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Aug 25, 2019 · 15m · top-founders

1492 Industrial IoT Platform Hits $150k MRR, 3x YoY growth

Vinay Nathan · 7m spoken Nathan Latka · 5m spoken
0:00 / 0:00

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In this SaaS podcast episode, host Nathan Latka interviews Altizon Systems CEO Vinay Nathan to examine how the Industrial IoT platform reached $150,000 in MRR with 3x year-over-year growth. Nathan details Altizon's hardware-agnostic SaaS model, land-and-expand enterprise strategy, 180-190% net revenue retention, and efficient global team structure.

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 42.7% of the talking time here. How this is scored →

Nathan as informed peer 4.3 Guest teaching 2.2 Guest disagreement 1.0 Nathan pushing back 2.8
05100:0010:001:17–4:26 · Nathan as informed peer 6/10 Altizon's Industrial IoT and SaaS Platform Architecture Nathan presses Vinay to simplify his pricing model into a single average ACV figure rather than giving wide tiers. When Vinay resists by explaining the linear scale-up nature of IoT, Nathan invokes cohort analysis concepts to drill down to an estimated midpoint of 50k-60k.4:26–6:26 · Nathan as informed peer 5/10 Venture Funding, Enterprise Customers, and MRR Scale Nathan teases Vinay about raising capital instead of bootstrapping, then pushes to clarify active enterprise accounts between paid and free tiers. He performs live arithmetic to benchmark Altizon at roughly 150k monthly recurring revenue.6:29–9:30 · Nathan as informed peer 5/10 Host Promotion for SaaStock West Coast Conference After an ad read, Nathan steers Vinay away from hypothetical forward-looking growth multiples to focus strictly on trailing year-over-year revenue numbers. Vinay explains the split between expansion and new customer acquisition as well as zero logo churn.9:31–12:04 · Nathan as informed peer 6/10 Net Revenue Retention and Industrial IoT Market Maturity Nathan translates Vinay's 100 percent expansion and zero churn into a net revenue retention metric of 180 to 190 percent, asking if the company is underpricing. Vinay contextualizes the broader industrial IoT landscape, referencing market shifts like GE's challenges.12:05–14:49 · Nathan as informed peer 4/10 Unit Economics, CAC Payback, and Global Team Organization The conversation moves through unit economics, establishing an 8k to 10k CAC with a rapid 6-month payback, before smoothly transitioning through the rapid-fire Famous Five questions.14:51–15:26 · Nathan as informed peer 0/10 Interview Recap and Key Metrics Summary Nathan delivers a solo outro summarizing the interview and key business metrics of Altizon.1:17–4:26 · Guest teaching 3/10 Altizon's Industrial IoT and SaaS Platform Architecture Nathan presses Vinay to simplify his pricing model into a single average ACV figure rather than giving wide tiers. When Vinay resists by explaining the linear scale-up nature of IoT, Nathan invokes cohort analysis concepts to drill down to an estimated midpoint of 50k-60k.4:26–6:26 · Guest teaching 2/10 Venture Funding, Enterprise Customers, and MRR Scale Nathan teases Vinay about raising capital instead of bootstrapping, then pushes to clarify active enterprise accounts between paid and free tiers. He performs live arithmetic to benchmark Altizon at roughly 150k monthly recurring revenue.6:29–9:30 · Guest teaching 2/10 Host Promotion for SaaStock West Coast Conference After an ad read, Nathan steers Vinay away from hypothetical forward-looking growth multiples to focus strictly on trailing year-over-year revenue numbers. Vinay explains the split between expansion and new customer acquisition as well as zero logo churn.9:31–12:04 · Guest teaching 4/10 Net Revenue Retention and Industrial IoT Market Maturity Nathan translates Vinay's 100 percent expansion and zero churn into a net revenue retention metric of 180 to 190 percent, asking if the company is underpricing. Vinay contextualizes the broader industrial IoT landscape, referencing market shifts like GE's challenges.12:05–14:49 · Guest teaching 2/10 Unit Economics, CAC Payback, and Global Team Organization The conversation moves through unit economics, establishing an 8k to 10k CAC with a rapid 6-month payback, before smoothly transitioning through the rapid-fire Famous Five questions.14:51–15:26 · Guest teaching 0/10 Interview Recap and Key Metrics Summary Nathan delivers a solo outro summarizing the interview and key business metrics of Altizon.1:17–4:26 · Guest disagreement 2/10 Altizon's Industrial IoT and SaaS Platform Architecture Nathan presses Vinay to simplify his pricing model into a single average ACV figure rather than giving wide tiers. When Vinay resists by explaining the linear scale-up nature of IoT, Nathan invokes cohort analysis concepts to drill down to an estimated midpoint of 50k-60k.4:26–6:26 · Guest disagreement 1/10 Venture Funding, Enterprise Customers, and MRR Scale Nathan teases Vinay about raising capital instead of bootstrapping, then pushes to clarify active enterprise accounts between paid and free tiers. He performs live arithmetic to benchmark Altizon at roughly 150k monthly recurring revenue.6:29–9:30 · Guest disagreement 1/10 Host Promotion for SaaStock West Coast Conference After an ad read, Nathan steers Vinay away from hypothetical forward-looking growth multiples to focus strictly on trailing year-over-year revenue numbers. Vinay explains the split between expansion and new customer acquisition as well as zero logo churn.9:31–12:04 · Guest disagreement 2/10 Net Revenue Retention and Industrial IoT Market Maturity Nathan translates Vinay's 100 percent expansion and zero churn into a net revenue retention metric of 180 to 190 percent, asking if the company is underpricing. Vinay contextualizes the broader industrial IoT landscape, referencing market shifts like GE's challenges.12:05–14:49 · Guest disagreement 0/10 Unit Economics, CAC Payback, and Global Team Organization The conversation moves through unit economics, establishing an 8k to 10k CAC with a rapid 6-month payback, before smoothly transitioning through the rapid-fire Famous Five questions.14:51–15:26 · Guest disagreement 0/10 Interview Recap and Key Metrics Summary Nathan delivers a solo outro summarizing the interview and key business metrics of Altizon.1:17–4:26 · Nathan pushing back 5/10 Altizon's Industrial IoT and SaaS Platform Architecture Nathan presses Vinay to simplify his pricing model into a single average ACV figure rather than giving wide tiers. When Vinay resists by explaining the linear scale-up nature of IoT, Nathan invokes cohort analysis concepts to drill down to an estimated midpoint of 50k-60k.4:26–6:26 · Nathan pushing back 4/10 Venture Funding, Enterprise Customers, and MRR Scale Nathan teases Vinay about raising capital instead of bootstrapping, then pushes to clarify active enterprise accounts between paid and free tiers. He performs live arithmetic to benchmark Altizon at roughly 150k monthly recurring revenue.6:29–9:30 · Nathan pushing back 4/10 Host Promotion for SaaStock West Coast Conference After an ad read, Nathan steers Vinay away from hypothetical forward-looking growth multiples to focus strictly on trailing year-over-year revenue numbers. Vinay explains the split between expansion and new customer acquisition as well as zero logo churn.9:31–12:04 · Nathan pushing back 3/10 Net Revenue Retention and Industrial IoT Market Maturity Nathan translates Vinay's 100 percent expansion and zero churn into a net revenue retention metric of 180 to 190 percent, asking if the company is underpricing. Vinay contextualizes the broader industrial IoT landscape, referencing market shifts like GE's challenges.12:05–14:49 · Nathan pushing back 1/10 Unit Economics, CAC Payback, and Global Team Organization The conversation moves through unit economics, establishing an 8k to 10k CAC with a rapid 6-month payback, before smoothly transitioning through the rapid-fire Famous Five questions.14:51–15:26 · Nathan pushing back 0/10 Interview Recap and Key Metrics Summary Nathan delivers a solo outro summarizing the interview and key business metrics of Altizon.

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

0:00 · Nathan 56.6% · guest 43.4%0:00 · Nathan 56.6% · guest 43.4%3:00 · Nathan 35.2% · guest 64.8%3:00 · Nathan 35.2% · guest 64.8%6:00 · Nathan 60.6% · guest 39.4%6:00 · Nathan 60.6% · guest 39.4%9:00 · Nathan 26.5% · guest 73.5%9:00 · Nathan 26.5% · guest 73.5%12:00 · Nathan 26.2% · guest 73.8%12:00 · Nathan 26.2% · guest 73.8%15:00 · Nathan 91.9% · guest 8.1%15:00 · Nathan 91.9% · guest 8.1%
Sharpest disagreement ▶ 3:26 Vinay resists single average ACV metric

Vinay pushes back against Nathan's request for a single average price point, arguing that industrial IoT is fundamentally a linear expansion model with no meaningful starting average.

 Hardest push from Nathan ▶ 3:40 Nathan insists on forcing an average price point

Nathan refuses Vinay's wide price tier framing, citing cohort analysis and pressing Vinay to provide a specific middle-ground average.

 Biggest teaching moment ▶ 11:13 Vinay explains industrial IoT market adoption hurdles

Vinay educates Nathan on why high NRR does not automatically mean underpricing, detailing the heavy hand-holding, system integrator education, and early market dynamics required.

 Nathan holds their own ▶ 10:47 Nathan synthesizes expansion and churn into NRR estimate

Nathan demonstrates strong SaaS financial acumen by instantly compounding the zero churn and linear plant additions into an estimated 180 to 190 percent net retention rate.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Altizon's Industrial IoT and SaaS Platform Architecture 6325 Nathan presses Vinay to simplify his pricing model into a single average ACV figure rather than giving wide tiers. When Vinay resists by explaining the linear scale-up nature of IoT, Nathan invokes cohort analysis concepts to drill down to an estimated midpoint of 50k-60k.
Venture Funding, Enterprise Customers, and MRR Scale 5214 Nathan teases Vinay about raising capital instead of bootstrapping, then pushes to clarify active enterprise accounts between paid and free tiers. He performs live arithmetic to benchmark Altizon at roughly 150k monthly recurring revenue.
Host Promotion for SaaStock West Coast Conference 5214 After an ad read, Nathan steers Vinay away from hypothetical forward-looking growth multiples to focus strictly on trailing year-over-year revenue numbers. Vinay explains the split between expansion and new customer acquisition as well as zero logo churn.
Net Revenue Retention and Industrial IoT Market Maturity 6423 Nathan translates Vinay's 100 percent expansion and zero churn into a net revenue retention metric of 180 to 190 percent, asking if the company is underpricing. Vinay contextualizes the broader industrial IoT landscape, referencing market shifts like GE's challenges.
Unit Economics, CAC Payback, and Global Team Organization 4201 The conversation moves through unit economics, establishing an 8k to 10k CAC with a rapid 6-month payback, before smoothly transitioning through the rapid-fire Famous Five questions.
Interview Recap and Key Metrics Summary 0000 Nathan delivers a solo outro summarizing the interview and key business metrics of Altizon.

Statements from this episode (14)

Disclosure
Nathan: Altizon's SaaS pricing ranges from $25k to $200k annually
“So the SAS tiering is based on this different these different models, and it varies anywhere from about 25,000 dollars per annum at the bottom line till about a hundred to 200 K depending on the scale of the implementation associated with it.”
Vinay Nathan Aug 25, 2019 ▶ 3:05
Disclosure
Nathan: Altizon's average ACV over 18 months is roughly $50k-$60k
“Over the first 18 months or so, it would be, let's say, it would be at the middle.”
Vinay Nathan Aug 25, 2019 ▶ 4:03
Disclosure
Vinay Nathan: Altizon has raised about $5 million total, closing Series A around 2017
“So we, we've raised about five million so far. We are a post Series A company. And we did that about two years ago.”
Vinay Nathan Aug 25, 2019 ▶ 4:37
Assertion Not checkable as stated
Vinay Nathan: Altizon has 30+ paid enterprise accounts and 120 free users
“So we have about 30 plus enterprise multi-year accounts, and we have about a 120 or active enterprise users on the multi-tenant SaaS free version that we have.”
Vinay Nathan Aug 25, 2019 ▶ 5:45
Assertion Not checkable as stated
Nathan: Nearly half of Altizon's enterprise clients have $1B+ revenue
“And about 13 out of the 30 are, you know, the large billion dollar plus kind of enterprises.”
Vinay Nathan Aug 25, 2019 ▶ 6:06
Assertion Not checkable as stated
Nathan: Altizon generates approximately $150,000 in monthly recurring revenue
“So we are around that.”
Vinay Nathan Aug 25, 2019 ▶ 6:25
Assertion Not checkable as stated
Vinay Nathan: 60% of Altizon's growth comes from account expansion
“Almost 60% of our growth happens there now. So 60% is from the expanded model, and 40% is from new business that comes in across.”
Vinay Nathan Aug 25, 2019 ▶ 8:23
Assertion Not checkable as stated
Nathan: Altizon sees zero churn because connected industrial machines never leave
“Oh, churn is zero because in industrial assets, one of the good sides of this is while the growth may be linear, the actual machines, once you get a machine connected on the platform, it never goes away. So the first asset we got connected five years ago conti…”
Vinay Nathan Aug 25, 2019 ▶ 8:47
Assertion Not checkable as stated
Vinay Nathan: Altizon converts 60% to 70% of enterprise pilots
“And so the pilot to, you know, full-fledged project conversion ratio is around 60, 70%, depending on, you know, the nature of the pilot and all that.”
Vinay Nathan Aug 25, 2019 ▶ 9:14
Assertion Not checkable as stated
Altizon clients reliably add a second plant within 9-12 months post-pilot
“At least at the minimum, you can be assured that, you know, when somebody starts on the journey, they're going to add at least one more plant in the next two months after this is done. So three to six months for the pilot. And then under the, within the next n…”
Vinay Nathan Aug 25, 2019 ▶ 9:40
Assertion Not checkable as stated
Nathan: Altizon sustains staggering 180% to 190% net revenue retention
“Oh yes, absolutely.”
Vinay Nathan Aug 25, 2019 ▶ 11:05
Opinion
Nathan: Industrial IoT lacks examples of successful enterprise-wide rollouts
“The industrial IoT sector is still new and nascent a lot of the first time. There aren't really too many examples of you know of successful implementations that are, that have gone enterprise wide, right?”
Vinay Nathan Aug 25, 2019 ▶ 11:14
Assertion Not checkable as stated
Nathan: Altizon's CAC to land a $25k account is $8k-$10k
“So typically around eight to 10 K is the CAC for that first swipe.”
Vinay Nathan Aug 25, 2019 ▶ 12:11
Assertion Not checkable as stated
Nathan: Altizon achieves CAC payback in six months
“Typically in six months.”
Vinay Nathan Aug 25, 2019 ▶ 12:22
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