28 Burst results for "Sas Company"

"sas company" Discussed on The SaaS Revolution Show

The SaaS Revolution Show

04:09 min | 2 months ago

"sas company" Discussed on The SaaS Revolution Show

"To you by sas. Sastre the conference that helps us companies get traction growth and scale while i'm your host alex and all be looking at what it really takes to build and grow the sas company today now founders and entrepreneurs stay healthy on the journey now on with the show.

Sastre sas alex
"sas company" Discussed on Digital Conversations with Billy Bateman

Digital Conversations with Billy Bateman

06:50 min | 2 months ago

"sas company" Discussed on Digital Conversations with Billy Bateman

"If you're only doing your whatever. Google and lincoln advertising into the same thing as everyone else. How do you expect to have extraordinary results. Are you out if you do exactly what else. So we're always looking at web. Nobody is doing now. Let's go do that. You're listening to digital conversations with billy. Bateman demand their source for the latest revenue strategies senate by chef hans. Alright everyone welcome to digital conversations. I am your host billy bateman and today i'm joined by a man that needs no introduction. Cmo gong. Would you let booting you doing today. I'm great to be here. Yeah yeah man really excited to have you and In have this conversation so before we get into it you know for those. That don't know you mind. Just introducing yourself and tell them a little bit about gong. They don't know what gong is sure. So i'm rudy as said on the chief officer chief marketing officer at this is my fifth time leading marketing team for a tech company figures companies of our public and Contact this is my third time working with my currency yo ben-dov so we work together across three. Different companies was all by south. Salesforce was Influences and gone is probably not going to be bought by anyone. Because we're waiting for that Gone is revenue intelligence platform that unlocks reality to help people in companies achieve their full Whether it sales teams marketing teams product teams has were success teams week. We help. everyone has anything to do with revenue. Yeah you guys do a great job. The first time i heard about gone my brother's a sales rep at sas company. And he is asking me what what tools are you using. He's like well they just got this. This gong thing like a month ago and i. I was a little skeptical. But he's a really good. It's helped my calls quite a bit. So at a typical response we get some companies reps initially a little Don't know my boss uses against new york. Listen everywhere. I say but it's really meant for them. It's what have to enter notes that their calls so they listen other reps calls and learn from them so they can go back and see what the customer or shared their calls with the customer asks for feedback and get help companies who are really allow helping the rep succeed and turn some of the struggling ones into fantastic once gonna get a ton of value out of know i. I agree and when he changed jobs. Ski was like pretty much. I wanted my next company. that have gone. They they were using it so so okay. I love it man gone. If you haven't checked it out go check it out. It's it's worth looking at if you've got a sales team we're gonna get into a new section or a new section here on the the podcast. You're actually the first one who need to go through this we've done over one hundred episodes. We decided let's change it up and add some new thing. So who got a rapid fire questions with uti Got five questions here. So i'm gonna hit you with a moody in you. Just give me the answers. Whatever first comes to mind so number one favorite book can i too. So we're related is influenced. I roberts chill dini. If you're marketing or anything around marketing. You have three that books optional. One of my team has three to require non work related. I really enjoyed our me. Talk pretty one day david sedaris. He's hilarious writer as years france. read that one okay. Good lab so. I have to check that one out. Next one favorite podcast that would have to be revealed. The revenue intelligence podcast co hosted by sheena. Adani devon read the with revenue leaders every monday and the raw podcasts. And they hear amazing things about what real-life regulators are dealing with how they're growing their teams. And it's it's worth a listen to anyone looking to climb ranks in revenue organization awesome awesome. It's a good one next one one product. You can't live without this lack. I mean not. Just use it all the time all day off. Okay okay then. What was your first job. So before going into attack I was in entertainment. I was a magician for several years. doing magic shows and everything from kid's birthday parties to malls and i play the piano. Is everyone falls yum. Lincoln probably knows. I did the who tell circuit a wedding receptions union awesome. That sounds like fun it up. Make the transition from from doing that. Innotech so i was in the military for four years as most folks in israel offer for few years after that i landed my first all attack. That had something to do with the rocket system. I specialized on in the military and A couple of jobs later. I found that the closest thing to my love for showmanship entertainment is actually marketing is we. We put on the show. We are the face company we do the events we do the website that should be entertainment if your website and social media are not entertaining. Your union wrong awesome. I like it elegant and then the last question one marketing play you would never sacrifice amazing content that really provides value at is the core of any winning be to be marketing strategy. And we know how to do it. I love it man. You guys you put out a lotta great content. So now we've got that that. Let's hop into the meat of the conversation. What i wanted to talk to you about is you guys have done. Amazing job building brand at gone Having if you've been in Deby's sales and marketing for the last couple years. If you haven't heard of at least figured out a little bit about what you guys do you probably just not paying attention. Gut your head. He buried in the sand or something. So i wanna to talk about how you guys have built this brand. Because you've done a great job. Everything from a super bowl commercial. You've got your mascot breath. Oh the dog. So let's start with this. You know you were. I think you were marketing. Higher number one is that correct. They're gone as correct.

billy bateman Cmo gong sas company Bateman Salesforce Adani devon rudy lincoln billy senate dini Google david sedaris sheena roberts new york france Lincoln Deby israel
How to Achieve Extraordinary Results When Building Your Brand

Digital Conversations with Billy Bateman

02:13 min | 2 months ago

How to Achieve Extraordinary Results When Building Your Brand

"Welcome to digital conversations. I am your host billy bateman and today i'm joined by a man that needs no introduction. Cmo gong. Would you let booting you doing today. I'm great to be here. Yeah yeah man really excited to have you and In have this conversation so before we get into it you know for those. That don't know you mind. Just introducing yourself and tell them a little bit about gong. They don't know what gong is sure. So i'm rudy as said on the chief officer chief marketing officer at this is my fifth time leading marketing team for a tech company figures companies of our public and Contact this is my third time working with my currency yo ben-dov so we work together across three. Different companies was all by south. Salesforce was Influences and gone is probably not going to be bought by anyone. Because we're waiting for that Gone is revenue intelligence platform that unlocks reality to help people in companies achieve their full Whether it sales teams marketing teams product teams has were success teams week. We help. everyone has anything to do with revenue. Yeah you guys do a great job. The first time i heard about gone my brother's a sales rep at sas company. And he is asking me what what tools are you using. He's like well they just got this. This gong thing like a month ago and i. I was a little skeptical. But he's a really good. It's helped my calls quite a bit. So at a typical response we get some companies reps initially a little Don't know my boss uses against new york. Listen everywhere. I say but it's really meant for them. It's what have to enter notes that their calls so they listen other reps calls and learn from them so they can go back and see what the customer or shared their calls with the customer asks for feedback and get help companies who are really allow helping the rep succeed and turn some of the struggling ones into fantastic once gonna get a ton of value out of

Billy Bateman Cmo Gong Sas Company Rudy Salesforce New York
"sas company" Discussed on The SaaS Revolution Show

The SaaS Revolution Show

05:49 min | 3 months ago

"sas company" Discussed on The SaaS Revolution Show

"Welcome back to the revolution show brought to you by sastre. The conference that helps us companies get traction growth and scale. I'm your host. Alex and all be looking at what it really takes to build and grow a sas company today now founders and entrepreneurs stay healthy on the journey now on with the show this asks revolution. Show i call kinds as co co-founder accu. Welcome nice to meet you good to have you on the phone calls where you zooming in from. I'm calling from leuven.

sastre Alex leuven
"sas company" Discussed on The SaaS Revolution Show

The SaaS Revolution Show

03:36 min | 4 months ago

"sas company" Discussed on The SaaS Revolution Show

"The jobs to be done framework jobs to be honest is an excellent way to identify. Okay what is someone trying to accomplish. What is our aha moment. What activates them to hire our solution and then we identified that job and then we do the gap analysis around everything that we and our businesses are doing that prevents them from doing that. So you can imagine that this gets us into what is missing in our on boarding what is missing in our customer experience. What's missing in our product. What's missing in our messaging etc. You can then structure your customer. Research and this process around. Customer led growth into identifying tactically. Speaking what you should do you everyone. Welcome back to the sexual revolution show to you by sas. Stop the conference that helps us. Companies get traction growth and scale. I'm your host alex thema and all be looking at what it really takes. The build and grow sas company today now founders and entrepreneurs that healthy on the journey.

sas alex thema
"sas company" Discussed on Reel Talk: The Customer Insights Show

Reel Talk: The Customer Insights Show

04:37 min | 9 months ago

"sas company" Discussed on Reel Talk: The Customer Insights Show

"But that's not what we're talking about. So what do you mean when you say. Customer led growth. What does that mean to you. Yeah so christopher like growth really. I mean okay. My my sort of the genesis of it for me was really this. Where as as luck would have it of mine was working as a product manager at airbnb end when i was in san francisco one time. He invited myself who is leading marketing at sas company. And along with me was the head of customer success. And we went to dislike..

san francisco christopher sas company one time
Co-Founders of WebinarNinja Discuss Their Experience Building a Software Company

Entrepreneur on FIRE

04:15 min | 9 months ago

Co-Founders of WebinarNinja Discuss Their Experience Building a Software Company

"You did the same thing i mean you went from frankenstein. Webinars for one hundred dollars. Nba to launching this diy. Webinar guy. that you did that either. By the way purchased and used and then you decided to create women are ninja. Which you know is now doing amazing things and has been for years and years and years so talk to us about this journey in the transition that you made. It's been a journey. I think one of the things that stands out the most for me at least is how much both nicole night have had to change along the way change who we are what we do every day. Change your habits change the way we run our businesses As you know the actions we take today. Get us the results that we see so we want to get different results. We had do different things. Which is it's hard. It's hard to change. it's to also recognize I don. I'm not good enough right now to be what i want to be in the future and Yeah journey has been an interesting journey. It's still going. We're still learning or still improving and adapting and it's been great because i always say building. A software company is very much like climbing a mountain as a metaphor. Because as you go up the mountain Things that you did before you still. Can't you know you can't do them anymore. New things so like in the beginning or hiking up the malan You don't need much special equipment. You're feel okay winded as closer. You start to climb vertical. Oh no now. Need like some grappling tools You know i'm huffing puffing. Now it's out of shape compared to what it was before you know and then as you move up you're like okay i'm gonna need a sherpa may demanding a coach. I need guidance here. Maybe somebody's been there before up this down before to help them. Along the way or would be hires. So it's just an interesting thing because you don't really realize that as you're moving along and it's kind of a blessing because if you didn't know that maybe you wouldn't take those to take the chance to take that leap starting up a software company but it's been fun. One thing that i mentioned in the introduction nicole is that you know you were a university educator which of course omar was as well and you went from like that kind of environment which is a confined environments. You know there's rules regulations to just saying you know what here we are in new york city. We're going to do our thing. We're going to drive across the country. Gonna move to san diego and we're just going to figure things out along the way with this one hundred dollar. Nba thing and this diy webinar thing. And then you know. Hey let's just launch entire sas company. Let's just launch webinar ninja. And that must have been a little bit of a transition so just like omar kind did like what was your transition like. Yeah it's crazy to think about it. I suppose i distinctly remember. When i decided to quit teaching that i was looking for something creative Teaches a. They have a lot of creativity in the confines of that classroom of the curriculum that they teaching but like you said there's so many restrictions is timetables is. Schedules is a yearly calendar. So i was really searching for something creative. And i think what what better way to find creativity than just changing careers i started in film joined up teamed up with we started a podcast santa hundred. Rbi and then he i-it's later with a software as well. So i mean in a nutshell. It's hard to describe what that transition has brain. It's being it's being fun it's been it's been an adventure i think You know i've always looked back at. You know gosh thinking. There's just so many things. I wanted to kind of discount that that career in teaching. But it's no wonder that. I find ourselves right now producing a podcast that teaches business lessons. And so in love with the idea of webinars because You know they really are form of teaching teaching people. Buy your products and services. So in a way it's been a very almost you know crazy transition but in a way one's feels really quite natural as

Nicole NBA Frankenstein Omar New York City San Diego RBI
"sas company" Discussed on Status Go

Status Go

04:24 min | 10 months ago

"sas company" Discussed on Status Go

"Explored some of the issues surrounding diversity. In tech or better stated lack of diversity in tech an area we have not dug into yet is the talent pipeline and the role it plays in building diversities in our teams and our companies. This is your host jeff ton in this episode. We're going to speak with nicole crane. Nicole is the ceo of tectonic a software development company that is a certified b. corp and which has diversity as part of its core mission. Tectonic is the creator of the first software development apprenticeship recognized by the department of labor. Welcome to the show nicole. Hi jeff thanks so much for having me super exciting yes. I'm really excited to dig into this. Because when i learned of tectonic in the role you were playing as having that apprenticeship. I just couldn't wait to dig in and understand more about how that works but before we do that. I'd love to know about your journey. What brought you to tectonic. And then we'll get into what tectonic does in itself. But i'd love to start with your journey turn so i actually started my career in silicon valley in I actually work for very large cable operator back in the day but i quickly moved into the startup world and you know all things technology back in the day regardless of industry and as i progressed through my career you know certainly started facing the same challenges that most companies did in that we couldn't find good talent or we were constantly competing for the same pool. People in about four years ago. I moved to boulder colorado for an opportunity with sas company and again the same thing. We're competing with talent especially when google moved into town and then You know. I was in the market again in looking and i came across tectonic and i was like what genius idea And having lived the side of trying to find talent fast enough in qualified enough of like. Wow i now have an opportunity to go from the other end and help others. That are facing the same challenge by extending the offering that tectonic head. So i was. I was super excited. By 'cause i was like i can't believe somebody hadn't thought about this sooner. So tell me about tectonic itself first of all. What do you do Tectonic do and give me a little bit of the background on the company. How came to to have such an important role in diversity cheer so tectonic is in outsourced custom development shop so we are All onshore here in the us and then we do everything from quick projects to staff augmentation technology teams and then the more interesting piece of that is the apprenticeship program that we run to effectively develop software developers so when heather terenzi started the company. Geez about fourteen years ago it was really just a development shop and she ran into the same problem. Everybody else has which is. Where do you find. Good talent that you can bring on. And she had this notion of well. Why don't i just teach people to do the job. Hence the apprenticeship was born about four years ago for three and a half four years ago and the idea was to bring folks in give them classroom training and then migrate them into the development teams where they can have the on the job learning portion that would allow them that real world experience and then progress through says where it started and then she also they ran into some situations where clients ra like. These folks are fantastic. Can we hire them and in the notion usually in most companies is non compete non solicitation. Because you want to find good people you don't wanna lose them but in my experience if people are going to leave they're going to leave regardless of what agreement you have with your client so why not enable that journey for somebody and that's really

jeff ton Nicole jeff google Tectonic tectonic sas boulder colorado silicon valley first software four years ago nicole last
Widening the IT Talent Pool

Status Go

04:24 min | 10 months ago

Widening the IT Talent Pool

"Explored some of the issues surrounding diversity. In tech or better stated lack of diversity in tech an area we have not dug into yet is the talent pipeline and the role it plays in building diversities in our teams and our companies. This is your host jeff ton in this episode. We're going to speak with nicole crane. Nicole is the ceo of tectonic a software development company that is a certified b. corp and which has diversity as part of its core mission. Tectonic is the creator of the first software development apprenticeship recognized by the department of labor. Welcome to the show nicole. Hi jeff thanks so much for having me super exciting yes. I'm really excited to dig into this. Because when i learned of tectonic in the role you were playing as having that apprenticeship. I just couldn't wait to dig in and understand more about how that works but before we do that. I'd love to know about your journey. What brought you to tectonic. And then we'll get into what tectonic does in itself. But i'd love to start with your journey turn so i actually started my career in silicon valley in I actually work for very large cable operator back in the day but i quickly moved into the startup world and you know all things technology back in the day regardless of industry and as i progressed through my career you know certainly started facing the same challenges that most companies did in that we couldn't find good talent or we were constantly competing for the same pool. People in about four years ago. I moved to boulder colorado for an opportunity with sas company and again the same thing. We're competing with talent especially when google moved into town and then You know. I was in the market again in looking and i came across tectonic and i was like what genius idea And having lived the side of trying to find talent fast enough in qualified enough of like. Wow i now have an opportunity to go from the other end and help others. That are facing the same challenge by extending the offering that tectonic head. So i was. I was super excited. By 'cause i was like i can't believe somebody hadn't thought about this sooner. So tell me about tectonic itself first of all. What do you do Tectonic do and give me a little bit of the background on the company. How came to to have such an important role in diversity cheer so tectonic is in outsourced custom development shop so we are All onshore here in the us and then we do everything from quick projects to staff augmentation technology teams and then the more interesting piece of that is the apprenticeship program that we run to effectively develop software developers so when heather terenzi started the company. Geez about fourteen years ago it was really just a development shop and she ran into the same problem. Everybody else has which is. Where do you find. Good talent that you can bring on. And she had this notion of well. Why don't i just teach people to do the job. Hence the apprenticeship was born about four years ago for three and a half four years ago and the idea was to bring folks in give them classroom training and then migrate them into the development teams where they can have the on the job learning portion that would allow them that real world experience and then progress through says where it started and then she also they ran into some situations where clients ra like. These folks are fantastic. Can we hire them and in the notion usually in most companies is non compete non solicitation. Because you want to find good people you don't wanna lose them but in my experience if people are going to leave they're going to leave regardless of what agreement you have with your client so why not enable that journey for somebody and that's really

Jeff Ton Nicole Crane Department Of Labor Corp Nicole Silicon Valley Jeff Heather Terenzi SAS Boulder Colorado Google United States
How Docket is Revolutionizing Meetings Through a Product-Led Model

The GrowthTLDR

07:31 min | 11 months ago

How Docket is Revolutionizing Meetings Through a Product-Led Model

"Why did you start docket. Like what was the kind of story enter in the company and has your growth been surprisingly accelerated due to the year. We've had so yes to the second question. But i i have been in indianapolis. My entire career been technology mind tire career. I've been a junior developer at an early stage startup of ten people. I've been mid-level manager at a high growth company exact target and i've been a c. Level executive of publicly traded company in the one consistent thing through all those experiences no matter the company culture or the position i was in it felt like to high percentage of the meetings. I was in felt like a waste of time right. Just felt like they were often covering the same conversations the same topics over and over again and so As i started looking around for what. I really wanted to do from a career perspective. I really wanted to build a company. I've built lots of products built. Let's teams And i really wanted to focus all my energy investment into starting something from the ground up and this just seemed like with the technology we have in place today in with these before. Covid the slow move to video conferencing and this was a prime time to really bring the technology to the forefront in a collaborative way and really make this problem. Go away for for the average user so we started that and we saw immediately you meetings or something that people have an almost visceral reaction to when you talk about them and so it's a universal problem and we saw that immediately when we put your just simple website a little bit of of social of campaigns to drive awareness and it was immediate people were attracted to the solution started signing up starting using it and then when the pandemic hit obviously you had this huge focus on the need to find these collaboration tools. These tools now suddenly every conversation. You're having is a meeting right to make sure that you're being as productive inefficient as you can. Because it's very obvious on on a remote setting if you're wasting people's time and much more so than in local setting in fact so we've seen that huge ramp up and that lift and we early on identified zoom as a strategic partner for us. We wanted to make sure that we were in lockstep with what their road roadmap wasn't what they were doing. And that's paid huge dividends for us. Yeah i really wanted to get into. Because i think at marketplace is going to spawn simply the successful companies coming back to a couple of things on docket. You mentioned. I think you had fifteen thousand users and you mentioned kind of product lead so looked of dive into how you got your first kind of thighs and customers and then just get into how you the founder strategically thought about your go to market from the outset in how you thought about product lead so i kind of dive into customers or users High did you get from zero to like five customers or your fifteen thousand users in such a short amount of time for productivity growth company the user acquisition just has to be incredibly cost efficient right so we started out even before we had a website we started generating content that we would host on the website around just meeting management topics that focused around have productive meetings different types of meetings. That type of thing so seo is our kind of long term play. They're just generate content generate Organic users to the site and that's been working very well for us another aspect of what. We're we do. Obviously is meetings are naturally collaborative in nature so if one person finds dockets signs up starts using it for their team meetings. The other people in the meeting notice that the meetings of ran much better. There are artifacts out of docket agendas. Recaps that are branded docket. That are sent to people and they naturally click start signing up and start using it themselves so we have a very high percentage of of users that come through that viral aspect of the product Outside of that we did start playing with social ads in social campaigns. Just to see if we could drive interest and that was immediate it was. It's very easy to track people to this solution. Because the problem is almost universal. I think it was one of the finest bloom talked about the fact that they would if they had to create another company they would never create a company that didn't have inherent virality the the product like. They've they've learned the lesson that if the product itself is inherently viral things become a lot easier thing what. What's actually hard is not growth. It's monetization into a couple of things that that i was reading. Great tweet from david stocks just by sas companies and that also companies should try to think about teams and versus users. And this is like a good Thought exercise here and just hearing how you think about it because meetings could be a individual user tool and you could upgrade based on number of meetings. I actually don't know what your price is finite or you could try go for like large teams in large companies. How do you think about that as a user team till we Initially focused on the end. User your individual pain and our roadmap in our overall growth strategy is moved from individual team to business enterprise right. I mean just have have the natural growth that you're going to see from adoption of of the product itself lead into the roadmap and support large larger organizations. And so with that the way we've built docket as there's limitation on the number of meeting participants there's no limitation on the number meaning. You can have in the free version. It's use it as you can as best as you can to get more and more people onto the application and then we have a features in the first paid tier which is really for the small teams to help drive that conversion into that paid tear. You get more value out of it as you begin. Use it in team aspect you get some more consistency around the usage of the product and then the outcomes of your meetings are more productive overall Drives natural adoption. What are the interesting things that i love to get your thoughts nece. 'cause you're innocent under space I'm sure always trying to figure out your price packaging. So we had joe thomas. He is the co founder of loom. That was some time ago. Actually when they were earlier stage and they actually were going at a similar path. 'cause we were early. Adopters dot used loom at spread within a company. And it was they were basically trying to get as many individual used products as possible many users and they were then trying to upgrade your team based features recently at they switched the price and to monetize of the core value which is just anyone who's creating a video you can get five minutes or you have to upgrade to get any amount of minutes and so it seems like you're kind of going on the path. They initially went down. Which is like the is the core value for me actually immediate and then you wanna try to price team based kind of features and did you ever think about what kind of business it would be. Just kinda monetize the core value which is the need for the user. Absolutely it is one of those that we're still very early stage and we plan to rate quite a bit on pricing and packaging to learn. Because you you have hypothesis is you start out. But you really don't know We're seeing Good conversion rates On the paid tier as is but there is a large opportunity to to experiment with that especially as we move especially from a small teams into the large organizations where we now have organizations that have hundred seats four hundred seats. That type of thing is what's the value to the organization as a whole it had to be priced to make sure you're giving the premium

Indianapolis SAS Joe Thomas David
"sas company" Discussed on Rattle & Pedal: B2B Marketing Podcast

Rattle & Pedal: B2B Marketing Podcast

06:18 min | 1 year ago

"sas company" Discussed on Rattle & Pedal: B2B Marketing Podcast

"Ours on pricing so look into price a SASS product I was reading on a really well, put together. E Book on pricing from a specialist firm that religious works in pricing in the space and they had in their model, they had used personas, but they had used them differently than I had seen them before in this case, the Personas warrant, these marketing generated fluffy visual and metaphorical references of of individual clients that were they were really hard data driven analysis of specific clients in the software companies portfolio, and the nature of why they were buying the software and the relationship that that brought in terms of the value of the software to their company and the pricing, all these types of things in. A different way of looking at it almost like you can imagine a extracting personas from a massive data said versus extracting personas from the minds of a couple of partners some. Creative collaborative sessions, which is how they normally tend to happen. But just got me thinking like that type of thing might have some more validity to it than we used to give. So let's move to wrap your. I were kind of running out of time, but let's kind of touch on one last thing before we go because you know you mentioned in the setup that you know building key account management programs are a critical piece of reducing churn increasing retention. So let's talk about that for a few minutes before we call it a day the best jump off point for that in my mind is what you just said if you're going to focus on retaining your base you need to. Just. Like building a house or Skyscraper Ri- that foundation has to be as strong as possible because of the profitability and annuity. Of Retaining base reducing cost of sale of creating a referral flywheel. If you will you really need to understand who your ideal client is in. The ideal client is in we've talked about this on podcasts I've written about it. I'll put links in the show notes in. As you said, it's very different than personas. I am not a fan of personas at all, but by finding your ideal client in it's A. Lot easier than you think you find the clients that value the value you provide. That's the ultimate goal identified those clients who value the value you provide. So you need to understand what exactly the value is you're providing and we talked up some value propositions. The most people don't and find those that are willing to pay a premium that look at your base and make sure you're focused on those then you know. The key account management is really about strengthening the ties to your firm, and sometimes that comes through relationship but not always, it mostly comes from results but there are also other ways to tie clients in, but it always has to come back to value in if you're wasting energy serving clients that don't value you that means because to some degree, it's zero sum game if you have limited resources those that. Really. Could be benefiting in appreciating the value provide are not getting the full extent of of what you offer. So key account management should focus on that and we could do a whole series on key account management for sure but the key account management in addition to retaining the base, really put you in a position for the next avenue, for growth, and that selling more of what you offer to to to existing clients. Yeah and that's going to be the next the next episode in the series and and I'm going to suggest BA-, flip it around actually the more I think about it. It's not necessarily about selling more to existing clients. It's about encouraging clients to buy more right. So building to your point that notion of key account management building away for them to want to buy more because they're getting more value and they're finding other ways to get new value from you and so maybe we were thinking about it backwards. But either way that's the topic that will tackle next time and you you raise a good point there that kind of ties it. All back to the way we started, right. And Your Business Model to a large degree in packs you know kind of the the starting point for level of churn. So I mean, that's the playing field and you know if you're SAS company, you have a certain playing field. If you're a project based services firm, you have a certain plainfield. If you're a new ity have plainfield field but I have clients where the majority of their new business comes through channel partners and channel partners create a totally different business model structure. For Churn and its own challenges because. So many of those channel partners have high turnover in their their sales people you know moving around and just when you think you have a great end somebody leaves and you gotta rebuild. So understanding the business model and the ideal client that that appreciates the value that you offer in constantly understanding what's causing the churn in how to reduce the hat is the only way to deal with the leaky bucket as you said in your diatribe. Plug leaky bucket. All right man well, now that we've plug the leaky bucket next time, we'll talk about how to grow grow the bucket maybe per or add water to the bucket not sure which. One or the other get more buckets more buckets. Sounds. Good. See You Buddy Thank you for listening to rattle and pedal divergent thoughts on marketing and growing professional services. Firms find content related to this episode at. Rattle, and pedaled DOT COM. Rattling.

SASS Skyscraper Ri plainfield professional services SAS company
Unpacking Palantirs Public Debut: CEO Alex Karp

Squawk Pod

19:51 min | 1 year ago

Unpacking Palantirs Public Debut: CEO Alex Karp

"This is squawk pod I'm CNBC producer Katie Kramer today on our podcast. unpacking Pailin, tear the high profile highly secretive software company has operated quietly for seventeen years and it's finally on the public markets. And -ticipant I I think for maybe the past ten years CEO Elon on why it it took. So long my lawyers will shoot me what I can tell you is we are very very focused on building software a longtime before other people building and how he expects to become profitable with a small, but mighty and mighty controversial of customers. Well, how can you have the Super Valuable Company? They're only a hundred and twenty-five customers to which I respond. Yeah. But one, hundred, twenty, five most. Interesting institutions in the world I would ask people who are watching this to make a list of the institutions they admire in the world, and then roughly figure out if they're using pounder that interview plus the politics behind listing journalist Joanne Lipman fits a company that is very, very closely aligned with the trump administration. There's a huge question here about what happens if trump does not win the presidency it's Thursday October first October twenty twenty the year is still twenty twenty squawk pot begins right now. Good morning and welcome the squawk box right here on CNBC. I'm Andrew Ross Sorkin along with Joe Kernan Becky off today. Today on the PODCAST volunteer goes public analytics company that is usually described as secretive debuted yesterday the direct listening selling new shares on the New York Stock Exchange covered live on CNBC how tears for trading why secretive well here is named after magical orb and Lord of the Rings. But in seventeen year history, it hadn't made much public volunteer received early funding from the venture arm of the CIA and provide software products designed to crunch numbers. One of these programs is called Gotham and it's for government clients. Who Need to organize an understand massive amounts of data. So surveillance predictive policing, possibly rooting out potential terrorism threats, Pailin tear works with US Army Navy Department of Homeland Security and it's working with health and human services to help track the spread of Corona virus case data that we just recorded. We can immediately narrow into emerging hotspot counties, notable backers of talent tear include investor, and Co founder Peter Thiel who has gotten attention for his conservative politics and support of president trump in the two thousand, sixteen campaign. Evening. I'm Peter Thiel I'm not a politician, but neither is donald trump as well as his work technology companies. He was facebook's first big investor other pollen tear backers include wall streeters like Hanlon and Stanley Druckenmiller when talent tear filed paperwork with the SEC to pursue publising listing earlier this year it's called the swan event is finally got a sense of the books turns out pollen tear had never turned a profit and. A, huge chunk of its revenue came from its three biggest clients which are anonymous in the first six months of twenty twenty. It's revenue of nearly half a billion dollars a big jump from the year before this was addressed by pollen tear CEO, Alex Carp investor roadshow, which true to carbs personality, and true to the weirdness of twenty twenty was virtual and started on cross country skis. Welcome to Powell, tears investor day. We're very proud to have you here. Carp is an Orthodox for a CEO. He has amazing curly hair. He uses the modifier super allot super cool and speaking to potential investors. He made the pitch for the importance of Pailin tears purpose. This way of looking at the world war literally savior situation and in many cases Save Your Life Allen to has moved beyond. Just government clients fifty-three percent of its customers are in the private sector big name businesses who use a software program called foundry include Airbus Merck Ferrari and United Airlines but it's work for governments here and others around the world stuck to its reputation allentown faced criticism from privacy groups and for its work with the US Customs and border. Patrol. Tracking immigrants at the border. But Carp in the company not backed off in. That s one filing the leader of this highly valuable tech uniform said, Pailin tears work is different in his view software missions to keep safe may have become controversial but companies built on advertising dollars are commonplace and carp took aim at big tech culture directly writing quote our company was founded in Silicon Valley. But we seem to share fewer and fewer of the technology sectors, values and commitments. Helen tear moved its corporate headquarters to Denver and its shares headed to Wall Street. If you think, we are going to change our internal culture drastically if you think we're going to work with regimes that are not allied with the US enter abusing human rights if you think. that. That the future is going to be a super rosie place where the past ways of supplying software are going to work because enterprises and governments do not need to be reformed you should not invest in pounder. Andrew. Ross Sorkin has interviewed Alex Carpet number of times. This conversation was reported Wednesday yesterday right after the first trade for here on the New York. Stock Exchange. We've had lots of conversations over the years. This has been probably one of the most highly anticipated offerings or listings in a very long time. Almost every year that we would talk in Davos I would invariably ask you are you going to go public? Are you gonNA list and invariably you wouldn't. So let's start with why now? Well, first of all, thank you for having me and I and I really would like to thank all the pound tyrians who stuck with us and built this company and our investors you're stuck with us and you know over the years we've been skeptical about listing and for lots of reasons, we really needed to build our products. With enough protection so that we would be ready to launch them into the public space. And we built we built out PG government and foundry product and and built a way to maintain them so that we wouldn't have to scale the number of people and. You know we've reached a base where where our company's very significant and we believe being in the public space will help us with our clients and help us grow and quite frankly I believe the people apparently who built this company over seventeen years. Deserved a access to liquidity. So we we decided this would be great time for us and so far. It's been a really interesting process and and our clients are embracing it. So it's a really good time for us and I'm very, very grateful. Outlets. The single biggest question that investors ask about this company is seventeen years in while you know may have an operating profit, the company unto itself is still not profitable. So so walk us through what the path to profitability looks like. Well, you know we build these products years before people build them, and that takes money and what you see in the cove it pandemic crisis is we had built this way of going to market with foundry, which would allow us to literally supply an enterprise with a completely new stack of products within six hours and maintain them. And what you saw when we did that is we grew the company forty, nine, percent, forty, nine percent off of a seven, forty, three base and the divergence between expenses and in growth is dramatic. And we're just going to be very very focused on on an invigorating, our software offering. But when you're growing forty-nine percent off of a seven forty base. I think that's a pretty strong indication of what the future could hold and we're super proud of that and I think you're seeing that people are taking a look at our financials and our our company is often been used viewed as complex and. Needing explanation both moral and financial but it turns out our financials are quite simple and you look at this dramatic growth with flat lining expenses and I think that gives investors comfort and it certainly makes me feel as. Co Founder and CEO that we made the right decision to invest heavily over well over a decade in building software, the way other people don't to build it and you see the results do you think the profitability is at twenty twenty, two, proposition twenty, twenty, three proposition can I put you on that? Well, you you can push me but of course, my lawyers will shoot me I can tell you what I can tell you is we are very very focused on building software a time before other people building, supplying it and I think that are year I. First Half of the year growth will be reflective of the future and if I'm right. That will answer all of your interesting questions and we'll be interviewing. You'll be interviewing me again maybe not a Davos but virtually, and we'll see how we do. Confident confident we'll do well. Alex, one of the other questions people ask is how to comp your company meaning what are the comparable should this be considered a technology company as SAS company or should this could be considered a much more traditional consulting company? Can you speak to that? Well I think what the investors are seeing is they're asking the question at this point they used to ask is this is this a company that built software for the government and how do they build it? Of course we always sold this as a license. Then they saw our margins of the first half of the year round eighty percent. So I think the real debate now is. Move significantly away from is this software services because although people think we're very smart, we're not smart enough to get eighty percent margins off of a services company. The question then is, how do you comp it and honestly I think that's something investors will have to figure out. We're not focused on that we're focused on we are going to be the most important software company in the world. And people will figure out what valued over a long period of time and we're very comfortable with investors toying around it could be like this. It could be like that. We are going to deliver the best software. With the morals most efficient way of delivering it investors will decide what's that. What's that were is worth to them and I think you'll find a number of years that will be a consensus. Palette. Here is a truly special software company that is arguably the most important software company in the world. Alex has everybody knows You have contracts with various government agencies, obviously and some of the bluest of the blue chip companies in America today, but it's a concentrated list of about one hundred and twenty-five companies. About Twenty eight percent of the revenue actually comes from three of those clients unto themselves. Two thirds of the revenue comes from the top twenty. How much of a risk does that pose on one side but also when you think about the opportunity on the other, if we're having a conversation like this in in twelve or twenty, four months, how much do you want that list to increase in size or do you just want to keep that group effectively and a effectively raise the margin or cost for those clients? And grow that business. Well, we want to do all the we're going to do all of the above. So interesting about our client list people people ask, well, how can you have the super? Valuable Company they're only one hundred and twenty-five customers to which I respond but one hundred and twenty-five most interesting institutions in the world. These aren't just any institutions. The literally, I would ask people who are watching this to make. A list of the institutions they admire in the world and then roughly figure out if they're using, we don't go out and advertise our product, but I would say the list of our clients is the single most impressive institutions in the world I've ever seen we. So we want to keep these clients. Also investors will of noticing in the one that well over ninety percent of our growth in the first half of the. Year came from our existing clients. What does that mean our existing clients? The most important clients in the world are really happy that's what it means. So of course, we're going to expand those really happy clients who happen to be the coolest people on the planet, and then we've built this product which has gotten very little attention called Apollo Apollo allows us to maintain and deliver software to any number of clients with essentially. Not growing our our force apparent and force at all. So we're planning now that we have Apollo to grow the number of super cool customers all over the world, and we can do it without raising our headcount, and so what you're going to see is we're going to continue building with our clients why they're the most interesting clients in the world and they clearly based on our numbers like us and some of us. We are going to expand our client base. Why? Because now with Apollo, we can deliver the whole stack in six hours. I don't think any other company I've ever seen in the world can do that, and we can do with efficiencies that I don't know any other companies going to do because we can do this with a small number of people sitting in our office that we have maintaining, updating and providing them with new products we built. So they don't have the Frankenstein monster that takes two years to build and has to be maintained with either human hours like in the government contracting case or by purchasing new product or compensating sales people or behind. It people you don't even talking to you can actually buy one stack. So we are going to increase revenue with current customers, get new customers and continue our march. Alex how easier heart is because I know you've talked about trying to keep things in in terms of the platform if you will how he's your heart it for four clients to leave in terms of the churn. Well, as I mentioned, ninety, five percent of our revenue comes from existing customers. So customers, obviously if a customer wants to leave they, can I think the main reason our customers stay besides the fact that the output is very significant as they look at this product, we supply foundry the average customers paying less than six million dollars and they compare it to buying twenty products paying ongoing licensing. Fees. You can't get out of or building something over years, and the last thing they compare it to is we're not delivering a roadmap. Most people are living roadmap of what are you going to get in a year we're delivering a product after six hours so customers can leave. But what you see in the numbers is they by and large don't, and it's not because of my charming personality. Alex well, let me ask you a different question. We've had lots of fascinating geopolitical and philosophical questions about the role of technology and Pailin tear itself as well as the approaches silicon valley has taken. I'm curious in terms of risks how you think about this Amnesty International as you know, criticized, the company recently for its role of working with ice. How much of that does that pose a risk to the larger business? Especially, the corporate business at a time when we have corporations at taking both political positions and also being oftentimes being socially at activist. To Your Business Well, look the fact that we take positions that are sometimes controversial can cost. US clients. But it also gets us. Clients because when we talked to a client and we say look we're going to work with you. We're not gonNA walk away just because the winds change and this is super important especially to our government clients if you're supplying special forces and army and the US, those clients have to know that they will not be left on the battlefield. Because a because Silicon Valley has decided they don't like the warfighter. So of course that costs revenue many of our decisions of cost US revenue we only work in certain countries we've walked away from work because if human rights issues we've said, we disagree with very prominent human rights organizations and we engage in dialogue but also by the way is a reason why I Think people who are watching this may consider investing or not investing. We are not going to stand up here and say we're for everybody we're not going to pretend, and by the way we're going to try avoid jargon. We will actually tell you what we think it's not going to be created by fifty media people it may have to be carried by a couple. Of Lawyers but one of the unique things about power tears, we actually say things and we actually stick to them and that's something not everyone likes but many of our customers do and by the way I think it is a reason why ninety five percent of our revenue comes from customers because when we tell them, we're going to deliver we are going to deliver. Alex. One of the other questions now you all republic company. But as you know, you have three tiers of stock classes of shares that is and to some degree there have been critics who said, this is effectively a private company masquerading as a public company. Can you speak to the decision to structure the shares the way that they are structured and how governance experts and folks should think about that I think it's important for government experts to look and make an deliver opinion but I would also ask them to consider the environment we live in pound tear has been in silicon valley up till recently for seventeen years and in silicon. Valley. Defending the. warfighter providing our troops with technology that allowed them to come home is very controversial. I do not believe a company like ours that makes really consequential decisions for government clients and non-government clients could be run without an F. share structure and I understand there's criticisms investors look and say, well, why should talent you're having F. structure? What is my? What is my what? What can I do if? I don't agree with them. The primary reason why we fought for an structure and we asked investors to buy into it was we need to be able to go to our especially our Intel and defense clients and say, we will not just blow with the wind. And does shares for a company like ours gives us a unique ability to have long-term commitments to the most important clients in the world, both commercial and government, and that's why I believe they're super important, and I also again would encourage people if that's not something you're comfortable with there are many shares to buy. We don't have to buy challenge your shares. You should buy shares knowing that these shares reflect our views. Alex we've often had these conversations in Davos where globalization has ruled the roost but as you know so well, the world seems to be shifting to a globalized world, a splinter net if you will. How do you think long term that will affect the business of here We made this decision, which is actually a secret only because no one believes it's true which is that we didn't solve the problem of fighting terrorism. We solve the problem of doing data protection and fighting terrorism, and the architecture we built both PG and for foundry will allow a super set to work with subsets, which means if the world's splinters and every country has its own jurisdictions, it's GonNa be very hard for normal software companies because they're not built to do that but it's going to be very good for Palette here and finally Alex. Decision five years from now today. How would you measure success? Here, what would be the metrics which measure it? We know they're there obviously financial metrics but I'll tell you Powell cheer has recruited and retained I believe the most interesting most talented most ethical people I've ever met and we work I've interacted with thousands of institutions and in five years when meet I think he'll say to me. Wow, that wasn't just you saying that because it was the right thing to say it's actually true. And the products that will build over that period we'll we'll. We'll be unique and they will tilt the course of history. In favor of things that are good and noble. And will not avoid the complexity that's necessary to do that outlets. Carpool. You lots of luck and we do look forward to having that conversation hopefully in five years. But hopefully sooner than that. Thanks so much Alex.

Alex United States Silicon Valley Davos Twenty Twenty Donald Trump Andrew Ross Sorkin Carp New York Cnbc Powell Joanne Lipman Peter Thiel Gotham Us Army Navy Department Of Hom
"sas company" Discussed on The PR Playbook Podcast

The PR Playbook Podcast

02:35 min | 1 year ago

"sas company" Discussed on The PR Playbook Podcast

"At the end of the day, help our members. Yeah. Dawson I can ask you like five thousand more question. So I WANNA keep it really actionable. Specific. So I would love to leave off here with like one critical. If asked me to that. That's fine. But one critical tip, you can give to companies that are starting to fundraise what what would be that piece of advice that you would give them. probably. Put into. Few maybe one. No. Elevator pitch down and make it interesting but concise, right. So he grabbed her attention and to it's knowing the BBC or the Institutional Funds Rangeuil you're approaching. Right. So those two main things grabbed her, grabbed their interest, grab their attention, and then no, you're approaching because at the end of the day, if you're if you're a SAS company that you're trying to approach produce like a VC or angel investor group that is more into hardware than than that. That will work. You're wasting your time. Exactly. You're wasting your time and you'll just look silly and and. You know word spreads. Those two main things I would say, right? So I mean from your elevator. Pitch. Is. Having. Your idea down packed and not going off on the tangent because I've seen so many. They'll start off in. Ramble on inside. Roll, my eyes when I like I would just do this. They have to kind of keep it concise because you know at the end of the day, these investor groups or VC's see. So many deals, and if it's not interesting grab, your attention is not what they're into whether. It's you know SAS or hardware or patient engagement or mental health is not in their wheelhouse. Then it's it's just you're wasting their time. Sure. Yeah. No, that totally makes sense. Thank you. I, love. But his true. Yeah. No. Absolutely. Absolutely, I have a ton of other questions in one that I actually forgot but. We will definitely have to follow up in a live webinar where we can kind of do some fire around route of fire around questions with some lives feed. So. Okay. Cool. So thank you so much I think we've gotten a lot of content here especially for people who are raising funds or trying to get started or getting your foot in the door or moving onto the next round of funding. I think it's really important to follow the tips that Johnny has given us here. So thank you so much for participating in the PR playbook podcast today. Johnny, also do you. Can you give us a little like not on where.

Institutional Funds Rangeuil Johnny Dawson BBC
Capital Allocation with Blair Silverberg and Chris Olivares

Software Engineering Daily

54:31 min | 1 year ago

Capital Allocation with Blair Silverberg and Chris Olivares

"Blair and Chris Welcome to the show. Thank, you good to be here. We're talking about capital allocation today and I'd like you to start off by describing the problems that you see with modern capital allocation for technology companies. I'm happy happy to start there. So I think it might be helpful to give. The listeners, a little bit of our backgrounds so I was a venture capitalist at draper. Fisher Jurvetson for five years I worked very closely with Steve. Jurvetson and we were financing are very MD intensive. Technology projects that became businesses things like satellite companies companies that were making chips to challenge the GP you new applications of machine learning algorithm so on and so forth and I think the most important thing to recognize is that the vast majority of technology funding does not actually go to those kinds of companies. The venture space is a two hundred fifty billion dollars per year investment space. The vast majority of the capital goes to parts of businesses that are pretty predictable like raising money in in investing that in sales, marketing and inventory or building technologies that have a fairly low technical risk profile, so the vast majority of tech companies find themselves raising money. From a industry that was designed to finance crazy high technology risk projects at a time where that industry because technology so pervasive you know really do the great work of of many entrepreneurs over the past twenty to thirty years, technology is now mainstream, but the financing structure to finance businesses not has not really changed much in that period of time. Yeah, and then I guess I'll talk a little bit. My my background is I came from consumer education sort of background, so direct to consumer, thinking about how you use tools and make tools that ingrained into the lives of teachers, parents students I was down in the junior class dojo before starting capital with Blair. We were working on the Earth thesis He. He was telling me a lot about this. The the date out. There exists to make more data driven in data rich decisions. How do we go software to make that easy to access in self service and sort of servicing the signal from the noise, and we kicked around the idea and I thought that they were just a tremendous opportunity to bring. What Silicon Valley really pioneered which is I think making software that is easy to use in agreeing to your live into kind of old industry fund raising capital Haitian. The kinds of capital allocation that exist there's. And debt, financing and different flavors of these. Of these things say more about the different classes of fundraising in how they are typically appropriated two different kinds of businesses. So. You have the main the main groups you know. Absolutely correct, so there's. Equity means you sell part of your business forever to a group of people and as Business Rosen succeeds. They'll get a share in that. Success and ultimately income forever. Debt means you temporarily borrow money from somebody you pay them money, and then at some point in time that money's paid back and you all future income for your business, so equities permanent, not permanent. If you think about how companies are finance like. Let's take the P five hundred. About thirty percents of the capital that S&P five hundred companies use to run. Businesses comes from debt. In the venture world that's remarkably just two percent. And the thing that's crazy is this is two percent with early stage seed companies, also two percent with public venture, backed companies in places like the best cloud index, which is like a one trillion dollar index of publicly traded technology companies started their life, and in with injure backing many of them SAS companies, these companies, also just two percent finance with debt, but nonetheless within these these classes, the reason it's obviously economically much better for a business and pretty much every case to finance itself with debt because it's not. Not It's not permanent, and it can be paid back. It's much much cheaper to use debt. That's why you buy a house with a mortgage show. You know you don't sell twenty percent of your future income forever to your bank help you buy a house, but the reason that people use equity comes back to the risk profile so just like. If you lose your job and you can't pay off your mortgage. The bank owns your home. Same exact thing happens with debt in so restorick Louis, if there's very low. Certainty around the outcome in typically early stage investment you're you're doing a lot of brand new are indeed you have no idea if it's GonNa work you cope. You know over time that you'll be successful, but there's really quite a bit of uncertainty equities a great tool because you're. You'RE NOT GONNA lose a business, you know everybody can basically react to a failed. Are Indeed project. Decide what to do next had saints. Equity is kind of the continent tool for high technical risk, high uncertainty investments, and then debt is basically the tool for everything else, and it can be used as most companies do for. Ninety percent of The places that businesses are investing so if you're spending money on sales and marketing, and you know what you're doing and you've been running campaigns before. That were successful, very. Little reason you should use equity for that if you're buying inventory if you are a big business that's. Reach a level of success that on. Means you have a bunch of diversified cashless. Coming in businesses might take out dead on business kind of overall, so it's less important what specifically you're using the money for, but it's important to recognize that most companies are financed roughly fifty fifty equity versus dead, just just intra back companies that. That are kind of uniquely Equity Finance. Scaling a sequel cluster has historically been a difficult task cockroach. DB Makes Scaling your relational database much easier. COCKROACH! DVD's a distributed sequel database that makes it simple to build resilient scalable applications quickly. COCKROACH DB is post grass compatible giving the same familiar sequel interface that database developers have used for years. But unlike databases scaling with Cockroach DB's handled within the database itself, so you don't need to manage shards from your client application. And because the data is distributed, you won't lose data if a machine or data center goes down. cockroach D is resilient and adaptable to any environment. You can hosted on Prem. You can run in a hybrid cloud, and you can even deploy across multiple clouds. Some of the world's largest banks and massive online retailers and gaming platforms and developers from companies of all sizes, trust cockroach DB with their most critical data. Sign up for a free thirty day trial and get a free t shirt at cockroach labs dot com slash save daily thanks to coach labs for being a sponsor and nice work with cockroach DB. The capital that is being steered towards a recipient. It's often originating in a large source, a sovereign wealth fund or family office in it's being routed through something like capital allocators cater like a venture capital firm for example or a bank. How does this capital get allocated to these smaller sources? What is the supply chain of capital in the traditional sense? You know it's kind of funny to think about capital and things like the stock market in the form of a supply supply chain, but this is exactly how we think about it so at the end of the day. Capital originate. In somebody savings, basically society savings right you. You have a retirement account or your population like you know in in Singapore and Norway with a lot of capital, it sort of accumulated from. From the population and these sovereign wealth funds, or you're an endowment that's you know managing donations of accumulated over many many years, and ultimately you're trying to invest capital to earn a return and pay for something pay for your retirement pay for the university's operation so on so forth so that's Capitol starts, and it basically flows through the economy in theory. To all of the economic projects that are most profitable, inefficient for society, and so, if you step back, and you think about like how how is it that the American dream or the Chinese Miracle Happen? You know in in both of those cases different points of the last hundred years. Why is it that society basically stagnated? You know the world was a pretty scary. Scary place to live in up until about seventeen fifty, the industrial revolution started. Why is it that you know basically for all of human history? People fought each other for food and died at the age of thirty or forty, and over the last two hundred fifty years that it's totally changed. It's because we have an economic system that converts capital from its original owners. Diverts it to the most productive projects. which if they're successful, replace some old more expensive way of doing something with newer better way and so I think when when I described that like you know I, think most people can step back and say yeah, okay I. kind of see how capital flows through the system, it goes automatically to someone making an investment decision like a venture capital firm ultimately gets into the hands of the company company decides to invest in creating some great product that people love. Let's. Let's say like Amazon and then everybody switches from you know buying goods at some store that may or may not be out of you know may or may not being stock to the world's best selection of anything you'd never wanted. The most efficient price that's society gets wealthier basically through these these kind of steps in these transformations, but it's asking if you step back and think about it like nobody actually thinks it's processes as efficient as it could be like. We asked people all the time. People were interviewing journalists companies. We work with sewn. So how efficient do you think world's capital allocation is? I've never met a person that says it's pretty good. You know we're like ninety percent of the way there. In fact, most people think it's pretty inefficient. They think of companies like you know we work, and some of the more famous cases lately of of Silicon. Valley back businesses that that totally. underwhelmed disappointed. Their initial expectations and I think most people admit that the efficiency of capital allocation is either broken or nowhere close to achieving its potential, and so we basically we'll talk more about our technology and how we do we do. We basically think of this problem our problem to solve. There's an incredible amount of Apache inefficiency in how data that goes from a project or a company, ultimately funneling up to an investor flows, and so you know it's hard to place blame because there's so many people in the supply chain, but. But I think it super clear that if it's difficult to measure whether or not a project or a business is good at converting capital into value in wealth, and you know products that people want, it's nearly impossible for society to become really good and efficient at allocating its capital, so we're we're here basically to make the data gathering data transformation visualization communication of what's actually going on under the out of business as efficient as possible and you know from that, we thank some great things are going to happen to the economy. Goes a little bit deeper on the role that a bank typically plays in capital allocation. If you think about our bank works like let's take. Let's take a consumer bank that most people think about you gotTA checking account. Right, now you've got some money in that checking account. That account actually takes your money or dot and most people know this your dollars sitting in that account. You know just waiting around. You'd withdraw them. Your dollars are actually rolling up into the bank's treasury. There's somebody at the bank working with the regulators to say hey, how much of this money can we actually put into things like mortgages, commercial loans, all of the the uses of capital that society. Has In some some effort to. To, move the world forward and make the economy efficient, and so those deposits basically roll up into a big investment fund, and there's ratios that regulators set globally that say those dollars needed to be kept in reserve, versus how many are actually able to be invested, but with the portion that's able to be invested. It's there to fun. You know building a house to fund a business back -Tory to fund sales and marketing or inventory procurement for some other business, and so a bank was was basically the original investment fund, and a bank has unlike venture funds and other sources of. We typically think private capital. The bank has tricky. Problem were any moment all of the depositors holding the checking accounts could show up and say hey. I want my money back and so that's why banks have to deal with reserving capital predicting the amount of withdraw and classically everybody wants her money at once at the worst possible time, and so banks have to deal with quite a bit of volatility now if you take an investment fund on the other hand. Totally totally different structure, so your typical venture fund will have money available to it for a period of ten years from you know typically these larger pools of capital. We talked we talked about so very rarely. Individuals are investing retirement savings in venture funds, typically sovereign wealth funds down that's. Basically pools of that individuals capable. Win One of these funds makes a commitment to a venture fund. It'll say you've got the capital for ten years. You've gotta pay back. You know as investments exit, but other than that will check in ten years from now. We hope that we have more than we gave you the star with and there there's no liquidity problem because the fun has effectively carte blanche to keep the money invested until some set of businesses grow and succeed and go public and make distributions so one thing that's fascinating. The Tappan in the last twenty five years is private capital capital in the format of these kinds of funds. Have just grown tremendously and so today. There's a little over five trillion dollars. Of private capital being allocated in this way to think like buyout funds venture funds so on and so forth. Funds don't have the liquidity problems of banks. They can make much longer term for looking investments. This is created tremendous potential to make the economy more more efficient by taking out the time spectrum. You know this is why venture investors can do things like finance spacex or Tesla. Really. Build fundamental technologies in the way that a bank never could so this is an amazing thing it. However leads to a very long. You DAK cycle, so the incentive goes down when you take out the time line over which investment needs to pay back. To carefully monitor and understand what's going on in the business day today, so it's pretty interesting thing about the different pools of capital. There's not not to. Make it sound too confusing, but I think everybody will admit that the financial markets are incredibly diverse complicated we track basically about fifteen different kinds of capital, and they're sort of pros and cons with each one, but you know a bank is one. A private fund is wanted insurance companies balancing as another. You've got things like ETF and public vehicles that hold capital so there's quite a bit of complexity and the the structure of the financial markets. All right well. That's maybe the supply side of Capitol on. All kinds of middlemen and all kinds of different arrangements, but ultimately there is also the demand side of Capitol, at least from the point of view of companies getting started which is. Startups or computer in later stage with the maybe they're not exactly considered startup anymore, but they're mature. These companies have models for how they are predicting. They're going to grow, but oftentimes these companies are very. Lumpy in terms of how their their revenues come in how closely their predictions can track reality. So how do technology companies even model their finances? Is there a way to model their finances? That actually has some meaningful trajectory. Sure so first. Companies you know need need a base think of all the places that they're spending our money and. We're pretty. We Do I. Think a pretty good job of organizing this and making it simple so when we look at companies and we can, we can talk more about how the the cabinet machine operates, but when we look at companies, we basically think they're only a handful of places of money. Get spent you spend money on. Short term projects that you hope proficient things, sales and marketing. Houston money on paying for your sources of financing like paying interest on debt, making distributions to your investors, and then you spend money on everything else and everything else can be designing software building products on, and so forth, and so if you break the demand for capital down into just those three buckets. And look at them that way. Some pretty interesting things happen. The first is for the short term investments that you hope productive. You can track pretty granular nearly whether or not they are, and we'll come back to that. For paying back your investors, you sort of know exactly how much you're paying your investors so a pretty easy thing to track, and then for the operating costs you know most people will help us. Apax, that you're paying to keep the lights on things like Renton the your accountants, the CEO salaries on and so forth these are these are table stakes expenditures. You need to stay in business and so. Amongst each of those three things, there's different things that you wanna do to optimize and I'm happy to go into more detail sort of go through each one. If you think that'd be useful. Yeah Bliss a little bit more about about how these companies should be a modeling, their revenues are that is meaningful to model their revenue so that you can potentially think of them as targets for for capital allocation so. If we think about. Understanding what company might be a viable recipient of capital? How can you accurately predict the trajectory of that company, or or do they? Would they present a model? Would they develop a model good through a little more detail? How a company would serve justify? It's need for capital. So typically what what most companies do and this is not terribly useful or accurate, but I'll tell you what most people do I mean by the way like how central the entire economy predicts, predicts demand for capital works like this. Companies take. Their income statement on their. Balance Sheet historically. And they they basically have this excel file got a bunch of you know, rose and have different things like my revenue, my you revenue that sort of linked or my expenses that are linked revenue Mukasey could sold so on and so forth, and they grow each of those rose by some number that they hope to hit so if you want your revenue to double next year, you'll say my revenue one hundred dollars today I wanted to be two hundred. Hundred dollars twelve months from now I'm just GONNA draw a line between those two points and every month. There will be some number that's on that line, and that's why monthly revenue I want my expenses. You know everyone knows. Expenses are going to have to go up if my revenue goes up but I don't want them to go up as much as my revenue, so I'm going to draw a line. That's you know somewhere less than a doubling. and. You pull these lines together on one big excel file and there's your you know they're your corporate projections. In general, this is true for big companies small companies, but that's not actually how. Company revenue works because if you go back to the three categories, we talked about before, and you just focus on the one that talks about the short term investments. The. Way Company Revenue Actually Works is a company this month. Let's say they spend one hundred dollars on sales marketing. Well. They're hoping to get a return on that sales marketing, and so they're hoping that in the next you know six months. That's paid back. Twelve months that's paid back. You can actually track every time they spend money on sales and marketing. how quickly it gets paid back so it's that level of precision that can accurately predict revenue, and so what we do is we basically just get a list of every time? Money was spent on one of these short-term investments, so you sales and marketing for for an example, and then we get a list of all of the revenue that was ever earned. And we attribute between both of those lists causing effect. And we do that using a bunch of techniques that are pretty commonplace in your typical data, company or machine learning company. We use some math things like factor graphs. We use simple kind of correlations. We have You know a whole kind of financial framework to. Guess. What attribution should be because you learn a lot as you see different businesses and you see a bunch of different different patterns, which you can basically cluster on, but it is this linkage between spending on something like sales and marketing emceeing seeing revenue, go up or down, but makes or breaks a business, and you want to look at it and I is. Not a bundled. Entirety which is how financial projections are typically built? Okay, well! Let's talk a little bit more about what you actually do so if you're talking about early stage technology companies. Describe how you are modeling, those companies and how you are making decisions as to whether they should receive capital. When a company comes to capital they they come to our website. They sign up for this system that we built which which we've called the capital machine. And the first thing that they do is they connect their accounting system their payment processor typically, so think like a strike, and then sometimes they'll provide other things like a pitch deck or a data room, or whatever other information they have prepared. The system pulls down. All of the date in the accounting system and the the payment processor, and we look at other systems to these are the two key ones that all all dive into detail, and so, what ends up happening is from the accounting system. We get a list of all the times. Businesses spend money on these things like sales and marketing that we were talking about before. From the payment processor we get a list of all the revenue transactions in crucially we get it at. The level of each. Each customer payment, and so you know we scrub I all we really care about is having a customer ID, but once we have data at that level. We can start to do this linkage and say all right look. You know this business spent. A million dollars on sales and marketing and March of two thousand eighteen in April of twenty eighteen, and we saw revenue grow by twenty percent. That was a pretty substantial chain. You know what actually happened here. You can typically identify the subcategories of sales and marketing and start to do this link between these two, and this is really the you know the magic behind our our data science in our team pairing with our engineering team to figure out this problem and solve away that is, that's robust. Bud once we have these two data feeds, and the system goes through, and does all of these attribution. Populations were able to present that back to accompany a pretty clear picture of what's going on, and so we'll say things like hey. Your Business is pretty seasonal, and in the summer is when you're typically more more efficient at converting your sales and marketing dollars into growth so I, you want to finance growth in the summer. The second thing is only about eighty percent of your businesses financeable. There's twenty percent where you might not know it because you're not looking at this level of detail, you're busy building your business, which is exactly exactly what you should be doing, but Twenty percent of your businesses, not efficient. You're spending money on on your sales and marketing categories, product lines, and CETERA that just shouldn't exist and so if you get rid of those. If you double down on the part of Your Business, it is efficient. Then we predict your revenue will be act fifty percent higher, and we'll tell you exactly how much money you need to invest to raise money to to raise the revenue by fifty percent. We give you a bunch of charts that allow you to see how history and projections merged together and dig down. Inspect how we do that linkage to make sure you agree, but. This is what the capital machine does at its core. It Converts Company data into a fully audited completely transparent picture of. How business works where it sufficient where it's not efficient. And then that's where our technology stops, and where balanced she comes in, and so we then take this information, and we make balancing investments directly in companies, and so primarily at this point we lend money to technology companies that we see from their data are eligible for non dilutive funding. We make capital available to them directly. We basically allow them to access it through the capital machine. We use one system to communicate changes to the business. No keep both sides and form so on and so forth, but this is the kind of analytics layer that's essential to making these capital allocation decisions more efficient, and so I think you could imagine a day at least for us in the not too distant future when it's not just US using our balance sheet in this tool to make investments, but in fact, just like excel, every investor can benefit from a similar level of analytics and transparency, as can companies by getting more accurately priced faster access to capital less friction so on and so forth. Get Lab commit, is! Get labs inaugural community event. Get Lab is changing how people think about tools and engineering best practices and get lab commit in Brooklyn is a place for people to learn about the newest practices in devops, and how tools and processes come together to improve the software development life cycle. Get Lab commit is the official conference. Forget lab. It's coming to Brooklyn new. York September Seventeenth Twenty nineteen. If you can make it to Brooklyn, on September Seventeenth Mark Your calendar, forget lab, commit and go to software engineering daily dot, com slash commit. You can sign up with code commit s E. D.. That's COM MIT S. E. D.. And Save thirty percent on. Conference passes. If you're working in devops, and you can make it to New York. It's a great opportunity to take a day away from the office. Your company will probably pay for it, and you get thirty percent off if you sign up with code, commit S, e. There a great speakers from Delta. Airlines Goldman. Sachs northwestern, mutual, T, mobile and more. Check it out at software engineering daily Dot Com slash, commit and use code. Commit S. E. D.. Thank you to get lab for being sponsor. The inputs specifically if you think about a model for determining whether or not, a company should should be eligible to receive capital. I'd like to know how the the models are built. The the data science models that you're building are constructed from the point of view of the inputs. So how are you determining or how do you like company comes to you? How do you turn that company into some structured form of data that you could put into your models and determine whether it's worthy of capital. Yeah I mean it comes down to what what the data is your down so when we talk to a system like striper transaction records system, you know that that's the revenue of the company now where things get interesting when we connect to balance sheets in penalizing, it's of accompanying really onto understanding. Weighing. What exactly these numbers mean, and that sort of where we made our pipelines were built from the ground up to give us that granular. Of A company's cash family revolutions. Where's the money going where they allocating? And it's savable greenway or you once. What do you understand that data through that Lens? That let's build pretty sophisticated financial models Linda. And you know as soon as you have the picture of Company You can really do a lot of flexible analysis on the back leg distributed computation. Come stuff that you would never be able to excel and quite frankly a lot of these companies don't have the stacking internally or really the tools to understand for themselves, so you'd be surprised it you know when we surface this analysis back to the company by virtue of just being transparent on how we're making decision how it is perceived their business, the signals that were uncovering. These operators the CEO's the CFO's that are really focused on building company. Really surprising. They're really making these insights really transforming. How they think they should have capital. Should invest growing business. Are there any? Sources of Third Party data that you can gather to improve decision making. There are at a macro economic sense, and so it's actually quite useful to look at public company performance and say hey. SAS businesses in general. Most people notice, but facilities in general are seasonal in the fourth quarter. Budgets basically expire and people come in, and they buy a bunch of SAS. Software and so to take concepts like that basically shapes of curves, signals and apply them to private company. Financials is useful. Crucially though there is no private company. Data repository of any kind like it just doesn't exist, and you know notoriously even even with small businesses. It's actually quite quite difficult to get access to any sort of meaningful credit data, and so, what ends up happening is these aw. These businesses. Give you a picture of their business directly as an investor and you have to interpret it directly, and that's basically how this works totally unlike consumer credit, there's no credit bureau that people paying so most investors are analyzing the state and excel. Excel notoriously breaks when there's about a million cells worth of data, and so we've got this great visualization showing our data pipeline, and it's basically a bunch of boxes, and there's a little tiny. Tiny box in the bottom of corner that's excel, and there's a bunch of other boxes across the entire rest of the page that are nodes in our in our distributed computations, but accelerate very very limited, and so it makes it impossible to actually understand what's going on in business from the source data, and it's at the source that you see this variability in this linkage between profitable capital allocation decisions in unprofitable capital allocation decisions. Describing more detail, the workflow so a company comes to you and they're going to put their inputs into the. Would you call the capital machine? What does that workflow look like in a little bit more depth? Yes when they come to the website, they creighton count much like you would on. Twitter facebook account. When your details your email, you terrify your email, and then you on what's recalling like the capital portable on there? You have et CETERA. Tools to connect your sins record and these are typical offload. So you know people are very familiar with you. You know you say hey, let's connect by quickbooks you in your credentials and sort of be as secure way, and you click okay and the system checkmark by your quickbooks in the system start pulling that data out of regular cadence and. Depending on what system you're connecting you of the characteristics of that's not go systems of record, and how much data you have you know. The data's available anywhere from ten minutes to a couple of hours later and you know once we have Dr. System, we run that through our partake analysis pipeline in the users as a company. You get you get charged. In Tableau kind of call it, the insight Saban's these refused that we think would be helpful for you as an operator company understanding about Your Business in separately. We also get views of that data that are useful to our our internal investment team. Whoever is looking to capitalization systems? Are there certain business categories that are a better fit for modeling in better fit for the kind of. Predictable capital returns that you can, you can expect with the investments that you're making so like you ride sharing or Gig economy businesses or some businesses. What are the categories that are the best fit? Say Very few categories don't shit from the from the perspective of of linkages, but they're certainly models at their easier to think through and easier to understand, but our our system can underwrite today A. Lease on a commercial aircraft, a fleet of ships and Insurance Agency ask company the most important. Thing about our system is that the financial theory that underlies it is very general, just like p. e. rate is very general, and so that's kind of sounds crazy like. A lot of. A. Lot of people say what what businesses the best fit for your your system and you know it's kind of like asking what businesses the best for Warren Buffett like Warren. Buffett is a generalist. In any business, and he has a framework in his own head to figure out how to make ship comparable to American Express our assistant has a very similar framework. It just operates at the level of transactions instead of at the level of financial statements, but certainly within. That framework there's some examples that are just easier describes I think like you know thinking through the fishing of sales and marketing something. That's a lot more obvious than thinking through like the stability in refurbishment of commercial aircraft parts, which is a key question you know. Pricing pricing refurbished parts, which is a key question if your financing commercial aircraft and Our team, the ambassadors that use the capital machine internally which we primarily do internally do a little bit of partnering with without the groups to to use this as well. These people are all specialists in some particular area, but it's crucial to understand. They're looking at the exact same chance as all the other specialists and all the other areas, so it's like literally the the Fast Company and a commercial aircraft will have the same series of charts at investors. Are there two two draw their conclusion? Is the question for Chris. Can you describe the stack of technologies that you built in more detail? Yeah Yeah. Of course on the front, we are react type script, xjs, you know everything is on aws, and in the back, and we're. We're all python, and in really the reason for that is if you're doing any serious machine, learning or data science today can't really get away in python stack, so we're all python them back in. We have flasks. As a as our API late here and That's the that's a high level. And get a little bit more detail about how the data science layer works. Yeah, yeah, yeah, of course, so we put on the dea into basically a data lake the that goes down into Ardito pipeline in that's all air orchestrated on top of each called airflow, and we use a technology called desk for are distributed computation, and I think that this is a good choice. Choice for us at this moment you know I see us doing a lot of work on. You know using a spark in other distributed technologies in the future and his team and it turns out that when we pull this data down organizing the data was really important to us as we build a lot of attractions to make accessing that data, really easy for quantitative analysts. Important central to our whole technology is that we're able to do a lot of different financials experiment very quickly on top of this so the the implications of that really cascade down all the way into. You know what technologies where choosing how we structure our delayed. Even even how strokes are teams, so it really is brought up locations across all product. How is it when you're analyzing company that you have enough data that it warrants a spark cluster because I can imagine? The financial data around the company. How can there really be that much data to analyze how you do surprised in a lot of these transactions systems taking up the companies have been around a couple of years and their direct to consumer. These data sets can be can be pretty large. You know we're talking about in the millions and millions and millions of transactions that were pulling down and storing. Storing and that just on a per company basis. You know that's not even talking about if we wanted to. Benchmarks Cross companies, and also if we want to do scenario analysis, so you know one of the things we was part of a pipeline is take this data, and through like nine ninety nine hundred thousand simulations to understand the sensitivity of different variables on the performance of Your Business and If, you're starting out with starting that already large. Sort of a multiplying effect. On how much data the system is the old process? is you go through those different stages? And, can you tell me a little more detail? What would a typical spark job? Look like for a company that you're assessing. Yes, so first episode is ribbon. Our our financial didn't ingestion parts, so we download something on the order of you know forty fifty bytes of Tim's action data for for a company. We have to do all the work to interpret and understand what that means in reorganized that data in a way that are downstream analysis and primitives can. Make sense of and use for useful analysis so really the first step at this point job is is transformed the datum some it's useful, and then there's all the work on what are the clusters in order to machines and analysis in the computational. Resources needed to run simulations. You know not not just say local computer locally owned of fall over the only about thirty to sixty four gigabytes of Ram what league, so that's where workflow comes in creating easier faces into data, clusters and being. Should you know when you run a job? You know when it fails. You know it's done. You know when the team can't okay. This part of analysis done I had intermediate date asset to do more analysis on now get back to work is a lot of the time we spend developing internal tools to make. One other thing that'll mentioned that I think's important is. A lot of the underlying technology in our data pipeline it's no different than like what a tableau or you need. Traditional BI business would have access to, but what's fascinating when you have a vertically specific domain so financial data in our case you can make a lot of interpretations about the date of the let you do much more intelligent things, and so for example we. Don't have to make your own charts as a user of the capital machine. We make all the charts for you can of course. As a business we work with. Give us ideas for charts. You can mock up your own. We we basically have an interface for for business. The I team's to to write some code if they if they want to bought when you have clients who are thinking about financial risk, financial attribution across all of the companies that we see distilling that down into a series of indicators that are detailed, but generalize -able, and then publishing that back to all of the companies that use the capital machine to run their own capital, allocation, decisions and access, external fundraising and capital. Some pretty amazing things happen in so it's only with a vertical view. You actually having these we, we call our data scientists Kwan's, but but actually having these people who you know typically are graduate level economists, thinking for the first time about using transaction level data in their analysis, which is notoriously not not available to to normal economists that you get the kinds of insights and analysis the actionable for businesses, and then in terms of the data pipeline that then means we actually store a bunch of intermediate data that's opinionated in that way, and that makes it much faster to access much easier to benchmark much more useful across a network of companies, versus just that isolated excel model that. Explains only one business. One thing I'd like to ask you about. Capital intensity so there are kinds of businesses that are capital intensive for example where you have to pay upfront for a lot of ridesharing rides, and you know as Uber or lift. His has known in much detail. You allocate all this capital two things to subsidize rise because you try to win a market, there's all kinds of other capital intensive businesses. How does capital intensity change? What makes sense with regard to the equity financing the debt financing that you are shepherding for these companies? That is a great question and be because of where you focus in your audience. You totally get the most financiers don't so. The first point exactly like you said. Capital intensity means a business consumes a lot of capital. It doesn't mean a business has a physical factory or plant or railcars, so it is absolutely true exactly like you said that there are a lot of tech businesses that are incredibly capital intensive. If you are capital intensive business that means UNI especially if you're growing, you need to raise a lot of external capital, and so it is even more important that your capital or a big portion of your capital base is not dilutive. That's that's just essential. Table stakes because what you see with these businesses, the ride sharing companies are great. Example is by the time one of these things actually goes public the early owners in the business on a very very very miniscule. KEESA that business, still if you contrast that to company like Viva Systems which I think is one of the most capital capitol efficient businesses in venture history, I think that this race something like twelve or fifteen million dollars total before it went public in a at a multi billion dollar market cap. So capital intensity. Is a synonym for dilution your own way less. Than you think when you exit entities even more important that you figure out a way to raise capital non ludicrously upfront. Some broader questions zooming out in in getting your perspective. Do a thesis for what is going on in the economy right now where you look at. The fact that We have. Obvious pressures to. Reducing the size of the economy through the lack of tourism, the lack of social gatherings while the stock market climbs higher and higher, and it appears that the technology side of things is almost unaffected by Corona virus is there. Is there a thesis that you've arrived at or or their set of theses that through conversations with other people, you've found most compelling. Sure the most important thing to realize about the stock market is that it discounts all cash flows from all businesses in the stock market to infinity, and so the value, the stock market about eighty percent of the value. The stock market is. Pretty far into the future like more than three years from now, and so if you believe that the current economic crisis and this is why there's always a. At least in the Western, world, last two hundred fifty years after an economic crisis. If you believe the crisis will eventually revert, and there will be a recovery, then it only makes sense discount stock market assets by anywhere between ten and twenty five percent. If you believe businesses fundamentally going to go out of business because of this crisis, that's a different story, but that explains why something as terrible as Kobe nineteen and a pandemic. Only discount the stock market by by roughly thirty thirty five percent in a in March, but that's not what's actually going on today as you mentioned and so stock market prices now have completely recovered. That is something that we think is a little bit of out of sync with reality but I. I mention you know we're not. We don't spend too much time about the stock market beyond that we just look at you. Know Private Company fundamentals. We try to understand what's actually going on in individual businesses across all businesses that are network to see what you know what we can understand, and you know what kind of conclusions we can draw, and so if you take that Lens and you actually look at what's happening to businesses due to Cova nineteen, it's fascinating. Some businesses like think the food delivery space have gotten a lot more efficient, so those businesses lot like ridesharing businesses back twelve months ago, there was sort of a bloodbath between bunch of companies competing in local markets to acquire customers all all fighting Google and facebook console, and so forth you subsidies drivers, etc.. That's essentially stopped. These businesses incredibly profitable, the cost acquire customers has fallen by more than half a lot of cases. The channels were slot less competitive, and so if you're running one of those businesses. Now is a great time to be aggressively expanding. Weird things like commercial construction businesses. They're actually a handful businesses that we've seen do things like install windows and doors and commercial buildings whose businesses have accelerated because all of these buildings are closed down. Construction project timelines have gotten pulled up. All of these orders are coming. Do in they're you know sort of rapidly doing it solutions? There's obviously a bunch of other businesses have been that have been hurt by by the pandemic, but our general thesis are we've studied. Pretty detailed way the Spanish flu in nineteen eighteen, you know. These things eventually go away. There will be a vaccine. Economy will get back to normal, and as long as we can stay focused on working through this as as a society and of maintain our our fabric of of kind of economic progress then. DESAGUADERO values today will eventually make sense just sort of a question of of win for the stock market, and then if you're if you're actually running business in thinking about your own performance in isolation, really being clear about is now the time to invest and grow my business now the time to be very careful with my expenses interest, get through this for the next year or however long it takes for there to be a vaccine. So the way to think about your company, if I understand correctly if I was to to put in a nutshell, is that. I think of you as a data science middleman between large capital allocators, and and start ups deserving of capital, so the the sovereign wealth funds the banks the I guess. Funds of funds. These kinds of sources are essentially looking to you for guidance on where to direct the capital, and you're on the on the other side, absorbing data and creating opportunities from these startups to source the good directions of that capital. Just wrap up. Would you put any more color around that description or or refining anyway. Yeah I mean I. think that at the core of what capital is is where the. Core Technology Ambler of sort of. The private market if you think about public markets today, you've clearing-houses like the New York Stock Exchange, and you have companies that provide analysis on top of that like Bloomberg, you know we see a tremendous opportunity to shift the paradigm where you know the place where all the financial transactions happen. is also the place that collects the data improvise information for those making these decisions and yeah, so I think capitals really at the center of making a transparent technologically enabled financial marketplace. Guys. Thank you so much for coming on the show and discussing capital, and I guess one last question is. Do you have any predictions for how capital allocation for startups will look differently in five ten years? Sure so! The first prediction. And this is happening now. I mean the the infrastructure is. In place both within. And others. Most startups fairly early in their life. Think is equity only way to do this and. So. That's a cultural shift. That's that's already happened. People are starting to ask that question. The second prediction is. Seed and series a funding will be entirely unchanged. After series. There'll be a bifurcation between businesses that. Are Really. Capital intensive gigantic rnd projects think like SPACEX. The series, B. C. d. e. enough are really about building and launching a rocket. Those businesses will by and large not. Turn outside of equity to finance themselves, but there's very few of those businesses. Pretty much every other business businesses that you see raising a series B. Serie C. Will like any normal business in the entire rest of the economy raise maybe half of that capital nine allegedly either in the form of debt. Royalty financing factoring all of the other instruments that normal companies use to finance themselves in the void delusion that will happen roughly three years her. Now that'll that'll kind of we'll see obvious obvious signs of that from very early very early base, and then the final the final thing is. Steve Case talks a lot about this. With the rise of the rest, he's got this great venture fund that invests explicitly outside the coast, so kind of the rest of America and we've seen that there's there's a pretty dramatic distinction between being a coastal business non-coastal business from capital access perspective, but there's no distinction from an actual performance perspective, and so we'll start to see some of the regional. Differences in bias sees around where capital flows, go away. And so I would maybe put that on a five year timeline like raising capital is actually much more predictable, much less biased, and that's great back to the beginning of our conversation. That's great for the economy I mean every project or business that can convert capital, two products and services that people love should get finance. No questions asked doesn't mean it doesn't matter what the color of your skin is. What background you have whether you went to college didn't go to. College doesn't matter. You have a business with data that can prove whether people love it

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Jason Lemkin Clip: Why now is the best time to start a SaaS company

Equity

10:57 min | 1 year ago

Jason Lemkin Clip: Why now is the best time to start a SaaS company

"A few weeks ago I had the opportunity to chat with former founder. Active venture capitalists and driving force behind. Sastre Jason Lincoln. Jason Zoster a community for Sassan cloud founders also organized the annual Sastre Conference in San Jose. That now attracts five figures. Were the folks each year. We spoke with Jason before the novel. Corona virus had evaded containment efforts affecting domestic markets after upending their counterparts abroad the current community since dacians forced Jason Deport. Sastre back a bit. But that doesn't mean that our chat with him any less timely in our forty five minute conversation we covered a ton of stuff from the potential for cloud slow down to how founders should use or not use venture debt to Jason's outlook on SAS consolidation. And even half asked. He's writing checks today. We're sharing one of our favorite clips here. The rest is over on techcrunch for excellence subscribers we're GONNA get into VC's lately that have been talking about the beginning of cloud. Slow down and I I. This is a very specific thing. What they mean is cloud is no longer an upstart phenomenon. Saas LONGER NASCENT. We've now seen a large percentage of the inner voice software world move over to SAS and nine means that the growth rate will descend as the actual aggregate basis larger and critically. They think that this might lead to income and squeezing out startups from certain spaces in the Saas market. That might have been attractive before. And this is from Alex over at scale venture partners recently and I thought it was interesting hypothesis. I don't see why wouldn't be correct. But I want to get your take on. I know your cloud optimist. You've always been a believer in my experience. So when you think about the maturing of this ass market does that leave less space for starts in as you look at the the overall landscape. Well let's see. I think there are two different points. I have two different perspectives. If you look at data from Gartner which is imperfect. But at least we haven't you. Can you can say that. Maybe thirty percent of old school on Prem type software has gone to SAS thirty percent so the pollen of user seventy percent left but the flipside is. That's a lot of market penetration right. It actually starts approach forty fifty percent. You should see a slowdown this secular trend into SAS. When when even when you started doing sas certainly when I started doing it was risky. It was quirky. It was weird. It was it disliked. It was it was not trust about two thousand sixteen through about Twenty Sixteen. Maybe even a little later at the first astronaut. Aaron Levy came one week after the box roadshow and asked him what the public markets. He said they're starting to learn about it. They're starting to get comfortable in two thousand fifteen. That's that's only twenty five years ago so we are so that thirty percent was probably eight percent right and so there is so there's so so there's a the good news is seventy percent left. The the risk is like you know there's only so much of this crazy growth and another thing happened. Which if you look at any Gartner or whatever this and this no one anticipated more of. It went we all knew there would be a substitution that of however you define it a trillion three and there's different metrics how much infrastructure include. We all knew that like the old the old on Prem Safra would go to sas we didn't realize that it would. It would take up thirty to forty percent more of those. It budget so they used to so we got an extra boost. People are spending more on software. No no one from scale no one from anybody realized we would spend more on business software because of SAS but has physical limits. It budgets are only be so much of global two thousand budget so these Amazing Trans created many many Saas companies. Doing a billionaire are billionaire are but but they're gonNA hit headwinds there. There's no question those headwinds that's different from whether that's going to box out startups. By the first half of the apotheosis there is going to be a slow down as we just forty fifty percents over the next five years. Yes there has to be and as we stop putting more and more of our fixed. It budget into SAS. These are two great trends and they will reach saturation. Got It okay. Now on certain point and and being boxed out using more skeptic I think this is the best time to start a startup time. Tell me why because all the SAS leaders are billion. Two BILLION COMING UP ON A billionaire. Zenda shop is the hub spots. They don't have taught they don't have time so if you're a billionaire and they're all growing like a weed growing thirty forty percents shop advice. Going fifty percents off. But they're all growing. They're all growing with a few exceptions. They're all growing north of twenty percent. All the leaders true. So let's imagine you're in a building air which now they're like twenty of these companies. How much do you have to add this year? Two hundred even three hundred. Maybe a lot you're thinking about non-organic time to compete with your little startup. That was just on tech crunch. You know ten years ago. Five Years Twenty fifteen. When when Aaron came from box Aaron would see a startup. Doing five millionaire. Get a little worried. I mean not literally worried but they. Hey this may disrupt me. Is that right Stewart. Butterfield doesn't have time he's GonNa read it. He's all over social media. He's an incredible founder but slack doesn't have time going to a billionaire to worry about someone that did five million has got to worry about. Microsoft has gotta worry big guy so that means you have a lot of air cover to get not just to a million before your competed with by maybe one hundred million owes underneath the. We'll just ignore you because they have to focus they have to hold it and adobe turning around now and everyone from fig on down is competing aggressively with them. But why because they're stupid of course not? They're very smart. Sap there they were busy. It's too small. It was too small right and there's too much growth in creative cloud creative cloud fuel the dobies text market cap growth. So they just. It's not that they don't watch what's happening with web flow and figment everyone. It's just too small until it's nine figures in revenue because figure has become materialists. I don't know how they're all super successful and it's not because anyone was dumb. It's just because you can't compete when they were small you just can't. You're too big. You're they've grown too quickly so it sounds like instead of this problem. It's actually there's there's more freedom because become now too busy to kind of mess with you get up to ten fifteen twenty million a are before they even begin the guns on your ship and because cloud got so big. These niches got big. Every niche. That used to be a millionaire NECC- now can be one hundred million Monday dot Com. Where you're talking about who we needed another project. Management for Non Tech folks that went from one hundred twenty million in four years. But that's a that's a piece like ten years ago. That would be a two million dollar business going to two hundred million so let's whole years one hundred times bigger. This little niche that Monday found and they're going to do a billionaire art. So let's talk about Vertical Saas. Jump ahead my question because this is what I wanted to get. Borough Ready It seems like you're thinking about Vertical Saas than isn't that this is GonNa be constricting idea but inside these these these takes on like the dentist industry or whatever and building software for those could be enormous because the niches have gotten larger to your points. I presume your a bowl on vertical sats. I've always been a ball. I would say even more simply. Look at any company to billionaire. Look at his desk job. Okay which is already two billion. That means they're gonNA keep growing. That means they're going to get to five or ten billion. My rough math is there's another billion vertical version of that so there's another billionaire could be more and that means there could be ten UNICORNS. One hundred million ten verticalised desks right And doesn't even have time to meet with them right. I Investment Company gorgeous which is like a vendetta ECOMMERCE. They're almost all on shop. Affi- it's very niche right. They're gonNA be growing three. X Ten million error. Is that tune it? People thought this company was to NICCI twelve. Apparently it's not nine. Three hundred percent honest has an offering it as a great product but all they do is make sure your fulfillment from instagram to shipping. That your contact center works magically. Which is good enough. Note is enough. It is enough to build a three hundred million Arab business. But it's just a niche today. That's so big because cloud is look how shoplifting. Today seventy million dollars in two thousand fifteen it was worth eight hundred million so these niches have grown astronomically and that means these vertical SAS things. We've like gorgeous and others. You turn around. And how could we do be a unicorn? Well it wasn't four or five years ago right when I met I met the founders only twice twenty fifteen. They were great but it wasn't clear it could be as big today but cloud. Gubbay point about Zen desk in there being room for ten unicorns underneath the desk at one hundred air. The implications vertical sights will still generally smaller companies than the original broader. Sass play so to me even smaller than salesforce. That's an example I don't Viva is a Pharma. Sierra Viva is the most successful verticals ass company so the CTO salesforce left salesforce a decade ago founded VIVA. It only raised three million dollars from emergence plus. It's now worth twenty billion dollars. Today he was also in my class. Like everyone did better than me in my bye-bye on the show but you should just get out. We should bring Peter Gassner. He's like a hundred times would have been me and vivas was twenty something billion and then how to products and he. He said look sales versus a great horizontal play I WanNa do Pharma and there. There is a legacy vendor in the space and it's big. It's a big space and all their deals are seven figure eight figure deals. But it's still. It's still a thirty billion dollar company and salesforce is one hundred fifty billion so I can't think of a vertical SAS that is bigger than its horizontal play but it may well it may well exist but thirty billion still outcomes. You're at three million dollar investment. Even if they are smaller by definition you know there's going to be enormous your general point about the client it's up it's becoming growing the high antigone larger piece of the overall. Everyone seems to be very hot. Verticals ask these days. So that's why I wanted to ask because they like it because the cloud got bigger and because competition is simpler the amount of domain expertise you have to do to build a viva is. It's rich compounds on itself and there aren't going to be twenty startups out of y Si. They're going to build that. But but and so there are these verticals because finally they realized they can be three hundred air business and then they can actually millionaire and they realized look it actually works. I can like I. Invested in in a SAS company just for environmental compliance called map history right. They disclosed their first. One million dollar deal okay. They have like no competition not in the whole space but in what they do they can have a few bumps and they can get through it. They have time they have times. There's not ten other players in the exact same thing. We've guys may disagree. But they had like one or two competitors and their original competitor was I think. Ms Dos based in offices. So you have time and so like this because you just. You're you're overwhelmed with the competition. You're overwhelmed with everyone. Wanted to take on snowflake and data dog and and there are many great apm companies. But it's exhausting. How do you know what's the next day doc?

Aaron Levy Salesforce Gartner Founder Jason Unicorns SAS Jason Lincoln Jason Zoster Techcrunch Dacians Prem Safra Jason Deport Sassan San Jose Adobe Microsoft Alex
Coronavirus corrections and the rise of remote work

Equity

09:23 min | 1 year ago

Coronavirus corrections and the rise of remote work

"Let's talk about the markets. There's no avoiding this. If you track technology if you track startups venture capital all that good stuff you see what happens to the public markets and in the last couple of days. It's been a complete shellacking. I think it's pretty much the only way to put it. We haven't seen declines at this magnitude in some time and it's gotten everyone in the talking about what's going on and what might happen next. Danny just giving you a gut check to the listeners. And all of our friends out there. How surprised are you by this eventual and kind of finally happened moment in the US stock market completely? Not surprised I mean I I I. We're not allowed to actively trade but I did trade my 401k portfolio into a money market fund. Like two weeks ago. So I'm quite pleased with the The the choice I actually sold at literally the peak a couple of weeks ago and so so I feel vindicated like my. My retirement is secure all five hundred dollars of it. I was GONNA say this is not actually a show designed to. Let's Brag but I'll give you three points for that one. I'm doing the old fashioned like long term investing. Keep your money where it is. Let it do whatever thing. So we'll see who's right in the end for people just catching up though if you're not active in the US stock market stocks have fallen tremendously over ten percent last couple of days and that was is really been kind of following the US news cycle so as the corona virus. The kind of thing that has come out of the disease world. I'm not a doctor that's best. I can do has become more prevalent both internationally closing more borders impacting more economies heritage anymore trade routes and also popping up here at home. Concern has risen. Also we're beginning to see impacts of the lengthy shuttering of large parts of China reflect it in trade and supply chain disruptions companies like Microsoft booking holdings which ones booking dot com and utanics have highlighted issues in their revenue and earnings coming up so the the slowdown is here after weeks of talking about any kind of expecting it and finally Goldman which you've all heard of they forecasted that. Us companies will have zero growth in twenty twenty which is pretty damning because growth is kind of what powers the stock market's expansion and that's kind of the the bad news. Sas companies are also taking a hit any. Am I missing any Any bad news here. Obviously people are dying Thousands of people are being marooned hundreds of millions in China and around. The world have been quarantined so those are the headlines but I I think what's interesting is is. There's there's two patterns here one is I want to focus in on zoom or let's call Zoom Zoom Zoom. The video conferencing software. That also helps us. Equity is having the best time of its Goddamn effing life so they they have doubled the stock value in just the last couple of weeks from the low sixty S in early December to about one hundred fourteen as a recording the show so eighty eighty dollars per cent and its market. Cap is now at almost thirty. Two billion dollars and I I I'm kind of annoyed by this. But it's Kinda funny just to point out that therefore pe ratio is four hundred. Thirty five right now and to Yahoo Finance has them as overvalued but I do think I do think the virus I mean the upshot of this is that because all the flights are being canceled. You know a ton of conferences. We just heard today that F. Eight the big facebook developer's conference were hearing. People are pulling out of the game developers conference. Sf next month GTC. There's even talk about Tokyo Olympics later this summer possibly being cancelled. I think we're actually going to see a huge gift around remote work. We talk about remote work. We've seen a lot of companies in recent justed around in a company. That's doing like remote conferences. But I think the virus is really going to force companies and decision makers to really ask like. Do you need to fly to do the sales meeting? Do you need to fly to this conference to learn something? Do you need to drive to a seminar and I? I do think we're going to see a shift in the economy where people go actually remote. We're Kinda works okay. We're we have tools and and and it's changed a lot last decade. Yeah I mean won't people might not know this but tech crunch itself as relatively remote I organization and my work history has been majority remote. I worked for with the next web for my first four years as a journalist and they were based in Amsterdam and I was in Chicago and then SF. I never went to the actual office once in that time period so to me this is relatively normal but I think for a lot of folks. He's always been discussed point. Not a re- realize reality so I'll be curious to see if that does work up. Certainly zoom other future of products and other companies. That kind of service people that are not in the same room might do well. I would say given zooms rapid value appreciation that racine's active trading as opposed to fundamental value. But certainly it's a stock to keep in mind if you haven't caught up on what's going on with red at Wall Street beds and the Stock Market. Take a look. It's kind of fun if you WANNA get a window into how the chat rooms of the nineties that helped pump stocks have now turned into semi closed at four. It's quite adventure zoom. I'm not saying it's part of that pump and dump world but it reminds me of some of the value appreciation. We've seen at other stocks that have him in the last couple of months. I think you know this is a question around Tesla. We brought up in a bunch of other stocks. Might take away from that is if you're trading over the counter OTC stocks penny stocks. Okay fine there's not a lot of liquidity. You can actually do a lot on the ticket and whatnot stocks. Let's zoom as an example thirty two billion market CAP company. You have to have a lot of money to move that share price one way or the other. If you're maybe maybe everyone's long and therefore like almost no one's willing to to sell and so therefore your your price gets kind of moved higher and higher but my my assumption is that that's not true and certainly for most of these big tech companies like Microsoft near trillion dollar market cap company. Like ain't no one can you. Can you can be you know. Warren Buffett Go. I'm going to buy the whole stock and the stock price will early move. That's the scale. I think we're talking about love the shares so it might change as the Margaret hits volatility and and whatnot but to me. It was blown way out of proportion. Well I hope so. That would mean there's less manipulation the stock market in values and more reasonable. So let's hope you're right but it is a fun story regardless but let's move along away from the main public markets to talk about a company that wants to join public company world which door dash after quite a long time of hearing to this company will go public kind of a needed win for both. Softbank And the Vision Fund Jordache filed confidentially to go public. And Danny. I want you to tell us the difference between filing to go public and filing privately to go public yes for companies that are under about a billion in revenue the jobs act plenty twelve allows startups to file basically there s one without having to do it publicly so generally speaking in the process you file publicly which means you literally to the web and then the SEC gives you feedback on that dock. You might make changes some some individual if you remember like what was a community adjusted revenue or some of these may not it was community adjusted so it was adjusted. Eba which is already super chested. Right brave ever GonNa give back on that. This purchase designed to encourage companies to go public earlier at least get feedback on there. S ones and to do it in such way like if if the numbers don't turn out well or some things get blocked by the SEC. You have time to sort of recover without kind of embarrassing yourself in public. The reason we actually find out about most of these confidential s ones that the bankers know that they're going to become real public wants and so the file confidentially then leaked to the press and go. Gee someone somewhere has filed something things about this one. Why would the companies do this? Well if you let these file privately when they're smaller it lets them a decrease in the amount of risk they take on making the on ramp to public markets have been easier and the number of companies has fallen sharply in the last. I forget the timeframe like ten twenty years. So this is a way to help. Bolster that number again and also with if you recall back to Osama's private IPO file or private direct listing filing. I guess technically they are putting out press releases saying we've done this. So they're they're filing privately telling you publicly they will go public but it's private for now and that's very twenty twenty but it's also. Kinda key dynamic to understand you look at the IPO market for this year. Now announcing your stealth fundraise. Yes very much like saying we have cool things over here. You may not see them. You're exactly it's the it's the sneaker drop it's yes it's the sneaker. That's the thing when shoes come out for a short period of time. I'm not cool. I turned thirty. I lost all ability to have coolness anymore. Now We're both in our thirties. Now which I think means that will never be cool again on door dash though Danny mentioned that if you have less than a certain amount of revenue you can file privately. Keep in mind that door dashes right about the sides so we have a suspicion that this was kind of the end of the time period in which they could file privately. Because they're about to be to Lart so let's get into the numbers and talk a little bit about what we have here. The company is worth around thirteen billion. But which is a large number not the most valuable private companies have ever seen we work at its Peak Uber Pre IPO. Those were both larger but certainly a decca corn and evaluate company. The company was valued at one point. Four billion in two thousand eighteen to give you understand how fast it's appreciated in value and that is driven by tons and tons of private capital often come in through the lens started after lengthy accounts of Division Fund but the company has attracted capital firm Kleiner and sequoia throughout its history. So a lot of backers. Put a lot of money this company for different reasons at different stages. But it's welland and it has some comps so we're not talking about a company completely abstract Danny. Just run us through some quickly and then we'll talk about its results. Yeah so I think the the the big cop here is so you know Oberlin public. We now have a lot of data from ubereats which is one of its sub business lines but in Q. Four thousand nine hundred ending December.

United States Danny China Microsoft SEC SAS Yahoo Facebook Warren Buffett CAP Olympics Chicago Lart Ubereats Racine Developer
"sas company" Discussed on Impact Pricing

Impact Pricing

10:11 min | 2 years ago

"sas company" Discussed on Impact Pricing

"Before anybody else will ever pay close tavist. My proposal sent in principle. Now let's see how much gold forty basically welcome to impact pricing the podcast where we discuss pricing value and the phenomenal relationship between them. I'm Mark Stephen Today. Our guest is Paul Klein. Here are three things you want to know about Paul. Before we start he started life with a government the job. Oh my gosh. He started and continues to run three different businesses and he has a podcast with a phenomenal name. Which is has pricing is positioning? Welcome Paul Hey mark how you doing fabulous okay. Tell us about the government job. What you do it was a secret agent? Double O eight. No no no. I had one of those typical boring jobs in local government government. And that's where my construction background comes from is related to construction building inspection and those horrible inspectors would come out till you to tell your house down or Ding you for heaven been permits and worked my way up through twenty year career doing the responsible thing and my Early forties or a rat. Forty actually I. I realized I was an entrepreneur. Super Noor stuck in a bureaucracy and I had to get out and I love the entrepreneurial life ever since then and have been a k one non employees person ever percents about that story though. And as I you didn't actually tell everybody I pieced it together on your Lincoln page but you can tell us you took the expertise not so what you learned in your twenty years as a government employee and said Hey I can now apply that to something else basically able to take. Yeah the expertise is it. I had garnered over a twentysomething your career actually a little more if you count before my government Work and rather than just sitting cruise and wait for retirement. I said Hey I can take take this piece and not only build a great consulting High six figure consulting business but I also partnered with my business partner and and three other partners partners in a in a tech company and we created a SASS product that serves government entities as well as a private disease solving those same problems that were related to my primary consulting business so the two companies I have is one as a consulting consulting business that I help clients with then I also have a SAS company. That's a full on twelve employees We have a board. Just one employee of I show up every quarter and kind of dry Guide the ship but it kind of runs on its own and it's continuing to grow. We lost washed out in two thousand. Sixteen it's a true SAS Company. Nice okay so I don't know the answer this question yet. How did you get into pricing boy? Roy that's a great question but I've always found myself as being a consultant intrigued by all the challenges. When I first started out you know trying to figure out how to get clients clients commit and there were some things that I had done? Or learned intuitively over the last ten plus years on my own and then I started kind of coaching being in helping other people other executives professionals that we're going out on their own and I was always intrigued by how much they were undercharging for their services so I started studying being and and You know reading things in came across Ron Baker and Blair ends and Alan Weiss and some of the things that they were have been talking about for ears. Just let the ball off. It's like there were things. That I was doing intuitively but I didn't know why and so I really became a student of pricing. And I'm trying to understand it and through Ronza. PODCASTS is how I met you and boy your show and your platforms have been a great resource. And I've learned even more from you so I just I'm in this path of continuous growth. And just just you know enjoy helping other people get over that pricing block and undercharging for their services nice. I think we're all pricing students. Certainly don't pretend to know everything. I learn stuff all the time too so I think it's absolutely brilliant. Why do you think it is an I find this really unique? That people get shocked once they start studying pricing. It's like oh I didn't know all this and yet this knowledge is out here but nobody. Nobody knows you're so right. I think it's kind of like it's like I don't know how I don't know a good analogy other than you know with sports. You know used to be when you and I were growing up in sports. He played three sports. There wasn't a lot of technique. It was just pure god-given athletic ability. But now how you couple that. With structure and And methodology that have been proven in a lot of people. Don't know that and so when you have a naturally gifted person get the right coach. That has that background the technique in the psychology and behavioral economics behind it. They really piece it together. Then it's like. Oh that's why I can hit the ball another you know two hundred yards or sprint a little faster because I'm working the right muscles and so forth and I think it's the same thing in pricing. It's not many people realize there's actually some methodology and structure behind all this. That's a great analogy. You can imagine an athlete who may have God given talent but hasn't been coached properly and so they're not gonna Excel and yet someone who has that talent finds the right coach like Persson takes off. Yeah Yeah I think that's a great analogy your podcast is called pricing is positioning. Why did you choose that name? And what does it mean I was was GIN studying I lost the PODCAST About a year ago I think both of us lot lobster podcasts around the same time and I was looking for a name and I wanted to do pricing and I want to do something around consulting pricing because my my niche audiences consultants freelancers solo preneurs. And I wanted to do something that rang. A bell with them. One day I was was just searching for a names and I was reading. Blair's book Blair ends pricing creativity and there was one spot in his book in. It's only a one spot and I red and I highlighted highlight. That's the perfect name for my podcast and it means so much to me. Not In terms of how Blair was explaining it in in his book. But it's so much about how you price really positions you for the clients you want to attract. I like to attract five fortune. Five Hundred Large Corporation clients I'm not that I won't serve mom and POPs or or lower tier Clients it's just that I want to position myself and my services as such No different than Walmart does with breath discount shoppers verses Neiman Marcus with higher end higher higher. you know deeper pocket clientele so to speak and so your pricing has a direct reflection on how you're positioned in the marketplace. Yes okay so I agree with it and yet in a way I disagree with it in the sense that I think positioning should come first and then we should choose the pricing to say yes. I'm being consistent with that position but but I think they have to be tied to each other. Yeah you can't. And that's one of the tagline. You can't just take a nineteen seventies Gremlin and put one hundred twenty six thousand dollar price on it. You know you you have to provide the value and you're you're you're there's three. There's three parts to every brand of a visual identity of verbal identity identity in a value identity and of all three of those things aren't in direct correlation. We chat with each other. One of those is Outta whack It's not gonNa work and so if you're positioning yourself itself as a Louis Vuitton purse but but you're but you're selling a walmart handbag. It's never gonNA work. I I think to your point it all has to be congruent. So we're we're together. Excellent why is it that you think solo preneurs tend to under price themselves themselves. I think we all do this. And I've been guilty. This in the past is that whatever whatever were close to and we take for granted did we don't value we tend to value because it's common to us and you know what I say is that what is common to us is golden to somebody else. You know you're European Priceor you know I mean so. You have a very great niche in that one area and it and you'd probably jump on a phone or a podcast with me and talk doc pricing any day just like we are now but the reality is is to the right people in the right clientele that expertise is golden. And it's no different than if you're a copywriter marketer a web designer any kind of a solo per noor or in that space Don't take those things for granted and that's unfortunately what many of them do and I think I heard this from I can't remember who I heard it from. But there's a term called selling your own wallet and if you you know in we'd set we sell our own wallet or what we think is valuable and art in our world and not what's valuable in our clients world and that's that whole thing we talk about where you're you know you WANNA provide value in terms of what it means to your clients not what it means to to us as the as the as the service professional. Yeah okay so I agree with everything you just said. I find this whole topic fascinating because as I work with coach speakers or consultants or anybody I find that they absolutely underpriced themselves and and so I want to tell you something that I was told the other day and you tell me what you just.

Blair Paul Klein Walmart Mark Stephen Noor SAS Company Ronza Ron Baker Lincoln Louis Vuitton partner Roy Neiman Marcus web designer Persson consultant Hundred Large Corporation Alan Weiss
"sas company" Discussed on The Bacon Podcast | Brian Basilico - Marketing Strategy Expert Interviews to CURE Your Marketing

The Bacon Podcast | Brian Basilico - Marketing Strategy Expert Interviews to CURE Your Marketing

09:58 min | 2 years ago

"sas company" Discussed on The Bacon Podcast | Brian Basilico - Marketing Strategy Expert Interviews to CURE Your Marketing

"Working it talk about that. Yeah so it's a it's a free medium. SAS Company is is a premium SASS model. So we usually give people the first thirty days free and and and we're pricing ninety nine a month after that but it's Canepa a try before you buy model Where you will be able to check out the service use it? We are Have it's Baked into a number of different integrations. That you probably already US In your workflow today and what we're doing is is rather rather than going to the As per our model our whole pitch to user is users typically spend five to ten hours of a time per week doing manual data entry or manual follow-up emails and what we're doing is we're saying we can. Hey Hey we can condense that down to one hour and so we're essentially saving the user a day a week in time an accelerating things like time it takes to close a client or follow up on a sales meeting and as a result we are able to drastically improve improve the productivity of that's user in charging ninety nine a month for that rather than rather than that the per- hour or per minute transcription right and one of the things I like about it. Is You can integrate it into zoom or I can take an audio file like I record this podcast and you know I don't have it as the zoom meeting. I can downloaded uploaded to Sonia. Sony will actually create the transcription in of that for me so it's a it's a raw transcription. One of the things about it too. Though is I've noticed. The difference between a transcription description. And you know a human transcription and then a human transcription is. The model is about a buck. A minute where you know. A I is ten cents a minute you know. The difference primarily is in proper names or acronyms or something along that lines. What are you doing anything different in that or you starting to you grow the intelligence of the eye? Or How's that working. Yeah great question You know we are. We went through and to the date we have close to five thousand users. We've we've talked to many users out this end users will say things like hey the the transcription quality isn't good and what we did was we actually gave them a rev transcript and we gave them a perfect transcript of the meeting. And what we noticed was most of our users would rarely go in and reference a past meetings transcript and it's analogous to if if you take notes in a meeting. How often are you referencing? Those notes that you might have taken into meeting. And it's very retroactively passive behavior savior and so we actually switched over in designed the entire application round. What would be a proactive daily behavior behavior rather than retroactively passive behavior? And that is the what you're doing directly after the meeting is done and who are. Are you following up with what tasks you have do. Who Do you need to share the meeting with etc and as a result of that we decided not to focus focused on doing human level transcription of the Audio call or or of the meeting but instead we focused on summering out not it just summary output but extracting the action items and then routing those action items to specific integrations. That enable you to not I have to worry about those follow up tasks that you do a much more regular daily behavior or a on a regular daily cadence. I should say Yeah and so you know one of the things that you know again. I understand the difference between a human and You know a a machine trying to understand language in one of the things that I like about it. was you know sitting here going. It's like every time I do a meeting with a client. It's an hour generally and that our cost me sixty bucks. Thanks so am I willing to spend an extra for two meetings. I mean if I only do two meetings a month Maury headed the game. If if I do one meeting a week you know I've got a transcription of it if it's not perfect Daikin always go back and listen to the audio tweak it and do the kind of things they need to do so in the long run it ends up being less expensive and more convenient and like you said you know the ones I absolutely have to have perfect transcriptions I can send that to va and have that ever listened to the file and you know just tweak it you know the other times you get a good enough overview plus the to do items is that you've got something to work with. So what does the future look like. What are some of the things that you're working on that you're excited about that? You're going to be able to add to this. That's going to kind of kick it up a notch and you know make it stand out. Yeah I mean one of the core things that we've been working on a is one quick follow witches we are are able to generate camp perfect emailed at set to go out to the folks that you need to follow up Stu and We do This by referencing the past meetings that you have with them by referencing the summaries from those meetings the action items from those meetings and then also examining and understanding your relationship with them. Where if you are following up with a client is very different from falling with your colleague Or your your friend friend. And so you know. Our goal is As I mentioned in You know every morning it might take you ten minutes to type at that email but but really it's more than that because you're most people are are cognitively focused on. Oh who do I need to email. What was accepting this? This meeting What were the takeaways from it? And and that ends up oftentimes getting procrastinator dropped And so we're taking that that follow up email that traditionally may take ten minutes or longer in we're compressing down to sixty seconds for it to appear hearing your draft folder where you hit a button. magically drafts. Is this message. That's pre crafted for you to easily review at it instead Ed and that has been the biggest hit on the things that we've worked on to date and as a result it's actually been the Primary driver the vast majority of our growth. And so that is kind of how we're thinking about You know okay how to say Dr Our product strategy going forward. So I think the best way for my audience to get a handle on it is to to try it. You know bottom line is just go try you try it for thirty days for free right so we've got a a free trial set up at If you just go to Brian Loves Stott Info Forward Slash Sonia that will take you to a form filled that out. It's going to email Everybody at Sonia. The wait needs to end. Then you can sign up for that free trial. And what did they get within that when they get the thirty day. Free trial share. You're going to be able to try the product not at checkout the transcription we begin also upgrade users to the premium product which is gonna the be the the summary Along with the integrations where we summariser meetings and then we integrate those action items into You know other tools rules that you may use such as slack or sales or series email and And then the other thing is It's obviously integrated into your conference calls your calendar And our goal in our aim is as I said WanNa save users five. Ten hours of of manual annual data entry and manual. Follow up time per week cool. So if somebody wanted to get a hold of you want to learn more about soon you. What's the best way for them to do them yet? It's Obviously at Sonia Dot com is my email and then my twitter at at and You can check out Sonia the product it's Sony Dot COM and for for users that are looking for kind of the feet pre trial. Well you're you're a referral link will kind of get them. They're cool awesome. Well this has been great You know again. I'm I'm I'm excited about the future of this. What it's doing how it integrates because in mice base the fact that you're touching so many platforms at the same time and saving in time that you know that's different than just getting a transcription? So that's why I wanted to bring you on so obvious man. It's been a pleasure getting to know you. Thank you for dropping. Some sizzling hot bacon a knowledge bombs on my peeps. And I look forward to getting to know you better in the future men. Thanks Brian appreciate you. Have me on. Well that's it for today's Bacon. They can podcast. We hope you enjoyed it and learned something today. If you did please go to itunes and give us a review we appreciate all your feedback and comments comments if you have any questions go to. WWW DOT bacon podcast dot com forward slash questions. And we'll make sure we get those answered for you till next time keep sizzling..

Sonia Sony Brian Canepa SAS Company va Maury Daikin Stu Ed
Why Box is one of the most under appreciated companies out there

Equity

02:22 min | 2 years ago

Why Box is one of the most under appreciated companies out there

"Not all sas companies have the best of luck on the stock exchanges so we want to talk a little bit about box because there were some very interesting news about the company this week so box went public years ago. I believe it was twenty twenty fifteen and this week it was reported that starboard value <hes> had taken a seven and a half percent stake in box and starboard is a company that tends since to invest largely and underperforming stocks. That's right so i'm in the last couple of years. Boxes had huge swings evaluation. I know jason i. I think you were the lead investor for emergencies or investors. Since two thousand eleven that's great and we actually have aaron levie hopefully on stage. I think this is the i public appearance posted the starboard value news but <hes> boxes had a huge kind of a roller coaster. I mean we've had some really good years. In the last six months is also declined quite a bit. What are you sort of. Take the stock of the company. Today you know what sort of the future for them honestly i think boxes one of the most under appreciated companies out there and i think some of it is deserved served because they they have the growth rate hasn't been quite as high as they would have liked and they haven't been as capitol efficient <hes> there are one of the first task companies to really go after the enterprise is and it's a very expensive proposition so they had dropbox at the low end microsoft. Obviously you know competition as well and so they put a lot of energy gene resources into executing well in the enterprise which they have done and we invested there was a ten million dollar revenue business and we're going to be over seven hundred million in revenue this year well. I mean they. They've grown tremendously <hes>. They have a stellar team. Aaron is a truly exceptional leader. I think <hes> but we are entering in this new era of activist. I investors in south and cloud companies. I think that's the first time i've heard of that happening. It'll be very interesting to see what the impact is and you expect to see more of that. I hope not explain to our listeners. Why that's bad well. I mean these guys are not known necessarily for long term investing. They're known for getting in and to cut costs and and find ways of generating a quick return. I mean that's the way they tend to to run so in a business. That ed requires a lot of upfront investment for a lot of long term value creation. I think they're not necessarily the best it. This is my own opinion but <hes> but we'll see. It'll be interesting to see what they what they do.

Aaron Levie Microsoft Jason Aaron Ten Million Dollar Six Months
"sas company" Discussed on Data Crunch

Data Crunch

09:54 min | 2 years ago

"sas company" Discussed on Data Crunch

"Models. We are inside through software whereas sas company which brings us another level of challenges difficulty and reward on at the same time so when we worked with them we start with well. We're going to go figure it out. Which is a little dumping at times because it's like i will you know says we've developed tools embedded in our software but allow us to assess the quality of the data and the type of data needed in order to who provide the support for both the strategic objectives of the company wants to have as well as the technical results that they seek to get so our approach is one of the beginning of explain to them but you can start developing inside she can stop developing results results by having partial access to the information and then the software will guide us and say if you were to give us more marketing marketing information. We would do better if you were gonna guess more customer care information. We will do better if you were to give us more information about the way you'll products a structure. It will get better so our approach is one of get improvement business improvement as quickly as possible civil and the early returns will guide us collectively to what is the next piece of data we need what is the next piece of data afterwards and i found that for one very -freshing because big data is always dirty data and the larger the set you work with at the beginning demar you will be anchored by any kind of imperfections and they will be imperfections so approaches she's wanda up systematically having a roadmap to the data ingestion data cleaning into like and it is time surprising to customers we engage because <unk> just like that to date out and we'll get it done approach because we guided by suffered platform is to do it more incrementally and systematically at the end we will likely use all the data sets that offers would be using and data will use corporate data but we found found that this incremental approach to providing results of the customer is important and what i like in about it is if if someone goes on a limb in business and say i want to invest in big data. I don't want to be able to use that science team. You can't tell them wait a year until you get a result. It will not sustain them internally to our approaches. Let's make sure we get results wants to the customer weaving trimester so getting something done within three months from the backbone of you is something that we drive as much as possible and our view my view if let's say i'm gonna increase your celts by let's say ten percent by twelve percent increasing yourself by ten percent in three months robin waiting a year to increase yourself by twelve percent is a better value proposition for the businesses so this concept of land and expand quick winds is a better way to approach data science then just do it all try to not succeed yeah so can you tell us a little bit about your approach to the data science side so it's kind of the business side or part of the business side obviously which your purchase of the data science so so the the the the debt side is dictated by those engagement principle so the way we gauge fans first of all we deliver everything through software software runs on premise or beyond a corporate firewall and we want to first of all make sure that we can deliver on azure a._w._s. a._w._s. g._c._p. And the like so this put some requirement in the on the lying software that will support a modeling and he takes on a thinking king about it. The thing that we do is we want our modeling capabilities to be data set agnostic and that means that we have to create a a very systematic software orchestrator the we call it out a orchestrator that goes goes through all the snap of ingestion all the steps of labeling all the steps of until g. management all this types of modeling and all the steps of deploying the model objects onto software separately so offers are showing pipelines up to three transformations eight august we have ten zones transformation of the data and of the modeling and so we have to invest ahead of the deployments in invis- orchestrator that combines the best of that science and software for pure data science point of view. We work mostly in the structured data world. I mean we know to do actual language processing sentiment analysis and the like there are lots of libraries we can have access to but because us we worked first and foremost with corporate data structure data his the order of the day so we divide any problem around around four key question who is committed to do something when of going to do something what is to sell them and what to offer them so what is the object of the transaction and out to get them to act and vs four pillars are designed independently of one another very unforced one number and any modeling solution we provide our aw a composition of those four basic billers who's committed is a scaled measurement of propensity went went to act is already something quite unique to us which is a estimation of when people are making decisions ahead of a purchase is or head of a renewal or out of subscription but we spent an inordinate amount of time doing time date and calendar featuring engineering <hes> stupid mildly to the point for instance that we've one customer we predicted who was going to buy a car dr within a month period and wednesday sand a list to regular customer. We've appealed appealed to buy a car versus what we did we wear seven times better not seven percent seven times better so we we have decided that that would make time management core competencies so we manage that as a separate pillar <hes> the what to sell when to sell is a auto email <hes> affinity model so we we aggregate a lot of different techniques and we work on the optimization the went to act which is the fourth fourth but i would say now the primary model peeler is a reinforcement learning model but allows us to not only look at the best action that you need to take in order to get customer to get engaged but the one after the one after and what have you and so our approach to the data science chance is to force ourselves to answer very specific question to do the best of answering those very specific questions and then when combined the answers to provide the right inside to the customers so we force ourselves to decompose a lot optimize every single block and then combine the blocks and that's a really systematic targeted approach which i think is needed which you've had great success with. That's great you. I started three companies now and data science to but the close enough okay so you started to and you're part of this other one yup and about your integrated in your integral the go-to it you tell me a little bit about the process of kinda <unk> like how do you come up with the problem that needs is to be solved right and then how do you how do you really determine what that is and then build a machine learning or data science business around that concept the good question. It's it's it's almost like you should call data science that a craft shows there is a there is a craft competence to it so first and foremost we talked to the customers and get a sense of the problems via have and reverend talking to one customer at time. We talked to multiple customers at the same time. It would definitely not into same room and the idea as we don't want to do. There's a lot of model factories out there and there's a lot of consulting shop. That's not who we are. We bring software platform. So what you have to do is apt to you. Listen to what five or ten or twenty customers would be customers dealing you step back and say what's coming in what's different and it's it's not going to be able to what's coming and not arrest you just have to handle it differently and so we think in terms of objects about the classes classes of problems and classes classes and so on so besides vs very systematic approach about where things could fit and for instance if you boil the the ocean or any ocean. You'll realize that they are two types of business models. Either.

sas company robin a._w._s. a._w._s. g._c._p invis twelve percent three months ten percent seven percent
"sas company" Discussed on Equity

Equity

14:51 min | 2 years ago

"sas company" Discussed on Equity

"To you by shares post. Let's talk about some individual companies though let's <hes> let's have a little bit of fun. <hes> we have done <hes> a spreadsheet inside of our document which is the first Friday and we have <hes> a number of companies <hes> that have gone public this year just to kind of riff on <hes> recently. The real real went out <hes> I._P._O.. Price was twenty and they were trading at twenty six forty forty yesterday. <hes> I cover this I._P._O.. It was pretty neat. <hes> the only thing I'll say is <hes> instead of how losses go down losses are going up as it grows but in two thousand eighteen that's perfectly fine and so it's doing quite well so points to them. <hes> slack has also on our list. The direct listing that went fine is my redouble great. Yeah I mean I was talking smack about it and when finds I apologize I think no I think it's gone about as good as anybody could have expected now. <hes> you know certainly in the twitter sphere you see a lot of commentary around direct listings becoming the next big thing and sorry to disappoint but it's not you know I talked to companies about this stuff every day and I never hear about out. <hes> shouldn't say never rarely do I hear about direct listing so there's what four hundred global UNICORNS right now give or take maybe a handful to ten of these could probably pull off a direct listening because they have what what it takes into is a trend end but maybe not a terribly meaningful trend so I wouldn't be surprised to see a couple more peppered you know here and there throughout the next couple of years but certainly the I._P._O.. is going to continue to be the dominant way to move into the public markets. We'll talk about <hes> really find kind of reverse way at the end of the show here but slack <hes> had a an enormous mine share in the market which made it well known in most enterprise software companies aren't and and so he could drive up demand for a shares on its own and it had raised so much money so quickly so many sophisticated people had a high appetite for share so we could just begin to trade most companies either need money or don't have that level of notoriety required. Is there or anything else in that Matrix that I'm missing as I think you also have to remember that it's like as a traditional SAS company right so it's not like a completely new business model. It's not something that's like beyond meat or some of these other guys. <hes> you have something that's actually really simple to understand and you can compare to any of the other one hundred SAS companies on the marketing so if you're a retail investor it's actually really easy. Call I think one of the keys that's often overlooked is <hes> when it comes to the I._P._O.. Process it's all about the analyst right you date the bankers you marry Harry the analyst right. The bankers are the ones that lead you through the I._P._O.. The analysts are the ones that are going to you know make or break you as a public company and it's generally very difficult for companies to get analyst coverage without the I._P._O.. Piece of the transaction why is that well the business yeah exactly so when it comes to <hes> because you have to be accompanied that the public is going to care about you know and and not every company. Is You know like we talked about earlier. In the process. I mean earlier in the show. <hes> the you know you have to have this big brand recognition <hes> it least in certain circles and really have what I would even say a very significant fan base which both the the notable listings have had slack and spotify yeah and so in order to get that analyst coverage you have to have those pieces and typically that is something that is a tag along as as part of the I._P._O.. Process is well the only direct listing on our on our list but it did go out at a reference price at twenty six and we're not going to get into that because that's a whole conversation and is worth about thirty five dollars a share now so certainly <hes> volatility in the right direction from them and it has not up in either catastrophic or exuberance been just fine a Chewy the company that sells pet things <hes> if you are a pet fan <hes> went out of twenty two now worth about thirty three so another success <hes> these are all just pretty solid results but my I'm getting I'm from this chart. <hes> fiber accompany that I didn't think was anywhere near big enough to go public. I only remember the subway ads there. Were like don't don't sleep just coffee fiber and twenty one dollars a share now worth just over twenty four crowd strike. This was fun. This was a <hes> a cybersecurity company. If I recall correctly <hes> thirty dollars a share now worth seventy four and <hes> this is sort of offering that is brought back into <hes> the twitter sphere as bird. We put it the I._P._O.. Pricing discussion which we do every three months and people people get really spicy about it and <hes> I never gonNA end so we talk about it. I four let's do it. I'm scared you'll like what you're going to reach through the Mike here and well all start then so the the argument. Is that companies that do go public. And <hes> do exceptionally well compared to their I._P._O.. Price have missed price themselves when they went public and therefore didn't raise as much money as they should have and therefore reflects poorly on the C._F._o.. For not putting another couple of hundred billion on the balance sheet my general point is simply because retail investors have bid the stock up after it went public in the short term does not mean he could have gone public. A higher price doesn't mean you deserve that price and you know maybe it was price actually correctly in the markets wrong well. There's there's always a lot of volatility around price so it debuted on an early June and the prices of fifty eight <hes> but then it went sky high with seventy seven within just one week Yep <hes> then went back down to sixty crowd strike the strike and then it went back up to to seventy four so you know when you look at the volatility post I._P._O.. You know everyone does is the analyst problem. There's not a lot of coverage. No one knows how to kind of evaluate what the company's doing also is in cybersecurity and while there are some public calms cybersecurity is always sort of a hot space. There's a lot of headlines that come in and then there's a surge of retail investors and so I think when you look at a company like this you yeah you gotta wait three to six months for an actual price sort of emerged from the market at and knock it to tether to day-to-day because we had the show a week ago. We'd be like God. They flatlined right out of the I._P._O.. Well you don't lie data yet but I think it's always tough to <hes> to who really put too much into a price before the lockup expires in any situation but really when it comes to the pop. I think that there's <hes> various multiple benefits that you can get out of an I._P._O.. And maybe for for some companies it really is about the cash. Maybe they use a lot of it and they really need cash a big chunk of cash to come through the actual I._P._O.. Process for others maybe it's less about the cash and more about getting getting their name out there and creating this buzz around the company and I would argue a couple of the companies that went public this year very much succeeded in the latter piece of that and creating buzz to where maybe people around the country in in maybe main street <hes> had not heard of these products before but now they're talking about it because of that I._P._O.. So in some sense it's marketing now you don't nobody draws it up to have one hundred percent pop. That's not that's too much and there. There's no way to argue. You're not leaving money on the table but to put some pop to twenty percent thirty percent. Maybe even fifty percent I mean there. I'm even getting a little uncomfortable but certainly there is something you do get something from that. It's not just completely wasted money so that's that's where my frustration is that people just completely ignoring it and saying it's purely money left on the table. I think I get that side of the argument. It's not perfect. This isn't isn't a perfect setup. The Way I._P._O.'s happen it would be nice if there was a perfect way to price them and get them out but the way the media currently covers I._P._O.'s there is a huge benefit to getting a pop out of the I._P._O.. Process and then let's talk about the company you're alluding alluding to you're talking about beyond meat as intially which is not really tech company but it's on our list because it was adventure back to high growth company with a high gross margins kind of fits. The technology doesn't have chips it has fats in the shape of sausage or something by beyond me went public at twenty five dollars a share and as of yesterday was one hundred sixty three point five and <hes> some of my friends had in providence are buying shares wanted to at a time just for the fun of it so it really hasn't reached the mainstream. I think if you look at the Stock Chart I think you see that exactly the numbers who you know goes public early. May it goes up kind of literally in slowly over the course of the next couple of weeks but then there's spike believe it was the Burger King kind of announcement that there was this partnership so there was a spike here and then it just continues to grow. I mean it's not like pop one day and then it went up one hundred percent Santa's actually been sort of linear growth last what eight nine weeks and so I think you know as people are talking. There's word of mouth. You're starting to see some or retail investors getting in on that <hes> searchers up into into the chart I mean if you look at their <hes> their last quarter's earnings their march which third quarter occupied their March thirty one quarter twenty eighteen they revenues of forty point two million this year and twelve point eight last year. I mean that's the kind of gross that festers lung disease up two hundred and fourteen point seven percent year over year and you know that's just going to work every time four forty million in revenue forty point two million in the key one calendar Tony Eighteen just literally just crossed ten billion last night recap if you if you would like to do that multiple worse than you think go ahead and calculate its gross margin undo multiple that really hilarious that have metrics beyond meat and I bare- can't say anything because you know we can get in trouble I can't I have no idea what it's worth that much money other than exuberance but at least everyone's having fun speaking of things that are getting out while getting good luck and in coffee a company we've covered on the show a number of times because it grew from nowhere raised huge amounts of money <hes> when public at seventeen now worth eighteen ninety four share but notably it was blow its I._P._O.. Price for a chunk of time there and that was surprised to me but he has bounced. Bounced back <hes> of course we have Uber Those H.. One thousand nine hundred forty five dollars share now worth just a smidge less <hes> so actually ironically <hes> very well priced I._P._O.. <hes> just I mean they kind of nailed it. It's been worth about forty to forty four dollars a share since public pension nineteen to start twenty six point six now give or take <hes> zoom which is now fixed the huge privacy or security violation that was going on earlier in the week. <hes> national share worth <hes> thirty dollars a share now our ninety two gyms probably been the most exciting I._P._O.. Of the year I think probably the one that caught you know a lot of folks off guard and has really just been exceptional. You know I mean going over one hundred percent year over year and profitable at SAS company. I mean named one ever that has done that. I mean we've talked about slack earliest. Life had an amazing run and running you know material if manageable deficits zoom didn't need to do that points to them <hes> and finally on this list <hes> lift seventy two hour sixty you too thirtieth so another kind of <hes>. That's actually a bit lower than Uber. I always forget the left is a bit more but that is <hes> mostly the venture backed tech and Tech Ish Twenty Nineteen H. One I._P._O.. Class and aside from ride hailing struggling still <unk> <hes>. Everyone's doing fantastic so I I think it's gotta be heartening to people that are looking at age nineteen because it's been good for sure and I think that the I._P._O.. Market is very reactionary and that folks are going to be watching. <hes> folks have been watching what happened in the first half and are you know it's GonNa pay attention and and this will continue into the second half I don't. I don't know if we'll have the big ones..

analyst twitter spotify UNICORNS slack SAS company Mike Tony Eighteen Harry I._P._O. Santa one hundred percent thirty dollars One thousand nine hundred fort thirty five dollars twenty five dollars
"sas company" Discussed on This Week in Startups

This Week in Startups

03:16 min | 3 years ago

"sas company" Discussed on This Week in Startups

"So it really depends fifty percents actually to four percent of our business comes from the digital agencies. So you sold into those agencies. What's your background? How did you come up with different content? I'm journalists, and I were as a content management as a content manager for eight years and contentious came as a dream for me as a continent. I did not have access to a tool like this. And I we have got it. So that's always good. If you have an edge, and you can scratch it, and they have the first hand knowledge. What's it like? Running a company in Brazil, and in the US g get treated differently here in the valley or do people think it's smart to have like this incredible arbitrage because I'm assuming developer in Brazil is not as expensive as in San Francisco not as expensive. But it is also very challenging at as well Brazil is being very much targeted by companies all over the world. We have fabulous down there. So. Yes beckmann. We launched its sound fifteen. It's used to be like that's weird. You have your product team in Brazil. And you're here. How does that work and nowadays have founders coming to me asking how do that? And right wanting to bring up rations abroad, and how do you do it? What's the secret to making this work? I was just talking about that. And fifty five is one way to do it. I have these very I'm very disciplined with. Management. And I have all the team won the ones of being held accountable with all the communications in place. Okay. Is rituals for developments, and we chose for recognition. So having a tight team. Of course, a really helps. Yes. One thing if you're all in the same office to just show up and put out fires. But when you're distributed like this, you have to hire people that understand that they're also as committed as you are got. And your super capitol efficient. What's the next phase rude? Do you know what you need to prove in order to clear market for a series AA? 'cause you went to my accelerator that was stem one. Then you're able to raise a seed around great now, you're at that million dollar run-rate about to hit it. So champagne corks popping soon. When March hit that runway think yes, that's the plan March narod, hopefully, we we pops pop some bottles in March. What do you need to trigger a series a from a Silicon Valley investor because you've been meeting you've met some Silicon Valley? Investors injury should a couple. What do they tell you need to hit today as an enterprise SAS company and today look at this as like too small of an opportunity content or they not understand it? How do you? What do you have to hit? I believe that there is some market issues. It is not that easy to understand your rights. It is. Still not clear even for the marketing manager to to have all of these tools nowadays super inefficient. And that's something that it's difficult to believe details online seeing in marketing still needs.

Brazil content manager beckmann marketing manager San Francisco developer million dollar four percent eight years
HubSpot - From Startup to a Successful Public Company

The Tech Blog Writer Podcast - Inspired Tech Startup Stories

07:41 min | 3 years ago

HubSpot - From Startup to a Successful Public Company

"By now, we feature businesses of all sizes on this podcast and talk about the one thing that they all have in common. How technology is transforming their industry, but I'm also conscious. You don't always get to see what goes on behind the curtain in here. I mean, you might hear me say Email me or tweet me at the end of every episode what happens to some of those conversations because away from the microphone. I try to be the connector guys ever star found a context may with a problem. They're feeling low all interested in need of a little inspiration on the guard that will say, hey, you need to speak with an important in right direction because helping people is one of my favorite aspects of recording. This daily tech podcast. And like I said I'm conscious that something you don't get to see. So if you are a tech startup founder any stage of your journey. I always try and inspire. You. Every day. And that's why today I've invited the guys from hoop spa onto the show. We all know about hope spa. Right. You know, they're a huge company, but they weren't always like that. And they have been on their own textile took journey, and that's what I wanted to show today. So book elope and hold on tight. So I can be meal is all the way to Duplin in island. So we can speak with Karen Flanagan VP of marketing at hope spot. So massive warm. Welcome to the show Kitale delays. There's a lie about who you are. And what you do. Yeah. My name is accurate Flanagan. I am VP of marketing for a company called hub spot and the real kind of ten second introduction to how spot is we have a full suite of growth tools for growing company, so marketing sales customer success in and serum. And what I do. It helps ball. I really don't three core rules during my time. How spot I joined in the first group of twelve employees way back when to grow at our international business. We will group pretty fast. I did that to half years, then I joined the 'nother small group of people who have been initiatives to grow at a different go to market and kind of disrupt our current gonna market and through freedom, and I did that for another two and a half years. And then over the previous twelve months, I've really done is taken on the entire top part of hubs spots funnel or what we call a flywheel. And it's basically. All of the demand, we generate as a business, and the interesting thing about hub spot is what most people find interesting about is like we're in this group of fastest growing SAS companies and all of our revenue comes from demand created from by the marketing team. So we don't do, you know, coal call at bond sales, sending any of that set type thing, but suspect that most people listening all over the world. We'll know all about your full stock of products for marketing style service, CRM famously powerful alone of way, but when used together an also I think too many people listening particularly startled founders is a huge company. But it's not always been this way. I'm quite conscious that we often own Gioja individual or company bought a success that we say ROY now, but we don't shed ten year overnight success story that contain blood sweat tears sacrifices along the way. So with that in mind, can I take you guys back in time? And maybe ask you to offer. Overview of the story behind hope spoke of the challenges that you had to overcome as a stall to get ROY way you will today. Yeah. I even it's interesting because even when I joined which is when hubs felt were they had product market fit. They were seeing some success in the company was maybe three hundred people, and I really wanted to join a start up, and I was like, oh, why this company maybe it's too big. I where he know a many multiples of that. And I think over the past twelve years we've been lucky in that we've managed to figure out some things that have really helped our growth, and so one of those things was going international. That's that's been a big success of ours of for us internationally continues to grow at a really rapid pace. Like, one of the interesting things about startups in particularly hub spot that this well as I think it's always good to have a mission and a clear enemy or something that you are kind of fighting against. And so in hopes initially launched the story that is interested in that. They had this kind of mission to disrupt then marketing and to help marketers do betta market in the time. We can I a lot on that talked about doing lovable marketing. And what that does is it creates a lot of fans, right? It creates people who have empty towards that want to see themselves being about a marketer. And then nor our job is to supply the tools to help do that. And I would say initially when we first launched our tools, probably didn't fulfil the promise of our mission in overtime or tools have grown into that mission. And that obviously helps a lot generates a word of mice helps with churn, and then we've also managed to continue take risks and disrupt our own go to market. So we were a very fast growing SAS company that had the traditional type of funnel we generate leads, and you turn those leads into opportunities for sales team in sales team qualified them in seldom. And then the start star two thousand six we started to we launched a whole new suite of products sales products, and we went to market. In a very different way. We went through a free model because we believe that customers in the future in that's happening today want to extract value from your softer before they pay you money. And that's been another decision. That's worth with you. While for us. I'm curious as well as someone in your position you've had a lot of expansion these failed as well. And IOT founders listening is that anything that you think star took should be focusing on sooner than they actually usually do. Yeah. That's a great question. Actually, one of the things that is interesting about startups is thinking about the decisions you make today thinking about those decisions through the lands of what will we would we have made the same decision three? You're in three years time like the company that we want to become would we have made that decision because you try to get the balance right between Macon startups, always need to go. They're always under pressure to get growth like most companies, but it's kind of more cute when you're a startup, and so you sometimes make decisions that. Are great in the short term. But maybe have long-term we precautions that you haven't thought about. And so what do I mean by that? Well, a good example of that is when I'm in a start up one of the things I really want to do is hire talented people. And maybe it's a little more difficult for me because I'm not on the salvage company so one of the bargaining chips. I have is titles. And so what I can do is I can offer people who may be a manager or something when in one company like VP rules, or I can give away these titles a lot easier than more salvage companies can and that kind of good in the short term because you get these you get these talented people in, but as the company grows in you need more yet need to add more season than experienced people to advance in your senior leadership team you start to create a kind of problems for yourself. You have weird mismatch show of the people who are like that VP level or whatever level. It is. You can get yourself into a situation where you might actually have to demote people or you or you get yourself in the situation where you can't hire the people you want because when they look at the other people who the same title ISM. They don't think that's the company for them. So I think that goes across like many things in terms of how you build your infrastructure like when you're a startup. We've definitely done this time you cobble together. Tech in the decisions you make when you build that infrastructure a very difficult to untangle when you become a bigger company.

Vp Of Marketing Karen Flanagan VP Founder Duplin ROY Macon Twelve Months Twelve Years Three Years Ten Second Ten Year
"sas company" Discussed on Voiciety

Voiciety

06:59 min | 3 years ago

"sas company" Discussed on Voiciety

"And really good talks. Yeah. No. That's really awesome. It's it's kinda cool to see an Alexa conference like this and similar other tech competence kind of in the midwest region. Now, I feel like a lot of these conferences rightfully so or kind of on the coasts and sense. Because a lot of headquarters are there. And that's where the attack is for sure. It makes sense for a Seattle or San Francisco or New York or something similar, but it's really cool to see something a little bit more closer to home for people that are in the midwest and seeing people were building in the central part of the United States. Yeah. No. It was great to chattanooga's a phenomenal city. And it was just kind of a local feel. We went out to a restaurant that had a bowling alley in it and big place to e and the end it was sponsored by the Alexa conference and everybody went. It was a great time a great evening altogether. But just walk around the city. But like you said having something more in the mid west is great for that. For sure. Yes. So I want talk a quite a bit about voice metrics for this podcast. See you have a lot of the great stuff going on with their. But before we start with that. Could you talk a little bit about your background prior to voice metrics, and how you got started in the world of voice. Yes. So it's kind of a neat story. I ran a software company as you mentioned earlier definitive care for twenty years and basically immersed in building software and taking it to the market and having customers use it all day long had about six hundred pharmacies that use that software. So over the twenty years, we really did a lot of work in creating data, and and KPI's and metrics, and and knowing where things stand both from the terms of our customers using the software, but then our own business since it was our own business. We wanted to know certain KPI's in metric so a sold that business back in two thousand thirteen to a larger competitor that wanted to buy us. And just that's a long story itself. We have podcasts out there. If you want to hear about that. But that was really neat to go through that experience, and that was two thousand thirteen and then in the I think it was Christmas of two thousand fifteen. I got an Amazon echo for Christmas and it came in. I was like, Wow, I've heard about these things, but didn't really, you know, have never used it before it was brand new. And so I didn't even open it like Christmas morning. It was like literally couple of weeks even a month afterwards. Alemi set this thing up. So I set up my Amazon echo in the kitchen, and I start using it. I was like, wow. This is like totally a transforming event for for for all of you know, computing, in my mind, because you're you're basically having a conversation with a device, voice computing. It's ki-. It was just amazing. I was like this. There's something here. So I started to play around with it. And I've found out the actually program you can write these things called skills. And so I was one of the first to do these the Alexa. What do they call them the office hours of Davis Bisky and learn about how I could write skills for Iraqi wrote my first skills in python? And did some hockey stuff 'cause my son is in hockey? So I did a hockey goals for search for hockey goals. He can hear every different hockey goal. So I did that for one. I'm like is there a way that a business can be built around a voice? And so first thing I started thinking about is KPI's and metrics and getting information from your voice assistant to know, what's going on at work, and it could be not just you know, KPI's like what's our sales yesterday, or how many sign ups do we have on our website? It could just be generic things like at our business. We always wanted to know will who's out today. And and we have any visitors coming in from the outside from for many clients coming in. So our information system had all that information. And we had monitors all around our offices at definitive homecare solutions. We have these monitors everywhere that in each department at told them what was going on that day if somebody was out and. What trainings were happening? So I was like we could voice enable this. This would be great for any company to want to know what's going on. But not just any company make it specific to that particular user at that company because it's their specific needs that they have. So anyway, I came up with this idea of voice metric, so metrics by voice. So I called the company voice metrics, I started to work on an API based platform that allows any business information system to take data and get push it in through our API. And then you can just ask for that data. So we have a built since since we can't afford the company we've built integrations with kind of the typical systems, you you'd think we, you know, you'd try I which was, you know, QuickBooks online, so you can get your profit in your sales and your revenue expenses and stuff. That's on your dashboard. We have Salesforce o all the Salesforce dashboards, you can get the data out of that. We have integrations with the like. Just Google sheets. And excel you just wanna see what's, you know, in a spreadsheet and have it read off the so anyway, yeah, I got into it really just by thinking about what could voice do that was related to what I was doing for twenty years, which was building a business and a lot of the business that we did was revolved around kind of wanting to know what was going on in your business. For example, our customers were pharmacies and the pharmacists wanted to how many prescriptions do I have to fill the day and the billers wanted to know. Well, how much do we Bill out and how what's our DSO DSO's term for how much money is outstanding like accounts receivable, and they're wanting to know these numbers like all the time and certainly in the morning before they come in. They just wanna know the statistics of what happened yesterday and what's going on today. So that's really what voice metrics is a platform for any business information system to connect data into voice metrics, and then make it available by voice. So we sell. Mainly to software company. So if you're SAS company software as a service company, you have a system, and you already have a web app yori have a mobile app, you have tablet, but you don't have necessarily a voice interface where you can have your users ask it questions and have it give you in formation or maybe do voice commands, so we are becoming the voice interface to software systems. That's what metrics is. Yeah. No, that's really awesome. And it's kind of cool to see how hearing from your prior experience. How you take in some of the context of what you are using such as the some of the KPI's of the metrics that you're looking

Alexa hockey midwest Amazon United States chattanooga Seattle SAS company Davis Bisky Google Alemi San Francisco New York Bill twenty years
"sas company" Discussed on Accelerate!

Accelerate!

04:03 min | 3 years ago

"sas company" Discussed on Accelerate!

"In staff as well. And we've been doing this for twenty years, Andy. So we've got hot companies that are ten twenty may not startups. We work with Tableau Gogol in apple in Zoe see all right when I go to an account and some hot startup that's trying to go to one hundred million to billion in stock. And I'll say what you still forecast accuracy. And you know, you got a ninety day window into your accounts of those deals that are actually these are the ones are your heart deals coming in ninety days later, how many of those hundred commun- now total revenue number because things can slide or slot odd. Those hundred comment I typically hear like forty percent fifty percent eight you if you think about it you get better than Vegas of time. So, you know. Forecast. Accuracy is a symptom. Right. And then you go how about your sales cycle as well. We for twenty thousand takes hundred ten days to do it. You you're out of business. If it takes one hundred ten days to sell Lyon grant, doing short yourself cycle ice. And then you go what are the worst sins in sales as you walk away from a deal thing. He left money on the team. How are you trying to increase your average orders? Right. So these things have not been changed in the eighteen hundreds. So what can managers what can sales people do? Because everywhere I go in forecast. Accuracy is still sake. You know, the average order size is still below it people think they should get from a customer standpoint that could've bought more and got a better are alive. But they just weren't presented with. I I mean. mean and sales cycle. And close rights too low. It has it hasn't changed. Yeah. Well, I mean, I I. Upshur not as many as you to talk to tone of SAS companies, and founders, and and I tried the story out a lots of people I tired of hearing it, but you know, conversation with CRO, very prominent SAS company. What's what's your growth plan for the coming year? And he says, well, you've got this finely tuned machine where we can basically get infinite number of of leads coming into the top of the funnel. I'm just got higher bunch of STR's, and you know flow through your clothes rates still like one in five. He goes. Yeah. I said wouldn't it be cheaper faster more profitable to grow? But increasingly close right from one to five to one point two or one out of five or two out of five and yeah. And this idea of becoming more effective just never occurred to. Yeah. It's like this whole whole segments of sales professional Willer serve just like it's pure quantity. We're gonna quantity and and that's reflected in people's training programs in their marketing. Our shores good any any company sales training program. You're you're a rookie. You gotta get Rams yellow features and benefits your product in competition. You're not gonna learn about your buyer. You're not gonna learn questioning techniques. Still since you're not gonna learn listening skill sets. You're there to listen kinda sort of present quotes, and then just kinda hope right, right? It's it's it's it's almost like we get in there with discovery than we create a proposal. And then we just got bag. You know, a please, please know the order giving ten points in the end of the war. And it's gotta stop in this companies out there doing there are companies are getting much much better at not training their sales people to do the show throw spray..

Rams Tableau Gogol sales training Andy Zoe apple Lyon Willer one hundred ten days hundred ten days fifty percent forty percent twenty years ninety days ninety day
"sas company" Discussed on a16z

a16z

03:48 min | 3 years ago

"sas company" Discussed on a16z

"And it gave me time to think about it in a way. And I said this is a leadership opportunity, and I came into the office. And the first thing I said was we deserve to get canceled. This any decorative staffing, we deserve to get cancelled. We did a terrible job. And we need to figure out what we did wrong and how to make it. Right. But I don't wanna do that right now because I don't want to go fix the blame. I want to actually do a postmortem. Let's do that in a month. So we kinda took that off the table. And then I said we got to three hundred fifty thousand dollar holes anybody have an idea and the room Jill just like this. Everybody's looking at me, and nobody other idea. Have. I said I have an idea. I said, my ideas, we go ask sequin for one hundred thousand dollars, and everybody's kind of like. I said so three things I said, I we give them a clean release, which has value to them second. We understand that there's guilt on both sides when something fails. So you know, we don't necessarily do anything with that. But we make sure that you know, we understand that the failure on both sides. And I said last thing we do is we begged for mercy. We go up there. And we say, hey, we're a brand new companies are first quarter. Give us one hundred thousand dollars a year. Remember when you were a young company, it will save our life. And we go get on our knees, and we big, and they ain't nothing wrong with that. When you're in business is doing the right thing for your company, and then we did the Peter thing. And then we did the other things and it was a moment in time in at eight o'clock in the morning. It was black. There was no hope it was all despair, and we came through that. And that team remembers that day and was a better team in a more loyalty instead of a tragedy for the company. So that was a leadership moment for me. My question was a little bit in response to both of the last discussion you're having on loyalty, but specifically on incentives and incentives around sales organizations, specifically, how do you structure incentives such that your sales organization is optimally competing outside rather than inside and making sure it's not cannibalizing profits that could have been at how. Think about incentives in general to maximize the overall company gain sales are usually kind of structured economically. Make you go you get this much. And once you pass that you get an accelerator and stuff like that. And the question is behaving, right? Okay. And the reason that sales people don't behave right relative to the compensation plan. It's not the salesman. It's the compensation plan who what a company needs to do is find out what they want the sales people to do. And then pay them for that. And to do that in a way that is simple. So I'll give you an example. I was on the board of the SAS company, and we have all kinds of sales plans, and you know, finally one day, I said, look the most important thing that we measure ourselves and the world measures on his era annual recurring revenue or monthly recurring revenue. I said why don't we just pay for that one? Are we going to each person territory and said on the exit date last year, the AARP from this? Territories one point seven million. Dollars. Your job is to get to two point seven million dollars. If you lose something along the way, it's on you. Go figure it out, and you pay very simply on the thing. That's most important to the company. So the problem that most companies have is that they don't know what's important to them. And then the second problem that most companies have is that everybody, particularly the company gets larger everybody, you know, has a hobby horse that they wanted sales that they wanted to do this. They wanted to sell this new product they want to do is in combat upon the people who are in charge to have clarity of thinking and to express that in the compensation plan. I think compensation plan should be on the three by five card. This is what your base is. This is how much we get in. These are the, you know, kind of notches as you go up thing..

AARP Jill salesman Peter one hundred thousand dollars three hundred fifty thousand d seven million dollars one day
"sas company" Discussed on Entrepreneur on FIRE

Entrepreneur on FIRE

11:37 min | 3 years ago

"sas company" Discussed on Entrepreneur on FIRE

"Boom, shake the room fire nation jail D here with a Rockin audio masterclass on how the boo strapped SAS startup h rest managed to grow sixty percent year over year in a competitive market, and to drop these value bombs. I've brought the chief marketing officer from h Tim solo Tim is a frequent speaker at marketing conferences around the world in an author of many data driven SEO research studies, and he is just a person that's going to be in a breakdown. How h rest has grown sixty percent year over year and how we can apply some of their strategies to our businesses fire nation as the market gets more and more competitive going forward. So we're going to think our sponsor and dive right in fire nation. You know, what's not smart spending a ton of time searching job boards that overwhelm me. With so many candidates who aren't even qualified for the job you posted. Luckily, there's a smarter way to hire at Zip Recruiter. Ziprecruiter's powerful matching technology finds the right people. For you in actively invite them to apply. That's why Zip Recruiter is rated number one by employers in the US that's based on hiring sites on trust pilot with over one thousand reviews in right now you can try ZipRecruiter for free at ZipRecruiter dot com slash fire. That's ZipRecruiter dot com slash fire. Ziprecruiter, the smartest way to hire. So Tim say what's up to a fire nation and share something? Interesting about yourself that most people don't know. Hey, what is up fire nation? I'm super excited to be here. In terms of something. Interesting about me. I think I have never shared the effect that actually back in my school. I was really good with mathematics and physics and actually all my relatives. They thought that. I'm going to become an engineer humbled Lille. They know now I'm doing marketing, and they don't even know how to like do basically, the acceler whatever. So. Yeah. My my skills in mathematics right mouth. They do nothing for me. You know? I don't think that when you're eighty years old you're gonna regret not being able to do things in excel. So I think you might be on the right path Tim for share and fire nation as I mentioned in the intro. Tim is the chief marketing officer of h rafts. So we're going to be having a great conversation day because they've taken their bootstrapped. That's bootstrapped sash startup that software as a service, and they have grown sixty percent year over year, and this isn't a very very competitive market. So we're gonna be diving into how they have managed to do just that. So let's talk about how marketing for a SAS company is maybe a little bit of a challenge when you're the only marketing person on the entire team. How do you do that Tim more than three years ago? I joined the trust as a single marketing person the entire team. And then our our entire team was like fifty sixteen people. I don't really remember. And so I had the cello. In front of me to kind of build entire marketing operation from scratch, which I never did before. So some people when they join the kind of promising companies or startups or whatever they already have like they already had some success in their previous companies. So they're put in charge in the other company, and they're building everything based on their knowledge. So that wasn't my sedation at also I think a lot of people can relate to that who are being put into positions that they have never experienced. And like, I think I got super lucky about the founder and CEO of a trust. Because usually when you join a start up the defender of that startup, they usually know anything or about marketing, business, development, etc. Etc. Etc. And usually they know a lot about the so-called conventional knowledge where you need to track. Everything single beat where you need to build a user personas where you need to build funnels where you need to measure. For every metric where you need to AB test, everything when you need to know, your common, commercial, activities, etc. Etc. Etc. Etc. Sowing my case, our CEO in foundered Mitri, founder of chess. He's super technical. So he's background is actually in development. And he's really good at it. So I just shared that. I was good to back in school at meth while I think that guide bike in Skokie was like ten times better the mayor did so yeah. And the fact that he's super technical not into marketing meant that. He didn't really have any kind of keep you keep form insz indicate there or any goal objective other than team. Can you grow in recurring revenue of trips? Like, what do we need to marketing wise to grow the number of customers that we have that said this these were the only metrics that he cared about. And these were the only metrics they that a sort of needed to report on. But in fact, it wasn't even reporting on them because nature is. Perfectly capable of tracking IRR on his own and the number of customers on his own. So the the reason why I'm telling the whole kind of back story is that I didn't have to work on any conventional marketing, so it didn't have to like create buyer personas. They didn't have to build funnels. I didn't have to care about our analytics, I simply looked at our company at our website, and our unborn process and our product, and then they compared to some other products that SaaS products that I was using the SaaS products that I was respecting the people in our industry where using underspending and that the companies that were growing well, and they sink the kind of compared our cells to those companies and told like what is the most effective thing that I as an individual noted not an entire marketing team can do to increase our revenue numbers to increase the number of customers. And so like at that point. Three years ago when we were just like a few in person team we had a ton of things to take care of. And it all came down to like super simple things, for example, a realize that the copy of the homepage didn't quite showcase the product in all its glory didn't kind of showcase the benefits like what the people get cetera et cetera. I figured out that the price in page was a little bit confusing and people were asking all sorts of questions. So I was going bid by bidden. You don't need an entire marketing team to work on on the whole bridge on the copy of your homeboys. Right. So you're perfectly capable of doing it yourself. So Sam let me stop here for a second. Because I wanted to do a little bit of a recap so far for fire nation because there's been some really key points that I really wanted to make sure that you fire nation as the listeners are taking in and saying, hey, how can I maybe apply some of these skills and strategies to my company so number one was really coming up for me, Tim when you were talking was a great Peter Drucker, quote, what gets mad? Third gets improved and the reality is, you know, h would have been fine. They would have kept going forth they had never hired a chief marketing officer. But the fact that they did. And now that is Tim sole focus that he wakes up in the morning and says how can I get the message out? How can I market this company better? Guess what? Everything about that gets better. Now, what was one thing that Tim did that I really loved and I want you to make sure you're applying to your business fire nation. He looked at the competition. He said, okay. You know, what H hasn't been focusing on marketing for a while? They've been growing they've been doing good things. But what our competition doing people that? I look up to respect and admire like, what are they doing right now. And he went there, he studied them. And he said I'm gonna take the best of what they're doing. I'm gonna apply it to our website and apply it to our homepage and apply it to our pricing page. I to actually track conversions like do heat maps. What do people do when they get to our sides? They leave immediately because they're terrified while the copy earned actually drawn into one central focus that they're going to take action on and what kind of follow up happens when they do take action on that, etc. Etc. All these things. I can make sure that your average value of your customer goes up up up because guess what you are making the most of each and every lead this coming your way. So let's talk specifically Tim about some effective a marketing and grow channels for SAS companies and against SAS being software as a service fire nation where some of those most effective marketing and grow channels that you've found the you've applied to h rafts that fire nation can really learn from. That's great question. And they think that is something that kind of likely figured out quite early that the biggest marketing channel that any like sauce fonder can even dream of is the word of mouth. So this is your head costumers. They are basically a billboard or your product. If your product is so good that your customers are getting out of it that they get the actual results that they're happy with and they want to break about this results to the. Their beers to. There is no to family France. And to like, everyone who is willing to listen to them. They can write an article or whatever. So like what I figured in injust lighting the first year of being with the trust is then great product can generate enormous word of mouth because and the way I figured it out is that I simply visited a few industry conferences, and when I was approaching people and telling them that high mtm, I am a judge joined the traps are using us breaking the chance on what do you think? And some people were saying, no, we don't know about what the translate. What does the tool dot do and it sets at the center, but others were saying or my God your from trust like guys, you're so awesome. Yet. They were making fun lake. We felt that the English copies. Not so good. So like we could see that the company wasn't founded by late of American speaking people, but the data all my got people wear so excited about the quality of data the have. Have about the tools that we have that that help you work with the data. So I figured that our customers people who are using us. They generally want to talk about our product. So I immediately figured out that my job as the CMO or even like at that point. I will just a single marketer in the entire company. My job was to give them the talking points. So all I had to do is a head to explain to our existing customers. What is awesome about eight trips? Will let me break it here. One more second because I feel like this is a great learning point as well for fire nation. I would love to be challenged you to this right now, and that is fire nation. Can you really in one sentence describe what your business does that makes it easy for other people who consume your content who use your product who use your service? Are you making it easy for them to share? So for instance, when people ask me, John, what do you do my responses? I. I help successful entrepreneurs share their genius with the world's. I make it. Simple. One-sentence? Tim is doing that. Right now, he is sharing his genius with the world as you fire nation. And that's what I do. Can you say that one sentence fire nation so in just one sentence? What would you say Tim about H rafts for your customers in your fans, and your followers would be able to share with their friends in Los Elton's eight trust gives you the best data to make to make dicator decisions to have your website rang veteran, Google

Tim chief marketing officer SAS founder and CEO Ziprecruiter US ZipRecruiter Skokie Lille engineer Peter Drucker CEO Google John Sam founder Mitri France Los Elton
Patreon CEO Jack Conte on how the company is helping creators

Daily Tech News Show

02:01 min | 3 years ago

Patreon CEO Jack Conte on how the company is helping creators

"In a viable sustainable way with the proper tooling and the and the proper connection to society and and so we've really started focusing on helping creators build out small business media companies that sort of the first thing and then the second thing that we kind of realize oh my gosh this this choice of ours to make a product that serves all creators as opposed to like oh we're helping musicians or helping podcasters or were helping youtubers like pedro was one of the first companies that said no no no the the the people that were helping our creators it was a it was an opinion that we had about the type of people that patriot has four and then we realized oh my gosh no one else's building products for these people no one else is building products were creators and and and creators basically the result of that is our and underserved population know it's hard for craters to get loans it's hard for critters to interface with financial systems it's hard for creators to get health insurance it's hard for craters to save for retirement and you know all those things and so the longterm vision of the company is to really be a product for creators to help keep building them products and solutions and services much like know a sas company would build products and services solutions for a you know their audience i know that's gonna strike some people as very far from that first story like you're throwing around words like crm in sas which all make sense from someone like me who's doing the business but what about people are like hey man i thought this was about the community i thought this was about the connection between the artist and the people who enjoy their art that's precisely what all those things on the back end are for their they're literally just to enable the community and they're just at the end of the day it's the it's the tooling that a that a creator needs in order to have a stronger connection with their community so the result of crm is guess what.

Pedro SAS