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Jun 9, 2018 · 17m · top-founders

1050 3+ Years to Hit $20k in MRR, Sell and Get Out!

Stefan Fountain · 8m spoken Nathan Latka · 6m 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 PR.co founder Stefan Fountain to dissect the SaaS platform's metrics, enterprise pricing shift, and acquisition strategies. They debate the startup's growth velocity and valuation expectations as the company scales past $20,000 in monthly recurring revenue.

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 40.1% of the talking time here. How this is scored →

Nathan as informed peer 6.0 Guest teaching 1.5 Guest disagreement 2.3 Nathan pushing back 4.8
05100:0010:001:54–5:45 · Nathan as informed peer 6/10 Business Model, Pricing Evolution, and Revenue Growth Latka immediately tests Stefan's pricing tiers and performs mental math on ARPU and customer count to estimate MRR around $24k. Stefan remains collaborative and transparent about turning over smaller accounts in favor of enterprise logos.5:45–11:34 · Nathan as informed peer 7/10 Origins at The Next Web and Customer Profile Shifts Latka presses Stefan on his reported LTV to CAC ratio, forcing Stefan to admit he cannot provide the underlying CAC number because of fatigue. Latka then demonstrates domain knowledge by breaking down logo churn versus net revenue churn dynamics.11:37–16:12 · Nathan as informed peer 8/10 Sponsor Break: Hotjar Analytics A heated clash ensues after the sponsor break when Stefan claims he would only sell for a 10x multiple ($4M) on $300k revenue. Latka calls the expectation pure insanity and argues that taking years to hit $20k MRR shows lack of product-market urgency, while Stefan firmly pushes back.16:12–17:20 · Nathan as informed peer 3/10 The Famous Five Rapid-Fire Questions Standard Famous Five rapid-fire closing where Stefan shares personal details including his lack of sleep with a newborn baby, ending with a cordial summary outro.1:54–5:45 · Guest teaching 1/10 Business Model, Pricing Evolution, and Revenue Growth Latka immediately tests Stefan's pricing tiers and performs mental math on ARPU and customer count to estimate MRR around $24k. Stefan remains collaborative and transparent about turning over smaller accounts in favor of enterprise logos.5:45–11:34 · Guest teaching 2/10 Origins at The Next Web and Customer Profile Shifts Latka presses Stefan on his reported LTV to CAC ratio, forcing Stefan to admit he cannot provide the underlying CAC number because of fatigue. Latka then demonstrates domain knowledge by breaking down logo churn versus net revenue churn dynamics.11:37–16:12 · Guest teaching 3/10 Sponsor Break: Hotjar Analytics A heated clash ensues after the sponsor break when Stefan claims he would only sell for a 10x multiple ($4M) on $300k revenue. Latka calls the expectation pure insanity and argues that taking years to hit $20k MRR shows lack of product-market urgency, while Stefan firmly pushes back.16:12–17:20 · Guest teaching 0/10 The Famous Five Rapid-Fire Questions Standard Famous Five rapid-fire closing where Stefan shares personal details including his lack of sleep with a newborn baby, ending with a cordial summary outro.1:54–5:45 · Guest disagreement 1/10 Business Model, Pricing Evolution, and Revenue Growth Latka immediately tests Stefan's pricing tiers and performs mental math on ARPU and customer count to estimate MRR around $24k. Stefan remains collaborative and transparent about turning over smaller accounts in favor of enterprise logos.5:45–11:34 · Guest disagreement 2/10 Origins at The Next Web and Customer Profile Shifts Latka presses Stefan on his reported LTV to CAC ratio, forcing Stefan to admit he cannot provide the underlying CAC number because of fatigue. Latka then demonstrates domain knowledge by breaking down logo churn versus net revenue churn dynamics.11:37–16:12 · Guest disagreement 6/10 Sponsor Break: Hotjar Analytics A heated clash ensues after the sponsor break when Stefan claims he would only sell for a 10x multiple ($4M) on $300k revenue. Latka calls the expectation pure insanity and argues that taking years to hit $20k MRR shows lack of product-market urgency, while Stefan firmly pushes back.16:12–17:20 · Guest disagreement 0/10 The Famous Five Rapid-Fire Questions Standard Famous Five rapid-fire closing where Stefan shares personal details including his lack of sleep with a newborn baby, ending with a cordial summary outro.1:54–5:45 · Nathan pushing back 4/10 Business Model, Pricing Evolution, and Revenue Growth Latka immediately tests Stefan's pricing tiers and performs mental math on ARPU and customer count to estimate MRR around $24k. Stefan remains collaborative and transparent about turning over smaller accounts in favor of enterprise logos.5:45–11:34 · Nathan pushing back 6/10 Origins at The Next Web and Customer Profile Shifts Latka presses Stefan on his reported LTV to CAC ratio, forcing Stefan to admit he cannot provide the underlying CAC number because of fatigue. Latka then demonstrates domain knowledge by breaking down logo churn versus net revenue churn dynamics.11:37–16:12 · Nathan pushing back 8/10 Sponsor Break: Hotjar Analytics A heated clash ensues after the sponsor break when Stefan claims he would only sell for a 10x multiple ($4M) on $300k revenue. Latka calls the expectation pure insanity and argues that taking years to hit $20k MRR shows lack of product-market urgency, while Stefan firmly pushes back.16:12–17:20 · Nathan pushing back 1/10 The Famous Five Rapid-Fire Questions Standard Famous Five rapid-fire closing where Stefan shares personal details including his lack of sleep with a newborn baby, ending with a cordial summary outro.

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

0:00 · Nathan 42.3% · guest 57.7%0:00 · Nathan 42.3% · guest 57.7%3:00 · Nathan 29.5% · guest 70.5%3:00 · Nathan 29.5% · guest 70.5%6:00 · Nathan 16.9% · guest 83.1%6:00 · Nathan 16.9% · guest 83.1%9:00 · Nathan 51% · guest 49%9:00 · Nathan 51% · guest 49%12:00 · Nathan 45% · guest 55%12:00 · Nathan 45% · guest 55%15:00 · Nathan 56.9% · guest 43.1%15:00 · Nathan 56.9% · guest 43.1%
Sharpest disagreement ▶ 15:15 Stefan rejects Latka's premise on lack of market traction

Stefan forcefully corrects Latka's timeline and revenue currency, insisting that despite modest sales figures, the market demand is real and their recent pivot is working.

 Hardest push from Nathan ▶ 13:49 Latka attacks the 10x exit valuation demand

Latka flatly rejects Stefan's assertion that the business is worth $4M on $300k ARR, calling it complete insanity given SaaS valuation fundamentals.

 Biggest teaching moment ▶ 15:06 Stefan clarifies timeline and revenue figures

Stefan corrects Latka's assumption about the company timeline by clarifying he only joined three years prior and that the revenue figure is 30k in euros rather than dollars.

 Nathan holds their own ▶ 15:52 Latka tears down low-base percentage growth claims

Latka dismantles Stefan's defense of 70% growth, explaining that high percentages on small revenue bases are trivial and bootstrap peers double or triple at that scale.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Business Model, Pricing Evolution, and Revenue Growth 6114 Latka immediately tests Stefan's pricing tiers and performs mental math on ARPU and customer count to estimate MRR around $24k. Stefan remains collaborative and transparent about turning over smaller accounts in favor of enterprise logos.
Origins at The Next Web and Customer Profile Shifts 7226 Latka presses Stefan on his reported LTV to CAC ratio, forcing Stefan to admit he cannot provide the underlying CAC number because of fatigue. Latka then demonstrates domain knowledge by breaking down logo churn versus net revenue churn dynamics.
Sponsor Break: Hotjar Analytics 8368 A heated clash ensues after the sponsor break when Stefan claims he would only sell for a 10x multiple ($4M) on $300k revenue. Latka calls the expectation pure insanity and argues that taking years to hit $20k MRR shows lack of product-market urgency, while Stefan firmly pushes back.
The Famous Five Rapid-Fire Questions 3001 Standard Famous Five rapid-fire closing where Stefan shares personal details including his lack of sleep with a newborn baby, ending with a cordial summary outro.

Statements from this episode (12)

Assertion Not checkable as stated
PR.co got a cease-and-desist over David Hasselhoff in underwear logo
“We got a cease and desist letter, but to put that on a business card or in a bio is too long. We're using an image of David Hasselhoff in his underpants as our company logo. And it took two years, and then somebody told his agent or his lawyer or someone about…”
Stefan Fountain Jun 9, 2018 ▶ 1:17
Disclosure
PR.co signs Heineken, Sonos, Shimano, and TaylorMade with $20k+ ACVs
“And now recently we just signed Heineken and we have Sonos and Shimano as a customer, TaylorMade Golf, and those ACVs are 20 plus, 20 K plus.”
Stefan Fountain Jun 9, 2018 ▶ 2:49
Disclosure
PR.co ARPU grew from $48 to over $100 per month in the past year
“So I think our ARPU has gone up in the last year from 48 to over a hundred.”
Stefan Fountain Jun 9, 2018 ▶ 3:18
Disclosure
PR.co reaches 287 active customers
“That's 287.”
Stefan Fountain Jun 9, 2018 ▶ 4:02
Disclosure
PR.co reaches cash flow positive on $400K raised with 3:1 LTV:CAC
“We raised 400 K from industry experts and a local VC, and with that money, we're able to scale our sales and marketing, and now we've got to acquisition versus LTV ratio of over, over three, one on three, so it's really cool to see that we're finding our scala…”
Stefan Fountain Jun 9, 2018 ▶ 4:42
Assertion Not checkable as stated
PR.co suffers 10% monthly churn on its under-$50 MRR customers
“We've got the churners on the low end of the scale, so under 50 MRR. Our churn rate's about 10%.”
Stefan Fountain Jun 9, 2018 ▶ 9:28
Assertion Not checkable as stated
Fountain: PR.co Maintains Net Negative Monthly Revenue Churn
“It's net negative. So we're actually getting more From the existing customers than the smaller customers that are leaving.”
Stefan Fountain Jun 9, 2018 ▶ 10:07
Assertion Not checkable as stated
Fountain: Top 10 Customers Account for Roughly 30% of PR.co MRR
“So if we look at the top tier, let's say, 10 customers, it's probably the top 30% of our MRR. Maybe a bit higher than that.”
Stefan Fountain Jun 9, 2018 ▶ 11:07
Disclosure
Stefan Fountain: PR.co spent $12K–$15K testing paid channels before stopping
“So I think we spent about maybe 12 K up to 15 K on different sources. Most of that was AdWords, some of it various different channels.”
Stefan Fountain Jun 9, 2018 ▶ 13:00
Disclosure
Stefan Fountain says PR.co would need at least a $4M acquisition offer
“Not in that range. No, it'd have to be 10 X that range.”
Stefan Fountain Jun 9, 2018 ▶ 13:45
Assertion Not checkable as stated
PR.co generates €30,000 per month in recurring revenue
“30 month, 30 grand a month in euros.”
Stefan Fountain Jun 9, 2018 ▶ 15:15
Assertion Not checkable as stated
PR.co grew 70% in one year after shifting focus to active selling
“Oh, I think that the main issue is that we've just been a bunch of engineers trying to build this product in a little, in a, in our back room, and only this year we've been going out to sell, and we grew 70%.”
Stefan Fountain Jun 9, 2018 ▶ 15:33
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