Business
How Leor Massachi Conquered The Startup World And Became The Co-Founder Of His Company Dandy By Age 20
We’d like to introduce you to Leor Massachi: a 23-year-old carrying the titles of co-founder, Chief Product Officer, and Chief Marketing Officer for a tech startup named Dandy. Massachi had been interested in business since he was in middle school, so it only made sense that he decided to pursue a business-related program at the University of Southern California after graduating high school.
Although his major was in real estate development, Massachi’s true passion always lied in learning about the realm of technology and how multifaceted it could become when starting a business. He became obsessed with the idea of entrepreneurship to the point where he began interviewing successful executives on a television segment he came up with for his school’s newscast called “Word Hard, Play Hard”. Massachi would also constantly find himself dreaming big and taking notes of “cool ideas” for potential business endeavors on his phone so he wouldn’t forget them down the line. Then, once he got to USC, he was able to learn directly from the experts about the dos and don’ts of launching a tech startup. Along the way, Massachi networked with a number of successful entrepreneurs that gave him some of the advice he still applies to his business today.
In 2018, Massachi and his partner, Daniel Newman, came up with a concept for a dating application while chatting in their dorm room at 1 AM. The app was brainstormed to be completely different than your average Tinder or Bumble; the college seniors noted that they didn’t want users wasting time while they waited for the other person to reply. Instead, the app would work instantaneously for all users. At 8 pm every night, the app would go “live” for 10 minutes and users would make the attempt to log on and find a match. Once two users “liked” each other, they would be automatically transferred into a three-minute message-based chat where they could get to know each other in real-time. If they both decided to move forward when the call was over, the application would provide each user with their match’s phone number.
The concept was unlike anything the market had ever seen, and the two seniors knew they were onto something big. But with great originality also came significant challenges. The two entrepreneurs hired top-tier engineers to work on the product due to its complicated synchronous nature. If too many users logged on at the same time and overwhelmed the server, the entire application could crash. Therefore, it took numerous rounds of trial and error to have the servers reach an optimized stage that could handle the load of thousands of users.
And despite the innovative concept of the product, however, Massachi knew the idea and design of the app alone would not be enough to get the users to participate in the launch. He began to brainstorm ways of marketing the product while remaining under the extremely limited budget he and Newman were paying out-of-pocket. They had to be resourceful and minimalistic with their spending while still making enough of a statement to gather brand recognition. An entire discussion of ideas later, they decided to buy hundreds of yard flamingoes that resembled the outline of the app’s logo and disperse them amongst the USC campus overnight with flyers that read “you’ve been flocked!”. People responded extraordinarily well to the marketing tactic, and just like that, Dandy gained over a thousand users overnight.
Eventually, Massachi was designated as the company’s CPO and CMO while Newman took care of logistics as the company’s CEO. “When things started becoming a bit more stable and the app began taking off, we decided to divide the workload based on what we were best at,” Massachi said. “I focused on the development of high-level product concepts and marketing strategies for Dandy because my natural way of thinking was: ‘how can I penetrate the market in a different and effective way that will still prioritize remaining as resourceful and low-cost as possible,’” he added. “Since I tend to lean more toward working creatively than logistically, it just made sense this way.”
In February 2020, the Dandy app went through some major rebranding after news of a possible pandemic began to consume the media. The company founders gathered in an emergency meeting to discuss the possible consequences of what a nationwide lockdown could mean for students who were still in the prime years of their college experience. They understood that the consequences could force students to leave campus and have classes resume virtually, along with the hopes of establishing new relationships going right out the window. But Massachi and Newman came up with a plan to fix that. They introduced the idea for Zoom University: a live two-on-two video chat application that would be aimed towards recreating the way millennials and Gen Zs formed new connections and relationships online. Since each user went live with a friend, the sense of comfort and trust allowed the product to run far more smoothly than the nerve-racking one-on-one video chats from Dandy’s early stages.
Massachi’s marketing tactics for Zoom University were more digitally-focused than those for their previous product. This time around, the CMO utilized a cutting-edge social strategy that involved having hundreds of TikTok creators tell their audiences about ZoomU in their own organic way. “We wanted the content to be as authentic as possible, so we let the creators do it however they felt was most relatable to their community. It was a win for them because they were able to use their own creativity and brand personality to talk about the product, but it was also a win for us because people received it as a genuine endorsement rather than as some random ad,” Massachi explained. As it turned out, the CMO’s approach was immensely effective. One of the influencers’ videos uploaded to Tiktok ended up going viral overnight, and in a matter of 48 hours, the video was viewed over 2.5 million times. Zoom University ended up adding hundreds of thousands of users to their waitlist as a result of that one video.
A couple of months after its launch, Zoom University surpassed a user mark of 100,000 and it even gained a spot in the Top 10 Social Networking Apps on the App Store. That alone was a dream come true for Massachi and Newman. But the work didn’t stop there. Since August of 2020, the two co-founders have been in the process of developing yet another new project alongside some big investors. Details cannot be discussed quite yet, but they have shared that they will be implementing all learnings and feedback from their prior products into perfecting this new endeavor.
Bearing in mind their monumental milestones, you’re probably wondering how these fairly young business owners have time for anything else besides attending to their ever-evolving business. But they actually happen to heavily prioritize the balance between work and social life. “I’m very mindful. I try to live every day like it’s the weekend,” Massachi said. “Occasionally, I’ll go biking, I’ll eat good food, I’ll meditate, or I’ll hang out with friends. Taking a break helps me reset so that I can continue coming up with fresh, new ideas once I’m back to work. I’ve gained a lot of knowledge along the way on how to manage this heavy lifestyle, but I’m also still learning as I go. That pretty much goes for everything when you’re involved in a startup.” Massachi adds that he is eager to wake up every morning and think of new product ideas to improve people’s everyday lives; products that will not only provide high efficiency, but will also be meaningful enough to bring joy to its users.
Business
How Technology Drives Value Creation in Private Equity
How technology drives value creation in private equity is now one of the most actively debated topics among institutional investors and fund managers. A decade ago, technology was largely a cost center in PE-backed companies. Today it sits at the center of margin improvement, revenue growth, and exit multiple expansion. Firms that figured this out early are generating better returns with less reliance on financial engineering.
The shift happened for a practical reason. As interest rates rose and deal multiples compressed, financial leverage stopped doing the heavy lifting. Operational improvement became the primary value creation lever. Technology accelerated what was possible within the ownership period.
How Technology Drives Value Creation in Private Equity Operations
Operational improvement through technology produces the most measurable results. PE firms apply technology tools to reduce costs, increase throughput, and improve decision-making speed inside their companies.
Digital Process Automation in PE-Backed Companies
Manual processes in back-office and production functions carry real costs. They consume labor, generate errors, and slow down the information flow that management teams depend on. Automation tools eliminate these costs without requiring headcount reductions that disrupt company culture.
The most impactful automation deployments in PE-backed operations include:
- Accounts payable and receivable automation that compresses billing cycles and reduces days sales outstanding
- Production scheduling software that reduces downtime and improves throughput in manufacturing environments
- Inventory management systems that cut carrying costs by aligning purchasing with real-time demand signals
- Quality control automation that reduces defect rates and warranty claims in product-based businesses
ZCG Consulting (“ZCGC”) works with companies across industrials, manufacturing, packaging, and consumer products to identify and implement automation programs tied to specific financial outcomes. The approach connects technology investment to measurable margin improvement rather than treating automation as a general upgrade.
Data Infrastructure as a Value Creation Tool
Many PE-backed companies arrive under new ownership with fragmented data systems. Different departments use different tools. Reporting requires manual consolidation. Leadership makes decisions with incomplete information.
Fixing that infrastructure creates immediate value. Integrated data systems give management teams real-time visibility into revenue, cost, and operational performance. That visibility accelerates decisions and surfaces problems before they become material.
James Zenni, founder and CEO of ZCG with over 30 years of capital markets experience, has consistently emphasized that information quality drives investment performance. That view shapes how ZCG approaches technology investment across the companies in its portfolio.
Technology Drives Value Creation in Private Equity Through Revenue Growth
Cost reduction gets most of the attention in PE operational improvement, but technology also drives revenue growth. The mechanisms are different, and they compound differently over a hold period.
E-Commerce and Digital Customer Acquisition
Companies that sell primarily through traditional channels often leave significant revenue on the table. Adding e-commerce capabilities or investing in digital customer acquisition expands the addressable market without proportional cost increases.
PE firms that invest in digital revenue channels generate higher growth rates during the hold period. That growth rate difference translates directly into exit multiple expansion.
Revenue growth technology applications in PE-backed companies include:
- E-commerce platform buildouts that open direct-to-consumer channels alongside existing wholesale relationships
- Customer relationship management systems that improve retention and increase repeat purchase rates
- Digital marketing infrastructure that lowers customer acquisition costs through better targeting and attribution
- Pricing optimization tools that identify margin improvement opportunities without volume loss
Technology-Enabled Customer Experience Improvements
Customer retention is cheaper than customer acquisition. Technology investments in customer experience, service speed, and product quality consistency reduce churn. Lower churn produces more predictable revenue. More predictable revenue supports higher exit valuations.
ZCG deploys Haptiq Technologies and Solutions, its 300-plus-person technology division, to support digital transformation across its companies. The platform was founded 20 years ago and manages approximately $8 billion in AUM. It brings implementation resources that most individual companies cannot afford to build internally. That capability gives ZCG’s companies faster access to technology improvements at lower execution risk.
Building Technology Capability Within PE-Backed Companies
Technology investment during the hold period creates value in two ways. It improves financial performance during ownership. It also makes the business more attractive to the next buyer.
Strategic buyers and later-stage PE funds pay premium multiples for companies with modern technology infrastructure. A business with integrated systems, clean data, and digital revenue channels commands a better price. A comparable business running on legacy platforms does not.
The ZCG Team structures technology investment as part of the initial value creation plan for each company. Priorities get set at entry based on the gap between current capability and acquirer expectations.
This pre-sale positioning approach changes how technology investment gets funded and sequenced during the hold period. Projects that improve financial performance and exit readiness simultaneously get prioritized. Projects with long payback periods that do not improve the sale narrative get deferred.
How technology drives value creation in private equity is ultimately about execution discipline. The tools matter less than the clarity of the financial objective each technology investment must achieve.
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