Hauser: Grasshopper bootstrapped to $30M revenue before $175M Citrix acquisition
“We did build Grasshopper, bootstrapped it a hundred percent built it from zero to thirty million dollars a year in revenue before we sold it, and ultimately sold it to Citrix for a hundred and seventy-five million dollars in total.”
Hauser: Scaling past $10M revenue requires transitioning to autonomous thinkers
“So from one to ten million dollars in revenue, you can have a lot of doers on the team, which means, hey, do this, come back, do this, come back. To get from 10 to 20, you need a lot of thinkers, which is people that come to you and say, David, Here's what I'm…”
Hauser: Grasshopper spent $12.5M on radio advertising
“And the later years we spent 12 and a half million dollars on radio, right?”
Hauser: Grasshopper secured $15M SVB debt at 12.5% with no warrants
“We used SVB because there were very few options at the time for us. We were also at a revenue kind of point that they allowed for that. These were roughly the terms. I think it was actually 12 and a half percent interest. So it wasn't cheap, but there was no w…”
Hauser: Citrix "way overpaid" when it acquired Grasshopper
“We built a great company, but someone way overpaid for it, Citrix.”
Hauser: Grasshopper founders secured no earnout and left immediately after selling
“When we sold the company, we left the next day, me and my partner. Right. So there was no earn out. There was no time we had to spend there, nothing else.”
Hauser: Citrix paid more upfront cash because founders had already stepped back
“They actually paid more because they didn't have to find expensive positions for me and my co-founder to be in and stupid titles, right? So they paid more cash upfront to not deal with that.”
Hauser: Grasshopper's $175M sale nearly collapsed due to a Citrix activist
“Six weeks later, after we closed that deal, an activist investor told Citrix they had to sell off all of their SaaS business. So we were weeks away from the deal not going through, right? Not because of something we did, not because of something Citrix did, an…”
Parr: David Hauser sold bootstrapped Grasshopper for around $200M
“Grasshopper was the software company that he sold, I think for two hundred million dollars entirely bootstrapped.”
Connor Lee's telephony startup Telfi generated a few thousand dollars monthly post-YC
“We were doing a couple thousand dollars a month in revenue we were a couple months out of YC. And the company itself was basically trying to do Google voice for business, compete with grasshopper as a telephony startup that was built on Twilio.”