Welcome back to another episode of Entrepreneur’s Enigma, the podcast that explores the triumphs and challenges of entrepreneurship. In today’s episode, we have the pleasure of speaking with Federico Romallo, the founder of Density Labs based in Guadalajara, Mexico. Federico is a serial entrepreneur with over 20 years of experience in software engineering, having worked at Microsoft and with numerous startups. He is here to share his journey and how he helps both US companies and the local tech-savvy community in Guadalajara. Join us as we delve into Federico’s fascinating story and gain valuable insights into the world of technology and entrepreneurship. Let’s get started!

Key Moments:

[00:00:52] Tech-savvy entrepreneur helps US companies and community.

[00:05:42] Microsoft boy launches Office, speaks to thousands.

[00:07:13] Long commute due to traffic and people.

[00:13:00] Corporations have excessive red tape, but I push boundaries.

[00:16:03] Near shore team pushes envelope, fosters growth.

[00:16:40] Pressure to provide growth for software engineers.

Find Federico Online

https://densitylabs.io

https://www.linkedin.com/in/framallo/

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Transcript (Provided by CastMagic.io)

Seth [00:00:00]:

Entrepreneur’s Enigma is a podcast for the ups and downs of entrepreneurship, for the wins and the fails that we all face being entrepreneurs, how we learn from adversity. Every week, I talk to a different entrepreneur with a story to tell. I’m Seth Goldstein. Come with me on the journey. This is Entrepreneurs’ Enigma. Let’s get started. Hey, everyone. Welcome to another edition of the Entrepreneur’s Enigma podcast.

Seth [00:00:34]:

I am your host as always, Seth. Today, I have Federico Romalo. I hopefully I said that correctly. If not, he’ll correct me. I’m sure. He is of Density Labs. He is in Guadalajara, Mexico. Man, it’s a lot of hard words to say this morning.

Seth [00:00:52]:

Anyhow, he helps US companies with near shore help and also helps local community in Guadalajara who are very tech savvy and wanna get into business with doing so. He had he’s a serial entrepreneur. He has 20 years plus years of extensive experience in software engineering. He’s worked for Microsoft. He’s done a lot of stuff in his young age. So we’re gonna bring Frederico in here right now. How’s it going, buddy? How are you doing?

Frederico [00:01:21]:

Hello, Seth. Thank you for having me.

Seth [00:01:24]:

Of course, how hot is it down in Mexico today? Really hot and steamy?

Frederico [00:01:28]:

It’s beautiful.

Seth [00:01:29]:

Oh, it’s beautiful. That’s good. It’s a start. The last time we talked, it was, like, burning up down there.

Frederico [00:01:34]:

It’s like California weather all the time

Seth [00:01:36]:

when you

Frederico [00:01:37]:

have all the weathers all around. So mountains, beach, you name it, and the best tequila in the world.

Seth [00:01:43]:

Oh, the only only true tequila. Of course, you said mezcal is better, though.

Frederico [00:01:49]:

Yes. Mezcal is better.

Seth [00:01:51]:

Yeah. Personal opinion.

Frederico [00:01:53]:

It’s the, moonshine, Mexican version. Yes.

Seth [00:01:58]:

I like that. I like that. I like that. I like that. So You worked for Microsoft back in the day.

Frederico [00:02:04]:

Yes.

Seth [00:02:05]:

And so you and then you moved on into your and you were Where are you originally from?

Frederico [00:02:10]:

So I’m an Argentinian living in Mexico.

Seth [00:02:12]:

Argentine. Yes. Argentinean living in Mexico. So where’d you grow up in Argentina?

Frederico [00:02:16]:

So, I I grew up, in Buenos Aires, next to Buenos Aires, outside of the Buenos Aires, city. And, I was Hired by Microsoft when I was 16. So they basically built a position for me. So when I look around, there were no other candidates.

Seth [00:02:35]:

Oh my god. And when you’re 16 too, that’s really young. You’re just still in high school.

Frederico [00:02:40]:

Yes. Yes.

Seth [00:02:41]:

Actually, that happened. I mean, were you, like, deep into coding and computers back then or, like, how the how did they find you?

Frederico [00:02:49]:

So there was a program called, the found Foundry Institute has a program

Seth [00:02:55]:

Oh, okay. Yeah. Yeah.

Frederico [00:02:56]:

For teams where they basically build, startups. Right? So, with you know, most of the startups are about, you know, selling jam and things like that. Right? Yeah. This, this event was sponsored by Microsoft. So a lot of mentors were from Microsoft. So

Seth [00:03:14]:

Oh.

Frederico [00:03:15]:

They,

Seth [00:03:15]:

They scouted you.

Frederico [00:03:17]:

Yes. So from 400 people, they chose 60. They build 2 companies out of, you know, 30:30, 2 companies of 30 people. And, we build the 1st technology company in the history of that program. Right?

Seth [00:03:33]:

It’s awesome.

Frederico [00:03:34]:

We build something similar to eBay back in 1999. Right? So, it was it was an interesting, you know, journey because, we learned to code. We learned to, you know, build software. And, eventually, I ended up leading the the technical team. Right? The company was was the highest, valuation of the company because they wanted to give us $70,000 for the company.

Seth [00:04:07]:

But this is gonna be let’s keep this in mind. This is coming from Founders Institute, like a a hackathon kind of thing, like a a great effort. So $70,000 from something that’s a bunch of high schoolers

Frederico [00:04:19]:

learning how to do

Seth [00:04:20]:

stuff as they go is pretty impressive.

Frederico [00:04:23]:

15 weeks, and we build the company.

Seth [00:04:26]:

With a $70,000 evaluation, that’s pretty impressive. Yeah.

Frederico [00:04:31]:

And they wanted to hire all the technical team. But then, you know, the parents got in and then, you know, It became messy, and and then, the bubble burst, the Internet bubble burst.

Seth [00:04:47]:

Oh, no. Yeah.

Frederico [00:04:49]:

And then, you know

Seth [00:04:51]:

We’re gonna take a quick break, hear from our sponsors, and get right back to the show.

Frederico [00:04:55]:

It was chaotic, but the the incubator basically pull out. Yeah. And And then the, you know, Microsoft reach out to me and say, hey. Would you would you be interested in working with us? So from 400 people, they chose They chose me.

Seth [00:05:13]:

Wow. Everybody, they’re the only one they took?

Frederico [00:05:16]:

Sorry?

Seth [00:05:17]:

You’re the only one they took?

Frederico [00:05:18]:

Yes.

Seth [00:05:19]:

Yes. That’s an honor. That’s flattering to say the least.

Frederico [00:05:23]:

That is flattering. Yes. And when I saw that there were no other Candidates have realized, okay. They are they open up a position just for me. Right?

Seth [00:05:31]:

That’s even more surprising. Pretty awesome. Yeah. So you did that for a while. And then after that, did you immediately jump into entrepreneurship, or was there some other stuff between then and your entrepreneurial journey?

Frederico [00:05:42]:

So after that, I got, I was a Microsoft boy, as I would call myself. Right? I launched Microsoft Office. I did you know, I talk in front of thousands of people. I was working with the enterprise. So I was working with the biggest banks. And, basically, they will be pulling me out to you know, they will say, hey. You know, we want Federico for a few days. Right? So I will go to talk to the, you know, cream of the cream of the, you know Yeah.

Frederico [00:06:10]:

Of the engineering team on on 1 bank or another or, you know, corp corporations.

Seth [00:06:15]:

Wow.

Frederico [00:06:16]:

You know? They will be saying, you know, please teach us. Right? So it was it was fun. Right? And, so after that, I went, a 180 degrees. So I said, you know what? I have to learn about Linux, open source, and all that work. Right? And then I, I shifted towards it took Took me, a lot of time because I didn’t, I have zero experience with with Linux.

Seth [00:06:47]:

Yeah.

Frederico [00:06:48]:

It it took me at least 1 month to be able to Boot a computer back when you have is

Seth [00:06:54]:

tough. Yeah.

Frederico [00:06:55]:

Yeah. Back when you had to compile the kernel, basically. Right?

Seth [00:06:58]:

You see this from the ground up. I mean, just It install Ubuntu and go with it. You you I built the Linux kernel. Yeah.

Frederico [00:07:06]:

Right. Right. Then eventually, Ubuntu was easier. Right?

Seth [00:07:11]:

Yeah. All much, much, much easier.

Frederico [00:07:13]:

Yes. Yes. So, then I start working on Ruben Rails, and The issue was that the commute from where I was leaving to the city was was longer and longer. Right? Because of traffic, people people blocking the streets for,

Seth [00:07:32]:

for still in Argentina at this time, or are you up in Seattle?

Frederico [00:07:36]:

I was in Argentina. So what happened is that, there was some civil, and and political instability, and, basically, there were There there were they would coordinate, kind of riots

Seth [00:07:49]:

Yeah. To

Frederico [00:07:50]:

block the city entrance. So

Seth [00:07:51]:

Oh, jeez. That made that made the commute a little tough.

Frederico [00:07:54]:

Yes. So

Seth [00:07:54]:

And there’s no Waze back then either. So to kinda reroute

Frederico [00:07:58]:

you. Yeah. I mean, eventually, you’re stuck on traffic, and there’s nothing you can do. Right?

Seth [00:08:02]:

You just sit there.

Frederico [00:08:03]:

Yes. So, I said I don’t want to to do this commute anymore, so I kind of reinvented myself as a remote, worker. I start working from home.

Seth [00:08:15]:

Yeah.

Frederico [00:08:16]:

And I moved to open source technologies, and I started working with, American startups and on Ruby on Rails back in 2003.

Seth [00:08:25]:

Oh, wow. It was it

Frederico [00:08:26]:

was, the new technology at that time. So I I work on multiple projects, you know, one more interesting than the other. Right? So I will be taking, technical leadership roles and things like that. Right?

Seth [00:08:41]:

Oh, wow. All freelancer. Right? Or freelancer. Yeah. Freelancing. So that that’s the way to go. Yeah.

Frederico [00:08:48]:

And then, one of these companies invited me to go to Mexico. Would you like to go to Mexico and train, new folks? And it was Yeah. Yes. Sure.

Seth [00:09:00]:

To hear that?

Frederico [00:09:02]:

Yeah. I’m I I’ve met my wife in Mexico, so then I decided to stay. Right?

Seth [00:09:07]:

That’s awesome.

Frederico [00:09:08]:

So So that’s how how kind of got into Mexico. Right?

Seth [00:09:12]:

So you go to Mexico, and you decided to stay for the tequila, the mezcal, the family, all that good stuff, And the job.

Frederico [00:09:18]:

Yes. And the job. Yes.

Seth [00:09:20]:

And the job.

Frederico [00:09:21]:

So then I I start doing this, I I founded my company back in 2016, and we do near near shore Stuff augmentation, I call it sprinkling with consulting.

Seth [00:09:37]:

Love it.

Frederico [00:09:38]:

Where where I I do, I I consult, my clients on how to improve their software development process. I think I’m the only one that says, you know, do not hire more people. Let’s focus on improving the process.

Seth [00:09:51]:

Exactly. And so you bring people so you bring people in from the area to work on these projects, to work on dedicated teams. Right?

Frederico [00:10:00]:

Yeah. I mean, it all started with me personally recommending people that I personally know. Right? Yeah. Too many personal, but, yeah, you get the idea. Right? But it’s first the people that I I can vouch for. Right?

Seth [00:10:13]:

Yeah. Absolutely. It’s very important.

Frederico [00:10:14]:

Yeah. Yeah. And then now I, shifted towards building a, A recruiting process.

Seth [00:10:23]:

A

Frederico [00:10:24]:

recruiting process. So now we can screen the best 2% of software engineers. Oh. And, basically, we aim to 1 shot, 1 kill. So, we present the candidate, I took to client, And, usually, it takes 2 interviews. They need to interview 2 candidates. Sometimes it’s personal preference. Sometimes Yeah.

Frederico [00:10:46]:

You can make a click. Right?

Seth [00:10:48]:

You have

Frederico [00:10:49]:

to, like,

Seth [00:10:49]:

you have to do the culture fit and all that stuff. Yeah.

Frederico [00:10:52]:

A lot of stuff. Yes. And then, we have clients that trust us enough Where they basically say, I trust you, Federico, so go ahead. Move forward with the hire. I trust you’re going to find the right people for us.

Seth [00:11:06]:

So do you they hire them in house on their their teams, or do you manage or or do you manage the the relationship with the end end client.

Frederico [00:11:17]:

We hire them as employees in Mexico.

Seth [00:11:19]:

Okay.

Frederico [00:11:20]:

We have a Mexican Mexican company, we we also can do employer of record.

Seth [00:11:25]:

Okay.

Frederico [00:11:26]:

And then, we do all the management locally. We have, an overbuilt, IP and legal protection.

Seth [00:11:37]:

Yeah. You Totally. You have to be overbuilt. Yeah. Absolutely.

Frederico [00:11:42]:

I’m I’m a prepper on on on my free time, so I kind of overbuild those Type type of thing.

Seth [00:11:47]:

Absolutely. You have to. If you don’t, you’re gonna get stuck somewhere.

Frederico [00:11:50]:

Yes. Yes. And we never had any, you know, IP leaks or anything like that. So That’s

Seth [00:11:55]:

good. I was I’m glad to hear that. So so so you you’ve done that the corporate thing. Literally, Microsoft made a position for you. And then you’ve done the freelance, and you’ve done the core your own business a few times. Now what is the best thing about being versus being an entrepreneur.

Frederico [00:12:17]:

The in being an Entrepreneur, you always have this, safety net.

Seth [00:12:22]:

Yeah.

Frederico [00:12:23]:

Right? So, being an entrepreneur is like, This, you know, doing acrobatics in the earth, right, with no net. Right? So you you really need to have, Bolts of steel to do that. Right?

Seth [00:12:39]:

I love it. Yeah. And which which do you prefer? I mean, I mean, obviously, you’re still doing the entrepreneur stuff, but Do you ever miss being part of a bigger company?

Frederico [00:12:50]:

Sometimes, but Not really. I mean, the benefit, I think, is the freedom that it gives you.

Seth [00:12:58]:

Mhmm.

Frederico [00:13:00]:

With corporate, there’s a lot of red tape that you have to go through. Mhmm. Right? So so, yeah, it’s it’s not good. Right? But, you know, I I I always push the envelope. So, you know, I, I I I always try to, you know, go Out and beyond of my my role. Right? Yeah. I have a funny story about that. I was at mic at the Microsoft office, and there was, a light bulb Failing.

Frederico [00:13:31]:

Right? So then I go up on this on the desk, and I start fixing the light bulb.

Seth [00:13:36]:

Right? Yeah. Wow. Yeah. It’s annoying when it’s failing.

Frederico [00:13:39]:

Until a manager show up. You know? He saw me on the, you know, on the hall, and he was saying, like, what are you doing? Well, you know, there’s a problem. I’m fixing it. Right? And he was It’s like, no. No. No. You should not do that. It’s not your role, you know, and we have a technician, a maintenance building maintenance guy that can do that.

Frederico [00:13:57]:

Right? And it was, okay. I’ll follow the procedure. Right? Which kind of makes sense on liability. Right? But, I’m that guy. Right?

Seth [00:14:08]:

You’re that guy. You’re that guy who’s like, I can just fix it. I’m just gonna do it. Exactly.

Frederico [00:14:12]:

Yes. So That’s wild. So now, with with density, we were able to, you know, have this freedom. I I I would say I mean, I’m able to have this freedom because now we have a a we we were able to build a great team. Right? Yeah. So I think now, going to, the corporate world would be difficult for me.

Seth [00:14:38]:

Yeah. They don’t wanna hire. You know? It’s just saying your ways.

Frederico [00:14:40]:

Once you taste that freedom.

Seth [00:14:43]:

Yeah. Absolutely. So what’s on the flip side, what What keeps you up at night being an entrepreneur? What what makes you worry and what you know, what’s what’s the scary thing about being an entrepreneur?

Frederico [00:14:55]:

So what keeps me at night is, I am concerned about my employees and my interns.

Seth [00:15:00]:

Yeah.

Frederico [00:15:01]:

There are 2 parts of that, happiness and growth. Yeah. So the happiness, we kind of figured it out. People are happy overall, So that’s good. We were we were, awarded best place to call last year, and that’s based

Seth [00:15:19]:

on Congratulations.

Frederico [00:15:20]:

Thank you. That’s based on the people vote. I I had an employee. He’s, he’s almost 3 years With us now, and, he said, everything you promised me on on your vision, when when I started with you, you delivered. So you what I said is I want to change people’s life. Right? And then he said to me, You changed my life. Right?

Seth [00:15:49]:

That’s what what a rewarding statement. That’s awesome.

Frederico [00:15:52]:

Yes. Yes. And then all the sacrifice that that An entrepreneur makes, it kind of pays off when they say that.

Seth [00:16:00]:

Absolutely. It’s fantastic.

Frederico [00:16:03]:

And then on the on the growth side, As, as an near shore outsourcing team, I push the envelope. Right? Yeah. I I go above and beyond. Right? Yeah. So we do the coding, but I, I try to build social contracts with the product owners. I try to improve their software development process. I you know? But And, and then we train the the engineers, and they are ambitious, and they want to grow. Right? So

Seth [00:16:38]:

Yeah. It’s great. Yeah.

Frederico [00:16:40]:

So that’s that’s what keeps me right now, awake at night because yeah. Because I’m thinking, you know, how can I what can I do To provide the growth that software engineers, need and deserve and, you know, they earn? Right? Yeah. So I push the envelope with with with my clients to do more. Right? And then we we get to a point where, the, We get to leadership positions or managerial managerial Responsibilities

Seth [00:17:17]:

Yeah.

Frederico [00:17:17]:

Level. Right? And then that’s where usually they push back, so it takes a lot of convincing to say, you know, please let us Try let us let us give us the opportunity. Right?

Seth [00:17:26]:

Exactly.

Frederico [00:17:27]:

Show you. Right? And when when they give us the opportunity, we show, You know, we go you know, we exceed the expectations and then, you know, they they love it. Right? But

Seth [00:17:36]:

it takes happy client.

Frederico [00:17:37]:

A lot of convincing. Yeah.

Seth [00:17:39]:

Oh, it always does. Absolutely. So here’s a question for you. What is the most important thing to carry with you all the time?

Frederico [00:17:46]:

Oh, I carry a flashlight?

Seth [00:17:49]:

Really?

Frederico [00:17:50]:

Yeah. A 4,000 lumen flashlight. I carry, my phone. And then it depends on the situation because, You know, when I’m in the city, it’s different, but I usually I’m out on the field. Yeah. So I I tend to

Seth [00:18:11]:

know when you need a flashlight.

Frederico [00:18:13]:

Yes. Yeah. So I, When I’m I’m I know that I’m going to go on the road, I, I I I carry a a pocket knife, And I, I carry lots of water and lots of food.

Seth [00:18:31]:

It’s just in case. Just in case. New Mexico is a big Big country.

Frederico [00:18:35]:

Yeah. I mean, I usually go off road.

Seth [00:18:38]:

Oh, it’s your side hustle. Yeah. It’s your fun stuff.

Frederico [00:18:41]:

Yes. I I got stuck, in the middle of nowhere for 5 days.

Seth [00:18:45]:

Oh, no.

Frederico [00:18:46]:

So, you know, The extra water and

Seth [00:18:49]:

food will be prepared. Yeah.

Frederico [00:18:51]:

Yeah. Yeah. Yeah. So

Seth [00:18:53]:

Well, that’s definitely very important to carry with you all the time. Absolutely. So, Frederico, where can people find you online? Density Labs dot io is your is the site, and your your main waterhole online is LinkedIn.

Frederico [00:19:08]:

Yes. Mostly LinkedIn. That’s that’s I’m starting to to blog, so I’m starting to write about my experiences.

Seth [00:19:13]:

That’s a good thing. Yeah.

Frederico [00:19:15]:

Yeah. I’ve been always busy with a lot of things, and it’s

Seth [00:19:17]:

like always something. Always something.

Frederico [00:19:19]:

That yes. So that was something that I wanted to do so. I’m sorry to block more, but so so yeah. Yeah. Yeah.

Seth [00:19:28]:

I love to hear that when people are, like, blogging again. That’s a good thing. So Well, Federico, thank you so much for being on the show, and we’ll see everyone next time.

Frederico [00:19:37]:

Thank you very much for having me.

Seth [00:19:39]:

Oh, it’s my pleasure. That was a great show. If you’re enjoying Entrepreneur’s Enigma, please view us in the podcast directory of your choice. Every review helps other podcast listeners find our show. If you’re looking for other podcasts in the marketing space, look no further than the marketing podcast network

Frederico [00:20:04]:

atmarketingpodcast.net.

Seth [00:20:26]:

Dude. This podcast is one of the many great shows on the MPN Marketing Podcast Network.