Anderson: Tandym reached $1M ARR in early 2024
David Anderson · He raised $16M, hit $1M ARR—& failed. Here are the top 3 lessons he learned. | David Anderson, Fo... · PMF Show · Nov 21, 2024 · at 33:06
David Anderson, co-founder of Tandem, discusses the timeline of the startup's revenue growth before it ultimately shut down.
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“The business gets to a million in ARR probably like, honestly, Q one ish of 24, Q two ish of 24.”
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Anderson: Tandym's investors walked after $10M Series A funding docs were signed
“Like, we got all the way through confirmatory due diligence. Like, it was moving to the finish line. Funding docs went out. I signed the funding docs. And I think they got cold feet.”
Anderson: E-commerce is one of the hardest spaces to sell into
“Most of the brands that we would win, it would take, you know, three months to get to a signed contract, sometimes as long as six months and did not know this before, but e-commerce is one of the, I think most challenging spaces to sell into. Because there's s…”
Anderson: Tandym's early adopters bought for founder vanity, not economics
“Where we found success with early brands It was founder led brands. Oftentimes, like the name of the brand was the name of the founder. And for the founder, it was like an emotional, oh, this is really cool. Like I get my own payment method with my name on it.…”
Anderson: Tandym found enterprise sales cycles matched SMBs at 3–6 months
“We were finding the sales cycles were roughly equivalent. So the three to six months was still true for those bigger brands. So obviously, You'd much rather spend that time and win a brand that's 10 X the size of, you know, the ten million dollar brands.”