Procore

“There is a correlation, but it's modest between initial growth rate and overall outcomes and companies that have grown slowly at the start have been huge at the end. Procore was a slow grower and then became a huge outcome.”

“Procore is not really an enterprise solution. They're really very popular and very uniquely positioned to solve for general contractors from a project management, a little bit of financial side, and that's what the role and, you know, I will of course have Gra…”

“Procore without doubt has finally broken through a level of, you know, digitization of a section, but at the same time, what it's done is actually crystallized and cemented and locked in and embedded, you know, the existing behavior.”

“We are buyers. We're buying software stocks right now. You know, a portion of our funds can be invested in public equities, so we're buying companies like Procore, Workday, Appian.”

“There's project management software. That is the Procore of the world. And Procore is by far the leader of that. And that is typically things where that's where you have all your documentation, be it design, be it other, through your spec, other things. That i…”

“We own 28% of Shopify and Twilio at IPO and we owned, you know, well less than that of Procore and Service Titan just because we, you know, included a lot of other investors downstream.”

“We had two versions of our product. We had a full version for 195 dollars a month and a truncated version for 95 dollars a month.”

“I think in the first Nine years of Procore's existence, we raised five million dollars, right?”

“If you're a project manager on a Eddie Murphy's house or A nuclear power plant or a Whatever, a waste treatment plant or a wind farm. You basically are dealing with the same set of problems. They just are different scales and they might have different terminol…”

“By the way, during the great financial crisis, which is when everything changed to Procore, was all of our custom home builders went out of business. Like literally every customer we had, and the world stopped for eight months.”

“Cause when we duck dove that way with 30 other surfers, we're the only ones who came up the other side. Everybody did. ... Yeah, it was an extinction level event, which gave us this huge advantage too, of buying us more time to capture the market share.”

“And so he basically wrote us a check for like, 300,000 bucks and basically to keep us alive. And that check alone saved Procore. In fact, he's been on our board for 20 years.”

“The incumbent software for our entire history, whenever we go into an account has always been pen and paper or really Microsoft office.”

“And the vertical market like Procore is you have one chance to make a good impression with your brand. And if you make a bad impression, you're essentially doomed in that market.”

“So there's a lot of nuances to all of this, but we do find you got to hire sales people that understand sales and teach them construction.”

“Our customers tell us that they can run 50% more construction volume on through their business if they're running on the Procore platform than if they're not.”

“For now, we're not looking to create a product line around this. That's going to be separately monetized. Now that's always open for debate. We really want to get more feedback from our customers before we make any sort of decision on that.”

“There's going to be companies like Procore, which is actually here in Santa Barbara County. They make a platform for construction management. So like they'll probably see a huge uptick in Southern California sales as builders sort of descend.”

“I just wrote up, it just crossed a billion in revenue, right? So many folks are at a billion, Cloudflare's cost a billion.”

“If you were to invest in Procore in two, the internet was not at the job site. There was no such thing as mobile technology at all.”

“We were selling our software to mostly custom home builders prior to the great financial crisis. And of course, the very first part of the construction industry that fell apart was the custom home business market. So we basically, our customers all went out of…”

“Myself and Steve's on my co-founder. We had to go without a paycheck, and I'll never forget, Harry, having to go home and tell my wife who by the way, at this point, we had sold everything that we had acquired in life. Like, I had, like, two mortgages on the h…”

“We didn't really raise institutional money until like our 15th year.”

“Steve Zahn, my co-founder, he had a company who took public before Procore. I think from founding to IPO, it was like 13 months, right?”

“Honestly, if we didn't have the wherewithal to survive the great financial crisis thanks primarily to one of our investors who kept pumping money into Procore we wouldn't have survived”

“Between 2002 and 2015, we'd grown revenue from zero dollars to 9.6 million dollars, right?”

“We had not changed anything. We had been building the same product For 13 years but the market finally, you know, adopted it.”

“Customers would ask us to do custom development on a new application and, you know, if they're gonna pay us 30,000 dollars for a month's worth of work, we would literally Put two engineers on it and just ship a piece of software that had nothing to do with Pro…”

“So Bessemer, I don't know if Brian told you this, but Bessemer had an investment thesis on Procore that they, of course, they don't tell the company about. They thought that Procore the best outside scenario they could come up with was that Procore was going t…”

“I would have run probably a much more, you know, I listened to your discussion with Scott from Atlassian and how they did the closed envelope fundraising. And I'm like, I was thinking to myself, I wish we had done that because it would have taken a lot of this…”

“You know, it really started within about a year where we would double, and then double again, and double again. And so it really did, I mean, around 2017, we were rolling.”

“Up until 2017 we only had one product. It was our project management tool, and it's still our flagship product.”

“So we had actually had to stop developing that product at a certain point and go back and re architect it. So it was enterprise grade. And we literally stopped new future development for a year, but we realized that if we weren't going to, if we weren't going …”

“So what I suggest you do is that you actually deploy your customer success and your field and product marketing folks There first build that Brown, get the groundswell going with the referenceable customers, then put your go-to-market team in afterwards to cap…”

“I realized that I couldn't go with a per seat model because that was going to actually make it so we were never going to be successful.”

“It was so wildly unpopular with our customers. Even till this day, some of our customers don't love it. But it is a, it's the ultimate yardstick, and we really believe in it.”

“Yeah I've hired people again because I was, they were luminaries in our industry, and I said to myself, look, they may not be humble but they're gonna move the needle and I regretted I've regretted every single one of those decisions that I've made, and fortun…”

“We have definitely learned which large tech companies to not hire from. Cuz, cuz, you know, honestly, you can just go right back to the culture that is existent in those tech companies. And you're like, that's, you're basically hiring in that culture.”

“Our message to them has always been, look, do the job as a senior director in the director role. And you will naturally get promoted into being a senior director. It's not something that's like granted to you. You don't get this because you asked for it. You g…”

“I was miserable for probably two years where I would, like, I tried. I even went out and bought the Patagonia vest and, you know, Whatever. I just, like, I desperately want to figure this out.”

“I call a customer. I honestly do. And there's nothing that gets me more excited and kind of, Grounded in the love of what I do than when I talk to a customer. So I literally do, I'll be like, I'm going to stop everything today and I'm going to call a customer.…”

“You live in a world where everyone tells you that every idea that you have is genius, right? Eventually your crazy, craziest ideas get acted upon. And they're not genius, right? So like, I love having this governor on me, which is, you know, this council of pe…”

“I don't, there's not enough time in the day to be able to do both amazingly well.”

“If you get one piece wrong, and then you go 400 steps past it, you have to reverse all the way back to that step, get it right, and then go forward again. And I always think of it, it's like business, which is like, every step matters. And so, you have to be v…”

“You would be surprised to know that I think Hillary has probably attended less than 10 Procore events in 21 years. She desperately tries to keep a firewall between our family and Procore, and that's her contribution to it, is when I get home, we don't talk abo…”

“Well, I would give skill probably the lowest ranking, the lowest because I would give persistence the highest percentage.”

“I was working as a construction worker making 15 dollars an hour, you know, living in a tiny little apartment, and I, you know, I was not the one that was supposed to be the success in the family.”

“And I swear Procore would not be where we are today if I didn't think about that every moment of my life.”

“I think that's one of the reasons why we survived the hard times, is I just always believed that worst came to worst, I could go pick up a hammer, and I could go to work, and I could make, you know, an honest day's wages, and I would be fine.”

“I could tell you how I passed on Zoom at six billion dollars because I thought that was too expensive, or I passed on Procore.”

“And these companies are worth an impressive two hundred and sixty seven billion dollars and include some companies that Bessemer is really proud to work with, such as Procore, Toast, HashiCorp, and Canva.”