I recently had the opportunity of speaking with Sarat Pediredla, Co-founder and Partner at Hedgehog lab – A company he set up in 2007 with his co-founder Mark Forster.

Hedgehog lab is a full-service mobile agency that specialises in building mobile experiences and touch screen interfaces.

In the full interview below, Sarat talks me through his journey so far as an entrepreneur and why he decided to start his own business.

Can you give you some background information about yourself, were you the entrepreneurial type growing up?

I was born in India and moved to the UK to study at Uni. Fortunately, I met my wife while I was at Uni and decided to stay in the UK permanently. I worked for a long time as a freelancer with a few jobs in the digital industry, before finally taking the dip into starting a software company of my own.

I have always had big ambition and entrepreneurial instincts as I was growing up. However, growing up in a middle-class Indian family, the expectations were that you studied really hard, achieved academic success and went to the US to Harvard or Stanford, and ended up working for Microsoft (then) or Google or Apple. My family were especially risk averse, and generations had been brought up on the theory that having a secure “job” and employment was the only way.

I am very grateful to have an extremely supporting father who encouraged me to pursue what I wanted without worrying about the risk of failure. I wanted to be a billionaire by the time I was 20 and I was willing to work day and night for it by dropping out of school. However, I am sure that had I kept on at that pace, I would have burned out before I reached my goal. It was just too much pressure for someone young to handle and it could have gone horribly wrong.

My father helped temper this by insisting I not skip school and that I get a decent education first. He taught me that it’s not how fast you get to the top but how long you stay there. This gave me a chance to try out education and employment both before I set out by myself and really helped me broaden my experience and understanding.

Tell me how the idea for Hedgehog lab came about?

I’m afraid there is no grand story behind this. After I got married, I decided that it was very important that we were able to buy a house to get on the property ladder. To do this, I felt I needed a full-time secure job that will allow us to take a mortgage. With this in mind, I took one of my very few employment roles at Newcastle-based digital agency TH_NK.

Although I joined TH_NK as a low-level developer, my passion for my job and the general start-up environment that the organisation had then, allowed me to rapidly progress to a level where I was leading teams and taking responsibility for delivery of multi-million pound projects.

As well as my job was going, I was never satisfied with how quickly I was progressing. I felt I hit a glass ceiling and the size and type of the company didn’t allow any more growth. Combined with this, I was starting to really be a thorn in the management’s side as I don’t respect authority very much unless that authority is myself. I really wanted to run my own company and be my own boss.

While I was mulling quitting and starting on my own, I got to know my co-founder, Mark Forster very well as he worked with me on my team. I got the general feeling that he too wanted more from his work and over many cholesterol-induced fast food lunches, I convinced him that starting a company with me would be a great idea.

It sounds hare-brained in retrospect given we both had families, very well-paid jobs, and mortgages/debts with no real savings. However, it sounded like the right time to do something.

We weren’t entirely sure “what” we wanted to do. All we knew was that we wanted to start a software company where we could bring our own style of management, liberal ethics, open organisation, and ideas to fruition. We literally thought, “If we get a bunch of really good guys together, give them great tools, and get out of their way without crappy rules and processes, we can do great things.”

What is Hedgehog lab?

We officially describe hedgehog lab as “a full-service mobile agency that specialises in building mobile experiences and touch screen interfaces. We architect, design, and develop great software for mobile devices, tablets, touch screen kiosks and devices that you use on the move. We specialise in building apps for smart phones and mobile websites.”

I think this sums up what we do.

Why mobile?

I believe the future of computing is mobile. Desktops, laptops, and other PC devices are going to be relegated to niche devices. Touch-enabled mobile devices like tablets and smartphones will deliver computing on a daily basis. We are seeing this already, with mobile devices outselling all PCs in 2011.

Talk me through the first few months of running the business? What would you say was the hardest part of starting the business?

To be honest, we didn’t think at the time that ANYTHING was hard or impossible. We were so excited to finally start our business and get going on our own, that there was never any time to contemplate what we were doing or the challenges we faced.

I think the hardest part was the change in lifestyle and the impact on our families. We went from being in VERY well-paid jobs with a luxurious lifestyle of spending, to being conservative about costs and bargain shopping.

On a business front, we finally found out that acquiring clients and new business wasn’t as easy as we’d hoped with our background working behind desks and not having many people in our Address Book to reach out to. It underlined the importance of building and keeping relationships and always having a list of contacts you can turn to.

How were you able to fund the business?

The business was completely bootstrapped with our own money. Mark and I had some savings put away, which we exhausted in the first few months. We started out quite moderately by being conservative with cash.

Our first office furniture was an old garden table and chairs we had disposed at my house and were waiting to take to the skip. We tried to use as much of what we had to ensure our costs were low.

Would you say the initial idea for the company, or that your business model has changed since 2009?

It’s changed very radically. As I said, we started the business not knowing what we wanted to do. It was obvious we could be a software company working for clients, as that was our background. It was the easy thing to do and something we knew very well. We started out doing web-based software and products. We tended to do everything and had no real focus at that time, as we wanted to try our hand at all potential opportunities.

However, since we re-branded as a pure play mobile agency, we have had laser focus on what we do. Everything we do is about mobile or is related to mobile. We don’t get involved in infrastructure projects, desktop projects or other web-only projects. We could very easily do that work but it distracts us from our core message: “We are great at mobile and we love it.”

How big is your team now?

We are now around 12 people and growing at a rapid rate. We expect to double this by this time next year.

What would you say has been some of the most crucial that you’ve done to build the company to this level now?

I would say experience is the most vital thing that has helped us grow the company. Sure, there are glorified stories like Facebook & Google, where young founders with no experience became billionaires, but the reality is that for 99% of businesses, you have to work long and hard at it to succeed.

This is why I feel all the problems, hardships and struggles of our earlier years have enabled us to build a concrete foundation for a business that will last, and if we get lucky, make us very rich!

What is your business model?

As a digital agency, we work by charging our clients for the time we spend on their projects, which is akin to consulting.

Is the business profitable?

As of this month’s accounts, it is

What’s been your most memorable moment so far on your entrepreneurial journey?

I don’t think I have had that 1 defining moment yet. There are plenty of memorable moments that I cherish but none of them stands out. I think just starting up was one of the best feelings ever but it was also great to sit down with our accounts earlier this year and realise we are going to turn out a huge profit for the first time company history.

What pieces of advices could you give to aspiring entrepreneurs out there?

‘Just do it’ is my constant mantra and will remain so for years. Entrepreneurship is a difficult, risky, and often thankless path. I know people in my personal and professional network who really want to break out of their 9 to 5 job and do something on their own but are worried about the consequences. 

If you are truly passionate about something, ignore the critics and take the risk. Once you do that, failure doesn’t seem such a scary idea.

What can we be expecting from you and Hedgehog lab in 2012?

We have just started to break into the London market and are working hard to establish ourselves as a national player. So, you will probably hear a lot more about us in the local and national trade press but our aim is to become the biggest mobile marketing agency in the UK. I think we are 1% on the way to achieving that. Only 99% to go

From Paris to New York City back to Paris and finally London, I chat to one of the graduates on the NEF programme, Joséphine Goube as she tells me her story navigating the entrepreneurial and corporate world.

Below is the full interview

Hi Joséphine, Its great to finally have you on YHP, how are you doing today?

Very good!

Before we move on, could you quickly give us some background information about yourself so that the YHP audience can get to know you better?

French small town girl. Moved to the big city Paris at 18 to study humanities at Sciences Po. Fostered my love for European Modern Political History, philosophy and architecture.

Moved to New York City at 20. Worked in Press Relations for Healthcare companies. Unleashed my enthusiasm for Urbanism and fascination of big Western cities.

Moved back to Paris to complete a Msc in Urban Strategies in 2009 and relocated to London to complete a Msc in Urban policies in the South & Development Studies at the London School of Economics in 2010. Improved my insight on international development and urban development.

Along the way, I co-founded a Business Incubator for London students (LSE Inc). Still on the Management board of this student-led initiative, I started working at Springboard last October to run the next program starting April 2012 in London. Graduated in December.

How did you get into entrepreneurship, what was your inspiration?

I don’t know; I just fell into it, like you fall in love. It just happened. I was totally blind about what I was getting into. I just know it felt right for me, and still feels.

Yet – I don’t care about titles; I would not event care not to be called an entrepreneur.

As such, I did not choose Entrepreneurship as a clear conscious career path. I did not decide ‘I want to be a self made woman for life’. However I have always admired Madonna or Coco Chanel. They stimulate my vision of what I wish to achieve: disruptive business with courage, hard work and vision for a more open-minded world. But as I said, entrepreneurship just feels right for me now; I don’t know about tomorrow.

What was your first business, how the idea came about and tell your experience running that?

The business incubator we built at LSE just came as necessary and the next thing to do: nobody helped students that were building REAL businesses while studying. There were lectures on venture creation but I don’t believe theory help – (at least, it can inspire). I believe in action.

Aside the need, I was fueled by outrage from the way the School was faking to care about students doing stuff and frustrated to hear my friends willing to go to consulting companies because they were not confident in themselves enough. Schools are places where to learn, ideal spaces where to execute, create and learn from your failures. If you don’t do it while there, when do you do it: when it is even harder (aka in real life)?

Finally, there was also an element of pure instinct in building this initiative. I like to build new things, I like to help so the idea seemed natural and making sense; it sounded fun and exciting. In reality, it was not so much fun: lots of work and pain. I was very stressed because I had never done such a thing and I was stressing on things to be perfect. I could have done much better if I had been more supported by the School, also if I had been more relaxed, less fearful. But you can’t fight fear for every ‘first time’ things you do, can you?

The opportunities that it opened to my career and in my life – and they were and are amazing – appeared later, when running it. It has been a life enhancer but I could not know this before I did it. It was million times worth it.

You studied at Sciences Po in Paris? Tell us about your experience during your time of study?

Sciences Po Paris is the best ‘Grande Ecole’ I could have ever been to. I simply loved my time there. It fitted my personality.

First, entering Sciences Po Paris meant (for me) moving from my very small town to a 8 million-people capital city. I was on fire: millions of things became possible.

Second, it was a total surprise: I never thought I would be accepted to the School (to say the least, I did not look at the results the day they came out). Nor did I ever think I would make it to Paris before 30. I was on fire (even more).

Eventually, like a chapter 2 in my small life; nothing was to be the same again after. I had left home; would never return back to my previous life and friends. This gave me the strength to believe that I can go anywhere, make it anywhere if I work hard (though without forgetting how luck plays a big role). This also gave me this obstinate mind, determination and sometimes (naïve) arrogance.

And some of the key things you learnt from that experience?

Difficult to summarize what I learnt at Sciences Po. To be concise, I would say:

Sciences Po being at the center of Paris puts you in an environment were you are directly asked to act like adults. You are not in your protected bubble on a university campus.

At School, I met with like-minded people. I was not a freak talking politics or philosophy. I was not mocked using serious words. People had something to reply; they were not just raising their shoulders. I developed my critical thinking and grow intellectual relationships.

Movers and shakers of this world would come to conferences at school. Being able to see, meet and talk to them, I started believing that I could become part of the clique. This is silly to say but I realize they were humans after all. As much as everyone.

There is a chinese proverb that says: When you work in a coal mine you cannot stay white. That is what happened with Sciences Po, and in a very good way.

I guess there’s been a lot of talk about going to university, the value of having a degree, entrepreneurship becoming a viable option, what made you realise that this was the right choice for you?

I never studied to get a job. I never thought a degree would get me a job. I thought it might just help get in touch with the people in the industry.

I went to university to study what I am passionate about Politics, Geopolitics, Philosophy, Art, Cosmology, Architecture, Sociology, etc. I spent my time talking about these subjects with fellows at school. In some ways, I am a nerd, in some others, I am not: I never aimed at being the brightest student in the classroom but always did my best in whatever I was passionate about. In other terms, I was average and sometimes far behind on school grades but I did not care. I did not see the value of grades compared to making friends with people and do things that I would remember forever. I was not the one staying long hours at the library. I was the one organizing dinners and parties to get the smartest of the school become my friends; I liked their brains. I like the things we could create together.

So I guess, I never though: get a degree versus starting my own company. I never saw entrepreneurship as an exclusive option. I was being “entrepreneurial” in my daily life. I set up a student association for European Movies with friends in my second year. I was setting up “Movie Wednesday’s”. I was setting up regular parties. I was giving classes to students taking their A-levels. I could do both: study and do things. I never compromised choosing between school and business.

You decided to come to London to study for your Masters at LSE? Why did you feel you needed to do this especially since you already done a Masters in Paris?

As I said, I am passionate about Urbanization and Architecture. I am thirsty of knowledge. London School of Economics is ranked first for this matters; it has one of the best Geography Department. So I applied for a loan (reluctantly) and a Msc (with enthusiasm).

How did you find it changing countries, cultures, friends – the adaptation process?

I am a social-bee that has been constrained to 18 years in a small town. I let you imagine how liberating it felt for me to live in Paris, New York and London.

Regarding the adaptation process: I am not just good at adopting new settings, I beg for these circumstances to change all the time.

This love for challenging the ‘status-quo’ can be perceived as a typical fear of boredom and a fear of being trapped somewhere for a long time (again). It can explain my radical stands on feminism or capitalism. Or maybe it is just an age/generation thing: the very impatient youth and the immediacy of technology that make us become ‘I want to be entertained now’ individuals.

You were very involved in LSE’s entrepreneurship society, you even started incubator program during your time there. Tell us about that experience and some of the key things you learnt from that and opportunities that it has given you?

I got in touch with LSE entrepreneurs Society during the summer prior moving to London. I wanted to get involved with people to do fun things to do – the other societies looked boring.

LSE Entrepreneurs’ President needed help for Fresher’s Fair: I raised my hand automatically. Wherever there is a need for help, I am here. Especially for nice people: Arthur is an awesome energetic guy with the heart at the right place.

It started like this: I asked what they were doing with actual students that were building REAL businesses. He said nothing. I said it is a pity. He said you should fix it.

It’s been lots of work and pain. It’s been stressful (but that is just me being stupid, stressing for details). I had so many fears because I had never done anything like this. The big lesson was: stop being scared, just do and fail so you will do it better.

It went very well: better than we would have ever expected. But I was never satisfied, always pushing to do better. I have been hard to live with the team I worked with. The handover happened this October and the new team taking over the initiative is just awesome.

As I said, the opportunities that it has opened to my career and in my life are awe-inspiring. It was million times worth the pain. It has been a life enhancer; I am more confident and happy in life. I saved two years of my life at McKinsey or Bain.

You’ve also worked for a few other companies namely: Euro RSCG Worldwide PR,1.2.3. Consulting and Rainmaking. Tell me about your experience working there.

Euro RSCG Worldwide has been a great first experience. Not so much in the tasks I was completing everyday (too young and too inexperienced to be given responsibilities), but it was a great start for the people I met with and the opportunities they have given me to see, hear, listen, learn, taste and experience.

1.2.3 Consulting is a startup style consultancy company that I helped for a summer. The founders gave me real ownership over my duties. Something most employers don’t: they just want you to complete tasks. I just loved the team and so the work. They trusted my work. To be given trust is a blessing.

Rainmaking co-founder, Carsten, gave me my chance last May to lead on the social media side of one of their startup company Trueskin. They gave me full ownership too, pushed me to be creative and let me learn from them at the office. I learnt a lot in very few months. Mats, founder of Trueskin, would always take time to tell me lessons from his failures. Inspiring.

What would you say was some of the key things you learnt from that experience?

I learnt to be more patient and to listen better – In progress still.

Tell us about NEF and how you got involved?

I got on the program to learn about business and eventually fell in love with the people involved.

However, I have been quite a pain for NEF during the match-making process. I have been picky with the company they matched me with; I went to the interviews when I could but was reluctant to work with the Company they had chosen for me. I believed they were not the right fit for me. So I told Zara that I was already working for an entrepreneurial company and that I might stay there. She agreed

What company are you currently working with, what do you do and how’s the experience been so far for you?

I’m working for Springboard with Jon and Jess. Currently, we are selecting our ten teams: exciting.

What are some of the key things that you’ve learnt so far from working at Springboard?

Always ask for help when you need it. Do what’s easier and what you truly care about.

Is this something that you would recommend to other aspiring entrepreneurs? What value can they get from this experience?

Just do it.

What would you say has been some of your most memorable moment so far?

A speed-mentoring with 80 mentors and about 150 entrepreneurs to manage. Fun when you like mess and to shout.

What advices would you give to aspiring entrepreneurs looking to start their own business?

No talk, just do it. Better sooner than later. You always get better with time (if you are honest with yourself).

What are your plans after NEF programme? What can we be expecting from you in the future?

Expect to be surprised.

Oliver Bridge explains the things entrepreneurs should watch out for when engaging with private equity investors.

I recently crossed over into the world of private equity, having come from a background in entrepreneurship. From a young age, I have run my own companies – starting with a mobile disco whilst I was at school, then an online footwear retailer (Biggerfeet.com) and finally an online gender search engine (Genderchecker.com). When I was at university I was involved with Oxford Entrepreneurs and for the last couple of years, helped run workshops at Silicon Valley comes to Oxford, an event which annually plays host to a wide range of high profile technology entrepreneurs from the likes of LinkedIn and Google.

In November, I joined Synova Capital, a private equity team based in Green Park, London. Synova looks to invest in businesses which are making between £1m and £5m a year in profit and where possible backs entrepreneurs and founders to help them grow their businesses further. Part of my role is helping identify which companies we should be talking to and meeting the management to determine whether we think the business would be a good investment for Synova. A lot of the companies I speak to are still run by the founding entrepreneurs, and it’s been an interesting couple of months: meeting different people and seeing how they approach the opportunity.

From what I saw in my time before private equity, entrepreneurs are an unusual group of people. They work slavishly on a single project – often in the face of great adversity, devoting all of their energies, resources and willing to something which might not make sense to others. Sometimes they can be blinded to the arguments against their idea, and seem to have a disregard for authority that can at times, border on unhealthy.

Investors are different. They, like entrepreneurs, also work hard, but they have a number of different opportunities which come across their desk and as a result, they have a lot of options about where they focus their attention. The initial challenge for anyone seeking investment is therefore to stand out and get noticed.

So what should entrepreneurs bear in mind when trying to engage with investors to enhance their chances of success?

· Make sure you pitch to the right type of investor. Angels and VCs typically are happier to invest in unproven ideas, whereas most PE investors will only consider established, profitable businesses that they can grow further – be that expanding internationally or growing the profile of the business. So, if you get a “no” – then don’t despair – it could be that you’re pitching to the wrong type of investor.

· If investors are going to enter into a deal without a controlling stake, then they need to be confident that they will be consulted with and listened to on any significant decisions which could have a material impact on the business. Not only is there a large amount of money at stake, but also an investor’s reputation, should anything go wrong. An entrepreneur that wants to hold onto their majority stake needs to convince investors that they will be a co-operative and understanding business partner.

· Investors speak with hundreds of different businesses every year and have lots of different options about where they direct their time and money. The best strategy for somebody trying to stand out from the crowd is to be pro-active – try to be quick to suggest dates for meetings, send information promptly and return phone calls as soon as you can.

· It’s crucial to be credible. A young, healthy and ambitious entrepreneur who claims their business is going to grow 50% next year but wants to sell all of the shares immediately is going to raise eyebrows – if there is so much money to be made why do they want out? Entrepreneurs should be prepared to commit financially to the future of the business when they sell – and may be required to ‘roll back in’ some of the proceeds from selling their shares, or commit to an earn-out. Entrepreneurs should expect this – investors want to protect themselves after all.

Most successful entrepreneurs are smart, empathetic and credible – that’s how they got to where they are. I also believe these are qualities which will stand an entrepreneur in good stead for dealing with an investor, so being true to your instincts should serve you well: put simply, it’s not a case of re-inventing the wheel.