Meet Alexander Jekowsky, Chief Executive Officer at Cents:

Alexander Jekowsky is the CEO and co-founder of Cents, an all-in-one platform transforming laundromats and garment care businesses into scalable operations. Under Alex’s leadership, Cents recently closed a $40 million Series B funding round, fueling its rapid growth in the industry. Alex is also a seasoned entrepreneur, having previously founded Ulingo, a language-learning company acquired by Moto Labs. As a second-time founder, Alex brings a wealth of experience in scaling businesses, fostering innovation, and leading in the tech sector. His insights on global hiring, remote work, and navigating employment compliance make this episode a must-listen for leaders looking to grow globally.

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Quick Read: Alexander Jekowsky, Chief Executive Officer at Cents, Interview Highlight

Identifying the Gap in Garment Care

I kicked off our podcast by querying Alex Jekowsky on how he first identified the need for transformation within the garment care industry, a domain not typically seen as glamorous. Alex’s story is fascinating; he initially considered opening a themed bar in San Francisco but was dissuaded by horror stories in the hospitality industry. His chance encounter with someone familiar with the laundromat business sparked his interest, as he learned of its durability and diverse revenue streams. This curiosity led him to work in laundromats firsthand, which helped him identify a lack of institutional technology solutions in the sector.

“I found that there’s no sophisticated technology focused on this vertical,”

Alex recounted, leading him to found Cents.

Impact on Customer Bottom Line

Our conversation transitioned to the tangible impact of Cents on laundromat businesses. Alex emphasized that while technology like Cents can significantly aid operations, it is not a silver bullet.

He illustrated:

“You still got to get in and turn the wheel,”

That said, Cents helps grow, manage, and understand businesses by streamlining operations such as pickup and delivery—services that can triple the average sales per order. Alex shared instances of substantial revenue increases due to Cents, saying,

“We’ve seen a 60 percent revenue increase when converting coin-operated machines to card and phone payments.”

Raising $40 Million in Series B Funding

I was eager to delve into Cents’ recent $40 million Series B funding round. Alex expressed a balanced perspective, noting that while it’s a milestone, it signifies more responsibility.

He pointed out:

“Capital raised is not an indicator of success.”

The funds serve a strategic purpose, enabling rapid product development and market penetration. For Alex, the focus remains on revenue and customer satisfaction, ensuring they don’t just chase funds but build sustainable growth.

Software and Hardware Integration

Our dialogue also touched on Cents’ investment in Launderworks to incorporate hardware into its ecosystem. Alex argued that software-enabled hardware can significantly enhance value to both the customer and the company by offering deeper integration.

He explained:

“We’re lucky to have a profitable division of hardware that enables further software deployment, creating an ecosystem,”

Raising Funds in Unsexy Industries

One intriguing part of our discussion was Alex’s advice for other founders in “unsexy” industries. Authentic passion, he stressed, can transcend industry topics and impress investors.

He asserted:

“Investors want passionate teams solving real problems.”

The challenge is less about the business’s perceived sexiness and more about demonstrating genuine commitment and opportunity.

Mistakes and Learnings in Fundraising

Reflecting on his fundraising journey, Alex highlighted the importance of aligning investor expectations with the company’s vision.

He mentioned:

“It’s about data, numbers, and presenting full pictures of risks and positives.”

He learned that balancing excitement with critical evaluation can help avoid overselling and underdelivering.

Advice for Future Fundraising

For founders looking to raise funds in 2024, Alex offered strategic advice: present an investor as the last check needed for success, focus on efficiency alongside growth, and maintain authenticity.

“Investors can smell bullshit,”

he warned, advocating for honesty about challenges to build trust.

In wrapping up this insightful conversation, Alex left us with a teaser for big news coming from Cents, while extending an open invitation to anyone interested in the laundromat business to connect, illustrating his passion and openness to new partnerships.