Feb 14, 2018 · 19m · top-founders

935 How to Reset After Raising $27m and Hiring Too Fast

Fred Shilmover · 11m spoken Nathan Latka · 6m spoken
0:00 / 0:00

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In this episode of The Top Entrepreneurs Podcast, Nathan Latka interviews InsightSquared CEO Fred Shilmover about raising $27 million in venture capital, navigating a difficult headcount reset after rapid expansion, and scaling a specialized sales analytics platform to over 750 mid-market and enterprise clients.

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 36.7% of the talking time here. How this is scored →

Nathan as informed peer 4.8 Guest teaching 3.7 Guest disagreement 3.0 Nathan pushing back 4.3
05100:0010:000:49–4:51 · Nathan as informed peer 5/10 Introducing Fred Shilmover and InsightSquared Nathan relentlessly drills Fred to reveal pricing or average contract value, directly challenging Fred's decision to gate pricing on their website. Fred remains calm and repeatedly deflects without disclosing specific dollar figures.4:51–7:20 · Nathan as informed peer 6/10 Founding InsightSquared and the Decision to Raise VC Nathan challenges Fred on why he didn't bootstrap like other successful founders (citing Qualtrics). Fred clearly breaks down the trade-offs of heavy upfront R&D engineering investment versus bootstrapping.7:23–11:01 · Nathan as informed peer 6/10 Managing Headcount Resets and Pursuing Sustainable Growth Nathan pushes Fred on historical layoffs, VC timeline pressure, and timeline to profitability, even challenging Fred's reluctance to discuss the P&L on air. Fred acknowledges past over-hiring while defending their path to sustainable growth.11:01–13:27 · Nathan as informed peer 4/10 Specialization in Sales Analytics vs Generic BI Nathan asks why InsightSquared didn't exit during the 2012 social media wave, grouping them with Wildfire and Buddy Media. Fred corrects Nathan's categorization by demonstrating that InsightSquared is a sales analytics company rather than social marketing tech.13:28–16:38 · Nathan as informed peer 6/10 Modern Sales Tech Stacks and Customer Traction Nathan brings up Mattermark and data enrichment tools to test Fred's positioning and presses for ARR milestones. Fred elaborates on how modern sales stacks operate and confirms passing 750 customers while politely declining revenue metrics.16:40–18:50 · Nathan as informed peer 2/10 The Famous Five Rapid-Fire Questions A collaborative Famous Five rapid-fire segment where Fred shares insights on favorite books, sleep habits, and learning that human decisions are emotional rather than purely rational.0:49–4:51 · Guest teaching 2/10 Introducing Fred Shilmover and InsightSquared Nathan relentlessly drills Fred to reveal pricing or average contract value, directly challenging Fred's decision to gate pricing on their website. Fred remains calm and repeatedly deflects without disclosing specific dollar figures.4:51–7:20 · Guest teaching 6/10 Founding InsightSquared and the Decision to Raise VC Nathan challenges Fred on why he didn't bootstrap like other successful founders (citing Qualtrics). Fred clearly breaks down the trade-offs of heavy upfront R&D engineering investment versus bootstrapping.7:23–11:01 · Guest teaching 3/10 Managing Headcount Resets and Pursuing Sustainable Growth Nathan pushes Fred on historical layoffs, VC timeline pressure, and timeline to profitability, even challenging Fred's reluctance to discuss the P&L on air. Fred acknowledges past over-hiring while defending their path to sustainable growth.11:01–13:27 · Guest teaching 7/10 Specialization in Sales Analytics vs Generic BI Nathan asks why InsightSquared didn't exit during the 2012 social media wave, grouping them with Wildfire and Buddy Media. Fred corrects Nathan's categorization by demonstrating that InsightSquared is a sales analytics company rather than social marketing tech.13:28–16:38 · Guest teaching 3/10 Modern Sales Tech Stacks and Customer Traction Nathan brings up Mattermark and data enrichment tools to test Fred's positioning and presses for ARR milestones. Fred elaborates on how modern sales stacks operate and confirms passing 750 customers while politely declining revenue metrics.16:40–18:50 · Guest teaching 1/10 The Famous Five Rapid-Fire Questions A collaborative Famous Five rapid-fire segment where Fred shares insights on favorite books, sleep habits, and learning that human decisions are emotional rather than purely rational.0:49–4:51 · Guest disagreement 3/10 Introducing Fred Shilmover and InsightSquared Nathan relentlessly drills Fred to reveal pricing or average contract value, directly challenging Fred's decision to gate pricing on their website. Fred remains calm and repeatedly deflects without disclosing specific dollar figures.4:51–7:20 · Guest disagreement 4/10 Founding InsightSquared and the Decision to Raise VC Nathan challenges Fred on why he didn't bootstrap like other successful founders (citing Qualtrics). Fred clearly breaks down the trade-offs of heavy upfront R&D engineering investment versus bootstrapping.7:23–11:01 · Guest disagreement 3/10 Managing Headcount Resets and Pursuing Sustainable Growth Nathan pushes Fred on historical layoffs, VC timeline pressure, and timeline to profitability, even challenging Fred's reluctance to discuss the P&L on air. Fred acknowledges past over-hiring while defending their path to sustainable growth.11:01–13:27 · Guest disagreement 5/10 Specialization in Sales Analytics vs Generic BI Nathan asks why InsightSquared didn't exit during the 2012 social media wave, grouping them with Wildfire and Buddy Media. Fred corrects Nathan's categorization by demonstrating that InsightSquared is a sales analytics company rather than social marketing tech.13:28–16:38 · Guest disagreement 2/10 Modern Sales Tech Stacks and Customer Traction Nathan brings up Mattermark and data enrichment tools to test Fred's positioning and presses for ARR milestones. Fred elaborates on how modern sales stacks operate and confirms passing 750 customers while politely declining revenue metrics.16:40–18:50 · Guest disagreement 1/10 The Famous Five Rapid-Fire Questions A collaborative Famous Five rapid-fire segment where Fred shares insights on favorite books, sleep habits, and learning that human decisions are emotional rather than purely rational.0:49–4:51 · Nathan pushing back 7/10 Introducing Fred Shilmover and InsightSquared Nathan relentlessly drills Fred to reveal pricing or average contract value, directly challenging Fred's decision to gate pricing on their website. Fred remains calm and repeatedly deflects without disclosing specific dollar figures.4:51–7:20 · Nathan pushing back 5/10 Founding InsightSquared and the Decision to Raise VC Nathan challenges Fred on why he didn't bootstrap like other successful founders (citing Qualtrics). Fred clearly breaks down the trade-offs of heavy upfront R&D engineering investment versus bootstrapping.7:23–11:01 · Nathan pushing back 6/10 Managing Headcount Resets and Pursuing Sustainable Growth Nathan pushes Fred on historical layoffs, VC timeline pressure, and timeline to profitability, even challenging Fred's reluctance to discuss the P&L on air. Fred acknowledges past over-hiring while defending their path to sustainable growth.11:01–13:27 · Nathan pushing back 3/10 Specialization in Sales Analytics vs Generic BI Nathan asks why InsightSquared didn't exit during the 2012 social media wave, grouping them with Wildfire and Buddy Media. Fred corrects Nathan's categorization by demonstrating that InsightSquared is a sales analytics company rather than social marketing tech.13:28–16:38 · Nathan pushing back 4/10 Modern Sales Tech Stacks and Customer Traction Nathan brings up Mattermark and data enrichment tools to test Fred's positioning and presses for ARR milestones. Fred elaborates on how modern sales stacks operate and confirms passing 750 customers while politely declining revenue metrics.16:40–18:50 · Nathan pushing back 1/10 The Famous Five Rapid-Fire Questions A collaborative Famous Five rapid-fire segment where Fred shares insights on favorite books, sleep habits, and learning that human decisions are emotional rather than purely rational.

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

0:00 · Nathan 47.4% · guest 52.6%0:00 · Nathan 47.4% · guest 52.6%3:00 · Nathan 40.8% · guest 59.2%3:00 · Nathan 40.8% · guest 59.2%6:00 · Nathan 24.8% · guest 75.2%6:00 · Nathan 24.8% · guest 75.2%9:00 · Nathan 35.8% · guest 64.2%9:00 · Nathan 35.8% · guest 64.2%12:00 · Nathan 44.9% · guest 55.1%12:00 · Nathan 44.9% · guest 55.1%15:00 · Nathan 22.2% · guest 77.8%15:00 · Nathan 22.2% · guest 77.8%18:00 · Nathan 46.8% · guest 53.2%18:00 · Nathan 46.8% · guest 53.2%
Sharpest disagreement ▶ 11:18 Fred rejects Nathan's social media company comparisons

Fred explicitly dismisses Nathan's premise comparing InsightSquared to acquired social tools like Wildfire and Buddy Media, asserting those businesses share no interconnect with his sales analytics focus.

Hardest push from Nathan ▶ 4:00 Nathan refuses to accept Fred's pricing deflection

Nathan interrupts and repeatedly insists that Fred must provide a pricing floor, asking if it's a dollar, a thousand, or a million to protect prospective buyers from opaque sales tactics.

Biggest teaching moment ▶ 11:18 Fred educates Nathan on sales tech vs. marketing tech categories

Fred explains the nuances between general BI, martech, and sales enablement, illustrating how sales technology is undergoing a major transformation a decade after marketing tech did.

Nathan holds their own ▶ 9:18 Nathan presents counter-thesis on venture funding time bombs

Nathan counters Fred's positive spin on not raising capital recently by citing the venture model expectation that funded companies should raise every 12 to 18 months toward an IPO or risk struggling.

the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Introducing Fred Shilmover and InsightSquared 5237 Nathan relentlessly drills Fred to reveal pricing or average contract value, directly challenging Fred's decision to gate pricing on their website. Fred remains calm and repeatedly deflects without disclosing specific dollar figures.
Founding InsightSquared and the Decision to Raise VC 6645 Nathan challenges Fred on why he didn't bootstrap like other successful founders (citing Qualtrics). Fred clearly breaks down the trade-offs of heavy upfront R&D engineering investment versus bootstrapping.
Managing Headcount Resets and Pursuing Sustainable Growth 6336 Nathan pushes Fred on historical layoffs, VC timeline pressure, and timeline to profitability, even challenging Fred's reluctance to discuss the P&L on air. Fred acknowledges past over-hiring while defending their path to sustainable growth.
Specialization in Sales Analytics vs Generic BI 4753 Nathan asks why InsightSquared didn't exit during the 2012 social media wave, grouping them with Wildfire and Buddy Media. Fred corrects Nathan's categorization by demonstrating that InsightSquared is a sales analytics company rather than social marketing tech.
Modern Sales Tech Stacks and Customer Traction 6324 Nathan brings up Mattermark and data enrichment tools to test Fred's positioning and presses for ARR milestones. Fred elaborates on how modern sales stacks operate and confirms passing 750 customers while politely declining revenue metrics.
The Famous Five Rapid-Fire Questions 2111 A collaborative Famous Five rapid-fire segment where Fred shares insights on favorite books, sleep habits, and learning that human decisions are emotional rather than purely rational.

Statements from this episode (7)

Assertion Not checkable as stated
InsightSquared majority customer sweet spot is 25 to 200 employees
“Yeah, I'd say that the sweet spot for us is sort of 25 to 200 employees is where the majority of our customers are.”
Fred Shilmover Feb 14, 2018 ▶ 2:21
Assertion Supported
Shilmover: InsightSquared raised $1M initially and $27M in total VC funding
“So we raised a million dollars in venture capital coming out of the gate and have raised twenty seven million dollars in total.”
Fred Shilmover Feb 14, 2018 ▶ 5:12
Disclosure
Shilmover: InsightSquared employs around 135 people in Boston
“Yeah, so the company is, we're around 135 people based here in, in, in Copley Square.”
Fred Shilmover Feb 14, 2018 ▶ 7:28
Assertion Not checkable as stated
Shilmover: InsightSquared is the only BI company specialized strictly in sales
“We're the only sales analytics company or the only analytics and BI company that sort of picked a major and said, we're going to be a subject matter experts in a particular area. Our area is sales.”
Fred Shilmover Feb 14, 2018 ▶ 11:45
Insight
Shilmover: Sales tech is repeating marketing tech's boom ten years later
“Sales is going through you know, a similar shift, maybe 10 years later than marketing went through going into digital. And you saw this explosion in mark of marketing technology companies. I think you're seeing a similar explosion in the opportunity to create …”
Fred Shilmover Feb 14, 2018 ▶ 12:12
Assertion Not checkable as stated
InsightSquared surpasses 750 customers
“Yeah, so we're over the 750 mark in terms of customers.”
Fred Shilmover Feb 14, 2018 ▶ 15:58
Insight
Shilmover: Business decisions are driven by emotion and relationships, not data
“I wish my twenty-year-old self knew that decisions weren't based on, ah, on, on data. Decisions are all emotional. And it's not about it's not just about the merit of how hard you've worked, or how good your product is, or what it says on your resume. Everythi…”
Fred Shilmover Feb 14, 2018 ▶ 18:26
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