Apr 17, 2021 · 21m · top-founders

SaaS Helps 50 F500 Brands Unlock Tax Credits, Targeting $6m ARR This Year

Lawrence Sotsky · 13m spoken Nathan Latka · 5m spoken Eric Yuan · 4s 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 with Nathan Latka, Incentify CEO Lawrence Sotsky explains how the pure SaaS platform helps Fortune 500 enterprises unlock and manage over a trillion dollars in tax credits and government incentives. Sotsky details the company's enterprise pricing model, strategic distribution through Ryan LLC, and disciplined roadmap to scale toward $6 million in ARR ahead of a major growth round.

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 30% of the talking time here. How this is scored →

Nathan as informed peer 5.9 Guest teaching 2.1 Guest disagreement 1.3 Nathan pushing back 3.4
05100:0010:0020:000:00–3:58 · Nathan as informed peer 5/10 Preview: Incentify's Upcoming Capital Raise Nathan introduces the interview and prompts Lawrence on how Incentify navigates the crowded tax credit space. Lawrence clarifies that unlike SMB tools that plug into payroll, Incentify serves Fortune 500 enterprises through ERP systems.3:58–6:28 · Nathan as informed peer 6/10 Incentify's Enterprise Value Proposition and SaaS Pricing Model Nathan explores the sales pitch and pricing model. Lawrence explains their SaaS model charging roughly $10,000 per month rather than a traditional contingency percentage fee.6:29–9:14 · Nathan as informed peer 7/10 Company Origin, Strategic Pivot, and Executive Transition When Lawrence characterizes the company as bootstrapped, Nathan immediately pushes back with research showing a $4.3M strategic investment from Ryan LLC. Lawrence pushes back slightly by distinguishing strategic partner capital from institutional VC.9:15–12:34 · Nathan as informed peer 5/10 Executive Alignment, Company Purpose, and Societal Impact Nathan asks about executive compensation and market narrative. Lawrence highlights their mission-driven focus and clarifies the strategic partnership role of Ryan LLC as an advisory giant rather than a builder.12:34–15:21 · Nathan as informed peer 6/10 Team Structure, Engineering Base, and Sales Funnel Metrics Nathan drills into the engineering breakdown and sales quota economics. Lawrence outlines their quota targets of $250k per quarter per rep and detailed conversion funnel benchmarks.15:21–19:00 · Nathan as informed peer 8/10 Fundraising Strategy, Valuation Expectations, and ARR Milestones Nathan calculates Incentify's run-rate from average ACV and customer count, then reverse-engineers the valuation multiples required to support Lawrence's target $10M-$20M raise at standard dilution.19:01–20:26 · Nathan as informed peer 4/10 The Famous Five Rapid-Fire Questions Nathan conducts the Famous Five lightning round with standard questions on books, sleep, and CEO role models, concluding with an episode recap.0:00–3:58 · Guest teaching 3/10 Preview: Incentify's Upcoming Capital Raise Nathan introduces the interview and prompts Lawrence on how Incentify navigates the crowded tax credit space. Lawrence clarifies that unlike SMB tools that plug into payroll, Incentify serves Fortune 500 enterprises through ERP systems.3:58–6:28 · Guest teaching 2/10 Incentify's Enterprise Value Proposition and SaaS Pricing Model Nathan explores the sales pitch and pricing model. Lawrence explains their SaaS model charging roughly $10,000 per month rather than a traditional contingency percentage fee.6:29–9:14 · Guest teaching 3/10 Company Origin, Strategic Pivot, and Executive Transition When Lawrence characterizes the company as bootstrapped, Nathan immediately pushes back with research showing a $4.3M strategic investment from Ryan LLC. Lawrence pushes back slightly by distinguishing strategic partner capital from institutional VC.9:15–12:34 · Guest teaching 3/10 Executive Alignment, Company Purpose, and Societal Impact Nathan asks about executive compensation and market narrative. Lawrence highlights their mission-driven focus and clarifies the strategic partnership role of Ryan LLC as an advisory giant rather than a builder.12:34–15:21 · Guest teaching 2/10 Team Structure, Engineering Base, and Sales Funnel Metrics Nathan drills into the engineering breakdown and sales quota economics. Lawrence outlines their quota targets of $250k per quarter per rep and detailed conversion funnel benchmarks.15:21–19:00 · Guest teaching 1/10 Fundraising Strategy, Valuation Expectations, and ARR Milestones Nathan calculates Incentify's run-rate from average ACV and customer count, then reverse-engineers the valuation multiples required to support Lawrence's target $10M-$20M raise at standard dilution.19:01–20:26 · Guest teaching 1/10 The Famous Five Rapid-Fire Questions Nathan conducts the Famous Five lightning round with standard questions on books, sleep, and CEO role models, concluding with an episode recap.0:00–3:58 · Guest disagreement 1/10 Preview: Incentify's Upcoming Capital Raise Nathan introduces the interview and prompts Lawrence on how Incentify navigates the crowded tax credit space. Lawrence clarifies that unlike SMB tools that plug into payroll, Incentify serves Fortune 500 enterprises through ERP systems.3:58–6:28 · Guest disagreement 1/10 Incentify's Enterprise Value Proposition and SaaS Pricing Model Nathan explores the sales pitch and pricing model. Lawrence explains their SaaS model charging roughly $10,000 per month rather than a traditional contingency percentage fee.6:29–9:14 · Guest disagreement 3/10 Company Origin, Strategic Pivot, and Executive Transition When Lawrence characterizes the company as bootstrapped, Nathan immediately pushes back with research showing a $4.3M strategic investment from Ryan LLC. Lawrence pushes back slightly by distinguishing strategic partner capital from institutional VC.9:15–12:34 · Guest disagreement 2/10 Executive Alignment, Company Purpose, and Societal Impact Nathan asks about executive compensation and market narrative. Lawrence highlights their mission-driven focus and clarifies the strategic partnership role of Ryan LLC as an advisory giant rather than a builder.12:34–15:21 · Guest disagreement 1/10 Team Structure, Engineering Base, and Sales Funnel Metrics Nathan drills into the engineering breakdown and sales quota economics. Lawrence outlines their quota targets of $250k per quarter per rep and detailed conversion funnel benchmarks.15:21–19:00 · Guest disagreement 1/10 Fundraising Strategy, Valuation Expectations, and ARR Milestones Nathan calculates Incentify's run-rate from average ACV and customer count, then reverse-engineers the valuation multiples required to support Lawrence's target $10M-$20M raise at standard dilution.19:01–20:26 · Guest disagreement 0/10 The Famous Five Rapid-Fire Questions Nathan conducts the Famous Five lightning round with standard questions on books, sleep, and CEO role models, concluding with an episode recap.0:00–3:58 · Nathan pushing back 2/10 Preview: Incentify's Upcoming Capital Raise Nathan introduces the interview and prompts Lawrence on how Incentify navigates the crowded tax credit space. Lawrence clarifies that unlike SMB tools that plug into payroll, Incentify serves Fortune 500 enterprises through ERP systems.3:58–6:28 · Nathan pushing back 3/10 Incentify's Enterprise Value Proposition and SaaS Pricing Model Nathan explores the sales pitch and pricing model. Lawrence explains their SaaS model charging roughly $10,000 per month rather than a traditional contingency percentage fee.6:29–9:14 · Nathan pushing back 6/10 Company Origin, Strategic Pivot, and Executive Transition When Lawrence characterizes the company as bootstrapped, Nathan immediately pushes back with research showing a $4.3M strategic investment from Ryan LLC. Lawrence pushes back slightly by distinguishing strategic partner capital from institutional VC.9:15–12:34 · Nathan pushing back 3/10 Executive Alignment, Company Purpose, and Societal Impact Nathan asks about executive compensation and market narrative. Lawrence highlights their mission-driven focus and clarifies the strategic partnership role of Ryan LLC as an advisory giant rather than a builder.12:34–15:21 · Nathan pushing back 4/10 Team Structure, Engineering Base, and Sales Funnel Metrics Nathan drills into the engineering breakdown and sales quota economics. Lawrence outlines their quota targets of $250k per quarter per rep and detailed conversion funnel benchmarks.15:21–19:00 · Nathan pushing back 5/10 Fundraising Strategy, Valuation Expectations, and ARR Milestones Nathan calculates Incentify's run-rate from average ACV and customer count, then reverse-engineers the valuation multiples required to support Lawrence's target $10M-$20M raise at standard dilution.19:01–20:26 · Nathan pushing back 1/10 The Famous Five Rapid-Fire Questions Nathan conducts the Famous Five lightning round with standard questions on books, sleep, and CEO role models, concluding with an episode recap.

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

0:00 · Nathan 66.6% · guest 33.4%0:00 · Nathan 66.6% · guest 33.4%3:00 · Nathan 20.4% · guest 79.6%3:00 · Nathan 20.4% · guest 79.6%6:00 · Nathan 24.3% · guest 75.7%6:00 · Nathan 24.3% · guest 75.7%9:00 · Nathan 25% · guest 75%9:00 · Nathan 25% · guest 75%12:00 · Nathan 15.6% · guest 84.4%12:00 · Nathan 15.6% · guest 84.4%15:00 · Nathan 12.1% · guest 87.9%15:00 · Nathan 12.1% · guest 87.9%18:00 · Nathan 47.8% · guest 52.2%18:00 · Nathan 47.8% · guest 52.2%21:00 · Nathan 0% · guest 0%21:00 · Nathan 0% · guest 0%
Sharpest disagreement ▶ 8:05 Strategic investment vs venture round defense

Lawrence actively reframes Nathan's challenge about their $4.3M raise, arguing that non-VC strategic partner money still keeps them distinct from institutional Series A backing.

Hardest push from Nathan ▶ 8:05 Nathan challenges bootstrapped claim with funding data

Nathan refuses to accept Lawrence's assertion that Incentify is bootstrapped, directly citing their $4.3M investment from Ryan LLC.

Biggest teaching moment ▶ 2:59 Enterprise ERP architecture vs SMB payroll integrations

Lawrence corrects Nathan's assumption that Incentify onboards like standard SMB apps by explaining their direct integration into enterprise ERPs like Oracle and SAP.

Nathan holds their own ▶ 18:42 Nathan runs valuation and revenue requirement math

Nathan demonstrates sharp venture finance expertise by calculating the exact ARR run rate needed to command a $100M-$200M valuation for a $10M-$20M fundraise at low dilution.

the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Preview: Incentify's Upcoming Capital Raise 5312 Nathan introduces the interview and prompts Lawrence on how Incentify navigates the crowded tax credit space. Lawrence clarifies that unlike SMB tools that plug into payroll, Incentify serves Fortune 500 enterprises through ERP systems.
Incentify's Enterprise Value Proposition and SaaS Pricing Model 6213 Nathan explores the sales pitch and pricing model. Lawrence explains their SaaS model charging roughly $10,000 per month rather than a traditional contingency percentage fee.
Company Origin, Strategic Pivot, and Executive Transition 7336 When Lawrence characterizes the company as bootstrapped, Nathan immediately pushes back with research showing a $4.3M strategic investment from Ryan LLC. Lawrence pushes back slightly by distinguishing strategic partner capital from institutional VC.
Executive Alignment, Company Purpose, and Societal Impact 5323 Nathan asks about executive compensation and market narrative. Lawrence highlights their mission-driven focus and clarifies the strategic partnership role of Ryan LLC as an advisory giant rather than a builder.
Team Structure, Engineering Base, and Sales Funnel Metrics 6214 Nathan drills into the engineering breakdown and sales quota economics. Lawrence outlines their quota targets of $250k per quarter per rep and detailed conversion funnel benchmarks.
Fundraising Strategy, Valuation Expectations, and ARR Milestones 8115 Nathan calculates Incentify's run-rate from average ACV and customer count, then reverse-engineers the valuation multiples required to support Lawrence's target $10M-$20M raise at standard dilution.
The Famous Five Rapid-Fire Questions 4101 Nathan conducts the Famous Five lightning round with standard questions on books, sleep, and CEO role models, concluding with an episode recap.

Statements from this episode (12)

Assertion Contradicted
Sotsky: A trillion dollars in credits and incentives exists for organizations
“There's literally a trillion dollars of credits and incentives that are out there and available for various organizations.”
Lawrence Sotsky Apr 17, 2021 ▶ 2:16
Assertion Supported
Sotsky: MainStreet charges success fees while Incentify is pure SaaS
“Ours is also a little different than Main Street and the others that you mentioned. They're mostly working on a success fee. For us, we are a software as a service company. We're not an advisor. So we do take a monthly fee from the from the client to use our p…”
Lawrence Sotsky Apr 17, 2021 ▶ 5:38
Disclosure
Incentify charges large enterprise customers an average of $10,000 monthly
“Our average price is around 10,000 dollars and 10,000 dollars a month for some big, big enterprise customers.”
Lawrence Sotsky Apr 17, 2021 ▶ 5:56
Disclosure
Sotsky: Incentify took strategic funding from Ryan LLC, not institutional VC
“Ryan did put in money as a strategic round, but we are not yet calling that a series a, we haven't taken an institutional round yet from a VC.”
Lawrence Sotsky Apr 17, 2021 ▶ 8:13
Assertion Not checkable as stated
Incentify serves about 50 customers, mostly Fortune 500 companies
“So we have about 50 customers today, the majority of them, of course, in the Fortune 500, which is great.”
Lawrence Sotsky Apr 17, 2021 ▶ 11:21
Assertion Not checkable as stated
Ryan LLC invested in Incentify and deployed its product to 100 clients
“And then I mentioned we did sign a deal with Ryan. They did invest in our company and we're pretty close to rolling out a hundred, over a hundred of their the target's a 125. We're at just about a hundred now of their customers using our product as well”
Lawrence Sotsky Apr 17, 2021 ▶ 11:27
Assertion Not checkable as stated
Sotsky: Incentify employs about 25 people, mostly in tech
“We've got we've got about 25, 25 folks on the team, majority on the tech side.”
Lawrence Sotsky Apr 17, 2021 ▶ 12:38
Assertion Not checkable as stated
Sotsky: Incentify has four quota-carrying sales reps and two SDRs
“So we've got four quota carrying reps right now, as well as a couple of SDRs to support those reps.”
Lawrence Sotsky Apr 17, 2021 ▶ 13:38
Disclosure
Incentify sets account executive sales quotas at $250,000 per quarter
“So, so for us we're looking for our guys to sell a quarter of a million dollars a quarter, which is not that hard to do because you figure it's like two or three for us, it's two or three deals.”
Lawrence Sotsky Apr 17, 2021 ▶ 14:16
Disclosure
Incentify benchmarks sales reps on five weekly discovery calls and three demos
“So our metrics in terms of productivity are a minimum of five discovery calls per week, which should translate to three full presentations and demos. And one of those three, we, in terms of our metrics, one of those three should move on into the funnel in sort…”
Lawrence Sotsky Apr 17, 2021 ▶ 14:55
Disclosure
Incentify reached profitability and plans to raise capital in Q4
“We are probably going to raise a Q four. We were already profitable, but if we want to kind of, if we want to kind of take ourselves to a point of really being able to attack the market, we are going to need to raise.”
Lawrence Sotsky Apr 17, 2021 ▶ 15:29
Disclosure
Incentify plans to raise a $10 million to $20 million funding round
“I think we'll, we'll probably be north of, we'll probably be somewhere between 10 and twenty million in our raise, and I think that'll really put us on a trajectory to transform the landscape of this particular asset.”
Lawrence Sotsky Apr 17, 2021 ▶ 17:07
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