Jul 27, 2023 · 22m · top-founders

From (almost) bankruptcy to $20M ARR / $2M profit within 3 years

Gilles Domartini · 18m spoken Nathan Latka · 53s spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

At the SaaSOpen conference, Cleeng founder Gilles Domartini details how his company overcame a venture-capital-induced financial crisis, avoided bankruptcy, and scaled beyond $20M ARR and $2M in annual profit by embracing remote work and bootstrapping discipline.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 4.6% of the talking time here. How this is scored →

Nathan as informed peer 0.0 Guest teaching 0.0 Guest disagreement 0.0 Nathan pushing back 0.0
05100:0010:0020:000:54–3:01 · Nathan as informed peer 0/10 Cleeng's Founding Story and Pivot to Subscriber Management Solo keynote presentation by Gilles detailing Cleeng's founding story, initial bootstrapping, and pivot from iTunes-style content sales to video subscriber management. The host does not participate during this presentation segment.3:01–5:49 · Nathan as informed peer 0/10 The Perils of Growth: $5M Fundraising and Escalating Burn Rates Solo presentation where Gilles shares how raising 5 million euros led to aggressive hiring, increased burn to 200k euros a month, and sudden investor pressure for an exit. Host is silent offstage.5:50–8:35 · Nathan as informed peer 0/10 Staring Down Bankruptcy and Rejecting an Acquisition Offer Gilles recounts facing near-bankruptcy in late 2019, consulting accountants regarding liability, and defying investors who urged taking a low 14 million euro acquisition. Host remains offstage.8:37–16:17 · Nathan as informed peer 0/10 The COVID-19 Pivot and Road to Financial Breakeven Gilles outlines reaching breakeven by switching to a fully remote model, eliminating real estate, establishing bi-weekly company tunnels, and providing air conditioner stipends in Manila. Host is not involved.16:19–18:57 · Nathan as informed peer 0/10 The 'Work, Family, Health' Framework and Operational Realignment Gilles explains their 'work, family, health' framework, where employees voluntarily accepted 8-20% pay reductions in exchange for zero COVID-19 layoffs and wellness support. Pure monologue segment.18:57–22:22 · Nathan as informed peer 0/10 Embracing Bootstrapping Discipline and Final Founder Takeaways Gilles wraps up his talk emphasizing founder power, Nathan steps up as conference MC to moderate brief audience Q&A, and Gilles answers an audience inquiry about moving upmarket into multi-million dollar software deals.0:54–3:01 · Guest teaching 0/10 Cleeng's Founding Story and Pivot to Subscriber Management Solo keynote presentation by Gilles detailing Cleeng's founding story, initial bootstrapping, and pivot from iTunes-style content sales to video subscriber management. The host does not participate during this presentation segment.3:01–5:49 · Guest teaching 0/10 The Perils of Growth: $5M Fundraising and Escalating Burn Rates Solo presentation where Gilles shares how raising 5 million euros led to aggressive hiring, increased burn to 200k euros a month, and sudden investor pressure for an exit. Host is silent offstage.5:50–8:35 · Guest teaching 0/10 Staring Down Bankruptcy and Rejecting an Acquisition Offer Gilles recounts facing near-bankruptcy in late 2019, consulting accountants regarding liability, and defying investors who urged taking a low 14 million euro acquisition. Host remains offstage.8:37–16:17 · Guest teaching 0/10 The COVID-19 Pivot and Road to Financial Breakeven Gilles outlines reaching breakeven by switching to a fully remote model, eliminating real estate, establishing bi-weekly company tunnels, and providing air conditioner stipends in Manila. Host is not involved.16:19–18:57 · Guest teaching 0/10 The 'Work, Family, Health' Framework and Operational Realignment Gilles explains their 'work, family, health' framework, where employees voluntarily accepted 8-20% pay reductions in exchange for zero COVID-19 layoffs and wellness support. Pure monologue segment.18:57–22:22 · Guest teaching 0/10 Embracing Bootstrapping Discipline and Final Founder Takeaways Gilles wraps up his talk emphasizing founder power, Nathan steps up as conference MC to moderate brief audience Q&A, and Gilles answers an audience inquiry about moving upmarket into multi-million dollar software deals.0:54–3:01 · Guest disagreement 0/10 Cleeng's Founding Story and Pivot to Subscriber Management Solo keynote presentation by Gilles detailing Cleeng's founding story, initial bootstrapping, and pivot from iTunes-style content sales to video subscriber management. The host does not participate during this presentation segment.3:01–5:49 · Guest disagreement 0/10 The Perils of Growth: $5M Fundraising and Escalating Burn Rates Solo presentation where Gilles shares how raising 5 million euros led to aggressive hiring, increased burn to 200k euros a month, and sudden investor pressure for an exit. Host is silent offstage.5:50–8:35 · Guest disagreement 0/10 Staring Down Bankruptcy and Rejecting an Acquisition Offer Gilles recounts facing near-bankruptcy in late 2019, consulting accountants regarding liability, and defying investors who urged taking a low 14 million euro acquisition. Host remains offstage.8:37–16:17 · Guest disagreement 0/10 The COVID-19 Pivot and Road to Financial Breakeven Gilles outlines reaching breakeven by switching to a fully remote model, eliminating real estate, establishing bi-weekly company tunnels, and providing air conditioner stipends in Manila. Host is not involved.16:19–18:57 · Guest disagreement 0/10 The 'Work, Family, Health' Framework and Operational Realignment Gilles explains their 'work, family, health' framework, where employees voluntarily accepted 8-20% pay reductions in exchange for zero COVID-19 layoffs and wellness support. Pure monologue segment.18:57–22:22 · Guest disagreement 0/10 Embracing Bootstrapping Discipline and Final Founder Takeaways Gilles wraps up his talk emphasizing founder power, Nathan steps up as conference MC to moderate brief audience Q&A, and Gilles answers an audience inquiry about moving upmarket into multi-million dollar software deals.0:54–3:01 · Nathan pushing back 0/10 Cleeng's Founding Story and Pivot to Subscriber Management Solo keynote presentation by Gilles detailing Cleeng's founding story, initial bootstrapping, and pivot from iTunes-style content sales to video subscriber management. The host does not participate during this presentation segment.3:01–5:49 · Nathan pushing back 0/10 The Perils of Growth: $5M Fundraising and Escalating Burn Rates Solo presentation where Gilles shares how raising 5 million euros led to aggressive hiring, increased burn to 200k euros a month, and sudden investor pressure for an exit. Host is silent offstage.5:50–8:35 · Nathan pushing back 0/10 Staring Down Bankruptcy and Rejecting an Acquisition Offer Gilles recounts facing near-bankruptcy in late 2019, consulting accountants regarding liability, and defying investors who urged taking a low 14 million euro acquisition. Host remains offstage.8:37–16:17 · Nathan pushing back 0/10 The COVID-19 Pivot and Road to Financial Breakeven Gilles outlines reaching breakeven by switching to a fully remote model, eliminating real estate, establishing bi-weekly company tunnels, and providing air conditioner stipends in Manila. Host is not involved.16:19–18:57 · Nathan pushing back 0/10 The 'Work, Family, Health' Framework and Operational Realignment Gilles explains their 'work, family, health' framework, where employees voluntarily accepted 8-20% pay reductions in exchange for zero COVID-19 layoffs and wellness support. Pure monologue segment.18:57–22:22 · Nathan pushing back 0/10 Embracing Bootstrapping Discipline and Final Founder Takeaways Gilles wraps up his talk emphasizing founder power, Nathan steps up as conference MC to moderate brief audience Q&A, and Gilles answers an audience inquiry about moving upmarket into multi-million dollar software deals.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 29% · guest 71%0:00 · Nathan 29% · guest 71%3:00 · Nathan 0% · guest 100%3:00 · Nathan 0% · guest 100%6:00 · Nathan 0% · guest 100%6:00 · Nathan 0% · guest 100%9:00 · Nathan 0% · guest 100%9:00 · Nathan 0% · guest 100%12:00 · Nathan 0% · guest 100%12:00 · Nathan 0% · guest 100%15:00 · Nathan 0% · guest 100%15:00 · Nathan 0% · guest 100%18:00 · Nathan 4.2% · guest 95.8%18:00 · Nathan 4.2% · guest 95.8%21:00 · Nathan 2.7% · guest 97.3%21:00 · Nathan 2.7% · guest 97.3%
Sharpest disagreement ▶ 7:20 Defying investor pressure to sell

Gilles describes his most combative stance when he leveraged founder equity control to reject an investor-mandated acquisition offer, demanding they either survive or crash together.

Hardest push from Nathan ▶ 20:40 Nathan moderates conference floor Q&A

Nathan steps back in as the stage MC to keep conference timing on track while coordinating the microphone handover to the audience.

Biggest teaching moment ▶ 21:17 Transitioning from mid-market to enterprise software deals

Gilles educates the audience member on why Cleeng stopped obsessing over the 50k-60k mid-market tail to focus on closing seven-figure enterprise contracts.

Nathan holds their own ▶ 0:00 Nathan introduces SaaS metrics focus

Nathan establishes his platform's standard by outlining the rigorous financial and growth metric disclosures demanded of founders speaking on his stage.

the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Cleeng's Founding Story and Pivot to Subscriber Management 0000 Solo keynote presentation by Gilles detailing Cleeng's founding story, initial bootstrapping, and pivot from iTunes-style content sales to video subscriber management. The host does not participate during this presentation segment.
The Perils of Growth: $5M Fundraising and Escalating Burn Rates 0000 Solo presentation where Gilles shares how raising 5 million euros led to aggressive hiring, increased burn to 200k euros a month, and sudden investor pressure for an exit. Host is silent offstage.
Staring Down Bankruptcy and Rejecting an Acquisition Offer 0000 Gilles recounts facing near-bankruptcy in late 2019, consulting accountants regarding liability, and defying investors who urged taking a low 14 million euro acquisition. Host remains offstage.
The COVID-19 Pivot and Road to Financial Breakeven 0000 Gilles outlines reaching breakeven by switching to a fully remote model, eliminating real estate, establishing bi-weekly company tunnels, and providing air conditioner stipends in Manila. Host is not involved.
The 'Work, Family, Health' Framework and Operational Realignment 0000 Gilles explains their 'work, family, health' framework, where employees voluntarily accepted 8-20% pay reductions in exchange for zero COVID-19 layoffs and wellness support. Pure monologue segment.
Embracing Bootstrapping Discipline and Final Founder Takeaways 0000 Gilles wraps up his talk emphasizing founder power, Nathan steps up as conference MC to moderate brief audience Q&A, and Gilles answers an audience inquiry about moving upmarket into multi-million dollar software deals.

Statements from this episode (6)

Assertion Not checkable as stated
Raising venture capital almost killed Cleeng
“How the fundraising almost killed us. That's literally what happened at that moment. We raised money. We were super happy, but actually it turned out not to be the best best choice in our life.”
Gilles Domartini Jul 27, 2023 ▶ 1:22
Assertion Not checkable as stated
The COVID-19 pandemic saved Cleeng despite early fears
“How COVID actually saved us. So in the early days of COVID, we were very scared, but actually it turned out to be more of a positive.”
Gilles Domartini Jul 27, 2023 ▶ 1:37
Disclosure
A VC investor demanded an exit one year after funding Cleeng
“One of the investors, the one that came in actually in 18 we are facing a few challenges in in 19, and they tell us, look guys we'd like to do an exit at the time where we started to spend like crazy.”
Gilles Domartini Jul 27, 2023 ▶ 3:48
Assertion Not checkable as stated
Cleeng received a €14M acquisition offer during a 2019 cash crisis
“Actually, we have an offer on the table to acquire the company for fourteen million euros.”
Gilles Domartini Jul 27, 2023 ▶ 7:17
Disclosure
Cleeng founders and family retained 50% equity despite VC rounds
“I'm still owning 22% of the organization. With the rest of the founders and the friends and family, we were close to 50%, and we are close to 50% today.”
Gilles Domartini Jul 27, 2023 ▶ 8:00
Insight
Relying on investors creates the wrong organizational behavior
“I don't want anymore to rely on investors because it creates the wrong behavior as you build your organization.”
Gilles Domartini Jul 27, 2023 ▶ 19:10
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