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Mar 10, 2017 · 20m · top-founders

EP 594: Klipfolio Raises $12M on $45M+ PreMoney Valuation with 7000 Customers, $500k+ in MRR Helping With Business Dashboards with CEO ALlan Wille

Allan Wille · 10m spoken Nathan Latka · 7m spoken
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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, host Nathan Latka interviews Klipfolio CEO Allan Wille to break down the metrics behind the company's $500,000 monthly recurring revenue and the negotiation tactics used to secure a $12 million Series B inside round.

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 41% of the talking time here. How this is scored →

Nathan as informed peer 6.2 Guest teaching 2.8 Guest disagreement 1.4 Nathan pushing back 3.6
05100:0010:0020:002:54–7:33 · Nathan as informed peer 7/10 Announcing Klipfolio's $12 Million Series B Funding Round Latka rapidly drills through Klipfolio's SaaS metrics, recalling previous episode benchmarks like churn, MRR, ARPU, and LTV. Wille provides straightforward updates and mildly clarifies his lifetime value timeframe.7:35–10:35 · Nathan as informed peer 6/10 Investment Priorities: Product Development and Organic Content Strategy Latka catches an ambiguity regarding whether product salaries are factored into CAC and redirects Wille after an audio glitch. He also references peer metrics from PageCloud to contextualize organic content marketing.10:35–13:25 · Nathan as informed peer 4/10 The Preemptive Inside Round Offer from OMERS Ventures Wille walks through the mechanics and strategic dilemmas of receiving a preemptive Series B inside round offer from OMERS Ventures while on a roadshow. Latka listens attentively, only chiming in with brief clarifying checks.13:25–15:46 · Nathan as informed peer 6/10 Creating Market Leverage to Negotiate Valuation Latka presses Wille hard to quantify the 'lowball' initial offer in terms of ARR multiples and recalls Wille's past valuation target of $50-60M. Wille pushes back against revealing exact dollar figures but agrees to ARR multiple ranges.15:46–18:01 · Nathan as informed peer 8/10 Analyzing Key Term Sheet Conditions: Anti-Dilution and Liquidation When Wille mentions his deal terms, Latka immediately steps in to authoritatively define 1x liquidation preference and explain how expiring anti-dilution protects common shareholders.2:54–7:33 · Guest teaching 2/10 Announcing Klipfolio's $12 Million Series B Funding Round Latka rapidly drills through Klipfolio's SaaS metrics, recalling previous episode benchmarks like churn, MRR, ARPU, and LTV. Wille provides straightforward updates and mildly clarifies his lifetime value timeframe.7:35–10:35 · Guest teaching 3/10 Investment Priorities: Product Development and Organic Content Strategy Latka catches an ambiguity regarding whether product salaries are factored into CAC and redirects Wille after an audio glitch. He also references peer metrics from PageCloud to contextualize organic content marketing.10:35–13:25 · Guest teaching 6/10 The Preemptive Inside Round Offer from OMERS Ventures Wille walks through the mechanics and strategic dilemmas of receiving a preemptive Series B inside round offer from OMERS Ventures while on a roadshow. Latka listens attentively, only chiming in with brief clarifying checks.13:25–15:46 · Guest teaching 2/10 Creating Market Leverage to Negotiate Valuation Latka presses Wille hard to quantify the 'lowball' initial offer in terms of ARR multiples and recalls Wille's past valuation target of $50-60M. Wille pushes back against revealing exact dollar figures but agrees to ARR multiple ranges.15:46–18:01 · Guest teaching 1/10 Analyzing Key Term Sheet Conditions: Anti-Dilution and Liquidation When Wille mentions his deal terms, Latka immediately steps in to authoritatively define 1x liquidation preference and explain how expiring anti-dilution protects common shareholders.2:54–7:33 · Guest disagreement 1/10 Announcing Klipfolio's $12 Million Series B Funding Round Latka rapidly drills through Klipfolio's SaaS metrics, recalling previous episode benchmarks like churn, MRR, ARPU, and LTV. Wille provides straightforward updates and mildly clarifies his lifetime value timeframe.7:35–10:35 · Guest disagreement 1/10 Investment Priorities: Product Development and Organic Content Strategy Latka catches an ambiguity regarding whether product salaries are factored into CAC and redirects Wille after an audio glitch. He also references peer metrics from PageCloud to contextualize organic content marketing.10:35–13:25 · Guest disagreement 1/10 The Preemptive Inside Round Offer from OMERS Ventures Wille walks through the mechanics and strategic dilemmas of receiving a preemptive Series B inside round offer from OMERS Ventures while on a roadshow. Latka listens attentively, only chiming in with brief clarifying checks.13:25–15:46 · Guest disagreement 3/10 Creating Market Leverage to Negotiate Valuation Latka presses Wille hard to quantify the 'lowball' initial offer in terms of ARR multiples and recalls Wille's past valuation target of $50-60M. Wille pushes back against revealing exact dollar figures but agrees to ARR multiple ranges.15:46–18:01 · Guest disagreement 1/10 Analyzing Key Term Sheet Conditions: Anti-Dilution and Liquidation When Wille mentions his deal terms, Latka immediately steps in to authoritatively define 1x liquidation preference and explain how expiring anti-dilution protects common shareholders.2:54–7:33 · Nathan pushing back 3/10 Announcing Klipfolio's $12 Million Series B Funding Round Latka rapidly drills through Klipfolio's SaaS metrics, recalling previous episode benchmarks like churn, MRR, ARPU, and LTV. Wille provides straightforward updates and mildly clarifies his lifetime value timeframe.7:35–10:35 · Nathan pushing back 4/10 Investment Priorities: Product Development and Organic Content Strategy Latka catches an ambiguity regarding whether product salaries are factored into CAC and redirects Wille after an audio glitch. He also references peer metrics from PageCloud to contextualize organic content marketing.10:35–13:25 · Nathan pushing back 2/10 The Preemptive Inside Round Offer from OMERS Ventures Wille walks through the mechanics and strategic dilemmas of receiving a preemptive Series B inside round offer from OMERS Ventures while on a roadshow. Latka listens attentively, only chiming in with brief clarifying checks.13:25–15:46 · Nathan pushing back 6/10 Creating Market Leverage to Negotiate Valuation Latka presses Wille hard to quantify the 'lowball' initial offer in terms of ARR multiples and recalls Wille's past valuation target of $50-60M. Wille pushes back against revealing exact dollar figures but agrees to ARR multiple ranges.15:46–18:01 · Nathan pushing back 3/10 Analyzing Key Term Sheet Conditions: Anti-Dilution and Liquidation When Wille mentions his deal terms, Latka immediately steps in to authoritatively define 1x liquidation preference and explain how expiring anti-dilution protects common shareholders.

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

0:00 · Nathan 95% · guest 5%0:00 · Nathan 95% · guest 5%3:00 · Nathan 28.5% · guest 71.5%3:00 · Nathan 28.5% · guest 71.5%6:00 · Nathan 25.8% · guest 74.2%6:00 · Nathan 25.8% · guest 74.2%9:00 · Nathan 22% · guest 78%9:00 · Nathan 22% · guest 78%12:00 · Nathan 9.6% · guest 90.4%12:00 · Nathan 9.6% · guest 90.4%15:00 · Nathan 19.7% · guest 80.3%15:00 · Nathan 19.7% · guest 80.3%18:00 · Nathan 94.7% · guest 5.3%18:00 · Nathan 94.7% · guest 5.3%
Sharpest disagreement ▶ 13:28 Wille declines disclosing exact dollar figures

Wille sets a firm boundary against revealing private dollar valuations when Latka asks what OMERS initially offered, conceding only to discuss ARR multiple ranges.

 Hardest push from Nathan ▶ 13:37 Latka drills down on lowball multiple definition

Latka refuses to let Wille gloss over vague descriptions of the initial offer, pressing specifically for whether the lowball multiple was 3x, 4x, or 5x ARR.

 Biggest teaching moment ▶ 12:05 Wille explains the fiduciary dilemma of preemptive inside rounds

Wille educates listeners and the host on how inside rounds bypass grueling roadshows but introduce board-level governance challenges regarding market price discovery.

 Nathan holds their own ▶ 16:54 Latka defines liquidation preferences and cap table impact

Latka actively demonstrates venture expertise by interrupting to explain how a 1x liquidation preference works and how two-year expiring anti-dilution safeguards common stock.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Announcing Klipfolio's $12 Million Series B Funding Round 7213 Latka rapidly drills through Klipfolio's SaaS metrics, recalling previous episode benchmarks like churn, MRR, ARPU, and LTV. Wille provides straightforward updates and mildly clarifies his lifetime value timeframe.
Investment Priorities: Product Development and Organic Content Strategy 6314 Latka catches an ambiguity regarding whether product salaries are factored into CAC and redirects Wille after an audio glitch. He also references peer metrics from PageCloud to contextualize organic content marketing.
The Preemptive Inside Round Offer from OMERS Ventures 4612 Wille walks through the mechanics and strategic dilemmas of receiving a preemptive Series B inside round offer from OMERS Ventures while on a roadshow. Latka listens attentively, only chiming in with brief clarifying checks.
Creating Market Leverage to Negotiate Valuation 6236 Latka presses Wille hard to quantify the 'lowball' initial offer in terms of ARR multiples and recalls Wille's past valuation target of $50-60M. Wille pushes back against revealing exact dollar figures but agrees to ARR multiple ranges.
Analyzing Key Term Sheet Conditions: Anti-Dilution and Liquidation 8113 When Wille mentions his deal terms, Latka immediately steps in to authoritatively define 1x liquidation preference and explain how expiring anti-dilution protects common shareholders.

Statements from this episode (11)

Assertion Supported
Wille: Klipfolio raised a $12M Series B funding round
“So in fall, we went out to market and we came home with a twelve million dollar series B raise.”
Allan Wille Mar 10, 2017 ▶ 3:15
Assertion Not checkable as stated
Klipfolio reaches 7,000 paying customers, doubling its customer base annually
“7000. That's right. And that's about it. That's about a two X every year so far.”
Allan Wille Mar 10, 2017 ▶ 4:41
Assertion Not checkable as stated
Klipfolio surpasses $500k in monthly recurring revenue
“Yes, we have.”
Allan Wille Mar 10, 2017 ▶ 4:56
Prediction Not checkable as stated
Klipfolio aims to double MRR in 2017
“We're shooting for another two X and we feel very confident. Yep. That's right. So that is, that's the target that we're trying to hit.”
Allan Wille Mar 10, 2017 ▶ 5:02
Assertion Not checkable as stated
Klipfolio CAC sits around $700
“Yeah, exactly. So CAC is still around 700 dollars.”
Allan Wille Mar 10, 2017 ▶ 6:37
Assertion Not checkable as stated
Klipfolio reports $2,300 LTV across 23-month lifespan
“So the 23 is right. The 34 was always more like 23 months.”
Allan Wille Mar 10, 2017 ▶ 7:27
Disclosure
Klipfolio will focus marketing spend on SEO rather than paid advertising
“And then from the marketing side, we're actually not going to be pouring a lot of money into paid advertising. We're actually going to put a lot of effort into the content strategy, and we've had tons and tons of luck, and we know other small and mid-sized Foc…”
Allan Wille Mar 10, 2017 ▶ 9:07
Disclosure
OMERS Ventures offered to preemptively lead an all-insider Series B
“I got a call from one of our insiders. This is from Omer's Ventures in Toronto, and Omer's is a huge fund as well. Really good guys. And they said, okay, we like your business. Let's make this, you know, short and simple. What would you say if we did an inside…”
Allan Wille Mar 10, 2017 ▶ 11:52
Disclosure
Klipfolio's initial insider Series B offer was a 5x ARR multiple
“So, so the lowball was, I think it was somewhere in the neighborhood of four to five, I think it was closer to five, five times ARR multiple.”
Allan Wille Mar 10, 2017 ▶ 13:47
Disclosure
Klipfolio raised its Series B at a 6x to 8x ARR multiple
“Yeah, we got, you know, in that sort of six, seven, eight percent or times multiple.”
Allan Wille Mar 10, 2017 ▶ 16:08
Disclosure
Klipfolio secured a rare two-year expiring anti-dilution clause in its Series B
“The other thing that was super cool and they did the same thing, and this is pretty rare, but again, it sort of speaks to the trust and the type of investors there was an anti-dilution clause that expires after two years.”
Allan Wille Mar 10, 2017 ▶ 17:14
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