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Jun 12, 2018 · 22m · top-founders

1053 Me: Did You Sell To Vista for $250m? CEO:"Your math astute"

Jared Schrieber · 11m spoken Nathan Latka · 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, host Nathan Latka interviews InfoScout co-founder and CEO Jared Schrieber on scaling a consumer market intelligence platform to a $30 million run rate and executing an estimated $250 million acquisition by Vista Equity Partners.

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 39.6% of the talking time here. How this is scored →

Nathan as informed peer 5.7 Guest teaching 3.2 Guest disagreement 1.5 Nathan pushing back 3.5
05100:0010:0020:000:49–6:12 · Nathan as informed peer 6/10 Introducing Jared Schrieber and InfoScout's Philosophy Latka immediately tests InfoScout's metrics by running real-time arithmetic on customer count and ACV to estimate annual run rate, briefly pushing back when Schrieber questions the calculation before clarifying the services-to-SaaS ratio.6:13–9:16 · Nathan as informed peer 6/10 Go-to-Market Strategy, Sales Execution, and CAC Economics Latka parses the difference between booked and recognized revenue in year one and immediately calculates customer acquisition payback duration based on Schrieber's stated CAC figures.9:17–11:50 · Nathan as informed peer 3/10 Receipt-Scanning Panel and Data Collection Methodology Schrieber breaks down InfoScout's proprietary receipt-scanning app architecture that incentivizes over 400,000 consumers to submit purchase data, explaining their primary data collection flywheel.11:52–16:50 · Nathan as informed peer 7/10 Panel Expansion, M&A Lessons, and Enterprise Lifetime Value Latka challenges Schrieber's stated ten million dollar enterprise LTV by calculating it would equate to a 40-year customer lifespan at current ARPU, prompting Schrieber to clarify that top-tier accounts expand substantially over time.16:51–20:25 · Nathan as informed peer 8/10 Capital Strategy, Trinity Debt, and Vista Equity Acquisition Latka demonstrates deep PE knowledge by citing Vista Equity's typical 7.2x revenue multiple on deals like Cvent and Marketo to deduce a 250 million dollar acquisition valuation, prompting Schrieber to praise his astute deduction.20:26–22:07 · Nathan as informed peer 4/10 The Famous Five Rapid-Fire Questions Standard rapid-fire Famous Five sequence covering favorite books, tools, and sleep habits, ending with Latka delivering a concise recap of InfoScout's metrics and growth trajectory.0:49–6:12 · Guest teaching 3/10 Introducing Jared Schrieber and InfoScout's Philosophy Latka immediately tests InfoScout's metrics by running real-time arithmetic on customer count and ACV to estimate annual run rate, briefly pushing back when Schrieber questions the calculation before clarifying the services-to-SaaS ratio.6:13–9:16 · Guest teaching 3/10 Go-to-Market Strategy, Sales Execution, and CAC Economics Latka parses the difference between booked and recognized revenue in year one and immediately calculates customer acquisition payback duration based on Schrieber's stated CAC figures.9:17–11:50 · Guest teaching 4/10 Receipt-Scanning Panel and Data Collection Methodology Schrieber breaks down InfoScout's proprietary receipt-scanning app architecture that incentivizes over 400,000 consumers to submit purchase data, explaining their primary data collection flywheel.11:52–16:50 · Guest teaching 5/10 Panel Expansion, M&A Lessons, and Enterprise Lifetime Value Latka challenges Schrieber's stated ten million dollar enterprise LTV by calculating it would equate to a 40-year customer lifespan at current ARPU, prompting Schrieber to clarify that top-tier accounts expand substantially over time.16:51–20:25 · Guest teaching 3/10 Capital Strategy, Trinity Debt, and Vista Equity Acquisition Latka demonstrates deep PE knowledge by citing Vista Equity's typical 7.2x revenue multiple on deals like Cvent and Marketo to deduce a 250 million dollar acquisition valuation, prompting Schrieber to praise his astute deduction.20:26–22:07 · Guest teaching 1/10 The Famous Five Rapid-Fire Questions Standard rapid-fire Famous Five sequence covering favorite books, tools, and sleep habits, ending with Latka delivering a concise recap of InfoScout's metrics and growth trajectory.0:49–6:12 · Guest disagreement 2/10 Introducing Jared Schrieber and InfoScout's Philosophy Latka immediately tests InfoScout's metrics by running real-time arithmetic on customer count and ACV to estimate annual run rate, briefly pushing back when Schrieber questions the calculation before clarifying the services-to-SaaS ratio.6:13–9:16 · Guest disagreement 1/10 Go-to-Market Strategy, Sales Execution, and CAC Economics Latka parses the difference between booked and recognized revenue in year one and immediately calculates customer acquisition payback duration based on Schrieber's stated CAC figures.9:17–11:50 · Guest disagreement 1/10 Receipt-Scanning Panel and Data Collection Methodology Schrieber breaks down InfoScout's proprietary receipt-scanning app architecture that incentivizes over 400,000 consumers to submit purchase data, explaining their primary data collection flywheel.11:52–16:50 · Guest disagreement 3/10 Panel Expansion, M&A Lessons, and Enterprise Lifetime Value Latka challenges Schrieber's stated ten million dollar enterprise LTV by calculating it would equate to a 40-year customer lifespan at current ARPU, prompting Schrieber to clarify that top-tier accounts expand substantially over time.16:51–20:25 · Guest disagreement 2/10 Capital Strategy, Trinity Debt, and Vista Equity Acquisition Latka demonstrates deep PE knowledge by citing Vista Equity's typical 7.2x revenue multiple on deals like Cvent and Marketo to deduce a 250 million dollar acquisition valuation, prompting Schrieber to praise his astute deduction.20:26–22:07 · Guest disagreement 0/10 The Famous Five Rapid-Fire Questions Standard rapid-fire Famous Five sequence covering favorite books, tools, and sleep habits, ending with Latka delivering a concise recap of InfoScout's metrics and growth trajectory.0:49–6:12 · Nathan pushing back 4/10 Introducing Jared Schrieber and InfoScout's Philosophy Latka immediately tests InfoScout's metrics by running real-time arithmetic on customer count and ACV to estimate annual run rate, briefly pushing back when Schrieber questions the calculation before clarifying the services-to-SaaS ratio.6:13–9:16 · Nathan pushing back 3/10 Go-to-Market Strategy, Sales Execution, and CAC Economics Latka parses the difference between booked and recognized revenue in year one and immediately calculates customer acquisition payback duration based on Schrieber's stated CAC figures.9:17–11:50 · Nathan pushing back 2/10 Receipt-Scanning Panel and Data Collection Methodology Schrieber breaks down InfoScout's proprietary receipt-scanning app architecture that incentivizes over 400,000 consumers to submit purchase data, explaining their primary data collection flywheel.11:52–16:50 · Nathan pushing back 6/10 Panel Expansion, M&A Lessons, and Enterprise Lifetime Value Latka challenges Schrieber's stated ten million dollar enterprise LTV by calculating it would equate to a 40-year customer lifespan at current ARPU, prompting Schrieber to clarify that top-tier accounts expand substantially over time.16:51–20:25 · Nathan pushing back 5/10 Capital Strategy, Trinity Debt, and Vista Equity Acquisition Latka demonstrates deep PE knowledge by citing Vista Equity's typical 7.2x revenue multiple on deals like Cvent and Marketo to deduce a 250 million dollar acquisition valuation, prompting Schrieber to praise his astute deduction.20:26–22:07 · Nathan pushing back 1/10 The Famous Five Rapid-Fire Questions Standard rapid-fire Famous Five sequence covering favorite books, tools, and sleep habits, ending with Latka delivering a concise recap of InfoScout's metrics and growth trajectory.

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

0:00 · Nathan 65.8% · guest 34.2%0:00 · Nathan 65.8% · guest 34.2%3:00 · Nathan 35.6% · guest 64.4%3:00 · Nathan 35.6% · guest 64.4%6:00 · Nathan 26.4% · guest 73.6%6:00 · Nathan 26.4% · guest 73.6%9:00 · Nathan 60.8% · guest 39.2%9:00 · Nathan 60.8% · guest 39.2%12:00 · Nathan 28.7% · guest 71.3%12:00 · Nathan 28.7% · guest 71.3%15:00 · Nathan 30.3% · guest 69.7%15:00 · Nathan 30.3% · guest 69.7%18:00 · Nathan 21% · guest 79%18:00 · Nathan 21% · guest 79%21:00 · Nathan 50.5% · guest 49.5%21:00 · Nathan 50.5% · guest 49.5%
Sharpest disagreement ▶ 16:31 Schrieber pushes back on static LTV assumptions

Schrieber rejects Latka's static monthly math assumption, asserting that high-tier accounts expand into multi-million dollar annual contracts rather than remaining flat.

 Hardest push from Nathan ▶ 16:05 Latka challenges 10M LTV claim

Latka refuses to accept the ten million dollar LTV at face value, dividing it by the 21k monthly ARPU to point out it implies an unrealistic 40-year retention horizon.

 Biggest teaching moment ▶ 5:06 Schrieber explains CPG buyer behavior

Schrieber explains why pure SaaS fails in enterprise retail data, educating Latka on how legacy incumbents like Nielsen and IRI conditioned enterprise buyers to expect hands-on services.

 Nathan holds their own ▶ 20:06 Latka deduces Vista Equity's 7.2x multiple

Latka showcases private equity domain knowledge by connecting historical Vista multiples from Cvent and Marketo to pinpoint InfoScout's undisclosed 250 million dollar sale price.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Introducing Jared Schrieber and InfoScout's Philosophy 6324 Latka immediately tests InfoScout's metrics by running real-time arithmetic on customer count and ACV to estimate annual run rate, briefly pushing back when Schrieber questions the calculation before clarifying the services-to-SaaS ratio.
Go-to-Market Strategy, Sales Execution, and CAC Economics 6313 Latka parses the difference between booked and recognized revenue in year one and immediately calculates customer acquisition payback duration based on Schrieber's stated CAC figures.
Receipt-Scanning Panel and Data Collection Methodology 3412 Schrieber breaks down InfoScout's proprietary receipt-scanning app architecture that incentivizes over 400,000 consumers to submit purchase data, explaining their primary data collection flywheel.
Panel Expansion, M&A Lessons, and Enterprise Lifetime Value 7536 Latka challenges Schrieber's stated ten million dollar enterprise LTV by calculating it would equate to a 40-year customer lifespan at current ARPU, prompting Schrieber to clarify that top-tier accounts expand substantially over time.
Capital Strategy, Trinity Debt, and Vista Equity Acquisition 8325 Latka demonstrates deep PE knowledge by citing Vista Equity's typical 7.2x revenue multiple on deals like Cvent and Marketo to deduce a 250 million dollar acquisition valuation, prompting Schrieber to praise his astute deduction.
The Famous Five Rapid-Fire Questions 4101 Standard rapid-fire Famous Five sequence covering favorite books, tools, and sleep habits, ending with Latka delivering a concise recap of InfoScout's metrics and growth trajectory.

Statements from this episode (13)

Opinion
InfoScout is far more aggressive than legacy market research incumbents
“We're aggressive. I would say that without a doubt. We take no prisoners. There are no sacred rules that we follow. Unlike many of the traditional incumbents that have been around for 50 years in the market research industry, I'd say we're pretty ruthless by c…”
Jared Schrieber Jun 12, 2018 ▶ 1:35
Assertion Not checkable as stated
InfoScout supports 184 different brands on its SaaS platform
“We're supporting a 184 different brands right now on the platform.”
Jared Schrieber Jun 12, 2018 ▶ 3:21
Assertion Not checkable as stated
InfoScout surpassed $30 million in revenue in 2017
“We surpassed thirty million this last year.”
Jared Schrieber Jun 12, 2018 ▶ 3:36
Assertion Not checkable as stated
InfoScout's revenue is more than doubling year over year
“Yeah, we're more than doubling on a year over year basis.”
Jared Schrieber Jun 12, 2018 ▶ 4:11
Assertion Not checkable as stated
InfoScout achieved zero churn and 189% net revenue retention
“Well, one, we built a product that has not only zero churn associated with it, but those customers subscribe to more modules and add more users to those modules on a year over year basis. So our net revenue retention is 189% from existing clients.”
Jared Schrieber Jun 12, 2018 ▶ 4:17
Assertion Not checkable as stated
InfoScout turned a $3,000 survey project into a $400,000 subscription
“And I think all of 3000 dollars in revenue to a survey of our panelists. And, you know, six months later they were signing up for a 400,000 dollar subscription.”
Jared Schrieber Jun 12, 2018 ▶ 6:47
Assertion Not checkable as stated
InfoScout grew from $200,000 in 2013 to $4.5 million in 2014 bookings
“2013 we ended up doing about 200,000 dollars, and then 2014, our bookings were actually four and a half million.”
Jared Schrieber Jun 12, 2018 ▶ 7:01
Assertion Not checkable as stated
InfoScout's customer acquisition cost is roughly $25,000 to $30,000
“I want to say it's about 25 to 30,000 dollar customer acquisition cost.”
Jared Schrieber Jun 12, 2018 ▶ 8:41
Assertion Not checkable as stated
InfoScout has over 400,000 active daily panelists scanning receipts
“And so we've got, Over 400,000 Americans now actively, ah, doing this on a day in day out basis.”
Jared Schrieber Jun 12, 2018 ▶ 10:30
Disclosure
InfoScout bought and sold app 'Out of Milk' for low seven figures
“Let's just say low seven figures and ended up selling it in the low seven figures range.”
Jared Schrieber Jun 12, 2018 ▶ 14:03
Assertion Supported
Vista Equity Partners acquired InfoScout in July 2017
“We're still running as InfoScout, but we were acquired by Vista Equity Partners, the software-focused private equity firm, and last July.”
Jared Schrieber Jun 12, 2018 ▶ 17:34
Disclosure
InfoScout skipped a Series C round to avoid taking excessive dilution
“The growth equity firms wanted to write really large checks and we didn't need that much money... Minimum, thirty million. And we felt like we needed 10 to fifteen million. If we took thirty million from a new lead, we'd have to do pro rata for existing invest…”
Jared Schrieber Jun 12, 2018 ▶ 18:19
Assertion Partly supported
Vista Equity paid 7.2x revenue multiples for Cvent and Marketo
“Vista Equity loves 7.2 X multiples. It's the multiple they paid for Cvent. It's also the multiple they paid for Marketo.”
Nathan Latka Jun 12, 2018 ▶ 20:06
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