#126 Sahand Dilmaghani: Everything is Solvable - Building Terra Kaffe Against All Odds
Sahand Dilmaghani is the founder and CEO of Terra Kaffe, a design-led coffee company reimagining the home espresso experience. Frustrated by the limitations of pod-based machines and the outdated technology dominating the super-automatic espresso category, Sahand set out to build something better—a beautifully designed, app-connected espresso machine that delivers café-quality coffee at the push of a button. What started with him walking the streets of SoHo with two prototypes and eating one meal a day to conserve cash has grown into a company serving tens of thousands of customers who demanded more from their daily coffee ritual. With a background spanning finance, hardware, and design, and fluency in Chinese that took him from Saturday school as a kid to manufacturing facilities in Shenzhen, Sahand brought a unique perspective to an industry that hadn't innovated in decades. Today, Terra Kaffe's machines—from the flagship TK-02 to the compact Demi—represent what happens when you refuse to accept the status quo and build with relentless attention to detail.
In this episode, you'll learn:
How Sahand's parents' immigrant journey shaped his "everything is solvable" mentality and entrepreneurial grit
The moment he realized the espresso machine industry was ripe for disruption—and why DeLonghi's executives completely missed it
Why the best ideas get a 50/50 reaction—half your friends think you're crazy, half think it's brilliant—and why that's exactly where you want to be
How to navigate the hundreds of daily decisions that can make or break your business without letting perfect become the enemy of done
The critical difference between asking "should I do this?" versus "can I do this?"—and why it defines your entire career trajectory
Check out Terra Kaffe here: https://www.terrakaffe.com
SHOW NOTES:
[00:00 - 08:30] Parents' Influence & Early Lessons
Both parents are architects who immigrated from Iran in the 1970s
Mom's elevator pitch story: How persistence landed her first architecture job
Learning "everything is solvable" from watching parents navigate challenges as immigrants
Growing up surrounded by design books and fine arts
The influence of attention to detail and design thinking from a young age
No "participation trophy energy"—high expectations with full support
[08:30 - 15:45] Education & Athletic Background
Studying finance, IT, and Chinese in college
Starting Chinese school at age 10—being the only non-Chinese kid in class
Working at PwC in China during summer internship
Wrestling all four years of high school—lessons in grit and leadership
Mom convincing him to try rowing for one season—became state champs
The difference between good coaches and bad coaches
How sports taught resilience and teamwork
[15:45 - 22:00] First Entrepreneurial Ventures
Starting an Ultimate Frisbee summer camp at age 16
Key lesson: The power of authentic community connections
Attempting to start a wind farm at 18 (couldn't get $10M funding)
Early understanding that relationships are competitive advantages
Getting local Greek grill to sponsor jerseys through genuine connections
[22:00 - 30:15] The Terra Kaffe Origin Story
Working in electric vehicles, using pod machines, getting frustrated
Realizing the super-automatic espresso category was stuck in the past
Shopping at Bed Bath & Beyond and Williams-Sonoma—seeing only 3-4 outdated brands
All machines using "Game Boy Color level technology" in 2017
Buying used $5,000 machines on Facebook Marketplace to do teardowns
Understanding he had the perfect background: hardware experience, finance knowledge, love of design
[30:15 - 38:00] Early Days & Validation
The 50/50 rule: Half his friends thought it was brilliant, half thought he was crazy
Recording people's complaints about their Nespresso machines
Going from $100K in savings down to last $2,000
Eating one meal a day for 18 months to save money for the company
Walking the streets of SoHo knocking on retail stores with two prototypes
Getting partnership with Equinox for early events
[38:00 - 45:30] Manufacturing Challenges
Manufacturer calling: "I thought Americans have money"
Negotiating minimum order quantity from 300 to 150 units
Couldn't afford 30% deposit on 150 units
Building first website on WooCommerce with a friend
Getting into an accelerator for first $100K check
Monthly investor updates since inception—building relationships before having investors
[45:30 - 52:00] The DeLonghi Meeting
Meeting with DeLonghi executive team early on
Their response: "So you're building a nicer Instagram?"
Engineers begging Sahand for jobs at €800/month
Five middle managers for every engineer—no innovation happening
Realizing he was dealing with a "sleepy incumbent"
Classic disruption story playing out in real-time
[52:00 - 58:45] Building the Team
First hire was a designer in Germany—design-led organization from day one
The importance of the first seven hires—"people you could summit Everest with"
Everyone being "all in" during scrappy early days
Deep authentic relationships that last beyond working together
No autopilot rule: Encouraging disagreement and healthy debate
Why yes-men and yes-women don't help companies grow
[58:45 - 1:06:00] Product Development & Customer Feedback
Learning from TK-01 to create the TK-02
Opening first freight container in Greenpoint—"the story really starts here"
The goosebump moments throughout the creative process
48% of customers coming from pod-based machines
Creating TK Vote page for customers to upvote features
Alexa integration being #1 requested feature—87% adoption rate
[1:06:00 - 1:12:30] Creating the Demi
Realizing size really matters—many people couldn't dedicate counter space
Some customers didn't need milk frothing capabilities
Making a compact version with all the same design principles
Listening to community feedback to create better product options
Phone calls and surveys to understand real pain points
[1:12:30 - 1:19:15] Biggest Challenges
Not letting perfect be the enemy of good or done
Making hundreds of decisions daily that could make or break the business
Balancing financial constraints with product excellence
Examples: Should you spend $60K on bus shelters or $500K on full campaign?
Understanding the 80/20 rule in product and marketing decisions
Playing the long game vs. short-term wins
[1:19:15 - 1:24:00] Personal Well-being & Balance
Athletics as the last thing to drop—a warning sign if not exercising
Basketball, gym, tennis for physical health
Music as a huge part of life—favorite album is Sirens by Nicolas Jaar
Going to vinyl shops and art galleries
Forming deepest connections over music
Importance of developing your own taste in art
[1:24:00 - 1:30:45] Sacrifice & Career Success
Life is a game of trade-offs and priorities
Sacrifice is unavoidable when building something meaningful
Can't do half measures—side hustle must become main hustle
Banking days: "Weddings, funerals—these are the things you miss"
Working German lessons 6:30-9:30 AM, then full workday, then homework
Luck + hard work = success
[1:30:45 - 1:35:30] Proudest Moments
First freight container of TK-02s arriving in Greenpoint
Seeing first sketches—goosebump moments
Visiting factory for first production run
Best compliment: "If I had to describe it in one word: thoughtful"
Knowing the discretion and decision-making that went into every detail
[1:35:30 - 1:40:00] Career Advice for Young Professionals
No autopilot—be curious, get your hands dirty
You'll discover what you don't like before what you do
The difference between "should I do this?" vs. "can I do this?"
Leaning forward shows eagerness and builds trust
Being unapologetic about wanting to take on responsibility
Book recommendation: The Rise of Theodore Roosevelt—intellectual curiosity matters
[1:40:00 - End] Closing
How Sahand takes his coffee: double shot espresso or drip to nurse longer
Final reflections on the journey
KEY QUOTES:
"Everything is solvable—you just have to approach it with that mindset"
"If everyone thinks you're crazy, you might be. If everyone loves it, it's already been done. 50/50 is perfect."
"Weddings, funerals—these are the things you miss when you're a banker"
"There's a powerful difference between 'should I do this?' and 'can I do this?'"
"No autopilot. If you're not willing to disagree, why are you even here?"