StarZero All shows Try the podcast clipper →

Jul 18, 2021 · 21m · top-founders

He'd Sell Keyword Research SaaS $750k ARR For $1.5m, $250k in Profits

Kevin Peterson · 13m spoken Nathan Latka · 4m spoken
0:00 / 0:00

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

GrowthStack Inc. founder Kevin Peterson discusses his transition from buying micro-content websites to executing a private equity SaaS roll-up strategy aimed at taking a portfolio of cash-flowing software companies public.

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 27% of the talking time here. How this is scored →

Nathan as informed peer 5.3 Guest teaching 1.8 Guest disagreement 1.7 Nathan pushing back 4.5
05100:0010:0020:001:33–4:35 · Nathan as informed peer 4/10 The Tattoo Blog Strategy and Early Lessons Nathan probes Kevin's background with slight skepticism regarding founder-product fit on a tattoo blog and how cheap offshore development was found. Kevin lightheartedly explains his learning process and early content strategy.4:36–11:10 · Nathan as informed peer 6/10 First SaaS Deal: Picreel Acquisition and Private Capital Nathan drills down on transaction economics, broker fees, and investor dividend math, pushing Kevin to disclose the unreleased exit valuation of Picreel. Kevin remains cooperative but slightly hesitant before revealing the sub-500k sale price.11:10–14:45 · Nathan as informed peer 5/10 Portfolio Status, Long Tail Pro, and Team Operations Nathan questions how Kevin manages to support a 40-person global team on roughly $1M ARR. Kevin explains the offshore contractor model managed by his US-based CTO and elaborates on his thesis around SaaS recurring revenue runway.14:46–16:59 · Nathan as informed peer 6/10 Fundraising Thesis, Valuation Multiples, and Defensible Moats Nathan tries to put Kevin on the spot with an instant buyout offer of 4x EBITDA for Long Tail Pro based on Kevin's stated acquisition multiples. Kevin tactfully handles the live offer before discussing competitive moats.16:59–19:09 · Nathan as informed peer 8/10 Opportunity Zones, Valuation Arbitrage, and Customer Mix Nathan conducts live mental math when Kevin cites 20k customers and $79 to $299 monthly pricing, instantly pointing out that on $100k MRR the true average revenue per user is actually $5 per month. Kevin scrambles to explain the blended portfolio distribution.19:09–21:01 · Nathan as informed peer 3/10 The Famous Five Rapid-Fire Questions Nathan conducts the standard rapid-fire Famous Five round. Kevin gets caught off guard by the book and tooling questions before providing his key business lesson on raising capital.1:33–4:35 · Guest teaching 2/10 The Tattoo Blog Strategy and Early Lessons Nathan probes Kevin's background with slight skepticism regarding founder-product fit on a tattoo blog and how cheap offshore development was found. Kevin lightheartedly explains his learning process and early content strategy.4:36–11:10 · Guest teaching 2/10 First SaaS Deal: Picreel Acquisition and Private Capital Nathan drills down on transaction economics, broker fees, and investor dividend math, pushing Kevin to disclose the unreleased exit valuation of Picreel. Kevin remains cooperative but slightly hesitant before revealing the sub-500k sale price.11:10–14:45 · Guest teaching 3/10 Portfolio Status, Long Tail Pro, and Team Operations Nathan questions how Kevin manages to support a 40-person global team on roughly $1M ARR. Kevin explains the offshore contractor model managed by his US-based CTO and elaborates on his thesis around SaaS recurring revenue runway.14:46–16:59 · Guest teaching 2/10 Fundraising Thesis, Valuation Multiples, and Defensible Moats Nathan tries to put Kevin on the spot with an instant buyout offer of 4x EBITDA for Long Tail Pro based on Kevin's stated acquisition multiples. Kevin tactfully handles the live offer before discussing competitive moats.16:59–19:09 · Guest teaching 1/10 Opportunity Zones, Valuation Arbitrage, and Customer Mix Nathan conducts live mental math when Kevin cites 20k customers and $79 to $299 monthly pricing, instantly pointing out that on $100k MRR the true average revenue per user is actually $5 per month. Kevin scrambles to explain the blended portfolio distribution.19:09–21:01 · Guest teaching 1/10 The Famous Five Rapid-Fire Questions Nathan conducts the standard rapid-fire Famous Five round. Kevin gets caught off guard by the book and tooling questions before providing his key business lesson on raising capital.1:33–4:35 · Guest disagreement 1/10 The Tattoo Blog Strategy and Early Lessons Nathan probes Kevin's background with slight skepticism regarding founder-product fit on a tattoo blog and how cheap offshore development was found. Kevin lightheartedly explains his learning process and early content strategy.4:36–11:10 · Guest disagreement 2/10 First SaaS Deal: Picreel Acquisition and Private Capital Nathan drills down on transaction economics, broker fees, and investor dividend math, pushing Kevin to disclose the unreleased exit valuation of Picreel. Kevin remains cooperative but slightly hesitant before revealing the sub-500k sale price.11:10–14:45 · Guest disagreement 1/10 Portfolio Status, Long Tail Pro, and Team Operations Nathan questions how Kevin manages to support a 40-person global team on roughly $1M ARR. Kevin explains the offshore contractor model managed by his US-based CTO and elaborates on his thesis around SaaS recurring revenue runway.14:46–16:59 · Guest disagreement 2/10 Fundraising Thesis, Valuation Multiples, and Defensible Moats Nathan tries to put Kevin on the spot with an instant buyout offer of 4x EBITDA for Long Tail Pro based on Kevin's stated acquisition multiples. Kevin tactfully handles the live offer before discussing competitive moats.16:59–19:09 · Guest disagreement 3/10 Opportunity Zones, Valuation Arbitrage, and Customer Mix Nathan conducts live mental math when Kevin cites 20k customers and $79 to $299 monthly pricing, instantly pointing out that on $100k MRR the true average revenue per user is actually $5 per month. Kevin scrambles to explain the blended portfolio distribution.19:09–21:01 · Guest disagreement 1/10 The Famous Five Rapid-Fire Questions Nathan conducts the standard rapid-fire Famous Five round. Kevin gets caught off guard by the book and tooling questions before providing his key business lesson on raising capital.1:33–4:35 · Nathan pushing back 3/10 The Tattoo Blog Strategy and Early Lessons Nathan probes Kevin's background with slight skepticism regarding founder-product fit on a tattoo blog and how cheap offshore development was found. Kevin lightheartedly explains his learning process and early content strategy.4:36–11:10 · Nathan pushing back 5/10 First SaaS Deal: Picreel Acquisition and Private Capital Nathan drills down on transaction economics, broker fees, and investor dividend math, pushing Kevin to disclose the unreleased exit valuation of Picreel. Kevin remains cooperative but slightly hesitant before revealing the sub-500k sale price.11:10–14:45 · Nathan pushing back 4/10 Portfolio Status, Long Tail Pro, and Team Operations Nathan questions how Kevin manages to support a 40-person global team on roughly $1M ARR. Kevin explains the offshore contractor model managed by his US-based CTO and elaborates on his thesis around SaaS recurring revenue runway.14:46–16:59 · Nathan pushing back 5/10 Fundraising Thesis, Valuation Multiples, and Defensible Moats Nathan tries to put Kevin on the spot with an instant buyout offer of 4x EBITDA for Long Tail Pro based on Kevin's stated acquisition multiples. Kevin tactfully handles the live offer before discussing competitive moats.16:59–19:09 · Nathan pushing back 8/10 Opportunity Zones, Valuation Arbitrage, and Customer Mix Nathan conducts live mental math when Kevin cites 20k customers and $79 to $299 monthly pricing, instantly pointing out that on $100k MRR the true average revenue per user is actually $5 per month. Kevin scrambles to explain the blended portfolio distribution.19:09–21:01 · Nathan pushing back 2/10 The Famous Five Rapid-Fire Questions Nathan conducts the standard rapid-fire Famous Five round. Kevin gets caught off guard by the book and tooling questions before providing his key business lesson on raising capital.

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

0:00 · Nathan 46.5% · guest 53.5%0:00 · Nathan 46.5% · guest 53.5%3:00 · Nathan 7.6% · guest 92.4%3:00 · Nathan 7.6% · guest 92.4%6:00 · Nathan 29.1% · guest 70.9%6:00 · Nathan 29.1% · guest 70.9%9:00 · Nathan 27% · guest 73%9:00 · Nathan 27% · guest 73%12:00 · Nathan 21.6% · guest 78.4%12:00 · Nathan 21.6% · guest 78.4%15:00 · Nathan 19.9% · guest 80.1%15:00 · Nathan 19.9% · guest 80.1%18:00 · Nathan 27.5% · guest 72.5%18:00 · Nathan 27.5% · guest 72.5%21:00 · Nathan 92.4% · guest 7.6%21:00 · Nathan 92.4% · guest 7.6%
Sharpest disagreement ▶ 18:44 Defending ARPU discrepancy

Kevin pushes back against Nathan's simplification of his pricing tiers, insisting that heavy low-tier volume skews what would otherwise be standard B2B SaaS price points.

 Hardest push from Nathan ▶ 18:31 Calling out mathematical mismatch in customer numbers

Nathan rejects Kevin's stated tier pricing by calculating that 20,000 users across $100,000 MRR equals $5 a month, refusing to let the $79-$299 tier claim pass uncontested.

 Biggest teaching moment ▶ 12:35 Explaining why recurring SaaS provides downside runway

Kevin educates Nathan on why recurring B2B SaaS revenue protects investor capital from sudden platform dependency shocks unlike content affiliate models.

 Nathan holds their own ▶ 18:31 Immediate unit economics calculation

Nathan demonstrates sharp financial command by performing instant unit revenue division and confronting the guest with the actual blended ARPU.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
The Tattoo Blog Strategy and Early Lessons 4213 Nathan probes Kevin's background with slight skepticism regarding founder-product fit on a tattoo blog and how cheap offshore development was found. Kevin lightheartedly explains his learning process and early content strategy.
First SaaS Deal: Picreel Acquisition and Private Capital 6225 Nathan drills down on transaction economics, broker fees, and investor dividend math, pushing Kevin to disclose the unreleased exit valuation of Picreel. Kevin remains cooperative but slightly hesitant before revealing the sub-500k sale price.
Portfolio Status, Long Tail Pro, and Team Operations 5314 Nathan questions how Kevin manages to support a 40-person global team on roughly $1M ARR. Kevin explains the offshore contractor model managed by his US-based CTO and elaborates on his thesis around SaaS recurring revenue runway.
Fundraising Thesis, Valuation Multiples, and Defensible Moats 6225 Nathan tries to put Kevin on the spot with an instant buyout offer of 4x EBITDA for Long Tail Pro based on Kevin's stated acquisition multiples. Kevin tactfully handles the live offer before discussing competitive moats.
Opportunity Zones, Valuation Arbitrage, and Customer Mix 8138 Nathan conducts live mental math when Kevin cites 20k customers and $79 to $299 monthly pricing, instantly pointing out that on $100k MRR the true average revenue per user is actually $5 per month. Kevin scrambles to explain the blended portfolio distribution.
The Famous Five Rapid-Fire Questions 3112 Nathan conducts the standard rapid-fire Famous Five round. Kevin gets caught off guard by the book and tooling questions before providing his key business lesson on raising capital.

Statements from this episode (12)

Assertion Not checkable as stated
$1,200 Tattoo Blog Investment Yielded $750 Monthly Profit Within 90 Days
“You know, I invested 1200 dollars into this business, and then within 90 days, it was producing 750 dollars a month in profit.”
Kevin Peterson Jul 18, 2021 ▶ 4:02
Disclosure
Peterson Bought First SaaS Business Picreel For $1M In 2015
“So the first SaaS acquisition I bought was a company called Picreel... That was 2015. It was late 2015... That was around a million dollars. It was our first seven figure acquisition.”
Kevin Peterson Jul 18, 2021 ▶ 4:36
Disclosure
Peterson: Built Four Investor Portfolios Sized $500k to $1.5M
“I ended up building four portfolios. That ranged in size from, you know, initially they were micro investments. So it ranged in size from like, you know, half a million to a million and a half.”
Kevin Peterson Jul 18, 2021 ▶ 6:28
Disclosure
Peterson's Micro-PE Portfolios Paid 13% To 22% Quarterly Dividends
“Depending on the portfolio is between, so let's say, 13% on the low end to twenty-two-ish on the high end... Paid out like quarterly? Quarterly, yeah.”
Kevin Peterson Jul 18, 2021 ▶ 7:06
Opinion
Peterson: Most SaaS Sellers Are Product-Focused and Avoid Sales Teams
“What I'm seeing in the SaaS space is that founders tend to be tech savvy, but not business savvy, and that's not a slight against any founders. It's just the way founders in this space are, right? So SaaS founders are very good at identifying a need in the mar…”
Kevin Peterson Jul 18, 2021 ▶ 8:09
Disclosure
Peterson Exited $1M SaaS Acquisition Picreel For Under $500k
“No, we just recently exited that position... Within the last 90 days... Yeah, all in it was, yeah, all in it was sub 500.”
Kevin Peterson Jul 18, 2021 ▶ 9:27
Disclosure
Peterson: GrowthStack operates four brands and tracks toward $1.5M ARR
“Today we are operating four brands and we're on track for about a million and a half ARR this year.”
Kevin Peterson Jul 18, 2021 ▶ 11:19
Assertion Not checkable as stated
Long Tail Pro Generated Nearly $700k Revenue In 2020
“Last year was about 600, maybe close to 700,000.”
Kevin Peterson Jul 18, 2021 ▶ 11:50
Disclosure
GrowthStack Acquires B2B SaaS For 4.5x To 6.5x EBITDA Multiples
“Our investing thesis today is that we locate by operate and grow B to B SAS businesses that are producing between a million and a half and seven million EBITDA at time of acquisition. We trade on a multiple of EBITDA and we we're looking at four and a half to …”
Kevin Peterson Jul 18, 2021 ▶ 15:07
Insight
Peterson: Low-cost global developers quickly clone successful SaaS models at 10% price
“Anytime there's a new model, you know, new SaaS model that's getting traction in the marketplace, instantly there are cheap knockoffs, right? There are people around the world where their dev costs are very low. They can take something to market very quickly, …”
Kevin Peterson Jul 18, 2021 ▶ 16:23
Disclosure
GrowthStack Leverages Opportunity Zones To Shelter SaaS Rollup Capital Gains
“One is that we are operating in an opportunity zone, and we're using that legislation to pull SAS into an opportunity zone and protect cap gains for our investors.”
Kevin Peterson Jul 18, 2021 ▶ 17:26
Insight
Raising $1M Is Harder Than Raising $10M To $50M
“The hardest thing to do in business is for any business owner ever is to raise a million dollars. It's actually easier to raise 10 or 20 or 50.”
Kevin Peterson Jul 18, 2021 ▶ 20:42
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