The Ledger
Every statement that passed quotation and attribution checks. Mix any filter with any other: certainty 1/5, debate potential 5/5, or both at once.
why aren't all 35 resolved? a statement only gets an assessment when the public record can support or contradict it. opinions and what-ifs never can, and 0 checkable ones are still open, waiting for their date. predictions held up or didn't; assertions are supported or contradicted. on every card: ▮▮▮▮▮ certainty · ▮▮▮▮▮ debate potential. speakers are clickable
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.”
Reddy: Systems Of Record Will Survive Generative AI Defended By Auditable Ledgers
“The system of records will still stay. Like AI or no AI, your bank ledger will still be a bank ledger. You still need a hundred percent auditable, hundred percent accurate platform to deliver your trade.”
Reddy: Organizational Onboarding Capacity Dictates Startup Hiring Speed, Not Capital
“Money is not, is never the rate determining factor of how fast you can hire. It's actually how fast you can onboard.”
Reddy: Top Startup Talent Leaves Primarily Due To Burnout, Not Compensation
“So what I realized is your best people will burn out. They will not leave for comp or for some of those other reasons, right?”
Reddy: Refocusing On Enterprise Software Scaled Capillary From $15M To $115M
“Without that, we wouldn't have gone from that Fifteen million to whatever, a hundred and fifteen million run rate now in like, you know, I'd say a four or five year timeframe, right?”
Reddy: Singapore Subsidiary Structure Enabled Capillary's Indian Public Listing
“All our India revenue still comes straight to India. All the global revenues, ah, hit a Singapore subsidiary, which is a hundred percent owned by the India subsidiary, and that enabled you to go public, ah, in India.”
Reddy: Capillary Drives Half Its Growth Through M&A And Half Organically
“Half our acquisitions, half our growth comes from M&A, half our growth comes from organically winning.”
Reddy: Capillary Generates 55% Of Revenue From US, 26% From Asia
“So today about 55% of revenue comes from the US, about 17, 18 comes from Europe, 26 something comes from Asia.”
Capillary Grants Employees 10 Extra Days Of Leave For Vipassana Retreats
“We now have a thing that you know, beyond the 20 days of personal time off you get you can do a Vipassana every year. So, another 10 days of Vipassana leave you get.”
Capillary Retained 130 Employees For Over 10 Years With 1% Monthly Churn
“Out of the seven 30 employees, about a 130 have spent more than 10 years with us, right? So it's like, if you compare that to Bangalore, you know, I think we are like five X better in terms of retention. Our monthly churn is one percent. One percent of our tea…”