StarZero All shows Try the podcast clipper →

Jan 7, 2022 · 20m · top-founders

$5m Revenue On Just $5m Raised, Capital Efficient Founder!

Daniel Melkerson · 9m spoken Nathan Latka · 8m 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, host Nathan Latka speaks with PinMeTo CEO and co-founder Daniel Melkerson about scaling a multi-location listing SaaS platform to $5.2 million in ARR across 550 enterprise customers while maintaining extraordinary capital efficiency on just $5 million in total equity raised.

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 48.3% of the talking time here. How this is scored →

Nathan as informed peer 5.3 Guest teaching 1.6 Guest disagreement 0.9 Nathan pushing back 2.3
05100:0010:0020:001:26–4:52 · Nathan as informed peer 6/10 Navigating Pandemic Challenges and Market Adaptation Latka recalls specific numbers from their 2019 interview and probes into customer ACVs and vertical breakdown during COVID. Melkerson explains their operational adaptations and pricing tiers amicably.4:53–7:53 · Nathan as informed peer 7/10 Capital Efficiency and Fundraising History Latka lists exact past funding rounds from memory/records and tests why Melkerson raised an insider round without using the cash. Melkerson explains their strategy of growing with customer cash while keeping a buffer.7:53–10:22 · Nathan as informed peer 7/10 Sales Team Quotas, Ramp Time, and Compensation Latka calculates exact quota math and OTE expectations for reps based on SaaS sales benchmarks. Melkerson agrees they follow standard SaaS playbook economics.10:22–12:48 · Nathan as informed peer 0/10 Sponsor Break: Global Remote Hiring with Remote.com Host ad read monologue for sponsor remote.com, followed by brief questions on engineering team size.12:49–15:36 · Nathan as informed peer 7/10 Revenue Retention, Gross Churn, and Expansion Focus Latka calculates implied valuation from the insider round dilution and challenges Melkerson on accepting a low 5x multiple instead of running a formal competitive process. Melkerson defends keeping things simple to stay focused on execution.15:36–18:25 · Nathan as informed peer 6/10 Non-Dilutive Capital Options and Nordic Debt Markets Latka pitches his own fund and asks about secondary sales for founders to derisk personal wealth. Melkerson jokes he already peaked and educates Latka on emerging debt funds in the Nordic ecosystem.18:25–19:55 · Nathan as informed peer 4/10 Famous Five Rapid-Fire Questions Standard Famous Five rapid-fire format. Melkerson recommends Swedish SaaS tools Fortnox, Planhat, and Uneon.1:26–4:52 · Guest teaching 2/10 Navigating Pandemic Challenges and Market Adaptation Latka recalls specific numbers from their 2019 interview and probes into customer ACVs and vertical breakdown during COVID. Melkerson explains their operational adaptations and pricing tiers amicably.4:53–7:53 · Guest teaching 1/10 Capital Efficiency and Fundraising History Latka lists exact past funding rounds from memory/records and tests why Melkerson raised an insider round without using the cash. Melkerson explains their strategy of growing with customer cash while keeping a buffer.7:53–10:22 · Guest teaching 2/10 Sales Team Quotas, Ramp Time, and Compensation Latka calculates exact quota math and OTE expectations for reps based on SaaS sales benchmarks. Melkerson agrees they follow standard SaaS playbook economics.10:22–12:48 · Guest teaching 0/10 Sponsor Break: Global Remote Hiring with Remote.com Host ad read monologue for sponsor remote.com, followed by brief questions on engineering team size.12:49–15:36 · Guest teaching 1/10 Revenue Retention, Gross Churn, and Expansion Focus Latka calculates implied valuation from the insider round dilution and challenges Melkerson on accepting a low 5x multiple instead of running a formal competitive process. Melkerson defends keeping things simple to stay focused on execution.15:36–18:25 · Guest teaching 3/10 Non-Dilutive Capital Options and Nordic Debt Markets Latka pitches his own fund and asks about secondary sales for founders to derisk personal wealth. Melkerson jokes he already peaked and educates Latka on emerging debt funds in the Nordic ecosystem.18:25–19:55 · Guest teaching 2/10 Famous Five Rapid-Fire Questions Standard Famous Five rapid-fire format. Melkerson recommends Swedish SaaS tools Fortnox, Planhat, and Uneon.1:26–4:52 · Guest disagreement 1/10 Navigating Pandemic Challenges and Market Adaptation Latka recalls specific numbers from their 2019 interview and probes into customer ACVs and vertical breakdown during COVID. Melkerson explains their operational adaptations and pricing tiers amicably.4:53–7:53 · Guest disagreement 1/10 Capital Efficiency and Fundraising History Latka lists exact past funding rounds from memory/records and tests why Melkerson raised an insider round without using the cash. Melkerson explains their strategy of growing with customer cash while keeping a buffer.7:53–10:22 · Guest disagreement 1/10 Sales Team Quotas, Ramp Time, and Compensation Latka calculates exact quota math and OTE expectations for reps based on SaaS sales benchmarks. Melkerson agrees they follow standard SaaS playbook economics.10:22–12:48 · Guest disagreement 0/10 Sponsor Break: Global Remote Hiring with Remote.com Host ad read monologue for sponsor remote.com, followed by brief questions on engineering team size.12:49–15:36 · Guest disagreement 2/10 Revenue Retention, Gross Churn, and Expansion Focus Latka calculates implied valuation from the insider round dilution and challenges Melkerson on accepting a low 5x multiple instead of running a formal competitive process. Melkerson defends keeping things simple to stay focused on execution.15:36–18:25 · Guest disagreement 1/10 Non-Dilutive Capital Options and Nordic Debt Markets Latka pitches his own fund and asks about secondary sales for founders to derisk personal wealth. Melkerson jokes he already peaked and educates Latka on emerging debt funds in the Nordic ecosystem.18:25–19:55 · Guest disagreement 0/10 Famous Five Rapid-Fire Questions Standard Famous Five rapid-fire format. Melkerson recommends Swedish SaaS tools Fortnox, Planhat, and Uneon.1:26–4:52 · Nathan pushing back 2/10 Navigating Pandemic Challenges and Market Adaptation Latka recalls specific numbers from their 2019 interview and probes into customer ACVs and vertical breakdown during COVID. Melkerson explains their operational adaptations and pricing tiers amicably.4:53–7:53 · Nathan pushing back 3/10 Capital Efficiency and Fundraising History Latka lists exact past funding rounds from memory/records and tests why Melkerson raised an insider round without using the cash. Melkerson explains their strategy of growing with customer cash while keeping a buffer.7:53–10:22 · Nathan pushing back 2/10 Sales Team Quotas, Ramp Time, and Compensation Latka calculates exact quota math and OTE expectations for reps based on SaaS sales benchmarks. Melkerson agrees they follow standard SaaS playbook economics.10:22–12:48 · Nathan pushing back 0/10 Sponsor Break: Global Remote Hiring with Remote.com Host ad read monologue for sponsor remote.com, followed by brief questions on engineering team size.12:49–15:36 · Nathan pushing back 5/10 Revenue Retention, Gross Churn, and Expansion Focus Latka calculates implied valuation from the insider round dilution and challenges Melkerson on accepting a low 5x multiple instead of running a formal competitive process. Melkerson defends keeping things simple to stay focused on execution.15:36–18:25 · Nathan pushing back 3/10 Non-Dilutive Capital Options and Nordic Debt Markets Latka pitches his own fund and asks about secondary sales for founders to derisk personal wealth. Melkerson jokes he already peaked and educates Latka on emerging debt funds in the Nordic ecosystem.18:25–19:55 · Nathan pushing back 1/10 Famous Five Rapid-Fire Questions Standard Famous Five rapid-fire format. Melkerson recommends Swedish SaaS tools Fortnox, Planhat, and Uneon.

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

0:00 · Nathan 49.4% · guest 50.6%0:00 · Nathan 49.4% · guest 50.6%3:00 · Nathan 39.4% · guest 60.6%3:00 · Nathan 39.4% · guest 60.6%6:00 · Nathan 23.3% · guest 76.7%6:00 · Nathan 23.3% · guest 76.7%9:00 · Nathan 81.9% · guest 18.1%9:00 · Nathan 81.9% · guest 18.1%12:00 · Nathan 40% · guest 60%12:00 · Nathan 40% · guest 60%15:00 · Nathan 46.2% · guest 53.8%15:00 · Nathan 46.2% · guest 53.8%18:00 · Nathan 60.8% · guest 39.2%18:00 · Nathan 60.8% · guest 39.2%
Sharpest disagreement ▶ 15:07 Defending taking a quick insider round over max valuation

Melkerson rejects the host premise that they should have shopped the market for a higher multiple, insisting focus on the business was far more valuable.

 Hardest push from Nathan ▶ 14:50 Pushing on accepting a 5x multiple

Latka directly confronts Melkerson on leaving money on the table with a modest 5x valuation when market multiples reached 10-30x.

 Biggest teaching moment ▶ 16:21 Nordic venture debt landscape evolution

Melkerson details how ex-bankers in Sweden are creating new non-dilutive lending funds tailored specifically for Nordic SaaS businesses.

 Nathan holds their own ▶ 9:04 Deconstructing quota economics and OTE benchmark

Latka quickly converts monthly rep quotas into net new ARR additions and maps it out against standard OTE benchmarks to see if the team deviates from SaaS best practices.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Navigating Pandemic Challenges and Market Adaptation 6212 Latka recalls specific numbers from their 2019 interview and probes into customer ACVs and vertical breakdown during COVID. Melkerson explains their operational adaptations and pricing tiers amicably.
Capital Efficiency and Fundraising History 7113 Latka lists exact past funding rounds from memory/records and tests why Melkerson raised an insider round without using the cash. Melkerson explains their strategy of growing with customer cash while keeping a buffer.
Sales Team Quotas, Ramp Time, and Compensation 7212 Latka calculates exact quota math and OTE expectations for reps based on SaaS sales benchmarks. Melkerson agrees they follow standard SaaS playbook economics.
Sponsor Break: Global Remote Hiring with Remote.com 0000 Host ad read monologue for sponsor remote.com, followed by brief questions on engineering team size.
Revenue Retention, Gross Churn, and Expansion Focus 7125 Latka calculates implied valuation from the insider round dilution and challenges Melkerson on accepting a low 5x multiple instead of running a formal competitive process. Melkerson defends keeping things simple to stay focused on execution.
Non-Dilutive Capital Options and Nordic Debt Markets 6313 Latka pitches his own fund and asks about secondary sales for founders to derisk personal wealth. Melkerson jokes he already peaked and educates Latka on emerging debt funds in the Nordic ecosystem.
Famous Five Rapid-Fire Questions 4201 Standard Famous Five rapid-fire format. Melkerson recommends Swedish SaaS tools Fortnox, Planhat, and Uneon.

Statements from this episode (16)

Disclosure
PinMeTo paused hospitality billing in 2020 and retained all those accounts
“What we did then was that actually we contacted the customers we had in, in, in hospitality industry and just said, okay, let's pause your payments for the upcoming three months and see what happens with COVID. And then after four months, everyone was back and…”
Daniel Melkerson Jan 7, 2022 ▶ 1:41
Assertion Not checkable as stated
PinMeTo reaches around 550 paying enterprise customers
“So we have around 550 paying customers today.”
Daniel Melkerson Jan 7, 2022 ▶ 2:52
Assertion Not checkable as stated
PinMeTo's top customer verticals are retail, EV charging, and hospitality
“The top three verticals are still retail also EV charging and gas stations kind of goes hand in hand today. Gas stations needs to pivot into EV chargings as well. So so that's the two biggest, I guess. And then I would say hospitality still.”
Daniel Melkerson Jan 7, 2022 ▶ 2:56
Assertion Not checkable as stated
PinMeTo's average customer pays around $900 per month
“Yeah, around 800, a little bit above 800. I would say 900 today.”
Daniel Melkerson Jan 7, 2022 ▶ 3:25
Disclosure
PinMeTo counts H&M as a customer on a per-store pricing model
“For example one of the customers who work with H and M they have stores are all around the world, so they pay per, per store.”
Daniel Melkerson Jan 7, 2022 ▶ 3:44
Assertion Not checkable as stated
PinMeTo's largest enterprise customer pays $300,000 per year
“They're paying us 300 thousand US.”
Daniel Melkerson Jan 7, 2022 ▶ 4:10
Disclosure
PinMeTo raised an insider funding round a year ago without spending it
“The small round with the investors we already had on board almost a year ago now, but we haven't used the money yet.”
Daniel Melkerson Jan 7, 2022 ▶ 5:09
Assertion Not checkable as stated
Melkerson: PinMeTo currently employs 78 team members
“Almost eight. I think 78.”
Daniel Melkerson Jan 7, 2022 ▶ 6:29
Disclosure
Melkerson: PinMeTo hires UK expats in Poland to sell cheaply to UK
“So for example, we have quite a lot of people born and raised in the UK living in Poland today for different reasons. And we have them selling to the UK, which for us is way, way cheaper. To have people hired in Poland, but still they sell in UK and the custom…”
Daniel Melkerson Jan 7, 2022 ▶ 7:30
Assertion Not checkable as stated
Melkerson: PinMeTo employs 35 quota-carrying sales reps
“They 35 carry a quota for sure.”
Daniel Melkerson Jan 7, 2022 ▶ 8:03
Disclosure
PinMeTo gives sales reps a six-month ramp to $10K MRR quotas
“So the first thing, six months, I wouldn't say you have any quota, but you need to have a lot of momentum make sure you have a lot of quotes out, a lot of meetings. And from that on, I would say in, in US dollars per month, Around 10,000. That's it for the fir…”
Daniel Melkerson Jan 7, 2022 ▶ 8:39
Opinion
Melkerson: In-person engineering collaboration makes R&D faster
“We really like them to actually to have the possibility to physically meet up. Cause R and D works better that way. That's just the way I see things. Faster. Not bad. Maybe not better, but faster.”
Daniel Melkerson Jan 7, 2022 ▶ 12:36
Assertion Not checkable as stated
Melkerson: PinMeTo maintains an annual gross revenue churn of around 3%
“Oh, I don't have all the numbers, sorry, in my head, but we have a gross churn around three percent.”
Daniel Melkerson Jan 7, 2022 ▶ 12:56
Disclosure
Melkerson: PinMeTo diluted between 5% and 10% in $2M round
“It was pretty much in the middle of five and 10.”
Daniel Melkerson Jan 7, 2022 ▶ 14:40
Disclosure
Melkerson: PinMeTo will likely pursue alternative debt over traditional equity
“So we probably look at that kind of structure instead of maybe raising in, you know, the usual way.”
Daniel Melkerson Jan 7, 2022 ▶ 16:03
Disclosure
Melkerson Is Not Interested in Selling Secondary Shares for Personal Liquidity
“I'm not excited, but I cannot talk for my other two co-founders.”
Daniel Melkerson Jan 7, 2022 ▶ 18:05
Made with StarZero

Turn any episode into a week of clips.

This entire site, over 2,600 episodes transcribed, diarized, checked and made playable, runs on the StarZero media pipeline. Drop in your own episode and the podcast clipper finds the moments worth sharing, cuts them, captions them, and reframes them for every feed.

Try the podcast clipper Learn more