Feb 10, 2022 · 20m · top-founders

Digits Wants to Replace Quickbooks, $30m Raised, 4 years of Building Distribution, Launch is Next

Jeff Seibert · 10m spoken Nathan Latka · 7m spoken
0:00 / 0:00

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

In this interview, serial entrepreneur Jeff Seibert discusses his entrepreneurial journey from founding and selling Increo and Crashlytics to building Digits, a real-time small business finance platform backed by $30 million in venture funding and 72 prominent angel investors.

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 39.1% of the talking time here. How this is scored →

Nathan as informed peer 4.1 Guest teaching 2.7 Guest disagreement 0.9 Nathan pushing back 2.3
05100:0010:0020:000:47–3:25 · Nathan as informed peer 5/10 Introducing Jeff Seibert and The Social Dilemma Nathan analyzes Aaron Levie's heavy dilution down to under 5% at IPO versus the financial upside of bootstrapping a $15M-$20M business. Jeff agrees that bootstrapping is much more viable today than when Box started.3:26–6:40 · Nathan as informed peer 5/10 Engineering Management at Box and Genesis of Crashlytics Jeff recounts negotiating IP ownership while at Box to build Crashlytics and raising a seed round in Boston. Nathan demonstrates market familiarity by accurately predicting the 1 on 5 valuation cap.6:40–9:04 · Nathan as informed peer 3/10 Scaling to 300 Million Devices and Twitter Acquisition Jeff explains reaching 300 million devices in 12 months with zero revenue. When Nathan asserts Twitter acquired Crashlytics for around $38M, Jeff corrects him that the sale was well over $100M.9:05–11:15 · Nathan as informed peer 2/10 Twitter Product Leadership and Climate Documentaries Jeff shares his involvement as an executive producer and participant in climate and tech documentaries like The Social Dilemma. Nathan inserts a mid-roll advertisement for Founderpath valuation software.11:17–14:15 · Nathan as informed peer 5/10 Digits: Disrupting Small Business Finance with Real-Time Data Jeff details Digits' thesis on real-time financial reporting versus delayed monthly book closes and building built-in virality. Nathan challenges Jeff on why incumbents like QuickBooks and FreshBooks haven't solved this.14:17–16:33 · Nathan as informed peer 5/10 Raising $30M+ Pre-Revenue and Pitching Long-Term Vision Nathan inquires how Digits raised over $30M pre-revenue from Benchmark and GV while keeping dilution reasonable. Jeff outlines how pitching massive market TAM and founder track record enables top-tier valuations without current metrics.16:33–20:04 · Nathan as informed peer 4/10 Orchestrating a 72-Person Angel Party Round Nathan explores the 72-person angel round and asks why Jeff didn't recruit accounting firms directly for distribution leverage. The conversation concludes with standard Famous Five lightning round questions.0:47–3:25 · Guest teaching 2/10 Introducing Jeff Seibert and The Social Dilemma Nathan analyzes Aaron Levie's heavy dilution down to under 5% at IPO versus the financial upside of bootstrapping a $15M-$20M business. Jeff agrees that bootstrapping is much more viable today than when Box started.3:26–6:40 · Guest teaching 1/10 Engineering Management at Box and Genesis of Crashlytics Jeff recounts negotiating IP ownership while at Box to build Crashlytics and raising a seed round in Boston. Nathan demonstrates market familiarity by accurately predicting the 1 on 5 valuation cap.6:40–9:04 · Guest teaching 6/10 Scaling to 300 Million Devices and Twitter Acquisition Jeff explains reaching 300 million devices in 12 months with zero revenue. When Nathan asserts Twitter acquired Crashlytics for around $38M, Jeff corrects him that the sale was well over $100M.9:05–11:15 · Guest teaching 1/10 Twitter Product Leadership and Climate Documentaries Jeff shares his involvement as an executive producer and participant in climate and tech documentaries like The Social Dilemma. Nathan inserts a mid-roll advertisement for Founderpath valuation software.11:17–14:15 · Guest teaching 4/10 Digits: Disrupting Small Business Finance with Real-Time Data Jeff details Digits' thesis on real-time financial reporting versus delayed monthly book closes and building built-in virality. Nathan challenges Jeff on why incumbents like QuickBooks and FreshBooks haven't solved this.14:17–16:33 · Guest teaching 3/10 Raising $30M+ Pre-Revenue and Pitching Long-Term Vision Nathan inquires how Digits raised over $30M pre-revenue from Benchmark and GV while keeping dilution reasonable. Jeff outlines how pitching massive market TAM and founder track record enables top-tier valuations without current metrics.16:33–20:04 · Guest teaching 2/10 Orchestrating a 72-Person Angel Party Round Nathan explores the 72-person angel round and asks why Jeff didn't recruit accounting firms directly for distribution leverage. The conversation concludes with standard Famous Five lightning round questions.0:47–3:25 · Guest disagreement 1/10 Introducing Jeff Seibert and The Social Dilemma Nathan analyzes Aaron Levie's heavy dilution down to under 5% at IPO versus the financial upside of bootstrapping a $15M-$20M business. Jeff agrees that bootstrapping is much more viable today than when Box started.3:26–6:40 · Guest disagreement 0/10 Engineering Management at Box and Genesis of Crashlytics Jeff recounts negotiating IP ownership while at Box to build Crashlytics and raising a seed round in Boston. Nathan demonstrates market familiarity by accurately predicting the 1 on 5 valuation cap.6:40–9:04 · Guest disagreement 2/10 Scaling to 300 Million Devices and Twitter Acquisition Jeff explains reaching 300 million devices in 12 months with zero revenue. When Nathan asserts Twitter acquired Crashlytics for around $38M, Jeff corrects him that the sale was well over $100M.9:05–11:15 · Guest disagreement 0/10 Twitter Product Leadership and Climate Documentaries Jeff shares his involvement as an executive producer and participant in climate and tech documentaries like The Social Dilemma. Nathan inserts a mid-roll advertisement for Founderpath valuation software.11:17–14:15 · Guest disagreement 1/10 Digits: Disrupting Small Business Finance with Real-Time Data Jeff details Digits' thesis on real-time financial reporting versus delayed monthly book closes and building built-in virality. Nathan challenges Jeff on why incumbents like QuickBooks and FreshBooks haven't solved this.14:17–16:33 · Guest disagreement 1/10 Raising $30M+ Pre-Revenue and Pitching Long-Term Vision Nathan inquires how Digits raised over $30M pre-revenue from Benchmark and GV while keeping dilution reasonable. Jeff outlines how pitching massive market TAM and founder track record enables top-tier valuations without current metrics.16:33–20:04 · Guest disagreement 1/10 Orchestrating a 72-Person Angel Party Round Nathan explores the 72-person angel round and asks why Jeff didn't recruit accounting firms directly for distribution leverage. The conversation concludes with standard Famous Five lightning round questions.0:47–3:25 · Nathan pushing back 2/10 Introducing Jeff Seibert and The Social Dilemma Nathan analyzes Aaron Levie's heavy dilution down to under 5% at IPO versus the financial upside of bootstrapping a $15M-$20M business. Jeff agrees that bootstrapping is much more viable today than when Box started.3:26–6:40 · Nathan pushing back 1/10 Engineering Management at Box and Genesis of Crashlytics Jeff recounts negotiating IP ownership while at Box to build Crashlytics and raising a seed round in Boston. Nathan demonstrates market familiarity by accurately predicting the 1 on 5 valuation cap.6:40–9:04 · Nathan pushing back 2/10 Scaling to 300 Million Devices and Twitter Acquisition Jeff explains reaching 300 million devices in 12 months with zero revenue. When Nathan asserts Twitter acquired Crashlytics for around $38M, Jeff corrects him that the sale was well over $100M.9:05–11:15 · Nathan pushing back 1/10 Twitter Product Leadership and Climate Documentaries Jeff shares his involvement as an executive producer and participant in climate and tech documentaries like The Social Dilemma. Nathan inserts a mid-roll advertisement for Founderpath valuation software.11:17–14:15 · Nathan pushing back 4/10 Digits: Disrupting Small Business Finance with Real-Time Data Jeff details Digits' thesis on real-time financial reporting versus delayed monthly book closes and building built-in virality. Nathan challenges Jeff on why incumbents like QuickBooks and FreshBooks haven't solved this.14:17–16:33 · Nathan pushing back 3/10 Raising $30M+ Pre-Revenue and Pitching Long-Term Vision Nathan inquires how Digits raised over $30M pre-revenue from Benchmark and GV while keeping dilution reasonable. Jeff outlines how pitching massive market TAM and founder track record enables top-tier valuations without current metrics.16:33–20:04 · Nathan pushing back 3/10 Orchestrating a 72-Person Angel Party Round Nathan explores the 72-person angel round and asks why Jeff didn't recruit accounting firms directly for distribution leverage. The conversation concludes with standard Famous Five lightning round questions.

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

0:00 · Nathan 63.1% · guest 36.9%0:00 · Nathan 63.1% · guest 36.9%3:00 · Nathan 26.5% · guest 73.5%3:00 · Nathan 26.5% · guest 73.5%6:00 · Nathan 40.4% · guest 59.6%6:00 · Nathan 40.4% · guest 59.6%9:00 · Nathan 49.9% · guest 50.1%9:00 · Nathan 49.9% · guest 50.1%12:00 · Nathan 19.2% · guest 80.8%12:00 · Nathan 19.2% · guest 80.8%15:00 · Nathan 25.5% · guest 74.5%15:00 · Nathan 25.5% · guest 74.5%18:00 · Nathan 52.5% · guest 47.5%18:00 · Nathan 52.5% · guest 47.5%
Sharpest disagreement ▶ 7:52 Correction on Twitter acquisition price

Jeff bluntly pushes back on Nathan's public estimate that Crashlytics was acquired for $38M, stating the actual transaction was well over $100M.

Hardest push from Nathan ▶ 13:42 Host challenges incumbent moat in accounting

Nathan directly challenges Digits' value proposition by questioning why massive incumbents like QuickBooks and FreshBooks haven't already built real-time workflows.

Biggest teaching moment ▶ 7:55 Jeff sets the record straight on exit valuation

Jeff clarifies the actual scale of the Crashlytics acquisition to over $100M after Nathan recites inaccurate public transaction figures.

Nathan holds their own ▶ 2:30 Nathan lays out dilution math vs bootstrapping

Nathan shows sharp SaaS financial fluency by calculating founder equity dilution sub-5% over long VC cycles versus keeping 100% of a bootstrapped business.

the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Introducing Jeff Seibert and The Social Dilemma 5212 Nathan analyzes Aaron Levie's heavy dilution down to under 5% at IPO versus the financial upside of bootstrapping a $15M-$20M business. Jeff agrees that bootstrapping is much more viable today than when Box started.
Engineering Management at Box and Genesis of Crashlytics 5101 Jeff recounts negotiating IP ownership while at Box to build Crashlytics and raising a seed round in Boston. Nathan demonstrates market familiarity by accurately predicting the 1 on 5 valuation cap.
Scaling to 300 Million Devices and Twitter Acquisition 3622 Jeff explains reaching 300 million devices in 12 months with zero revenue. When Nathan asserts Twitter acquired Crashlytics for around $38M, Jeff corrects him that the sale was well over $100M.
Twitter Product Leadership and Climate Documentaries 2101 Jeff shares his involvement as an executive producer and participant in climate and tech documentaries like The Social Dilemma. Nathan inserts a mid-roll advertisement for Founderpath valuation software.
Digits: Disrupting Small Business Finance with Real-Time Data 5414 Jeff details Digits' thesis on real-time financial reporting versus delayed monthly book closes and building built-in virality. Nathan challenges Jeff on why incumbents like QuickBooks and FreshBooks haven't solved this.
Raising $30M+ Pre-Revenue and Pitching Long-Term Vision 5313 Nathan inquires how Digits raised over $30M pre-revenue from Benchmark and GV while keeping dilution reasonable. Jeff outlines how pitching massive market TAM and founder track record enables top-tier valuations without current metrics.
Orchestrating a 72-Person Angel Party Round 4213 Nathan explores the 72-person angel round and asks why Jeff didn't recruit accounting firms directly for distribution leverage. The conversation concludes with standard Famous Five lightning round questions.

Statements from this episode (11)

Disclosure
Seibert was a surprise prominent feature in 'The Social Dilemma'
“I sat down for a nice two hour interview in back in 2018 and had no idea I would be front and center in the trailer, in the movie, et cetera.”
Jeff Seibert Feb 10, 2022 ▶ 1:17
Assertion Supported
Box acquired Increo in 2009 as Aaron Levie's first corporate acquisition
“We ended up getting acquired by Box in 2009 as the first acquisition Aaron Levy ever made.”
Jeff Seibert Feb 10, 2022 ▶ 1:49
Disclosure
Seibert still holds Box shares from the 2009 Increo acquisition
“And I not only held, I still hold a lot of the shares today.”
Jeff Seibert Feb 10, 2022 ▶ 2:25
Disclosure
Crashlytics raised a $1M seed round at a $5M cap in 2011
“We raised one on five. That's exactly it.”
Jeff Seibert Feb 10, 2022 ▶ 6:20
Assertion Supported
Twitter acquired Crashlytics just 14 months after its initial launch
“Basically 14 months from launch to being acquired by Twitter.”
Jeff Seibert Feb 10, 2022 ▶ 6:34
Assertion Not checkable as stated
Crashlytics grew to 300 million devices in its first 12 months
“We ended up going from zero to three hundred million devices within the first 12 months.”
Jeff Seibert Feb 10, 2022 ▶ 7:15
Assertion Contradicted
Twitter bought Crashlytics for 'well over' $100M, correcting $38M reports
“It was yeah, it wasn't 38. It was over a hundred, well over a hundred.”
Jeff Seibert Feb 10, 2022 ▶ 7:58
Assertion Supported
Crashlytics intentionally broke developer builds to force viral team adoption
“And when a developer, sorry, when a developer started using it, they actually put it in their app and we broke their build in the nicest way possible so that every other engineer on their team would find out about Crashlytics and then start using it.”
Jeff Seibert Feb 10, 2022 ▶ 13:09
Assertion Partly supported
Seibert: QuickBooks has maintained 80% market share since 1992
“Like QuickBooks has had an 80% market share since 1992.”
Jeff Seibert Feb 10, 2022 ▶ 14:01
Disclosure
Digits raised from 72 angels, including Box, GitHub, and Twitter CEOs
“We actually had 72 angels in digits. And these are the CEOs of Box, it's Aaron, of GitHub, it's Nat, of Twitter, it's Dick Costolo, et cetera.”
Jeff Seibert Feb 10, 2022 ▶ 16:51
Assertion Not checkable as stated
Increo sold to Box because it lacked distribution to raise Series A
“So without question and Creo failed the re like the reason we went and got acquired by box was because we didn't have the distribution we needed to raise an a round and we didn't spend that focus.”
Jeff Seibert Feb 10, 2022 ▶ 19:47
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