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Mar 26, 2019 · 16m · top-founders

1340 She Helps Raytheon with Procurement, Passes $1m in ARR with eye on $5m

Nicole Verkindt · 9m spoken
0:00 / 0:00

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

Nicole Verkindt, founder and CEO of OMX, shares how she bootstrapped a specialized supply chain CRM and impact-reporting platform for aerospace and defense contractors to over $100,000 in monthly recurring revenue while scaling independently toward $5 million in ARR.

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 37.2% of the talking time here. How this is scored →

Nathan as informed peer 5.0 Guest teaching 2.6 Guest disagreement 2.2 Nathan pushing back 3.2
05100:0010:001:15–3:31 · Nathan as informed peer 6/10 OMX Value Proposition: Supply Chain CRM, Marketplace, and Impact Reporting Nathan quickly categorizes the business model by differentiating between pure-play SaaS and marketplace dynamics. Nicole clarifies how OMX integrates reporting and aggregation simultaneously.3:31–6:04 · Nathan as informed peer 4/10 Early Monetization, Bootstrapping Realities, and Company Structure Nathan probes why Nicole raised capital rather than pure bootstrapping. Nicole explains the fundraising environment in Canada at the time and her retained majority ownership.6:04–9:38 · Nathan as informed peer 6/10 Enterprise Sales Cycles and Embracing Managed Onboarding Services When Nicole discusses startup aversion to professional services, Nathan cites industry data from his interviews on why paid onboarding fees improve customer retention. Nicole concurs and details how human account management drives adoption.9:38–12:41 · Nathan as informed peer 6/10 Financial Growth, Target Milestones, and Sales Operations Nathan presses Nicole on why she does not actively track CAC and drills into sales rep quota math. Nicole pushes back by clarifying that their two-sided enterprise model operates differently from standard self-serve SaaS.12:41–16:24 · Nathan as informed peer 3/10 Media Show Participation and Cross-Pollinating Tech Innovation Nicole shares how media appearances on Dragon's Den and The Pitch feed innovation back into her core business. The segment transitions into a lighthearted Famous Five round.1:15–3:31 · Guest teaching 3/10 OMX Value Proposition: Supply Chain CRM, Marketplace, and Impact Reporting Nathan quickly categorizes the business model by differentiating between pure-play SaaS and marketplace dynamics. Nicole clarifies how OMX integrates reporting and aggregation simultaneously.3:31–6:04 · Guest teaching 2/10 Early Monetization, Bootstrapping Realities, and Company Structure Nathan probes why Nicole raised capital rather than pure bootstrapping. Nicole explains the fundraising environment in Canada at the time and her retained majority ownership.6:04–9:38 · Guest teaching 2/10 Enterprise Sales Cycles and Embracing Managed Onboarding Services When Nicole discusses startup aversion to professional services, Nathan cites industry data from his interviews on why paid onboarding fees improve customer retention. Nicole concurs and details how human account management drives adoption.9:38–12:41 · Guest teaching 4/10 Financial Growth, Target Milestones, and Sales Operations Nathan presses Nicole on why she does not actively track CAC and drills into sales rep quota math. Nicole pushes back by clarifying that their two-sided enterprise model operates differently from standard self-serve SaaS.12:41–16:24 · Guest teaching 2/10 Media Show Participation and Cross-Pollinating Tech Innovation Nicole shares how media appearances on Dragon's Den and The Pitch feed innovation back into her core business. The segment transitions into a lighthearted Famous Five round.1:15–3:31 · Guest disagreement 2/10 OMX Value Proposition: Supply Chain CRM, Marketplace, and Impact Reporting Nathan quickly categorizes the business model by differentiating between pure-play SaaS and marketplace dynamics. Nicole clarifies how OMX integrates reporting and aggregation simultaneously.3:31–6:04 · Guest disagreement 2/10 Early Monetization, Bootstrapping Realities, and Company Structure Nathan probes why Nicole raised capital rather than pure bootstrapping. Nicole explains the fundraising environment in Canada at the time and her retained majority ownership.6:04–9:38 · Guest disagreement 1/10 Enterprise Sales Cycles and Embracing Managed Onboarding Services When Nicole discusses startup aversion to professional services, Nathan cites industry data from his interviews on why paid onboarding fees improve customer retention. Nicole concurs and details how human account management drives adoption.9:38–12:41 · Guest disagreement 4/10 Financial Growth, Target Milestones, and Sales Operations Nathan presses Nicole on why she does not actively track CAC and drills into sales rep quota math. Nicole pushes back by clarifying that their two-sided enterprise model operates differently from standard self-serve SaaS.12:41–16:24 · Guest disagreement 2/10 Media Show Participation and Cross-Pollinating Tech Innovation Nicole shares how media appearances on Dragon's Den and The Pitch feed innovation back into her core business. The segment transitions into a lighthearted Famous Five round.1:15–3:31 · Nathan pushing back 3/10 OMX Value Proposition: Supply Chain CRM, Marketplace, and Impact Reporting Nathan quickly categorizes the business model by differentiating between pure-play SaaS and marketplace dynamics. Nicole clarifies how OMX integrates reporting and aggregation simultaneously.3:31–6:04 · Nathan pushing back 3/10 Early Monetization, Bootstrapping Realities, and Company Structure Nathan probes why Nicole raised capital rather than pure bootstrapping. Nicole explains the fundraising environment in Canada at the time and her retained majority ownership.6:04–9:38 · Nathan pushing back 3/10 Enterprise Sales Cycles and Embracing Managed Onboarding Services When Nicole discusses startup aversion to professional services, Nathan cites industry data from his interviews on why paid onboarding fees improve customer retention. Nicole concurs and details how human account management drives adoption.9:38–12:41 · Nathan pushing back 6/10 Financial Growth, Target Milestones, and Sales Operations Nathan presses Nicole on why she does not actively track CAC and drills into sales rep quota math. Nicole pushes back by clarifying that their two-sided enterprise model operates differently from standard self-serve SaaS.12:41–16:24 · Nathan pushing back 1/10 Media Show Participation and Cross-Pollinating Tech Innovation Nicole shares how media appearances on Dragon's Den and The Pitch feed innovation back into her core business. The segment transitions into a lighthearted Famous Five round.

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

0:00 · Nathan 36.4% · guest 63.6%0:00 · Nathan 36.4% · guest 63.6%3:00 · Nathan 34.3% · guest 65.7%3:00 · Nathan 34.3% · guest 65.7%6:00 · Nathan 20.7% · guest 79.3%6:00 · Nathan 20.7% · guest 79.3%9:00 · Nathan 37.2% · guest 62.8%9:00 · Nathan 37.2% · guest 62.8%12:00 · Nathan 36% · guest 64%12:00 · Nathan 36% · guest 64%15:00 · Nathan 86.8% · guest 13.2%15:00 · Nathan 86.8% · guest 13.2%
Sharpest disagreement ▶ 11:08 Rejecting traditional SaaS CAC framing

Nicole resists Nathan's assumption that not tracking CAC is an oversight, explaining that sell-side suppliers behave like a LinkedIn network rather than standard SaaS leads.

 Hardest push from Nathan ▶ 12:08 Holding guest accountable to sales rep math

Nathan halts the interview flow to double-check Nicole's team numbers and quota estimates, multiplying out the deals per rep to verify the pipeline.

 Biggest teaching moment ▶ 11:15 Explaining two-sided enterprise procurement dynamics

Nicole explains why traditional acquisition cost metrics fail to capture the reality of long-cycle enterprise deals involving multi-person touchpoints.

 Nathan holds their own ▶ 7:46 Citing benchmark data on onboarding services

Nathan counters negative assumptions around services revenue by citing data from thousands of founder interviews showing onboarding fees improve LTV and retention.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
OMX Value Proposition: Supply Chain CRM, Marketplace, and Impact Reporting 6323 Nathan quickly categorizes the business model by differentiating between pure-play SaaS and marketplace dynamics. Nicole clarifies how OMX integrates reporting and aggregation simultaneously.
Early Monetization, Bootstrapping Realities, and Company Structure 4223 Nathan probes why Nicole raised capital rather than pure bootstrapping. Nicole explains the fundraising environment in Canada at the time and her retained majority ownership.
Enterprise Sales Cycles and Embracing Managed Onboarding Services 6213 When Nicole discusses startup aversion to professional services, Nathan cites industry data from his interviews on why paid onboarding fees improve customer retention. Nicole concurs and details how human account management drives adoption.
Financial Growth, Target Milestones, and Sales Operations 6446 Nathan presses Nicole on why she does not actively track CAC and drills into sales rep quota math. Nicole pushes back by clarifying that their two-sided enterprise model operates differently from standard self-serve SaaS.
Media Show Participation and Cross-Pollinating Tech Innovation 3221 Nicole shares how media appearances on Dragon's Den and The Pitch feed innovation back into her core business. The segment transitions into a lighthearted Famous Five round.

Statements from this episode (10)

Assertion Not checkable as stated
Nicole Verkindt: OMX Sells Primarily to Governments and Industrial Corporations
“But we, with OMX, we sell to government, but mostly big industrial companies, traditional corporations.”
Nicole Verkindt Mar 26, 2019 ▶ 0:51
Assertion Supported
Verkindt: Regulated Enterprise Bidders Must Report Socioeconomic Impact to Governments
“All the companies in our sectors are required to do this reporting back to government, and they have to do it when they go out to bid for new projects, like a new major infrastructure project, for instance.”
Nicole Verkindt Mar 26, 2019 ▶ 2:26
Disclosure
Verkindt: OMX Operates Entirely on a SaaS Revenue Model
“It's just all SaaS based, but you're right. It is unique to have a SaaS model in a marketplace.”
Nicole Verkindt Mar 26, 2019 ▶ 2:59
Disclosure
Verkindt: OMX charges buy-side clients 3,500 CAD monthly minimum
“The buy side on average is paying about 3500, not on average, the low end is about 3500 a month, and that's in Canadian dollars, so it'd be more in US. And then on the sell side, it's about a 150.”
Nicole Verkindt Mar 26, 2019 ▶ 3:48
Disclosure
Verkindt: OMX raised $1M from friends, family, and loans
“We just raised a small amount of capital, about a million dollars from friends and family, and we got some government loans that we've paid back.”
Nicole Verkindt Mar 26, 2019 ▶ 4:12
Assertion Not checkable as stated
Verkindt: Canada Lacked Early-Stage Venture Capital Around 2012
“I went out to raise a, do a significant VC raise, and I just had a lot of challenges with that process, and I mean, you and I spoke earlier about how much I feel the community has changed, especially in Canada in the last eight years but we had, there wasn't r…”
Nicole Verkindt Mar 26, 2019 ▶ 4:32
Disclosure
Verkindt Retains Over 50% Majority Control of OMX
“I still have control just over 50%.”
Nicole Verkindt Mar 26, 2019 ▶ 5:09
Disclosure
Verkindt: OMX Enterprise Sales Cycles Exceed Two Years
“The sales cycles are two plus years, which is, you know, that, that's the big challenge there is that you have to be pricing these things because they are complex sales. They have to be a bit bigger deals.”
Nicole Verkindt Mar 26, 2019 ▶ 6:29
Opinion
Verkindt: Investors Only Value Recurring Software Revenue Over Services
“I think investors give you that impression, right? So they'll only give you a multiple on your reoccurring revenue. They only want it to be software related revenue.”
Nicole Verkindt Mar 26, 2019 ▶ 7:37
Assertion Not checkable as stated
Verkindt: OMX Generates Roughly 40% Year-Over-Year Revenue Growth
“It's about 40%.”
Nicole Verkindt Mar 26, 2019 ▶ 10:39
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