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Dec 20, 2016 · 26m · top-founders

EP 513: $50M Raised, Helping 50k Customers Get Accurate Contact Data with FullContact CEO Bart Lorang

Nathan Latka · 9m spoken Bart Lorang · 8m 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, host Nathan Latka interviews FullContact CEO Bart Lorang about scaling a universal contact management platform to 50,000 paying customers and $50 million in venture funding. Lorang shares actionable insights into SaaS pricing tiers, churn, customer acquisition costs, and the transition from bootstrapping to venture-backed growth.

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 52.2% of the talking time here. How this is scored →

Nathan as informed peer 4.8 Guest teaching 3.0 Guest disagreement 1.7 Nathan pushing back 2.7
05100:0010:0020:001:15–5:05 · Nathan as informed peer 6/10 Upcoming Episode Preview: Alexander Graubner-Müller Nathan shows domain familiarity by mentioning how he discovered FullContact through reviewing general ledgers during due diligence. Bart collaboratively outlines their SaaS tiered pricing and developer API revenue streams.5:05–8:22 · Nathan as informed peer 4/10 Origins of FullContact and Bootstrapping History Nathan inquires about early revenue and the strategic decision between bootstrapping and venture capital. Bart explains his rationale for raising $50M given the massive scope of competing against tech giants.8:22–11:32 · Nathan as informed peer 6/10 Customer Segmentation, ARPU, and MRR Scale Nathan attempts to multiply 50,000 customers by a $200 ARPU to estimate $10M+ MRR. Bart rejects the direct arithmetic due to heavy segmentation and declines to disclose exact numbers beyond being well over seven figures.11:32–14:15 · Nathan as informed peer 6/10 SaaS Valuation Multiples and IPO ARR Benchmarks Bart explains that modern SaaS IPOs require $150M ARR and corrects Nathan regarding HubSpot's IPO revenue figure. Nathan explores customer acquisition cost ranges and low churn metrics.14:15–16:42 · Nathan as informed peer 4/10 Global Team Distribution, Series C, and Competitive Landscape Bart details their Series C round, valuation multiples for high-growth SaaS, and competition. Nathan asks for clarification on what the MDM acronym stands for, which Bart clarifies as master data management.16:42–20:03 · Nathan as informed peer 3/10 FullContact Contact Info and Acuity Scheduling Mid-Roll Nathan delivers a mid-roll sponsor read for Acuity Scheduling, followed by the rapid-fire Famous Five round and an outro summary.1:15–5:05 · Guest teaching 2/10 Upcoming Episode Preview: Alexander Graubner-Müller Nathan shows domain familiarity by mentioning how he discovered FullContact through reviewing general ledgers during due diligence. Bart collaboratively outlines their SaaS tiered pricing and developer API revenue streams.5:05–8:22 · Guest teaching 3/10 Origins of FullContact and Bootstrapping History Nathan inquires about early revenue and the strategic decision between bootstrapping and venture capital. Bart explains his rationale for raising $50M given the massive scope of competing against tech giants.8:22–11:32 · Guest teaching 3/10 Customer Segmentation, ARPU, and MRR Scale Nathan attempts to multiply 50,000 customers by a $200 ARPU to estimate $10M+ MRR. Bart rejects the direct arithmetic due to heavy segmentation and declines to disclose exact numbers beyond being well over seven figures.11:32–14:15 · Guest teaching 5/10 SaaS Valuation Multiples and IPO ARR Benchmarks Bart explains that modern SaaS IPOs require $150M ARR and corrects Nathan regarding HubSpot's IPO revenue figure. Nathan explores customer acquisition cost ranges and low churn metrics.14:15–16:42 · Guest teaching 4/10 Global Team Distribution, Series C, and Competitive Landscape Bart details their Series C round, valuation multiples for high-growth SaaS, and competition. Nathan asks for clarification on what the MDM acronym stands for, which Bart clarifies as master data management.16:42–20:03 · Guest teaching 1/10 FullContact Contact Info and Acuity Scheduling Mid-Roll Nathan delivers a mid-roll sponsor read for Acuity Scheduling, followed by the rapid-fire Famous Five round and an outro summary.1:15–5:05 · Guest disagreement 1/10 Upcoming Episode Preview: Alexander Graubner-Müller Nathan shows domain familiarity by mentioning how he discovered FullContact through reviewing general ledgers during due diligence. Bart collaboratively outlines their SaaS tiered pricing and developer API revenue streams.5:05–8:22 · Guest disagreement 1/10 Origins of FullContact and Bootstrapping History Nathan inquires about early revenue and the strategic decision between bootstrapping and venture capital. Bart explains his rationale for raising $50M given the massive scope of competing against tech giants.8:22–11:32 · Guest disagreement 4/10 Customer Segmentation, ARPU, and MRR Scale Nathan attempts to multiply 50,000 customers by a $200 ARPU to estimate $10M+ MRR. Bart rejects the direct arithmetic due to heavy segmentation and declines to disclose exact numbers beyond being well over seven figures.11:32–14:15 · Guest disagreement 2/10 SaaS Valuation Multiples and IPO ARR Benchmarks Bart explains that modern SaaS IPOs require $150M ARR and corrects Nathan regarding HubSpot's IPO revenue figure. Nathan explores customer acquisition cost ranges and low churn metrics.14:15–16:42 · Guest disagreement 1/10 Global Team Distribution, Series C, and Competitive Landscape Bart details their Series C round, valuation multiples for high-growth SaaS, and competition. Nathan asks for clarification on what the MDM acronym stands for, which Bart clarifies as master data management.16:42–20:03 · Guest disagreement 1/10 FullContact Contact Info and Acuity Scheduling Mid-Roll Nathan delivers a mid-roll sponsor read for Acuity Scheduling, followed by the rapid-fire Famous Five round and an outro summary.1:15–5:05 · Nathan pushing back 2/10 Upcoming Episode Preview: Alexander Graubner-Müller Nathan shows domain familiarity by mentioning how he discovered FullContact through reviewing general ledgers during due diligence. Bart collaboratively outlines their SaaS tiered pricing and developer API revenue streams.5:05–8:22 · Nathan pushing back 2/10 Origins of FullContact and Bootstrapping History Nathan inquires about early revenue and the strategic decision between bootstrapping and venture capital. Bart explains his rationale for raising $50M given the massive scope of competing against tech giants.8:22–11:32 · Nathan pushing back 6/10 Customer Segmentation, ARPU, and MRR Scale Nathan attempts to multiply 50,000 customers by a $200 ARPU to estimate $10M+ MRR. Bart rejects the direct arithmetic due to heavy segmentation and declines to disclose exact numbers beyond being well over seven figures.11:32–14:15 · Nathan pushing back 3/10 SaaS Valuation Multiples and IPO ARR Benchmarks Bart explains that modern SaaS IPOs require $150M ARR and corrects Nathan regarding HubSpot's IPO revenue figure. Nathan explores customer acquisition cost ranges and low churn metrics.14:15–16:42 · Nathan pushing back 2/10 Global Team Distribution, Series C, and Competitive Landscape Bart details their Series C round, valuation multiples for high-growth SaaS, and competition. Nathan asks for clarification on what the MDM acronym stands for, which Bart clarifies as master data management.16:42–20:03 · Nathan pushing back 1/10 FullContact Contact Info and Acuity Scheduling Mid-Roll Nathan delivers a mid-roll sponsor read for Acuity Scheduling, followed by the rapid-fire Famous Five round and an outro summary.

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

0:00 · Nathan 86.8% · guest 13.2%0:00 · Nathan 86.8% · guest 13.2%3:00 · Nathan 34.2% · guest 65.8%3:00 · Nathan 34.2% · guest 65.8%6:00 · Nathan 38.4% · guest 61.6%6:00 · Nathan 38.4% · guest 61.6%9:00 · Nathan 29.2% · guest 70.8%9:00 · Nathan 29.2% · guest 70.8%12:00 · Nathan 48.2% · guest 51.8%12:00 · Nathan 48.2% · guest 51.8%15:00 · Nathan 55.2% · guest 44.8%15:00 · Nathan 55.2% · guest 44.8%18:00 · Nathan 77.7% · guest 22.3%18:00 · Nathan 77.7% · guest 22.3%21:00 · Nathan 0% · guest 0%21:00 · Nathan 0% · guest 0%24:00 · Nathan 0% · guest 0%24:00 · Nathan 0% · guest 0%
Sharpest disagreement ▶ 11:05 Bart rejects Nathan's MRR estimation formula

Bart directly challenges Nathan's simplified calculation of over $10M MRR and refuses to reveal precise revenue figures beyond seven figures.

 Hardest push from Nathan ▶ 10:55 Nathan corners Bart into an MRR range

Nathan refuses to let the revenue metric drop after Bart's vague answers, pushing him into confirming a $1M to $10M range.

 Biggest teaching moment ▶ 12:25 Bart corrects Nathan on HubSpot's IPO scale

When Nathan claims HubSpot IPO'd around $50M ARR, Bart steps in to correct the estimate to approximately $100M ARR.

 Nathan holds their own ▶ 13:52 Nathan analyzes the wide CAC variance across SaaS

Nathan demonstrates his extensive SaaS benchmarks expertise by highlighting the rarity of a company operating across a $50 to $50,000 CAC spectrum.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Upcoming Episode Preview: Alexander Graubner-Müller 6212 Nathan shows domain familiarity by mentioning how he discovered FullContact through reviewing general ledgers during due diligence. Bart collaboratively outlines their SaaS tiered pricing and developer API revenue streams.
Origins of FullContact and Bootstrapping History 4312 Nathan inquires about early revenue and the strategic decision between bootstrapping and venture capital. Bart explains his rationale for raising $50M given the massive scope of competing against tech giants.
Customer Segmentation, ARPU, and MRR Scale 6346 Nathan attempts to multiply 50,000 customers by a $200 ARPU to estimate $10M+ MRR. Bart rejects the direct arithmetic due to heavy segmentation and declines to disclose exact numbers beyond being well over seven figures.
SaaS Valuation Multiples and IPO ARR Benchmarks 6523 Bart explains that modern SaaS IPOs require $150M ARR and corrects Nathan regarding HubSpot's IPO revenue figure. Nathan explores customer acquisition cost ranges and low churn metrics.
Global Team Distribution, Series C, and Competitive Landscape 4412 Bart details their Series C round, valuation multiples for high-growth SaaS, and competition. Nathan asks for clarification on what the MDM acronym stands for, which Bart clarifies as master data management.
FullContact Contact Info and Acuity Scheduling Mid-Roll 3111 Nathan delivers a mid-roll sponsor read for Acuity Scheduling, followed by the rapid-fire Famous Five round and an outro summary.

Statements from this episode (14)

Assertion Not checkable as stated
Lorang: Developer access is FullContact's largest revenue stream
“So the developer access is actually our largest revenue stream. We have over 40,000 developer partners that have plugged full contact into their applications.”
Bart Lorang Dec 20, 2016 ▶ 3:17
Disclosure
Lorang: HubSpot integrates FullContact infrastructure into its applications
“So yeah, I mean, we've got like for example, HubSpot uses us and plugs in HubSpot into full contact infrastructure to provide contact sort of the full contact information about people in the HubSpot applications.”
Bart Lorang Dec 20, 2016 ▶ 4:32
Insight
Lorang: Major SaaS platforms lack intelligent contact management layers
“All the SaaS applications focus on something else as the core transaction, right? MailChimp focuses on sending emails. Salesforce focuses on sort of opportunities. NetSuite focuses on financial general ledger, and contacts are sort of like, oh, we have to have…”
Bart Lorang Dec 20, 2016 ▶ 5:30
Assertion Supported
Bart Lorang: FullContact Has Raised About $50M in Venture Capital
“Full contact. We definitely fundraised. We went to venture capital route because I sort of looked at the size of the problem. I said, Whoa, this is way too big to bootstrap. That was our assessment and we've raised about fifty million dollars today.”
Bart Lorang Dec 20, 2016 ▶ 6:54
Assertion Not checkable as stated
Lorang: FullContact has over 50,000 paying customers
“Above 50,000 customers, yes.”
Bart Lorang Dec 20, 2016 ▶ 8:53
Assertion Not checkable as stated
Lorang: FullContact enterprise accounts pay up to $20,000 monthly
“And then we start getting into the larger developers and larger enterprise accounts that pay us anywhere from, you know, a hundred dollars a month to 20,000 dollars a month.”
Bart Lorang Dec 20, 2016 ▶ 10:23
Assertion Not checkable as stated
Lorang: FullContact generates well over $1 million in monthly recurring revenue
“Well, we're well over seven figures.”
Bart Lorang Dec 20, 2016 ▶ 11:16
Opinion
Lorang: Enterprise SaaS companies need $150M ARR to go public
“I think you have to be a hundred and fifty million AR right now.”
Bart Lorang Dec 20, 2016 ▶ 11:39
Insight
Lorang: Sub-$1B public companies fall into an analyst dead zone
“I think you've got to be well more than a billion dollar market cap to be, and the reason is because you've got to be above a billion dollar market cap, otherwise analysts won't cover you and get sort of a dead zone.”
Bart Lorang Dec 20, 2016 ▶ 12:07
Assertion Supported
Lorang: HubSpot had around $100M ARR at IPO
“Yeah, they were, no, they were, I think they were about a hundred million ARR.”
Bart Lorang Dec 20, 2016 ▶ 12:32
Assertion Not checkable as stated
Lorang: FullContact maintains under 2% gross churn and net negative churn
“So our gross turn is actually quite low. It's less than a two percent. And our net turn is actually negative. So we have expansion of our customers.”
Bart Lorang Dec 20, 2016 ▶ 12:53
Disclosure
Lorang: FullContact's customer acquisition costs range from $50 to $60,000
“We have such a wide range. So if I look at the low end, we're willing to pay 50 dollars to acquire, you know, a premium customer. At the high end, when we talk about some enterprise accounts, we're willing to pay 50 or 60,000 dollars.”
Bart Lorang Dec 20, 2016 ▶ 13:38
Assertion Not checkable as stated
Lorang: FullContact has grown over 100% year-over-year every year
“We've always go to over a hundred percent every year.”
Bart Lorang Dec 20, 2016 ▶ 15:23
Insight
Lorang: SaaS companies growing over 100% YoY command 8-12x revenue multiples
“So you get basically somewhere in the eight to 12 X multiplier effect on your revenues on your forward looking revenues on a pre money basis.”
Bart Lorang Dec 20, 2016 ▶ 15:26
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