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Nov 29, 2019 · 22m · top-founders

1588 Why 450 Enterprises Pay Him $45M+ in ARR To Help With Employee Volunteering and Donation Programs

Brian de Lottinville · 11m spoken Nathan Latka · 8m spoken
0:00 / 0:00

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In this interview, Benevity founder and CEO Brian de Lottinville explains how his certified B Corporation scaled its enterprise CSR and employee engagement platform to $45 million in SaaS ARR, over 120% net revenue retention, and $1.2 billion in processed annual charitable giving.

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 41.9% of the talking time here. How this is scored →

Nathan as informed peer 5.6 Guest teaching 3.0 Guest disagreement 1.4 Nathan pushing back 2.9
05100:0010:0020:002:13–5:07 · Nathan as informed peer 6/10 Enterprise Use Cases, ACV, and Target Client Profiles Latka immediately digs into SaaS revenue percentages and enterprise ACV calculations. De Lottinville explains Benevity's platform model using Microsoft as a primary case study and notes they turn away sub-500 employee companies.5:07–7:33 · Nathan as informed peer 6/10 Company Founding, Bootstrapping, and Private Equity Funding Latka queries funding history citing public records of thirty-eight million dollars, but de Lottinville corrects him by explaining that was only the 2015 JMI round while General Atlantic came in later with a nine-figure deal. The host also clarifies secondary capital versus balance sheet treasury.7:33–9:49 · Nathan as informed peer 5/10 B-Corporation Structure and Value-Driven Entrepreneurship De Lottinville explains why Benevity chose B-Corp governance over rapid profit-taking. When Latka asks if there are tax benefits, the guest debunks the assumption and critiques how some brands use the certification purely for PR.9:52–14:28 · Nathan as informed peer 7/10 Sponsor Break: Growth Marketing Conference San Francisco Following the mid-roll ad break, Latka calculates forty-five million dollars in ARR by multiplying client count and ACV, while teasing his own capitalist mindset compared to Benevity's social mission. De Lottinville confirms directional accuracy and details their high-forties current growth rate.14:28–16:44 · Nathan as informed peer 4/10 Organizational Team Structure and Geographic Footprint Latka inquires about headcount distribution across engineering versus sales and jokes about millennial workplace culture. De Lottinville outlines their five-hundred-person footprint across Canadian and international offices.16:44–19:38 · Nathan as informed peer 7/10 Unit Economics, Low CAC, and Retention Metrics Latka drills into unit economics and presses de Lottinville to clarify whether ninety-eight percent refers to gross revenue or logo retention. De Lottinville clarifies they track client retention at ninety-eight percent and net revenue retention at one hundred twenty percent.19:38–21:40 · Nathan as informed peer 4/10 Famous Five Rapid-Fire Questions Latka guides de Lottinville through standard closing questions covering reading habits, ERP and billing setups, sleep, and entrepreneurial philosophy.2:13–5:07 · Guest teaching 3/10 Enterprise Use Cases, ACV, and Target Client Profiles Latka immediately digs into SaaS revenue percentages and enterprise ACV calculations. De Lottinville explains Benevity's platform model using Microsoft as a primary case study and notes they turn away sub-500 employee companies.5:07–7:33 · Guest teaching 5/10 Company Founding, Bootstrapping, and Private Equity Funding Latka queries funding history citing public records of thirty-eight million dollars, but de Lottinville corrects him by explaining that was only the 2015 JMI round while General Atlantic came in later with a nine-figure deal. The host also clarifies secondary capital versus balance sheet treasury.7:33–9:49 · Guest teaching 4/10 B-Corporation Structure and Value-Driven Entrepreneurship De Lottinville explains why Benevity chose B-Corp governance over rapid profit-taking. When Latka asks if there are tax benefits, the guest debunks the assumption and critiques how some brands use the certification purely for PR.9:52–14:28 · Guest teaching 2/10 Sponsor Break: Growth Marketing Conference San Francisco Following the mid-roll ad break, Latka calculates forty-five million dollars in ARR by multiplying client count and ACV, while teasing his own capitalist mindset compared to Benevity's social mission. De Lottinville confirms directional accuracy and details their high-forties current growth rate.14:28–16:44 · Guest teaching 2/10 Organizational Team Structure and Geographic Footprint Latka inquires about headcount distribution across engineering versus sales and jokes about millennial workplace culture. De Lottinville outlines their five-hundred-person footprint across Canadian and international offices.16:44–19:38 · Guest teaching 4/10 Unit Economics, Low CAC, and Retention Metrics Latka drills into unit economics and presses de Lottinville to clarify whether ninety-eight percent refers to gross revenue or logo retention. De Lottinville clarifies they track client retention at ninety-eight percent and net revenue retention at one hundred twenty percent.19:38–21:40 · Guest teaching 1/10 Famous Five Rapid-Fire Questions Latka guides de Lottinville through standard closing questions covering reading habits, ERP and billing setups, sleep, and entrepreneurial philosophy.2:13–5:07 · Guest disagreement 1/10 Enterprise Use Cases, ACV, and Target Client Profiles Latka immediately digs into SaaS revenue percentages and enterprise ACV calculations. De Lottinville explains Benevity's platform model using Microsoft as a primary case study and notes they turn away sub-500 employee companies.5:07–7:33 · Guest disagreement 2/10 Company Founding, Bootstrapping, and Private Equity Funding Latka queries funding history citing public records of thirty-eight million dollars, but de Lottinville corrects him by explaining that was only the 2015 JMI round while General Atlantic came in later with a nine-figure deal. The host also clarifies secondary capital versus balance sheet treasury.7:33–9:49 · Guest disagreement 2/10 B-Corporation Structure and Value-Driven Entrepreneurship De Lottinville explains why Benevity chose B-Corp governance over rapid profit-taking. When Latka asks if there are tax benefits, the guest debunks the assumption and critiques how some brands use the certification purely for PR.9:52–14:28 · Guest disagreement 1/10 Sponsor Break: Growth Marketing Conference San Francisco Following the mid-roll ad break, Latka calculates forty-five million dollars in ARR by multiplying client count and ACV, while teasing his own capitalist mindset compared to Benevity's social mission. De Lottinville confirms directional accuracy and details their high-forties current growth rate.14:28–16:44 · Guest disagreement 1/10 Organizational Team Structure and Geographic Footprint Latka inquires about headcount distribution across engineering versus sales and jokes about millennial workplace culture. De Lottinville outlines their five-hundred-person footprint across Canadian and international offices.16:44–19:38 · Guest disagreement 2/10 Unit Economics, Low CAC, and Retention Metrics Latka drills into unit economics and presses de Lottinville to clarify whether ninety-eight percent refers to gross revenue or logo retention. De Lottinville clarifies they track client retention at ninety-eight percent and net revenue retention at one hundred twenty percent.19:38–21:40 · Guest disagreement 1/10 Famous Five Rapid-Fire Questions Latka guides de Lottinville through standard closing questions covering reading habits, ERP and billing setups, sleep, and entrepreneurial philosophy.2:13–5:07 · Nathan pushing back 2/10 Enterprise Use Cases, ACV, and Target Client Profiles Latka immediately digs into SaaS revenue percentages and enterprise ACV calculations. De Lottinville explains Benevity's platform model using Microsoft as a primary case study and notes they turn away sub-500 employee companies.5:07–7:33 · Nathan pushing back 4/10 Company Founding, Bootstrapping, and Private Equity Funding Latka queries funding history citing public records of thirty-eight million dollars, but de Lottinville corrects him by explaining that was only the 2015 JMI round while General Atlantic came in later with a nine-figure deal. The host also clarifies secondary capital versus balance sheet treasury.7:33–9:49 · Nathan pushing back 3/10 B-Corporation Structure and Value-Driven Entrepreneurship De Lottinville explains why Benevity chose B-Corp governance over rapid profit-taking. When Latka asks if there are tax benefits, the guest debunks the assumption and critiques how some brands use the certification purely for PR.9:52–14:28 · Nathan pushing back 2/10 Sponsor Break: Growth Marketing Conference San Francisco Following the mid-roll ad break, Latka calculates forty-five million dollars in ARR by multiplying client count and ACV, while teasing his own capitalist mindset compared to Benevity's social mission. De Lottinville confirms directional accuracy and details their high-forties current growth rate.14:28–16:44 · Nathan pushing back 1/10 Organizational Team Structure and Geographic Footprint Latka inquires about headcount distribution across engineering versus sales and jokes about millennial workplace culture. De Lottinville outlines their five-hundred-person footprint across Canadian and international offices.16:44–19:38 · Nathan pushing back 6/10 Unit Economics, Low CAC, and Retention Metrics Latka drills into unit economics and presses de Lottinville to clarify whether ninety-eight percent refers to gross revenue or logo retention. De Lottinville clarifies they track client retention at ninety-eight percent and net revenue retention at one hundred twenty percent.19:38–21:40 · Nathan pushing back 2/10 Famous Five Rapid-Fire Questions Latka guides de Lottinville through standard closing questions covering reading habits, ERP and billing setups, sleep, and entrepreneurial philosophy.

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

0:00 · Nathan 53% · guest 47%0:00 · Nathan 53% · guest 47%3:00 · Nathan 32.9% · guest 67.1%3:00 · Nathan 32.9% · guest 67.1%6:00 · Nathan 38.1% · guest 61.9%6:00 · Nathan 38.1% · guest 61.9%9:00 · Nathan 67.5% · guest 32.5%9:00 · Nathan 67.5% · guest 32.5%12:00 · Nathan 38.9% · guest 61.1%12:00 · Nathan 38.9% · guest 61.1%15:00 · Nathan 17.5% · guest 82.5%15:00 · Nathan 17.5% · guest 82.5%18:00 · Nathan 28.2% · guest 71.8%18:00 · Nathan 28.2% · guest 71.8%21:00 · Nathan 76.2% · guest 23.8%21:00 · Nathan 76.2% · guest 23.8%
Sharpest disagreement ▶ 9:15 De Lottinville rejects B-Corp tax incentive premise

When Latka asks if B-Corps offer tax breaks, de Lottinville bluntly rejects the premise and expresses hope that separate designations eventually become obsolete.

 Hardest push from Nathan ▶ 18:15 Latka presses for precise retention metric terminology

Latka refuses to let the guest blend gross and net retention, directly challenging him not to let the host put words in his mouth.

 Biggest teaching moment ▶ 7:02 De Lottinville corrects public funding estimates

De Lottinville clarifies that Latka's thirty-eight million dollar figure applied only to the 2015 JMI secondary round, revealing General Atlantic later provided a nine-figure commitment.

 Nathan holds their own ▶ 12:36 Latka models Benevity's core SaaS ARR run rate

Latka demonstrates his financial modeling fluency by multiplying the four hundred fifty client base by average ACV to pinpoint the business's forty-five million dollar SaaS revenue baseline.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Enterprise Use Cases, ACV, and Target Client Profiles 6312 Latka immediately digs into SaaS revenue percentages and enterprise ACV calculations. De Lottinville explains Benevity's platform model using Microsoft as a primary case study and notes they turn away sub-500 employee companies.
Company Founding, Bootstrapping, and Private Equity Funding 6524 Latka queries funding history citing public records of thirty-eight million dollars, but de Lottinville corrects him by explaining that was only the 2015 JMI round while General Atlantic came in later with a nine-figure deal. The host also clarifies secondary capital versus balance sheet treasury.
B-Corporation Structure and Value-Driven Entrepreneurship 5423 De Lottinville explains why Benevity chose B-Corp governance over rapid profit-taking. When Latka asks if there are tax benefits, the guest debunks the assumption and critiques how some brands use the certification purely for PR.
Sponsor Break: Growth Marketing Conference San Francisco 7212 Following the mid-roll ad break, Latka calculates forty-five million dollars in ARR by multiplying client count and ACV, while teasing his own capitalist mindset compared to Benevity's social mission. De Lottinville confirms directional accuracy and details their high-forties current growth rate.
Organizational Team Structure and Geographic Footprint 4211 Latka inquires about headcount distribution across engineering versus sales and jokes about millennial workplace culture. De Lottinville outlines their five-hundred-person footprint across Canadian and international offices.
Unit Economics, Low CAC, and Retention Metrics 7426 Latka drills into unit economics and presses de Lottinville to clarify whether ninety-eight percent refers to gross revenue or logo retention. De Lottinville clarifies they track client retention at ninety-eight percent and net revenue retention at one hundred twenty percent.
Famous Five Rapid-Fire Questions 4112 Latka guides de Lottinville through standard closing questions covering reading habits, ERP and billing setups, sleep, and entrepreneurial philosophy.

Statements from this episode (15)

Assertion Not checkable as stated
Benevity: Pure SaaS accounts for 50 percent of total revenue
“50.”
Brian de Lottinville Nov 29, 2019 ▶ 2:08
Assertion Not checkable as stated
Benevity's average enterprise SaaS contract value is roughly $100,000
“On average, probably a 100,000 ish.”
Brian de Lottinville Nov 29, 2019 ▶ 4:26
Assertion Not checkable as stated
Benevity turns away over 60 percent of inbound leads
“We're turning away probably 60 plus percent of our inbounds because they're too small for our deployment model.”
Brian de Lottinville Nov 29, 2019 ▶ 4:43
Disclosure
Benevity ignores companies under 500 employees to focus on large enterprises
“Right now it's anything below 500 employees, but we tend to focus more on 5000 and above.”
Brian de Lottinville Nov 29, 2019 ▶ 4:55
Disclosure
General Atlantic bought out most of Benevity's original angel investors
“The first firm came in at 2015, a firm called JMI equity and last January general Atlantic came in meaningfully. And took out most of the original angels and financed a couple of small acquisitions and set us up to sort of realize the potential of this thing.”
Brian de Lottinville Nov 29, 2019 ▶ 6:14
Assertion Supported
General Atlantic's investment in Benevity was likely a nine-figure sum
“It would have been, you know, GA was probably a nine-figure investment.”
Brian de Lottinville Nov 29, 2019 ▶ 7:15
Disclosure
Benevity was initially backed by a network of oil and gas angels
“We had a very supportive angel network of oil and gas folks here in Calgary. And so we really Wanted to wait until the capital was something of a commodity and we could choose the right fit in terms of the private equity firm around culture and strategic value…”
Brian de Lottinville Nov 29, 2019 ▶ 8:29
Opinion
Brian de Lottinville: The B Corp designation should eventually become obsolete
“At some point, I hope the designation goes away because I believe that all companies can pursue hybrid goals like that without a special designation.”
Brian de Lottinville Nov 29, 2019 ▶ 9:28
Opinion
Brian de Lottinville: Many companies use B Corp status primarily for marketing
“A lot of companies use it for marketing purposes and to point out to the world that they have a sustainability or other sort of social driven agenda.”
Brian de Lottinville Nov 29, 2019 ▶ 9:36
Assertion Not checkable as stated
Benevity currently serves approximately 450 enterprise clients
“We have about 450 enterprise clients that the bulk of whom are large companies.”
Brian de Lottinville Nov 29, 2019 ▶ 11:46
Prediction Held up
Benevity expects to distribute $1.2 billion to 150,000 charities in 2019
“We will distribute around 1.2 billion dollars this year to a 150,000 global charities.”
Brian de Lottinville Nov 29, 2019 ▶ 12:16
Assertion Not checkable as stated
Benevity achieved an 82 percent CAGR over the past five years
“Our compound growth rate for the last five years is around 82%. This year we're in the high forties to date.”
Brian de Lottinville Nov 29, 2019 ▶ 13:38
Assertion Not checkable as stated
Benevity drives enterprise growth with a direct sales team of just 20
“Our sales team is only about 20, 21, I think, in the market.”
Brian de Lottinville Nov 29, 2019 ▶ 14:51
Assertion Not checkable as stated
Benevity maintains a 98 percent client retention rate
“So our client retention rate is 98%.”
Brian de Lottinville Nov 29, 2019 ▶ 18:46
Assertion Not checkable as stated
Benevity achieves roughly 120 percent net revenue retention
“Our net revenue retention is hundred and twenty-ish.”
Brian de Lottinville Nov 29, 2019 ▶ 18:49
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