Enterprises pay up to seven figures for cloud-cost optimization software
Alon Arvatz · He exited for $335M—& felt "emptiness". So he quit, gave up millions in earnout, & grew to $1M AR... · PMF Show · Feb 10, 2025 · at 33:20
Alon Arvatz, co-founder of cloud-cost optimization startup PointFive (.5), explains why he entered the cloud cost management market after selling his cybersecurity startup IntSights.
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“Like we talked to dozens of customers and evaluated the big enterprise will pay high six figures for a solution like that. And even seven figures for the bigger enterprises.”
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More from Alon Arvatz
Arvatz: Governments are rarely on the cybersecurity cutting edge due to air-gapping
“It's not that governments are in the cutting edge of doing cybersecurity. They typically aren't. Why? They don't need to, because they're not connected to the internet. So the risks are very different than the risks of the average company.”
Arvatz: Build the UI and do backend work manually before automating
“That's what we did because we said, okay, we want to start engagement. We want to start selling. It will take us time to build a software. Let's in the meantime, build a UI. We'll do it manually behind the scenes. We'll learn how to do it right through the man…”
Arvatz: Only fake backend workflows if they are automatable within four months
“I would only do something manually. If I know I can automate within three, four months, I wouldn't do something manually that I know it will take me at least a year to automate, which is something we did in insights and eventually it slowed us down.”
Arvatz: Cybersecurity startup seed rounds today are no less than $6 million
“Today, seed round for a cybersecurity company is no less than six million dollars.”
Arvatz prefers 8% in a market leader over 15% in third place
“And I also think there is a huge merit to being number one in your market. I prefer I don't know. I prefer eight percent in a company that is number one in its market than 15% in a company that is number three or four.”
Arvatz: First-time founders with market pull shouldn't settle for quick exits
“Don't think I need to, you know, do the exit and cash out and my next one will be a lot better because you might, you know, hit huge pain, huge market. You need to go full force. There are amazing companies that were built by first time founders. I don't need …”