Jonny Mirkin joined one of our Founders’ Breakfasts late last year. A familiar name in the NZ startup world, he entered the world of startups while studying law, launching his first business, Disc King, which he ran part-time from his bedroom before selling it prior to completing his degree.
His next venture, Nomos One, came early in his legal career. Initially developed as commercial lease management and documentation software for law firms, the platform evolved through multiple iterations into a global lease management and accounting solution used by mid to large corporates.
After Nomos, Jonny spent time teaching, advising other startups, and working on personal projects, including teaching the New Ventures and Technology papers in the Master of Entrepreneurship programme at the University of Otago. But in 2023, he returned to building, this time with Givenwell, a team wellbeing platform and marketplace. Givenwell launched in August 2024 and is already expanding into Australia.
This time, Jonny took a different approach. Instead of diving straight in, he spent six months validating, researching, interviewing, and talking to as many organisations as possible to deeply understand the problem and refine the solution before launching.
At our Founders’ Breakfast, he shared the good, the bad, and the ugly, but more importantly, the lessons he is applying this time around. We took some notes.
The importance of real product Market Fit
The term ‘product market fit’ is thrown around a lot in startup circles, but Jonny sees many founders claiming they have hit it before they truly have. In reality, it is much harder to reach than most people think.
It took Nomos One six years to truly achieve it. Even though Givenwell is gaining great traction, Jonny would not yet claim product market fit.
So…what is it? Product market fit is when your product solves a problem so well that demand starts pulling it into the market instead of you having to push it. Customers seek you out, word of mouth takes off, and your growth becomes organic rather than driven purely by sales and marketing.
Landing early customers does not mean product market fit
Bringing on a few early adopters is a great milestone, but it is not the same as having true product market fit. Many startups confuse initial traction with fit, but the real test is whether demand starts scaling beyond your efforts.
You should feel a shift in demand
When product market fit happens, the dynamic changes. Instead of constantly pushing your product, customers start finding you. Inbound interest increases, referrals grow, and sales cycles shorten. Jonny experienced this shift with Nomos One over time but knows Givenwell is still working towards it.
Retention and engagement matter more than sales
Sales are important, but if customers are not consistently using your product or seeing value, you have not hit product market fit. A product that fits the market is not just purchased—it becomes embedded into workflows or habits.
It takes longer than most founders expect
Some companies hit it quickly, but for many, it takes years. The journey to product market fit is often a slow build, requiring patience, persistence, and constant refinement.
Clarifying Your Value Proposition
A strong value proposition makes customers immediately understand why they need your product.
If you have to spend too much time explaining, you are already losing them.
Many founders assume their value is clear, but Jonny has seen that unless customers can quickly grasp why your product exists and how it helps them, traction will be a struggle.
If customers do not instantly get your value, you have work to do.
The more specific you are about the problem you solve, the easier it is for customers to see the value. If they cannot immediately connect your product to a pain point they experience, they will move on.
Make it easy for people to describe what you do.
Jonny believes a great test of your messaging is whether someone outside your company can explain your product in one simple sentence. If they struggle, your messaging is too complicated. At Givenwell, he refined the messaging over and over before landing on a simple, compelling way to describe it.
People buy solutions, not features
Startups often focus too much on listing features, but customers care about outcomes. How does your product improve their life or business? The best companies communicate benefits rather than just functionality.
Your product should be the obvious answer to a specific problem
When someone in your industry faces the problem you solve, your name should be the first they think of. This only happens when you define the problem clearly and position yourself as the best solution for it.
Raising Capital – Timing and Approach
Many founders assume raising capital is just about securing cash, but the reality is far more strategic. Knowing when to raise, how much to raise, and who to raise from makes all the difference.
Jonny has seen founders take on funding too early, too late, or from the wrong investors, mistakes that can slow growth or cause long-term challenges.
The best fundraising strategy is tied to why you are raising. Are you covering operational costs, fuelling growth, or extending runway? The answer shapes how much you need and who you should approach.
Know exactly why you are raising
Raising money without a clear plan can be dangerous. Whether you are raising for cash flow, product development, or expansion, investors will want to know exactly how the funds will be used and what outcomes they will drive.
Raise more than you think you need
Founders often underestimate costs. In tough markets, everything takes longer and costs more than expected. If you can, raise more than your immediate needs require to give yourself breathing room.
Be brutally honest with friends and family investors
Jonny spoke about the risks of taking money from friends and family. It can put pressure on relationships, so they need to go in with open eyes.
As he put it, whenever he raises capital, he says: "Assume that the moment the investment is complete, your money is gone." This is a great filter, if they are comfortable with that, they truly understand the risk and can afford to lose it. If they are not comfortable, they are the wrong investor.
Angel investment is more complex than it seems.
Many founders think angel investment is just about securing funds, but angel syndicates often involve multiple investors behind the scenes. This means founders may not always know exactly who they are bringing into the business. Due diligence is essential.
Venture capital can be a time drain at early stages.
Many early-stage VCs (for companies under five million in revenue) are more interested in tracking startups than investing. Founders can waste months in conversations that never lead to funding. If you are not yet at strong product market fit, focus your time on other funding sources. However, once you hit fit and start landing major customers, VCs can help scale rapidly.
High net worth individuals (HNWIs) can be a great option.
These investors often back companies because they believe in the founder, the industry, or have a legacy-building mindset. They can be hard to find but are valuable partners. Like angels, their level of involvement varies, so setting expectations early is important.
Consider debt financing instead of equity.
Once a company has stable revenue (over five hundred thousand), taking on debt can provide runway without diluting ownership. Many founders overlook this path, but options like BNZ Tech Debt can be a smart alternative to giving away equity too early.
Dunedin is full of second and third and fourth time entrepreneurs, always willing to share their knowledge and hard lessons. If you’re working on an idea or startup, and you’d like some support with anything from product-market fit to investment, get in touch with us! We’ve always got events on the horizon to meet with other local startups or we can book a time to chat.
Visit startupdunedin.nz/meet for more info.