E61: How Alex Persson Rebuilt Privy

In this episode of 1 to 100, formerly The SaaS Operators Podcast, Alex Persson joins us to talk about rebuilding Privy after it went from a nine-figure acquisition to a business that was close to worthless in less than two years.Alex explains why he now treats most business problems as product problems. Since rebuilding Privy, the company has gone from almost no growth to 30% growth while remaining profitable. His focus is product quality, customer feedback, and removing the small points of friction that compound over time.We talk about how Alex looks for undervalued assets, why he wants Privy to stay default alive, and how the company acquired two venture-backed businesses that had raised around $100M combined. Privy paid with equity instead of cash and acquired products, revenue, and talent at a fraction of the capital previously invested in them.We also talk about venture capital and how quickly sentiment can change. A company can become attractive to investors almost overnight, even before its long-term enterprise value is clear. Alex and Rishabh explain how good investors use capital, structure, and relationships to improve the probability of a good outcome.Alex explains how he approaches acquisitions when founders and investors want a different outcome. He looks for situations where investors can get liquidity or equity in a profitable company, founders can move on, and Privy can keep compounding the acquired business.We also talk about the difference between a founder and a CEO. Some businesses need someone to create a new direction. Others need someone to reduce volatility, improve process, and keep building enterprise value over time. Alex argues that the job depends on what the business needs at that point in its life.The lesson for founders is know what type of business you are building, what type of capital fits that business, and what role the company needs you to play. Long-term success can come from compounding at 20% or 30% per year just as much as it can come from raising large rounds and growing as fast as possible.