Polina Raygorodskaya
Polina Raygorodskaya is founder and CEO of Wanderu, an internet start up
established in 2012. Wanderu runs a search engine allowing online booking and
purchasing of domestic bus and rail tickets in addition to providing other
travel information. A graduate of Babson College, well known in the area of
entrepreneurship, still alluringly beautiful Polina is a former fashion model.
1. I understand that you emigrated from Russia and
were an acclaimed fashion model before starting Wanderu. Would you mind sharing
additional details about your background to help us and our readers become
better acquainted with you?
I moved to the U.S. from St. Petersburg, Russia with
my family when I was five, and I grew up in Massachusetts. I worked as a model
before attending college. During my modeling career, I was with Major Models,
one of the top New York agencies. I had been featured in major ad campaigns and
on the runway during fashion week shows. But instead of continuing as a model,
I decided to attend Babson College in Wellesley, Massachusetts.
I started my first company, which initially produced
fashion shows, while still a sophomore there. That led to utilizing my
background and contacts in modeling representing designers. By my junior year,
I was listed as one of the top entrepreneurs under 25 years old in Business Week. After graduating, I moved
back to New York to continue running my PR firm, Polina Fashion. I ran this
firm focusing on fashion, beauty, and luxury for six years. I produced over one
hundred events across the country, ran shows for Fashion Week, and worked with
many different designers including a Japanese brand, Shigoto. It was actually
created by a Dutch designer who was struck by the pants construction workers in
Japan when he lived here. His brand revolves around that style of pants.
Running the PR firm, I traveled to and from New York
and Boston frequently by bus. Because buses are not only convenient and
inexpensive, but also wifi enabled in the U.S., I could use them as mobile
offices. However, the booking process was very inconvenient. There were a lot
of different options running through different major cities, so I sometimes had
to visit as many as ten different websites to determine which buses were
traveling at what times and the ticket prices. This personal experience was a
major motivation for establishing Wanderu, which simplifies the train and bus
booking and travel process in North America. We currently work with all of the
largest service providers including Grehyhound, Megabus, and Bolt Bus in the
U.S. and Canada, and we will soon be expanding into Mexico.
2. You and your co-founder Igor A Bratnikov realized
that an unmet need existed when you could not locate a bus station after your
ride-share abruptly canceled while you were traveling with Green XC on a
campaign to promote awareness of National Parks and Forests. How did you
validate that this need was potentially profitable enough to develop into a
business? Can you guide us through the process you followed to develop and
validate your business plan, then start Wanderu?
I actually work with two other co-founders but Igor
was the original one. We came up with the idea on a campaign to raise awareness
for national parks and forests. We were a group of young professionals whose
goal was to get more young professionals to enjoy outdoor activities. On a tour
across the country, we became stranded in Virginia because our ride share had
suddenly canceled. We tried to find a bus or train to our next destination, but
could not. The experience was the tipping point that drove me to start the
company. I have known Igor, who accompanied me on the trip, for a long time. Both
of us part of Russian Math School in the U.S., we shared the same circle of
friends. We then brought on a third founder, Eddie Wong, as our CTO. We had met
him through a group of entrepreneurs we were involved with in Boston. He is the
technical mastermind who helped us develop the system that made Wanderu a
reality.
To validate the concept, we took several measures. Conducting
market research, we realized that more people travel by bus domestically than
by air. In 2012, about 750 million people traveled by bus versus 730 million
who flew. We also noted that many of the bus commuters were Millenials, that
is, they range in age from 18 to 35. They grew up “online,” using the internet
as an ordinary part of their daily life. They expect to find everything they
want with the click of a button. They are dependent on mobile technology to
help them do things quickly. Because Millenials grew up using the internet, the
millennial generation have no patience for technology that cannot keep up with
their speed of life. These data revealed a disconnection between the needs of
the people who most frequently traveled by bus and the process they had to
follow to purchase a ticket.
Once we reached this hypothesis, we conducted surveys,
speaking directly with potential users to determine if they would use this type
of service. We also launched a landing page website describing our model, and
offered visitors the opportunity to sign up for the beta version. To motivate
visitors to share the site with others, we ran a game in which the more you
shared the sites, the greater your likelihood of being selection to use the
beta version when it was launched. Before we launched, before doing any formal
marketing or advertising, tens of thousands of potential customers had signed
up to use the beta version of Wanderu. This result alone clearly indicated
adequate demand for the site. But
we also conducted some tests with Google Adwords to determine the cost of
getting people to sign up for Wanderu. Word of mouth and publicity in local
magazines in the U.S. also had an effect in publicizing the site.
3. Can you describe the scale and scope of your
current business? How many employees do you have? What are your annual
revenues? How much profit are you generating?
Besides myself and my two co-founders, we now have
eighteen additional employees and have just completed our second round of venture
funding, which raised slightly over 5.6 million dollars. We are actively hiring
to further expand the team. Millions have used the site to search and book
tickets since we launched it in August in 2013.
In terms of organizational structure, we have a team
of twelve on the technology team reporting to the CTO, one of our founders, and
the remaining employees are all on the business team. We recently hired a vice
president of marketing, Jay Burke, who had formerly overseen marketing and
strategic partnerships related to a number of brands at a TripAdvisor company. I am the CEO, and the other founder
is the COO in charge of operations.
4. You raised $2.45 million in funding in 2013. Was
that your first round of funding? How many additional rounds do you anticipate?
Do you eventually plan to undertake and IPO or sell your company?
Eventually, our investors will look for some sort of
exit, whether that be an acquisition or an IPO. This is definitely the goal. But
even if acquired, I still hope to stay on as CEO. There are still lots of
things I would like to do through Wanderu. The number of additional rounds of
funding we will need is difficult to predict. We are currently on track to
become profitable without raising additional funding. However, if we want to
grow and expand into other regions, we may pursue additional rounds of funding.
At this point, we have not clearly determined the amount of funding we will raise.
Rather, we will continue to evaluate the need as we grow.
5. How do you use social media to market Wanderu? What
other marketing techniques have you tried? Which have you found most useful?
As mentioned, we recently hired a marketing vp who
started about a month ago. He is going to spearhead efforts directed at paid
advertising. But we are active in social media. We interact with our customers
a lot. In addition, we furnish lots of interesting content about where to go
and what to see. Word of mouth is also important. People like the Wanderu experience,
so they share it with friends.
We get a lot of free press, too. Lots of magazines and
other publications write about us. We use Google Adwords, too. Still, most of
our traffic comes from people who happen to find our site and try the service.
Once they do, they come back!
6. What significant challenges have you confronted in
launching and growing Wanderu? How have you overcome them?
Building relationships and convincing bus companies to
join us was initially a challenge simply because the idea was new. They were
not used to doing things on line. We had to persuade them to give us a try.
Technology was another challenge. No middle-layer infrastructure as in the
air-travel industry existed in the bus industry when we started Wanderu. There
are no APIs that connect directly to bus systems. Many companies are new to
technology, new to the internet and online business. Building the initial, middle-layer
infrastructure took years, yet we are not through. We are still perfecting it.
7. How did you decide on the company name Wanderu? What
is it supposed to mean?
When we were discussing the company name, we tried to
think of words that inspired us to want to travel. The word wander really makes me feel like
exploring, like traveling the world. Then, we began thinking about endings to
the word, and that led us to Wanderu,
which sounded really nice. It just flowed off the tongue. The word sounds like
kangaroo. We decided to do a Google search to see if anyone was already using Wanderu. We discovered that wanderu is the name of a particularl
type of monkey native to India. That led us to our mascot! People recognize the
monkey, associating it to our brand.
8. Many successful entrepreneurs establish only one
company. You have already established two. How is being a “serial entrepreneur”
different from being one focused on a single business? What different or
additional skills are necessary to succeed as the former?
I think it takes a little bit of lunacy and a whole
lot of persistence to succeed as an entrepreneur. I do not think there is much
of a difference between being a one-time entrepreneur and a serial founder. Once
you succeed as an entrepreneur, I believe that you can replicate that success. The
critical part is the decision to venture out on your own and endure the ups and
downs of building and running a business. Not everyone wants to face the
challenges involved in running a business. Once you have overcome them, I do
not think there is any difference between selling one company you have founded,
then starting another, or moving from one industry to another.
The critical ingredient, what matters most, is passion.
If you are not passionate about what you are doing, you will have difficulty
growing and building a business. I was never really been passionate about
fashion. Though the business had been successful, I never really experienced
the desired to grow it into a huge enterprise. With Wanderu, I am excited that
I am in the process of solving a problem not only for myself, but for multiple
millions of people. This passion enables me to push through the challenges that
every company encounters. Such passion is crucial in designing what type of
business to run.
Having a thick skin is important, too. You’ll need it
to push through the challenges. Every business progresses through ups and
downs. If you are not mentally able to deal with the curve balls, you are not
likely to succeed because the path to the top is not a straight one. I do not
recall the words exactly, but the proverb “The path to success is a winding
road” comes to mind definitely applies.
9. The Japanese government is promoting the
exportation of J-Pop products including fashion and entertainment merchandise
to the US, Europe and Asia. As a fashion expert, how would you evaluate the prospect
of exporting Japanese fashion products like apparel to the US market? What
Japanese brands or designers do you like?
I have already mentioned that Shigoto Fashion, a
Japanese line for men and women, had been a client of Polina Fashions. I am
definitely a supporter of more Japanese fashions entering the United States.
However, since starting Wanderu over three-and-a-half years ago, I have not
really done fashion PR so I am not current on the latest trends. Trendy
clothing are popular in the United
States, and Japanese designers have definitely
mastered the trendy look and feel. Several designers have become popular in the
United States, but because I am no longer really in the industry, I can not really
evaluate prospects for Japanese fashion products at a broad level.
10. What advice would you give to young women interested
in establishing their own company?
I think fear is the greatest obstacle for most women. They
may fear failure or the risk of being rejected in a male-dominated world. The
best I can give for combating these fears is to urge women to just go for it.
They have absolutely nothing to lose. I was lucky enough to found my first
business while I was still a college student. I did not have a family. I did
not have a mortgage. I could more easily take the risk. Doing so is more
difficulty if you have a family, children, if you have a house. Additionally,
if you currently have a secure job, you may fear not being able to support
yourself or your family if you lose that position. These fears are all valid,
but they will never completely disappear. There is no better time to found your
company than now. If you wait, you will only think of more reasons why you can’t
start a business. So, to repeat my advice, just do it! The time is now.
Below is the Japanese version of my Kindle book featuring the full-length interview with Polina and other female entrepreneurs. I will publish the English version early in 2016.
Why this series on entrepreneurs?
Contrary to the impression given by the hype and hoopla surrounding many recent tech start ups, research indicates that innovation is declining in the United States. To facilitate reversal of this trend, I decided to interview successful, young entrepreneurs to learn about their struggles, triumphs, and success secrets. I am hoping their stories will inspire you to pursue your entrepreneurial dreams the way I currently am.
In 2016, I will officially incorporate Play-Ed (Playful-Education), an educational company that will furnish after-school programs aimed to teach S.T.E.M. (Science, Technology, Engineering, and Math) with an emphasis on digital technology; cross-cultural communication, and life management skills. To view the site where my headquarters and flagship-school will be established, click the link below.
In 2016, I will officially incorporate Play-Ed (Playful-Education), an educational company that will furnish after-school programs aimed to teach S.T.E.M. (Science, Technology, Engineering, and Math) with an emphasis on digital technology; cross-cultural communication, and life management skills. To view the site where my headquarters and flagship-school will be established, click the link below.
During the summer of 2016, I will offer three, week-along, intensive, camp-style workshops for international students and professionals:
1. English + Coding = Future Success
2. Navigating the U.S. undergraduate and MBA application Process
3. Selling to Westerners
In addition to facilitating all workshops, I will provide individual coaching to each participant. For further details, contact me.
1. English + Coding = Future Success
2. Navigating the U.S. undergraduate and MBA application Process
3. Selling to Westerners
In addition to facilitating all workshops, I will provide individual coaching to each participant. For further details, contact me.
