time Alex. Maybe if you can start with giving us a brief overview of your background?
AB: I was born in the US, but never actually grew up in the US. I've lived in 7 countries (Japan, Oman, UK, UAE, Qatar, USA, and Armenia). Started my career at IBM as a consultant. Made a lateral move within the company to become a product manager in the IBM Watson group (IBM's Artificial Intelligence group). Was lucky to be one of the first 10 people in the IBM Watson Financial Services group and was responsible for developing pre-packaged IBM Watson solutions for the financial services industry - from customer intelligence tools to anti-money laundering solutions. From IBM Watson, I became the head of financial services at Ayasdi - a $100M backed silicon valley AI company founded by the former head of Stanford's math department. Ayasdi was eventually sold in 2019. I stayed at Ayasdi for 6 months after it was sold and then founded YerevanRide, one of the first micro-mobility companies in Armenia that provided over 200 bikes for public use in Yerevan. In 2020, I co-founded Funday and lead our cryptocurrency and fintech division.
HC: Talk a little bit about Funday. What do you guys do?
AB: Funday is a full-service marketing agency. Funday is a virtual-first company, but has employees in 3 primary hubs: Calgary (Canada), Toronto (Canada), and Yerevan (Armenia). We currently have 60 employees, with about 25 employees in Armenia. Funday is divided into 4 different groups: Funday Agency, Funday Ventures, Funday Labs, and Funday Love. Funday Agency is our marketing agency that develops and executes creative campaigns. Right now, Funday Agency primarily services 3 industries: Crypto, Tech (Series A onwards), and CPG. Our cryptocurrency division has grown rapidly with major clients like Bittrex Global, Bitcoin.com, Algorand Foundation, and personal brands like Henri Arslanian. Funday Ventures is our latest division to launch and has already invested in and launched 3 different ventures.
My core belief is that each Armenian needs to focus on one thing to make Armenia better. Our goal for Funday in Armenia is to build a world-class production studio. We have currently developed ads that have been produced, filmed, edited in Armenia and aired globally. We want to 1) level up Armenia from a production perspective, and 2) support Armenian creatives (we have a company culture that supports creativity, pay 2-5x the average Armenian creative salary, and provide other perks). We're even sourcing and bringing diaspora talent from outside Armenia to come help with our mission. Right now, 30% of our Armenia office staff are diaspora. Our goal is to make 50% of our office diaspora.
If you know any diaspora producers, directors, or anyone involved in the production world, would love to connect with them.
HC: That is interesting. Seems like you and the team are pretty busy. I agree on your point that each Armenian needs to focus on one thing… when and why did you move to Armenia?
AB: I moved to Armenia in 2019. I moved for two reasons: 1) I thought Armenia was going through a renaissance and wanted to be in the middle of the Armenian renaissance, and 2) Selfishly, I wanted to test my entrepreneurial skills and I believed Armenia was a low-risk, low-cost way to do that (still believe that).
HC: Where else are you spending your time? What projects, organizations, etc.?
AB: I am 100% focused on Funday right now, but always willing to help Armenian entrepreneurs if I can.
HC: How would you describe the health of Armenia’s tech ecosystem? What excites you the most?
AB: From what I see, Armenia's tech ecosystem is very healthy. I think what excites me the most is that we haven't even tapped into our full potential. Once more Armenians in the diaspora see Armenia as a step forward in their career vs. a step back and charity, then we're going to really see Armenia's tech ecosystem accelerate.
HC: Where can it improve? What is lacking in the ecosystem?
AB: There is a definite lack of marketing and business development skills in Armenia.
HC: Are there particular sectors that are garnering more attention or capital? What are those and why?
AB: AI tech is getting the most attention and I believe that's where the attention needs to be honestly. AI is how we can differentiate ourselves and accelerate the country's status as a high-tech hub. Companies like Krisp, Podcastle, Aimhub, and others are doing amazing work in the AI space.
HC: Where is there a supply shortage in terms of companies/products/etc.? Where should our future entrepreneurs focus going forward?
AB: Definite shortage in cryptocurrency and blockchain companies in Armenia. This is a huge growth area globally and Armenia is not even on the map in any meaningful way. Right now there is a huge demand for blockchain developers.
HC: From your perspective, what are the 2-3 most common reasons why entrepreneurs fail at scaling their ventures? And how do you recommend they overcome or avoid those?
AB: 1) Wrong core team to help them scale. Solution: find out what your faults are and find founders that fill those faults. Also, if you don't vibe with your founders, then move on. Don't try to make it work. 2) They invest in the wrong areas. Solution: you have to hire in unsexy areas as you scale. It's not all about more engineers and sales people, but also operations people to make sure the ship is pushing forward.
HC: What advice do you have for aspiring Armenian entrepreneurs?
AB: Throughout my career, there's one reason why companies (large ones or startups) fail: ego. Culture from the top of the house let's their ego get in their way. That negative culture then permeates throughout the company and it has a higher likelihood of failing. Before you even think about starting a company, check your ego and make sure you can control it. In my view, a great entrepreneur doesn't overly cry at the losses and overly celebrate the wins, but stays centered throughout the whole process.
HC: What are some of the resources offered by the public or private sector government that are available to aspiring and current entrepreneurs?
AB: This really depends on the area you're focusing on. But, I always tell people to do their research. Research, research, and research before you come up with any formal plan of attack.
HC: For those who are interested in getting involved in the ecosystem, what do you recommend they do? What are their options today whether that be partner, investing, mentor, etc.?
AB: This really depends on a lot of factors, like your risk tolerance, life goals, and investment capabilities. At a minimum, everyone should be helping mentor and support Armenian companies in any way they can. You all have a network. Let the top Armenian entrepreneurs have the chance to leverage it. If you can invest in companies, then I would recommend looking at SmartGate as a diversified bet into Armenian tech. I would avoid any direct investments unless you have good knowledge of the Armenian tech ecosystem. If you want to try our being entrepreneurial and have a software idea for the global market, I would recommend moving to Armenia and giving it a shot. It's a low-risk, lower cost way to test your entrepreneurial skills.
HC: Anything else you’d like to touch on?
AB: Mentioned this earlier, but would love to connect with any Armenian producers, directors, actors or anyone involved in the production world.
HC: How can people get in touch with you or Funday if they are interested in learning more, investing, partnering, and so forth?
AB: To learn more about Funday, you can check us out at www.funday.agency.