Everything Aneesh Reddy said on any show that made the record, most notable first. Each card names its show and opens the statement there.
Reddy: Constellation Software-Style Roll-Ups Will Fail Without Deep Integration
“I feel the value in the roll-up is the value that you add to the businesses that you're buying. I don't think a constellation type model of just clobbering up many companies will work.”
Reddy: Enterprise Self-Serve SaaS Is A Myth; Executives Delegate To Agencies
“What happens in large enterprises is self-serve is a little bit of a myth. Because no senior guy in a large enterprise No one wants to sit in a two hour training and learn a UI. So you, unfortunately, you get delegated out to an agency or to a, you know, a sys…”
Reddy: Capillary Pays 25% Below Market; Exiting Employees Get 90% Salary Hikes
“Yeah, I'd say actually 25%. And we now have data to prove that. So unless you, ah, usually when people leave us, ah, they get a 80, 90% hike.”
Reddy: Startups Should Only Adjust Strategy Once Every Two To Three Years
“I now strongly believe that strategy is something you do once and two, three years. Because you have to let it play.”
Reddy: Average SaaS Companies Ranked Third Or Lower Will Not Survive AI
“Unfortunately I feel, especially in the AI world now, that the average company you know, the average product or the average company, unfortunately will not make money. If you look at any US public markets, right? Every category has four, five companies that I'…”
Reddy: An Economic Recession Is The Best Time To Start A Company
“I actually say it's the best time to start a company”
Reddy: US Enterprise Buyers Reject 5x ROI Pitches Lacking Pain-Point Alignment
“US on the other hand is, can you discover what the pain point of that individual is? US is a very consultative sales model. So, unless I have a pain point, even if you're coming to me and saying, you know, you will make three X the margins or five X the margin…”
Reddy: AI Tools Halved The Engineering Headcount Needed For Software Development
“You can very well see that what was probably a, what a seven, eight member engineering team could do, or a part of seven, eight devs could do, can now be done by three, four.”
Reddy: Software Market Faces An AI Shakeout Within Six To Twelve Months
“So I do believe in a six month and year timeframe, you will probably see a shakeout on what survives and what doesn't.”
Reddy: Startup Hires Who Fail To Deliver Within Six Months Never Will
“In startups, especially if a, if an individual is not delivering in the first six months, there's no chance they'll deliver. You might have hired someone thinking of the next five years, but if that individual is not like able to cross the line in the first, I…”
Reddy: Capillary Laid Off 250 Employees During COVID But Successfully Outplaced 220
“March 27th, we basically let go, like, a third of the team. And we then focused all our efforts on getting them placed everywhere. So, two-twenty out of the two-fifty were, had jobs by, you know, April 28th.”
Reddy: Startups Should Micromanage New Hires Due To Poor Internal Documentation
“I do believe that if you're getting someone new into the business, micromanage for the first three, six months because context is the thing in a startup, right? Because your documentation is not great. Your processes are not great, et cetera.”
Reddy: Capillary Removed An Entire Layer Of External Leadership Overnight In 2015
“So, at the end of those two years, sometime in, I would say, early 2015 or end of 20 14 I actually overnight said, I'm basically removing one full layer of leadership. And we just got like different people up.”
Reddy: India Will Mint Public Product Companies Like It Did IT Services
“I do firmly believe that India will have many more listed product companies kind of what happened with IT services in the last 20 years, right? Well, there was the big three, four that listed early, you know, you've had like the persistence, the KPITs, the cof…”
Reddy: Indian Enterprise SaaS Leaders Will Capture 10-15% Global Market Share
“I feel those leaders will eventually get to like, 10, 15% market share globally, will hence have, you know, can list and show a good growth rate and a good, a better delivery for many years to come.”
Reddy: High-Quality US SaaS Companies Sell For 0.5x to 2x Revenue
“You're surprised that the quality of companies you're able to get in the US at one times to two times revenue or half times to I'd say two times on the outside revenue is not small. It's just incredible.”
Reddy: Customer-Facing SaaS Retains Value While Static Build-Once Software Commoditizes
“Customer facing or fast changing products, I think will continue to earn the value of a subscription. In the AI world, something you can build once and forget you know, I think we'll probably not, not make that bar.”
Reddy: Over 55% Of Capillary's Revenue Is Partner Or Analyst Influenced
“More than 55, 60% of our revenue today, is partner or analyst influenced?”
Reddy: Capillary Spent $6M In Early US Expansion Yielding Only $50K ARR
“So we spent like four, five, six million dollars in the US, and we got to a 50,000 dollar ARR.”
Reddy: Capillary Scaled US Revenue From Zero To $60M In Four Years
“We've gone from, I don't know, zero to, Sixty million in US revenues in about four years.”
Reddy: Pure Outbound Rarely Succeeds In The US Unlike In Asia
“All our lead funnel now is either inbound or partner-led. You know, I've rarely seen like pure outbound work in the US. You know, so it's just a, I think a, while in Asia you see a lot of outbound work pretty nicely.”
Reddy: Capillary Now Optimizes To Be Cited By ChatGPT And Gemini
“We do a lot of work now on trying to be, if you search on loyalty in, in a ChatGPT or a Gemini, We want to come up there saying, look it may not be about saying I want to buy software, but you talk about something. I want to say, look, okay, here and it, by th…”
Reddy: Beyond 15 Crores, Additional Money Does Not Improve Quality Of Life
“And I also believe that beyond a certain value, right? Money doesn't have much meaning, right? So that, that value, that might be five crores, 10 crores, 15 crores, something. Beyond that, money is just a, you know, like a number somewhere. It doesn't signific…”
Reddy: One-Third Of Capillary Hiring Comes From Former Employees Returning
“A third of our hiring comes from people joining us back.”