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Transcript

LotR Episode 5 - Lessons from Shutting Down a Startup

Lessons from closing Myrror Security

Latio On The Record — Episode Recap

Guest: Yoad Fekete (ex-Co-Founder & CEO, Mirror Security; now leads Security & Infrastructure at Lynx Security)
Hosts: James Berthoty & Charrah
Recorded: Wednesday, June 4


Why we wanted Yoad on

Mirror Security caught our eye back in 2022 for one reason: it tackled SolarWinds-style software-supply-chain attacks head-on, instead of stopping at familiar SCA vulnerability scans. Myrror had the rare combination of genuinely differentiated and useful technology. Two years (and one graceful shutdown) later, Yoad has a rare 360-degree view of what happens when brilliant tech meets a market that just isn’t ready.


Conversation highlights

0:17 Yoad’s background: Microsoft IR after SolarWinds → co-founding Mirror to catch supply-chain intrusions early

4:14 Why “traditional” SCA tools don’t flag injected build artifacts—and how Mirror’s binary-to-source matching tried to fix that

9:18 Early market signals vs. real product-market fit: the danger of mistaking enthusiasm for intent

15:35 Founder-led sales lessons: when a two-week POC needs to end at two weeks

26:20 How to judge pivots: technical edge, ecosystem partnerships, and the “three-year-contract” wall

51:45 Recognizing shutdown flags: stagnant pipeline, long sales cycles, and repeated VC “no’s”

56:23 Yoad’s three red lights before closing: 1) zero VC appetite, 2) no pipeline growth, 3) POCs that don’t convert


Five takeaways you can use today

  1. “Cool” isn’t a buying signal
    If the prospect understands your tech and still won’t sign, it’s time to revisit the problem you solve.

  2. Own the first sales yourself
    Hiring reps won’t save a product the founder can’t sell; use outside experts only to tighten the motion.

  3. Two-week POC rule
    Value uncovered after week two rarely tips a deal—set a stop date and stick to it.

  4. Plan for the acquisition audit
    If a big-box buyer mainly wants your team, a fully remote, distributed headcount can complicate the offer.

  5. Graceful shutdowns take cash
    Budget early for vendor obligations and employee support; you owe the team a soft landing before worrying about yourself.


What’s next for Yoad

He’s publishing weekly LinkedIn essays on founder lessons, cybersecurity GTM strategy, and supply-chain security—worth a follow if you’re iterating on a security startup or wrestling with product-market fit.


🎧 Listen to the full episode wherever you get your podcasts, and let us know which insight resonated most.

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