Aug 6, 2018 · 20m · top-founders

1108 Minneapolis Sales Tech: "We're past $30m in ARR, will raise this year"

Nathan Latka · 8m spoken Oren Broberg · 7m 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 episode of The Top Entrepreneurs Podcast, host Nathan Latka interviews Modus co-founder and CEO Oren Broberg to explore how the Minneapolis-based sales enablement platform scaled past $30 million in ARR with a lean 24-person team. Broberg details the company's bootstrapping origins, SaaS pricing economics, strong retention metrics, and future fundraising plans.

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 50.9% of the talking time here. How this is scored →

Nathan as informed peer 5.3 Guest teaching 1.6 Guest disagreement 2.4 Nathan pushing back 3.3
05100:0010:0020:001:24–4:18 · Nathan as informed peer 5/10 Introducing Oren Broberg and Origins of Modus Latka inquires about Modus's business model and attempts to summarize the product as a centralized storage container for sales assets. Broberg politely reframes the value proposition, explaining that simple storage is merely table stakes compared to their deeper CRM and marketing stack integrations.4:18–7:10 · Nathan as informed peer 5/10 Bootstrapping Origins and Institutional Capital Raise Latka pushes Broberg to state exact funding figures when Broberg mentions raising mid-single-digit millions. Broberg resists giving exact amounts citing their privately held status, prompting Latka to question why he keeps it private.7:10–9:47 · Nathan as informed peer 7/10 Enterprise Customer Scale and Revenue Streams Latka performs quick calculations on customer numbers, multiplying 80,000 seats by the $35/seat monthly floor to deduce over $2.8 million in monthly revenue. Broberg confirms the math and elaborates on secondary product offerings like trade show lead capture.9:48–14:10 · Nathan as informed peer 7/10 Growth Velocity and Customer Retention Metrics Latka drills into standard SaaS unit economics, probing for logo churn versus net revenue churn and CAC metrics. Broberg shares logo churn and Rule of 40 numbers but declines to reveal exact CAC metrics citing confidentiality.14:10–16:34 · Nathan as informed peer 9/10 Acquisition Channels and Direct Sales Optimization Latka catches an inconsistency in Broberg's financial figures, calculating that an account paying ~$160k/year with <10% churn cannot have an LTV of only $120k. When Broberg attempts to dismiss the question and move on, Latka pushes back until Broberg admits he mixed up old and new data.16:34–19:12 · Nathan as informed peer 4/10 Funding Plans and Investor Relationships The conversation covers upcoming fundraising plans and transitions into the Famous Five rapid-fire questions. Broberg pushes back on millennial ageism in tech when discussing his age, and Latka enthusiastically agrees.19:12–19:51 · Nathan as informed peer 0/10 Episode Summary and Final Takeaways Latka delivers a standard solo closing monologue recapping Modus's key metrics, ARR, logo retention, and growth rates without any guest interaction.1:24–4:18 · Guest teaching 4/10 Introducing Oren Broberg and Origins of Modus Latka inquires about Modus's business model and attempts to summarize the product as a centralized storage container for sales assets. Broberg politely reframes the value proposition, explaining that simple storage is merely table stakes compared to their deeper CRM and marketing stack integrations.4:18–7:10 · Guest teaching 2/10 Bootstrapping Origins and Institutional Capital Raise Latka pushes Broberg to state exact funding figures when Broberg mentions raising mid-single-digit millions. Broberg resists giving exact amounts citing their privately held status, prompting Latka to question why he keeps it private.7:10–9:47 · Guest teaching 1/10 Enterprise Customer Scale and Revenue Streams Latka performs quick calculations on customer numbers, multiplying 80,000 seats by the $35/seat monthly floor to deduce over $2.8 million in monthly revenue. Broberg confirms the math and elaborates on secondary product offerings like trade show lead capture.9:48–14:10 · Guest teaching 2/10 Growth Velocity and Customer Retention Metrics Latka drills into standard SaaS unit economics, probing for logo churn versus net revenue churn and CAC metrics. Broberg shares logo churn and Rule of 40 numbers but declines to reveal exact CAC metrics citing confidentiality.14:10–16:34 · Guest teaching 0/10 Acquisition Channels and Direct Sales Optimization Latka catches an inconsistency in Broberg's financial figures, calculating that an account paying ~$160k/year with <10% churn cannot have an LTV of only $120k. When Broberg attempts to dismiss the question and move on, Latka pushes back until Broberg admits he mixed up old and new data.16:34–19:12 · Guest teaching 2/10 Funding Plans and Investor Relationships The conversation covers upcoming fundraising plans and transitions into the Famous Five rapid-fire questions. Broberg pushes back on millennial ageism in tech when discussing his age, and Latka enthusiastically agrees.19:12–19:51 · Guest teaching 0/10 Episode Summary and Final Takeaways Latka delivers a standard solo closing monologue recapping Modus's key metrics, ARR, logo retention, and growth rates without any guest interaction.1:24–4:18 · Guest disagreement 1/10 Introducing Oren Broberg and Origins of Modus Latka inquires about Modus's business model and attempts to summarize the product as a centralized storage container for sales assets. Broberg politely reframes the value proposition, explaining that simple storage is merely table stakes compared to their deeper CRM and marketing stack integrations.4:18–7:10 · Guest disagreement 3/10 Bootstrapping Origins and Institutional Capital Raise Latka pushes Broberg to state exact funding figures when Broberg mentions raising mid-single-digit millions. Broberg resists giving exact amounts citing their privately held status, prompting Latka to question why he keeps it private.7:10–9:47 · Guest disagreement 1/10 Enterprise Customer Scale and Revenue Streams Latka performs quick calculations on customer numbers, multiplying 80,000 seats by the $35/seat monthly floor to deduce over $2.8 million in monthly revenue. Broberg confirms the math and elaborates on secondary product offerings like trade show lead capture.9:48–14:10 · Guest disagreement 4/10 Growth Velocity and Customer Retention Metrics Latka drills into standard SaaS unit economics, probing for logo churn versus net revenue churn and CAC metrics. Broberg shares logo churn and Rule of 40 numbers but declines to reveal exact CAC metrics citing confidentiality.14:10–16:34 · Guest disagreement 5/10 Acquisition Channels and Direct Sales Optimization Latka catches an inconsistency in Broberg's financial figures, calculating that an account paying ~$160k/year with <10% churn cannot have an LTV of only $120k. When Broberg attempts to dismiss the question and move on, Latka pushes back until Broberg admits he mixed up old and new data.16:34–19:12 · Guest disagreement 3/10 Funding Plans and Investor Relationships The conversation covers upcoming fundraising plans and transitions into the Famous Five rapid-fire questions. Broberg pushes back on millennial ageism in tech when discussing his age, and Latka enthusiastically agrees.19:12–19:51 · Guest disagreement 0/10 Episode Summary and Final Takeaways Latka delivers a standard solo closing monologue recapping Modus's key metrics, ARR, logo retention, and growth rates without any guest interaction.1:24–4:18 · Nathan pushing back 1/10 Introducing Oren Broberg and Origins of Modus Latka inquires about Modus's business model and attempts to summarize the product as a centralized storage container for sales assets. Broberg politely reframes the value proposition, explaining that simple storage is merely table stakes compared to their deeper CRM and marketing stack integrations.4:18–7:10 · Nathan pushing back 5/10 Bootstrapping Origins and Institutional Capital Raise Latka pushes Broberg to state exact funding figures when Broberg mentions raising mid-single-digit millions. Broberg resists giving exact amounts citing their privately held status, prompting Latka to question why he keeps it private.7:10–9:47 · Nathan pushing back 2/10 Enterprise Customer Scale and Revenue Streams Latka performs quick calculations on customer numbers, multiplying 80,000 seats by the $35/seat monthly floor to deduce over $2.8 million in monthly revenue. Broberg confirms the math and elaborates on secondary product offerings like trade show lead capture.9:48–14:10 · Nathan pushing back 5/10 Growth Velocity and Customer Retention Metrics Latka drills into standard SaaS unit economics, probing for logo churn versus net revenue churn and CAC metrics. Broberg shares logo churn and Rule of 40 numbers but declines to reveal exact CAC metrics citing confidentiality.14:10–16:34 · Nathan pushing back 8/10 Acquisition Channels and Direct Sales Optimization Latka catches an inconsistency in Broberg's financial figures, calculating that an account paying ~$160k/year with <10% churn cannot have an LTV of only $120k. When Broberg attempts to dismiss the question and move on, Latka pushes back until Broberg admits he mixed up old and new data.16:34–19:12 · Nathan pushing back 2/10 Funding Plans and Investor Relationships The conversation covers upcoming fundraising plans and transitions into the Famous Five rapid-fire questions. Broberg pushes back on millennial ageism in tech when discussing his age, and Latka enthusiastically agrees.19:12–19:51 · Nathan pushing back 0/10 Episode Summary and Final Takeaways Latka delivers a standard solo closing monologue recapping Modus's key metrics, ARR, logo retention, and growth rates without any guest interaction.

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

0:00 · Nathan 70.9% · guest 29.1%0:00 · Nathan 70.9% · guest 29.1%3:00 · Nathan 36.6% · guest 63.4%3:00 · Nathan 36.6% · guest 63.4%6:00 · Nathan 39.5% · guest 60.5%6:00 · Nathan 39.5% · guest 60.5%9:00 · Nathan 41.7% · guest 58.3%9:00 · Nathan 41.7% · guest 58.3%12:00 · Nathan 50% · guest 50%12:00 · Nathan 50% · guest 50%15:00 · Nathan 47.2% · guest 52.8%15:00 · Nathan 47.2% · guest 52.8%18:00 · Nathan 81.4% · guest 18.6%18:00 · Nathan 81.4% · guest 18.6%
Sharpest disagreement ▶ 15:03 Broberg shuts down line of questioning regarding LTV

When confronted with a mathematical conflict between his deal sizes and LTV, Broberg abruptly shuts down the topic, stating he cannot explain it and telling Latka to move to the next question.

Hardest push from Nathan ▶ 15:15 Latka refuses to drop the LTV discrepancy

Latka directly challenges Broberg's attempt to move past the flawed metric, asking if it is confidential or unthought-out and asserting that the true LTV should be over $500,000.

Biggest teaching moment ▶ 3:09 Broberg corrects Latka's simple storage characterization

Broberg educates Latka that while basic document storage is level-one table stakes, the core enterprise value comes from interactive CRM integration and automated marketing workflows.

Nathan holds their own ▶ 14:45 Latka breaks down SaaS math to disprove reported LTV

Latka demonstrates deep domain mastery by reconciling ACV, low churn, and gross margins to prove Broberg's stated $120k LTV is logically impossible.

the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Introducing Oren Broberg and Origins of Modus 5411 Latka inquires about Modus's business model and attempts to summarize the product as a centralized storage container for sales assets. Broberg politely reframes the value proposition, explaining that simple storage is merely table stakes compared to their deeper CRM and marketing stack integrations.
Bootstrapping Origins and Institutional Capital Raise 5235 Latka pushes Broberg to state exact funding figures when Broberg mentions raising mid-single-digit millions. Broberg resists giving exact amounts citing their privately held status, prompting Latka to question why he keeps it private.
Enterprise Customer Scale and Revenue Streams 7112 Latka performs quick calculations on customer numbers, multiplying 80,000 seats by the $35/seat monthly floor to deduce over $2.8 million in monthly revenue. Broberg confirms the math and elaborates on secondary product offerings like trade show lead capture.
Growth Velocity and Customer Retention Metrics 7245 Latka drills into standard SaaS unit economics, probing for logo churn versus net revenue churn and CAC metrics. Broberg shares logo churn and Rule of 40 numbers but declines to reveal exact CAC metrics citing confidentiality.
Acquisition Channels and Direct Sales Optimization 9058 Latka catches an inconsistency in Broberg's financial figures, calculating that an account paying ~$160k/year with <10% churn cannot have an LTV of only $120k. When Broberg attempts to dismiss the question and move on, Latka pushes back until Broberg admits he mixed up old and new data.
Funding Plans and Investor Relationships 4232 The conversation covers upcoming fundraising plans and transitions into the Famous Five rapid-fire questions. Broberg pushes back on millennial ageism in tech when discussing his age, and Latka enthusiastically agrees.
Episode Summary and Final Takeaways 0000 Latka delivers a standard solo closing monologue recapping Modus's key metrics, ARR, logo retention, and growth rates without any guest interaction.

Statements from this episode (14)

Disclosure
Broberg: Modus charges $35 to $50 per user per month
“Well, per user, I mean, typically anywhere between 35 and 50 dollars per head per month. That's a basic.”
Oren Broberg Aug 6, 2018 ▶ 4:04
Disclosure
Modus raised mid-single digit millions in Series A
“It was a simple Series A. It was, like, mid-single digits.”
Oren Broberg Aug 6, 2018 ▶ 4:41
Disclosure
Modus operates with 24 total employees and 8 in sales
“We have 24 team members, including a rep in Copenhagen. We have a group of clients over there, and currently we have eight sales team members.”
Oren Broberg Aug 6, 2018 ▶ 5:59
Disclosure
Broberg: Modus easily sources tech talent through University of Minnesota internships
“We have no problems at all. Our offices you know, for in terms of hiring and finding good tech talent both back-end and front-end app developers we're right next to the University of Minnesota. Our office is right here, so we're on the light rail, and, well, w…”
Oren Broberg Aug 6, 2018 ▶ 6:42
Disclosure
Broberg: Modus has roughly 180 customers across SMB and enterprise
“We have about 180 existing customers. And it probably was pretty evenly split between SMB and enterprise.”
Oren Broberg Aug 6, 2018 ▶ 7:17
Disclosure
Broberg: Modus has 80,000 registered users across 95 countries
“Internally, about 270,000 Slack messages, and about 80,000 overall registered users of our app worldwide. So we're in about 95 countries, and our app is in 25 different languages.”
Oren Broberg Aug 6, 2018 ▶ 7:42
Assertion Not checkable as stated
Broberg: Caterpillar is Modus's largest client
“Yeah, we're selling enterprise deals, like Caterpillar's our largest client.”
Oren Broberg Aug 6, 2018 ▶ 8:22
Assertion Not checkable as stated
Broberg: Modus is growing over 40% YoY at break-even EBITDA
“Well, we're north of 40% growth, and we're basically break even EBITDA.”
Oren Broberg Aug 6, 2018 ▶ 10:08
Assertion Not checkable as stated
Broberg: Modus maintains a Net Promoter Score above 75
“We, a net promoter score is pretty good, north of 75.”
Oren Broberg Aug 6, 2018 ▶ 11:03
Assertion Not checkable as stated
Broberg: Modus has under 10% annual logo churn
“Our logo churn on an annualized basis is less than 10%.”
Oren Broberg Aug 6, 2018 ▶ 11:17
Assertion Not checkable as stated
Broberg: Most Modus sales leads come from trade shows
“Most of our leads come from going to trade shows and making appointments ahead of time and walking the floors.”
Oren Broberg Aug 6, 2018 ▶ 14:27
Assertion Not checkable as stated
Broberg: Modus customer lifetime value exceeds $120,000
“I can say safely that our lifetime value is north of a 120 K.”
Oren Broberg Aug 6, 2018 ▶ 15:57
Disclosure
Broberg: Modus plans to raise additional capital in 2018
“Well, we're going to raise more capital this year.”
Oren Broberg Aug 6, 2018 ▶ 16:51
Assertion Not checkable as stated
Broberg: Sand Hill VCs constantly dismiss older founders as irrelevant
“I run into that attitude from one hills all the time. And it's like, I don't have time for that attitude.”
Oren Broberg Aug 6, 2018 ▶ 18:40
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