Lex Deak on how Basket is revolutionising e-commerce and reshaping consumer habits

In the fast-paced world of e-commerce, few ideas seem destined to stand the test of time. Yet Lex Deak, the founder of Basket, may have cracked the code. A self-proclaimed “serial entrepreneur,” Deak’s innovative app is designed to make online shopping more intuitive, efficient, and personal. In a candid conversation, Deak shared insights about his journey as a founder, the creation of Basket, and his hard-earned lessons on courting investors.

From Entrepreneurial Roots to E-Commerce Visionary

Lex Deak is no stranger to startups. As he puts it, “I guess I’m what you’d awkwardly call a serial entrepreneur or repeat founder.” His career spans industries as diverse as hospitality, tech, and alternative investments, but his entrepreneurial story began humbly after studying management at Manchester University. Deak’s first venture was an eBay drop-off shop—“the first one in the UK”—which he successfully exited to GE Capital.

That first taste of entrepreneurship fuelled a string of ventures, from owning a boutique hotel in Marrakesh to building a social network for families. Reflecting on those experiences, Deak remarks, “I learnt how not to conduct yourself as an investor and all the idiosyncrasies in that kind of investor-entrepreneur relationship.”

Basket, launched in late 2021, is the culmination of Deak’s passions and commercial instincts, addressing a problem he faced personally: the overwhelming clutter of online shopping. “As a consumer, I had this overwhelming feeling of being marketed to all the time, to the point of just becoming numb to it,” Deak explains. His solution? A platform where users can save purchase intent effortlessly and intuitively.

The Birth of Basket: Solving Consumer Pain Points

Basket reimagines how consumers manage their shopping intentions. In Deak’s words, “It recognises that in the pre-purchase phase, whether we’re researching or stumble across something we like, we typically save that purchase intent in a static repository that’s not built for purpose.” Instead of screenshots, bookmarks, or to-do lists, Basket allows users to save anything from anywhere. The app even notifies users when prices drop or products come back in stock.

The timing of Basket’s launch, at the height of the global pandemic, was fortuitous. E-commerce was experiencing an unprecedented boom. “I’d love to say it was all by design,” Deak admits, “but it was largely by default that it coincided with that time. It allowed us to grow really, really quickly.”

Today, Basket boasts 140,000 users and partnerships with over 300 retailers. “We’re adding between 20,000 and 30,000 products to Basket every day,” Deak says, emphasising the app’s value as a tool for saving time and money. For retailers, the app offers a goldmine of data: pure, unfiltered purchase intent. “It’s a no-brainer,” Deak says. “It helps retailers overcome the challenges of tracking and attribution in a post-cookie world.”

Building a Startup and Courting Investors

For aspiring entrepreneurs, Deak offers a candid view of the startup journey. Taking a business from launch to exit, he says, is “a complete pain in the balls. It’s a nightmare.” On average, the process takes five to seven years, requiring founders to navigate a rollercoaster of emotions and challenges. “The early stages are often the most fun but also where the most pain comes,” he says. “You’re firefighting every day, problem-solving, and tweaking your product based on feedback.”

Deak’s advice for structuring a business for exit is clear: “Work on the business rather than in the business.” He highlights the importance of making the business a standalone entity, capable of operating without the founder’s direct involvement. “To sell a business, it needs to be a self-sustaining entity,” he notes.

When it comes to courting investors, Deak sees the process as a mix of strategy and finesse. “It’s a bit of a dance,” he says. “There’s a lot of posturing from both sides, trying to establish who wants who more.” For Deak, the key to a successful pitch lies in confidence, preparation, and a clear narrative. “People buy into concepts,” he explains. “Is this a problem they can identify with? Is it worth solving?”

The Art of Investment: Lessons from Experience

As the founder of one of the UK’s leading angel investment networks, Deak has seen both sides of the investment table. He advises founders to choose their investors wisely, considering both the size of the investment and the cultural fit. “You might be talking about a five-to-seven-year relationship,” he points out, likening it to the average length of a marriage. “Do your due diligence on investors. Ask them what motivates them, where they’ve succeeded, and where they’ve failed.”

For those pitching to investors, Deak recommends starting with visuals and keeping it concise. “If I send you a deck and the first page is 500 words of copy, you’re already thinking, ‘Let me put the kettle on.’” Instead, he suggests focusing on traction, scalability, and a clear value proposition.

Deak’s own experience on “Dragon’s Den” in 2009 offered a crash course in pitching. “It was really daunting but a great opportunity to articulate our vision,” he recalls. However, he warns against treating such platforms purely as funding opportunities. “It’s a marketing exercise,” he says. “You just want to come across as someone who’s got it together.”

The Future of Basket and the Startup Ecosystem

Looking ahead, Deak envisions Basket as a global shopping tool. “We want to be present wherever purchase intent is forming,” he says. Whether it’s online, offline, or even in print, Basket aims to be “your shopping sidekick or browsing buddy.”

Deak is also optimistic about the impact of artificial intelligence on the startup ecosystem. While AI has the potential to reduce costs and spur innovation, he cautions against overhyped claims. “We’re still in the discovery phase,” he says. “AI will become a layer applied across existing sectors rather than a sector in its own right.”

Crowdfunding is another area Deak is bullish on. Having included the crowd in Basket’s latest funding round, he highlights its advantages for consumer-facing businesses. “We’ve got 700 investors who are also superfans and advocates,” he says. However, he acknowledges the downsides, such as the time-consuming nature of the process and the risk of revealing too much to competitors.

Final Thoughts

Lex Deak’s journey with Basket is a testament to the power of resilience, innovation, and customer-centric thinking. As he puts it, “I just want to build something simple, useful, and loved by tens of millions of people.” With its unique approach to managing purchase intent, Basket is well on its way to becoming a household name in e-commerce. For Deak, the future is bright—and the best is yet to come.