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Nov 5, 2020 · 18m · top-founders

CookieInformation Hits $2m Bootstrapped For Easy GDPR Copmliance

Karsten Rendemann · 8m spoken Nathan Latka · 5m spoken Eric Yuan · 4s spoken Vivek Bhaskaran · 2s 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, Nathan Latka speaks with Karsten Rendemann, founder of CookieInformation, about how he mortgaged his personal assets to bootstrap a GDPR consent management platform into a profitable $2 million ARR SaaS enterprise serving 1,500 global clients.

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 40% of the talking time here. How this is scored →

Nathan as informed peer 6.0 Guest teaching 2.4 Guest disagreement 1.8 Nathan pushing back 4.0
05100:0010:001:29–5:31 · Nathan as informed peer 6/10 CookieInformation Overview and Revenue Growth Latka refuses to let Karsten restart when he stumbles, demanding immediate transparency on revenue numbers. Latka quickly translates customer numbers and ARR into average contract value, pressing on whether revenue figures are monthly or annual.5:32–7:44 · Nathan as informed peer 7/10 Sales Quotas, Rep Compensation, and Team Structure Latka shows deep familiarity with sales compensation mechanics by immediately calculating the on-target earnings of seventy to eighty thousand dollars from Karsten's 2.5x quota-to-salary ratio rule.7:45–11:06 · Nathan as informed peer 5/10 Bootstrapping Strategy and Danish Innovation Grant Latka presses Karsten on grant amounts and early funding specifics. Karsten details his personal financial risk, correcting Latka's phrasing by clarifying that the bank did not give him money but issued high-risk loans backed by his life insurance.11:06–14:31 · Nathan as informed peer 8/10 Profitability, Customer Retention, and Unit Economics Latka breaks down unit economics rapidly, clarifying the distinction between instant cash-basis payback on upfront annual deals versus a six-month revenue-recognition payback.14:31–17:28 · Nathan as informed peer 4/10 Global Privacy Market Expansion and Future Outlook Karsten details global regulatory tailwinds using Gartner projections, after which Latka guides the conversation smoothly through the standard closing rapid-fire questions.1:29–5:31 · Guest teaching 2/10 CookieInformation Overview and Revenue Growth Latka refuses to let Karsten restart when he stumbles, demanding immediate transparency on revenue numbers. Latka quickly translates customer numbers and ARR into average contract value, pressing on whether revenue figures are monthly or annual.5:32–7:44 · Guest teaching 1/10 Sales Quotas, Rep Compensation, and Team Structure Latka shows deep familiarity with sales compensation mechanics by immediately calculating the on-target earnings of seventy to eighty thousand dollars from Karsten's 2.5x quota-to-salary ratio rule.7:45–11:06 · Guest teaching 3/10 Bootstrapping Strategy and Danish Innovation Grant Latka presses Karsten on grant amounts and early funding specifics. Karsten details his personal financial risk, correcting Latka's phrasing by clarifying that the bank did not give him money but issued high-risk loans backed by his life insurance.11:06–14:31 · Guest teaching 2/10 Profitability, Customer Retention, and Unit Economics Latka breaks down unit economics rapidly, clarifying the distinction between instant cash-basis payback on upfront annual deals versus a six-month revenue-recognition payback.14:31–17:28 · Guest teaching 4/10 Global Privacy Market Expansion and Future Outlook Karsten details global regulatory tailwinds using Gartner projections, after which Latka guides the conversation smoothly through the standard closing rapid-fire questions.1:29–5:31 · Guest disagreement 3/10 CookieInformation Overview and Revenue Growth Latka refuses to let Karsten restart when he stumbles, demanding immediate transparency on revenue numbers. Latka quickly translates customer numbers and ARR into average contract value, pressing on whether revenue figures are monthly or annual.5:32–7:44 · Guest disagreement 1/10 Sales Quotas, Rep Compensation, and Team Structure Latka shows deep familiarity with sales compensation mechanics by immediately calculating the on-target earnings of seventy to eighty thousand dollars from Karsten's 2.5x quota-to-salary ratio rule.7:45–11:06 · Guest disagreement 3/10 Bootstrapping Strategy and Danish Innovation Grant Latka presses Karsten on grant amounts and early funding specifics. Karsten details his personal financial risk, correcting Latka's phrasing by clarifying that the bank did not give him money but issued high-risk loans backed by his life insurance.11:06–14:31 · Guest disagreement 1/10 Profitability, Customer Retention, and Unit Economics Latka breaks down unit economics rapidly, clarifying the distinction between instant cash-basis payback on upfront annual deals versus a six-month revenue-recognition payback.14:31–17:28 · Guest disagreement 1/10 Global Privacy Market Expansion and Future Outlook Karsten details global regulatory tailwinds using Gartner projections, after which Latka guides the conversation smoothly through the standard closing rapid-fire questions.1:29–5:31 · Nathan pushing back 6/10 CookieInformation Overview and Revenue Growth Latka refuses to let Karsten restart when he stumbles, demanding immediate transparency on revenue numbers. Latka quickly translates customer numbers and ARR into average contract value, pressing on whether revenue figures are monthly or annual.5:32–7:44 · Nathan pushing back 3/10 Sales Quotas, Rep Compensation, and Team Structure Latka shows deep familiarity with sales compensation mechanics by immediately calculating the on-target earnings of seventy to eighty thousand dollars from Karsten's 2.5x quota-to-salary ratio rule.7:45–11:06 · Nathan pushing back 5/10 Bootstrapping Strategy and Danish Innovation Grant Latka presses Karsten on grant amounts and early funding specifics. Karsten details his personal financial risk, correcting Latka's phrasing by clarifying that the bank did not give him money but issued high-risk loans backed by his life insurance.11:06–14:31 · Nathan pushing back 4/10 Profitability, Customer Retention, and Unit Economics Latka breaks down unit economics rapidly, clarifying the distinction between instant cash-basis payback on upfront annual deals versus a six-month revenue-recognition payback.14:31–17:28 · Nathan pushing back 2/10 Global Privacy Market Expansion and Future Outlook Karsten details global regulatory tailwinds using Gartner projections, after which Latka guides the conversation smoothly through the standard closing rapid-fire questions.

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

0:00 · Nathan 67.4% · guest 32.6%0:00 · Nathan 67.4% · guest 32.6%3:00 · Nathan 25.5% · guest 74.5%3:00 · Nathan 25.5% · guest 74.5%6:00 · Nathan 30.9% · guest 69.1%6:00 · Nathan 30.9% · guest 69.1%9:00 · Nathan 28.6% · guest 71.4%9:00 · Nathan 28.6% · guest 71.4%12:00 · Nathan 37.6% · guest 62.4%12:00 · Nathan 37.6% · guest 62.4%15:00 · Nathan 49.7% · guest 50.3%15:00 · Nathan 49.7% · guest 50.3%18:00 · Nathan 0% · guest 100%18:00 · Nathan 0% · guest 100%
Sharpest disagreement ▶ 10:48 Karsten firmly rejects bank handout phrasing

Karsten pushes back when Latka suggests the bank gave him money, asserting sharply that it was a loan he personally paid for with his own collateral.

 Hardest push from Nathan ▶ 2:18 Latka rejects guest retake request

When Karsten asks to restart after stumbling on pricing numbers, Latka abruptly shuts it down, insisting the recording continue uninterrupted.

 Biggest teaching moment ▶ 14:36 Karsten educates on global privacy legislation wave

Karsten cites Gartner data showing that privacy regulation coverage will jump from ten percent to sixty-five percent of the global population, framing the market opportunity for Latka.

 Nathan holds their own ▶ 14:06 Latka breaks down cash vs GAAP payback metrics

Latka demonstrates deep financial acumen by immediately clarifying that a five-hundred-dollar acquisition cost on a thousand-dollar annual plan represents instant cash payback but a six-month accounting payback.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
CookieInformation Overview and Revenue Growth 6236 Latka refuses to let Karsten restart when he stumbles, demanding immediate transparency on revenue numbers. Latka quickly translates customer numbers and ARR into average contract value, pressing on whether revenue figures are monthly or annual.
Sales Quotas, Rep Compensation, and Team Structure 7113 Latka shows deep familiarity with sales compensation mechanics by immediately calculating the on-target earnings of seventy to eighty thousand dollars from Karsten's 2.5x quota-to-salary ratio rule.
Bootstrapping Strategy and Danish Innovation Grant 5335 Latka presses Karsten on grant amounts and early funding specifics. Karsten details his personal financial risk, correcting Latka's phrasing by clarifying that the bank did not give him money but issued high-risk loans backed by his life insurance.
Profitability, Customer Retention, and Unit Economics 8214 Latka breaks down unit economics rapidly, clarifying the distinction between instant cash-basis payback on upfront annual deals versus a six-month revenue-recognition payback.
Global Privacy Market Expansion and Future Outlook 4412 Karsten details global regulatory tailwinds using Gartner projections, after which Latka guides the conversation smoothly through the standard closing rapid-fire questions.

Statements from this episode (19)

Assertion Not checkable as stated
CookieInformation reaches $2M ARR with 1,500 paying clients
“Well, our total ARR is, is two million USD and we have 1500 paying clients, so you have to do the math.”
Karsten Rendemann Nov 5, 2020 ▶ 2:26
Assertion Not checkable as stated
CookieInformation is growing over 100% year-on-year
“And it's growing at a rate of a little more than a hundred percent year on year now.”
Karsten Rendemann Nov 5, 2020 ▶ 3:02
Disclosure
CookieInformation sales reps must sign at least two clients weekly
“The sales reps today still have one of their KPIs is at least two new clients a week, like I did.”
Karsten Rendemann Nov 5, 2020 ▶ 4:19
Assertion Not checkable as stated
CookieInformation's sales-assisted accounts average $3,000 to $5,000 ARR
“But the ones that we actually talk to, and the sales reps handle is three to five times that on average. Then we have a number that, that, that pays less, and they are purely self-service via platform.”
Karsten Rendemann Nov 5, 2020 ▶ 4:49
Disclosure
CookieInformation sets sales rep quota at $15,000 ARR per month
“Each sales rep have to hit a 15,000 USD per month.”
Karsten Rendemann Nov 5, 2020 ▶ 5:42
Disclosure
CookieInformation requires sales reps to generate 2.5x their salary in turnover
“And each SREP should generate turnover at least two and a half times the salary.”
Karsten Rendemann Nov 5, 2020 ▶ 6:10
Assertion Not checkable as stated
CookieInformation employs 27 people across sales, CS, and engineering
“Totally. We are 27. And we have about half, oh, sorry, one third is sales, one third is customer success, and one third is development.”
Karsten Rendemann Nov 5, 2020 ▶ 6:42
Disclosure
CookieInformation reached $2M ARR entirely bootstrapped without outside capital
“No, we have done it completely bootstrapped. No capital.”
Karsten Rendemann Nov 5, 2020 ▶ 7:50
Assertion Contradicted
The FTC identified CookieInformation as one of 18 legitimate privacy tech firms
“The federal trade commission did a study and tried to find out what companies have real tech within this area. And there was only 18. We're one of them.”
Karsten Rendemann Nov 5, 2020 ▶ 8:17
Assertion Partly supported
The Danish government named CookieInformation a top-seven innovative firm
“By the Danish state, we've been evaluated as one of the seven most innovative companies here. And they have actually given us quite a large grant to expand the company.”
Karsten Rendemann Nov 5, 2020 ▶ 8:37
Disclosure
CookieInformation received a Danish government grant between $250,000 and $1,000,000
“It's in the largest bucket of what they're allowed. So, so it's it is more than 250,000 dollars, but less than a million.”
Karsten Rendemann Nov 5, 2020 ▶ 8:52
Assertion Not checkable as stated
CookieInformation spent $1M developing its SaaS MVP before the first sale
“It was a very, very simple it was a very simple model, you could say, and it was a million USD.”
Karsten Rendemann Nov 5, 2020 ▶ 10:04
Disclosure
Founder Karsten Rendemann sold his house to finance CookieInformation's SaaS launch
“I basically pawned everything I owned. I sold my house. I moved in the summer cottage.”
Karsten Rendemann Nov 5, 2020 ▶ 10:23
Assertion Not checkable as stated
CookieInformation generates $50,000 in monthly EBITDA, growing at 100%
“50,000 USD per month, and it's growing at a hundred percent rate”
Karsten Rendemann Nov 5, 2020 ▶ 11:45
Assertion Not checkable as stated
CookieInformation holds $300,000 in cash reserves
“Oh, we have 300,000 USD cash.”
Karsten Rendemann Nov 5, 2020 ▶ 12:21
Assertion Not checkable as stated
CookieInformation maintains a stable 4% annual churn rate
“Annual churn is four percent and that is stable.”
Karsten Rendemann Nov 5, 2020 ▶ 13:01
Assertion Not checkable as stated
CookieInformation clients spend 40% more in their second year
“Yes, on average, our existing clients buy for 40% more year two than year one, and we are launching new products continuously that, that keep them motivated to buy more.”
Karsten Rendemann Nov 5, 2020 ▶ 13:32
Assertion Not checkable as stated
CookieInformation's customer acquisition cost is $500
“Our cost of acquisition is 500 bucks.”
Karsten Rendemann Nov 5, 2020 ▶ 13:50
Prediction Held up
Gartner: 65% of the global population will require cookie consent by 2022
“So Gardner says that today, 10% of the world's population live in a country where you need consent to cookies. In two years, it's 65%.”
Karsten Rendemann Nov 5, 2020 ▶ 14:50
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