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Aug 12, 2017 · 26m · top-founders

749: He's Making $9.6m Off Those Horrible Airport WiFi Connections

Gavin Wheeldon · 12m spoken Nathan Latka · 10m spoken
0:00 / 0:00

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In this episode of The Top, host Nathan Latka interviews Gavin Wheeldon, founder and CEO of Purple WiFi, exploring how the company transformed frustrating public Wi-Fi into an enterprise analytics SaaS generating up to $1 million in monthly recurring revenue. Wheeldon details his entrepreneurial journey, the company's telecom channel distribution model, and the unit economics behind scaling across 17,000 venues globally.

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 46.9% of the talking time here. How this is scored →

Nathan as informed peer 4.6 Guest teaching 2.7 Guest disagreement 0.9 Nathan pushing back 2.0
05100:0010:0020:001:23–4:25 · Nathan as informed peer 3/10 Introducing Gavin Wheeldon and the Origin of Purple WiFi Latka introduces Wheeldon and probes his entrepreneurial history, pressing gently for the sale price of his previous company. Wheeldon openly shares the sixty-million-pound exit and background bootstrapping Applied Language Solutions.4:25–8:50 · Nathan as informed peer 6/10 Enterprise Wi-Fi Evolution and Competitive Positioning Latka explores the market structure and runs live SaaS arithmetic on access points versus venue count to estimate MRR at $800k-$1M. Wheeldon clarifies the distinction between physical venues and individual access points.8:50–12:28 · Nathan as informed peer 5/10 Channel Sales Strategy and Telecom Partner Distribution Wheeldon explains Purple's channel partner strategy and managed service integrations with global telecommunications providers. Latka questions why telcos wouldn't build the software themselves.12:28–15:48 · Nathan as informed peer 5/10 Behavioral Analytics, Review Generation, and CRM Growth Latka mistakenly asks about hardware manufacturing costs, prompting Wheeldon to clarify that Purple is purely a cloud software overlay. Latka adapts immediately, querying historical growth metrics and user lead generation volumes.15:48–19:35 · Nathan as informed peer 7/10 Churn Dynamics, Multi-Year Enterprise Contracts, and LTV Latka presses into unit economics, distinguishing net negative churn from gross churn and investigating CAC payback periods. Wheeldon shares that enterprise customers frequently pay upfront for 3 to 5-year contracts.19:35–23:00 · Nathan as informed peer 4/10 Event Wi-Fi Sponsorship Strategy and Regional Footprint Latka brainstorms a conference Wi-Fi sponsorship growth strategy, while Wheeldon outlines physical access requirements and enterprise hardware costs before the mid-roll segment.23:02–25:06 · Nathan as informed peer 2/10 The Famous Five Questions with Gavin Wheeldon Latka runs through the standard Famous Five questions, and Wheeldon reflects on early business mistakes regarding cash flow versus P&L statements.1:23–4:25 · Guest teaching 1/10 Introducing Gavin Wheeldon and the Origin of Purple WiFi Latka introduces Wheeldon and probes his entrepreneurial history, pressing gently for the sale price of his previous company. Wheeldon openly shares the sixty-million-pound exit and background bootstrapping Applied Language Solutions.4:25–8:50 · Guest teaching 3/10 Enterprise Wi-Fi Evolution and Competitive Positioning Latka explores the market structure and runs live SaaS arithmetic on access points versus venue count to estimate MRR at $800k-$1M. Wheeldon clarifies the distinction between physical venues and individual access points.8:50–12:28 · Guest teaching 4/10 Channel Sales Strategy and Telecom Partner Distribution Wheeldon explains Purple's channel partner strategy and managed service integrations with global telecommunications providers. Latka questions why telcos wouldn't build the software themselves.12:28–15:48 · Guest teaching 5/10 Behavioral Analytics, Review Generation, and CRM Growth Latka mistakenly asks about hardware manufacturing costs, prompting Wheeldon to clarify that Purple is purely a cloud software overlay. Latka adapts immediately, querying historical growth metrics and user lead generation volumes.15:48–19:35 · Guest teaching 2/10 Churn Dynamics, Multi-Year Enterprise Contracts, and LTV Latka presses into unit economics, distinguishing net negative churn from gross churn and investigating CAC payback periods. Wheeldon shares that enterprise customers frequently pay upfront for 3 to 5-year contracts.19:35–23:00 · Guest teaching 3/10 Event Wi-Fi Sponsorship Strategy and Regional Footprint Latka brainstorms a conference Wi-Fi sponsorship growth strategy, while Wheeldon outlines physical access requirements and enterprise hardware costs before the mid-roll segment.23:02–25:06 · Guest teaching 1/10 The Famous Five Questions with Gavin Wheeldon Latka runs through the standard Famous Five questions, and Wheeldon reflects on early business mistakes regarding cash flow versus P&L statements.1:23–4:25 · Guest disagreement 1/10 Introducing Gavin Wheeldon and the Origin of Purple WiFi Latka introduces Wheeldon and probes his entrepreneurial history, pressing gently for the sale price of his previous company. Wheeldon openly shares the sixty-million-pound exit and background bootstrapping Applied Language Solutions.4:25–8:50 · Guest disagreement 1/10 Enterprise Wi-Fi Evolution and Competitive Positioning Latka explores the market structure and runs live SaaS arithmetic on access points versus venue count to estimate MRR at $800k-$1M. Wheeldon clarifies the distinction between physical venues and individual access points.8:50–12:28 · Guest disagreement 1/10 Channel Sales Strategy and Telecom Partner Distribution Wheeldon explains Purple's channel partner strategy and managed service integrations with global telecommunications providers. Latka questions why telcos wouldn't build the software themselves.12:28–15:48 · Guest disagreement 1/10 Behavioral Analytics, Review Generation, and CRM Growth Latka mistakenly asks about hardware manufacturing costs, prompting Wheeldon to clarify that Purple is purely a cloud software overlay. Latka adapts immediately, querying historical growth metrics and user lead generation volumes.15:48–19:35 · Guest disagreement 1/10 Churn Dynamics, Multi-Year Enterprise Contracts, and LTV Latka presses into unit economics, distinguishing net negative churn from gross churn and investigating CAC payback periods. Wheeldon shares that enterprise customers frequently pay upfront for 3 to 5-year contracts.19:35–23:00 · Guest disagreement 1/10 Event Wi-Fi Sponsorship Strategy and Regional Footprint Latka brainstorms a conference Wi-Fi sponsorship growth strategy, while Wheeldon outlines physical access requirements and enterprise hardware costs before the mid-roll segment.23:02–25:06 · Guest disagreement 0/10 The Famous Five Questions with Gavin Wheeldon Latka runs through the standard Famous Five questions, and Wheeldon reflects on early business mistakes regarding cash flow versus P&L statements.1:23–4:25 · Nathan pushing back 2/10 Introducing Gavin Wheeldon and the Origin of Purple WiFi Latka introduces Wheeldon and probes his entrepreneurial history, pressing gently for the sale price of his previous company. Wheeldon openly shares the sixty-million-pound exit and background bootstrapping Applied Language Solutions.4:25–8:50 · Nathan pushing back 2/10 Enterprise Wi-Fi Evolution and Competitive Positioning Latka explores the market structure and runs live SaaS arithmetic on access points versus venue count to estimate MRR at $800k-$1M. Wheeldon clarifies the distinction between physical venues and individual access points.8:50–12:28 · Nathan pushing back 2/10 Channel Sales Strategy and Telecom Partner Distribution Wheeldon explains Purple's channel partner strategy and managed service integrations with global telecommunications providers. Latka questions why telcos wouldn't build the software themselves.12:28–15:48 · Nathan pushing back 3/10 Behavioral Analytics, Review Generation, and CRM Growth Latka mistakenly asks about hardware manufacturing costs, prompting Wheeldon to clarify that Purple is purely a cloud software overlay. Latka adapts immediately, querying historical growth metrics and user lead generation volumes.15:48–19:35 · Nathan pushing back 3/10 Churn Dynamics, Multi-Year Enterprise Contracts, and LTV Latka presses into unit economics, distinguishing net negative churn from gross churn and investigating CAC payback periods. Wheeldon shares that enterprise customers frequently pay upfront for 3 to 5-year contracts.19:35–23:00 · Nathan pushing back 1/10 Event Wi-Fi Sponsorship Strategy and Regional Footprint Latka brainstorms a conference Wi-Fi sponsorship growth strategy, while Wheeldon outlines physical access requirements and enterprise hardware costs before the mid-roll segment.23:02–25:06 · Nathan pushing back 1/10 The Famous Five Questions with Gavin Wheeldon Latka runs through the standard Famous Five questions, and Wheeldon reflects on early business mistakes regarding cash flow versus P&L statements.

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

0:00 · Nathan 76.1% · guest 23.9%0:00 · Nathan 76.1% · guest 23.9%3:00 · Nathan 21.9% · guest 78.1%3:00 · Nathan 21.9% · guest 78.1%6:00 · Nathan 47.5% · guest 52.5%6:00 · Nathan 47.5% · guest 52.5%9:00 · Nathan 9.7% · guest 90.3%9:00 · Nathan 9.7% · guest 90.3%12:00 · Nathan 33.9% · guest 66.1%12:00 · Nathan 33.9% · guest 66.1%15:00 · Nathan 43% · guest 57%15:00 · Nathan 43% · guest 57%18:00 · Nathan 50.3% · guest 49.7%18:00 · Nathan 50.3% · guest 49.7%21:00 · Nathan 75% · guest 25%21:00 · Nathan 75% · guest 25%24:00 · Nathan 66.2% · guest 33.8%24:00 · Nathan 66.2% · guest 33.8%
Sharpest disagreement ▶ 12:28 Clarifying software vs hardware model

Wheeldon politely but firmly rejects Latka's premise about hardware manufacturing costs, emphasizing that Purple is exclusively a software overlay on top of vendors like Cisco and Ruckus.

 Hardest push from Nathan ▶ 15:51 Latka presses for gross churn figures

When Wheeldon answers a churn question with net negative churn, Latka immediately pushes back to get the actual underlying gross customer churn percentage.

 Biggest teaching moment ▶ 7:40 Explaining venue count versus access points

Wheeldon educates Latka on the technical architecture of Wi-Fi deployment, showing that a single enterprise venue like an airport consists of hundreds of access points rather than one unit.

 Nathan holds their own ▶ 8:20 Latka calculates MRR from volume and discounting

Latka showcases his SaaS financial command by factoring tiered enterprise discounting into access point counts to accurately pinpoint Purple's MRR bracket between $800k and $1M.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Introducing Gavin Wheeldon and the Origin of Purple WiFi 3112 Latka introduces Wheeldon and probes his entrepreneurial history, pressing gently for the sale price of his previous company. Wheeldon openly shares the sixty-million-pound exit and background bootstrapping Applied Language Solutions.
Enterprise Wi-Fi Evolution and Competitive Positioning 6312 Latka explores the market structure and runs live SaaS arithmetic on access points versus venue count to estimate MRR at $800k-$1M. Wheeldon clarifies the distinction between physical venues and individual access points.
Channel Sales Strategy and Telecom Partner Distribution 5412 Wheeldon explains Purple's channel partner strategy and managed service integrations with global telecommunications providers. Latka questions why telcos wouldn't build the software themselves.
Behavioral Analytics, Review Generation, and CRM Growth 5513 Latka mistakenly asks about hardware manufacturing costs, prompting Wheeldon to clarify that Purple is purely a cloud software overlay. Latka adapts immediately, querying historical growth metrics and user lead generation volumes.
Churn Dynamics, Multi-Year Enterprise Contracts, and LTV 7213 Latka presses into unit economics, distinguishing net negative churn from gross churn and investigating CAC payback periods. Wheeldon shares that enterprise customers frequently pay upfront for 3 to 5-year contracts.
Event Wi-Fi Sponsorship Strategy and Regional Footprint 4311 Latka brainstorms a conference Wi-Fi sponsorship growth strategy, while Wheeldon outlines physical access requirements and enterprise hardware costs before the mid-roll segment.
The Famous Five Questions with Gavin Wheeldon 2101 Latka runs through the standard Famous Five questions, and Wheeldon reflects on early business mistakes regarding cash flow versus P&L statements.

Statements from this episode (19)

Assertion Supported
Wheeldon: Sold previous company for over sixty million pounds sterling
“Yeah, it was over sixty million sterling as a as a broad brush.”
Gavin Wheeldon Aug 12, 2017 ▶ 3:08
Disclosure
Wheeldon: Bootstrapped previous company via credit card debt and mortgage
“Back bedroom, run up a load of credit card debt, hooked up the house and the mortgage and all those good things.”
Gavin Wheeldon Aug 12, 2017 ▶ 4:03
Assertion Contradicted
Wheeldon: Boingo dominates airports but public Wi-Fi has no single incumbent
“There was no, or then there still is no particular single owner. You've got Boingo, who are very big in, in airports. They focus pretty much exclusively in, in that area.”
Gavin Wheeldon Aug 12, 2017 ▶ 4:43
Assertion Not checkable as stated
Wheeldon: Purple WiFi is deployed across 17,000 venues globally
“We're at 17,000. That's venues, and that ranges from a coffee shop, so like your Outback Steakhouse is all run purple through to, you know, Indiana Pacers or the whole of Navy Pier you know, places that are much bigger in scale.”
Gavin Wheeldon Aug 12, 2017 ▶ 7:10
Assertion Not checkable as stated
Wheeldon: Purple WiFi provides coverage across about 40 live cities
“In fact, we cover entire cities, and we've probably got about, probably about 40 cities now live.”
Gavin Wheeldon Aug 12, 2017 ▶ 7:28
Disclosure
Wheeldon: Purple WiFi relies entirely on telco channel partners for distribution
“So, we're entirely channel based. So we sell through partners and that includes major telcos like Telstra and Oz and Singtel and you know, all the national carriers, CenturyLink in the US and NCR, you know, they all sell our solution bundled with their own equ…”
Gavin Wheeldon Aug 12, 2017 ▶ 9:49
Assertion Not checkable as stated
Wheeldon: Half of major global telcos use Purple for managed Wi-Fi
“And the fact that we have, you know, we've got half of the biggest service providers in the world, telcos, all basing their go to market around our platform.”
Gavin Wheeldon Aug 12, 2017 ▶ 11:37
Assertion Not checkable as stated
Wheeldon: Purple WiFi drives 700% CRM record growth for venues
“You know, and we typically see a 500% increase in TripAdvisor reviews. We see six, 700% in CRM record generation.”
Gavin Wheeldon Aug 12, 2017 ▶ 13:17
Disclosure
Wheeldon: Purple WiFi generated around $200,000 in first-year revenue
“It was, I think, around 200,000 dollars.”
Gavin Wheeldon Aug 12, 2017 ▶ 13:48
Disclosure
Wheeldon: Purple WiFi reached $600K-$700K in revenue in 2014
“That was up to about 607 hundred.”
Gavin Wheeldon Aug 12, 2017 ▶ 13:59
Disclosure
Wheeldon: Purple WiFi is pacing toward 140% YoY growth
“Obviously, it gets a lot harder to triple and triple every year, but we're still, you know, well over a hundred percent growth, you know, last year over this, and they're on target for, you know, probably about a 140% in this financial year.”
Gavin Wheeldon Aug 12, 2017 ▶ 14:08
Prediction Not checkable as stated
Wheeldon predicts Purple WiFi will reach $15M ARR by 2018
“2017, I think, would probably be a push. 2018, yes.”
Gavin Wheeldon Aug 12, 2017 ▶ 14:31
Disclosure
Wheeldon: Purple WiFi gross margin sits around 80%
“Gross margin, you know, as you would expect from a SaaS company, is up, you know, sort of 80%. Eighty-ish percent.”
Gavin Wheeldon Aug 12, 2017 ▶ 14:48
Disclosure
Wheeldon: Purple WiFi processes up to 500,000 user connections daily
“It's, yeah, you know, up to about half a million.”
Gavin Wheeldon Aug 12, 2017 ▶ 15:34
Assertion Not checkable as stated
Wheeldon: Purple WiFi operates at net negative revenue churn
“Churn, we're actually, certainly from a revenue perspective, we're in negative churn.”
Gavin Wheeldon Aug 12, 2017 ▶ 15:51
Assertion Not checkable as stated
Wheeldon: Purple WiFi gross customer churn is about 12% per year
“Gross is about it's about 12% per annum.”
Gavin Wheeldon Aug 12, 2017 ▶ 16:01
Disclosure
Wheeldon: Purple WiFi splits capital spend 50-50 between engineering and sales
“It's probably, it's not paid acquisition, certainly. It's probably about fifty-fifty between engineering and sales.”
Gavin Wheeldon Aug 12, 2017 ▶ 17:47
Disclosure
Wheeldon: Purple WiFi concentrates paid marketing spend on events
“Where we spend money is, is events, because that's where we've seen the success.”
Gavin Wheeldon Aug 12, 2017 ▶ 18:07
Assertion Not checkable as stated
Wheeldon: First business failed from confusing P&L with cash flow
“My twenty-year-old self was, ah, running my first business which failed because of my lack of understanding of the difference between a P&L and a cash flow statement.”
Gavin Wheeldon Aug 12, 2017 ▶ 24:50
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