Oct 1, 2016 · 22m · top-founders

EP 434: Top SaaS Planning Tool Hits $600k in MRR, 1800 Customers, $13M Raised, Growing Fast With CEO Liz Pearce

Nathan Latka · 11m spoken Liz Pearce · 8m spoken
0:00 / 0:00

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In Episode 434 of The Top Podcast, host Nathan Latka interviews Liz Pearce, CEO of Liquid Planner, analyzing the company's growth to $7 million in revenue, its dynamic project management engine, and its strategic path toward a $10 million run rate.

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 58.3% of the talking time here. How this is scored →

Nathan as informed peer 5.0 Guest teaching 2.9 Guest disagreement 2.1 Nathan pushing back 3.1
05100:0010:0020:000:49–3:09 · Nathan as informed peer 5/10 Send Later Acquisition and Toptal Partnership Nathan introduces the guest, outlines her background, and quickly analogizes LiquidPlanner to a sexy Gantt chart, which Pearce readily agrees with.3:10–5:11 · Nathan as informed peer 6/10 SaaS Pricing Model and Tiered Packaging Nathan breaks down their pricing tiers and probes into how Pearce transitioned from a freelance marketing contractor into the CEO role.5:11–9:13 · Nathan as informed peer 7/10 Venture Capital Fundraising and Founder Transition Dynamics Nathan calculates MRR run rates and queries cap table issues with departed founders, while Pearce explains their strategy of moving upmarket to enterprise tiers.9:13–12:06 · Nathan as informed peer 7/10 Gross Churn Dynamics and CAC-to-LTV Ratios Nathan drills down on CAC-to-LTV metrics and unit economics. When Nathan asserts she mentioned a 20% enterprise mix, Pearce playfully corrects him that she never said that.12:06–14:55 · Nathan as informed peer 6/10 Capital Strategy and Approaching Cash-Flow Break-Even Nathan insists that given their Series B timing they must be raising or selling, which Pearce denies by pointing out they are nearing cash flow break-even. Nathan also pushes on non-founder equity motivation.14:55–17:19 · Nathan as informed peer 5/10 2016 Revenue Target and Go-To-Market Channels Pearce jokingly calls out Nathan for only focusing on spreadsheets and ignoring the human and leadership aspects of management, offering to rewrite his interview questions.17:21–19:24 · Nathan as informed peer 0/10 Sponsor Segment: Toptal Freelance Developer Network Nathan reads sponsor promos for Toptal and HostGator in a solo ad block.19:24–20:36 · Nathan as informed peer 4/10 The Famous Five Rapid-Fire Questions Nathan runs through the Famous Five rapid-fire questions, where Pearce playfully deflects naming her top customer's CEO.0:49–3:09 · Guest teaching 2/10 Send Later Acquisition and Toptal Partnership Nathan introduces the guest, outlines her background, and quickly analogizes LiquidPlanner to a sexy Gantt chart, which Pearce readily agrees with.3:10–5:11 · Guest teaching 3/10 SaaS Pricing Model and Tiered Packaging Nathan breaks down their pricing tiers and probes into how Pearce transitioned from a freelance marketing contractor into the CEO role.5:11–9:13 · Guest teaching 3/10 Venture Capital Fundraising and Founder Transition Dynamics Nathan calculates MRR run rates and queries cap table issues with departed founders, while Pearce explains their strategy of moving upmarket to enterprise tiers.9:13–12:06 · Guest teaching 4/10 Gross Churn Dynamics and CAC-to-LTV Ratios Nathan drills down on CAC-to-LTV metrics and unit economics. When Nathan asserts she mentioned a 20% enterprise mix, Pearce playfully corrects him that she never said that.12:06–14:55 · Guest teaching 4/10 Capital Strategy and Approaching Cash-Flow Break-Even Nathan insists that given their Series B timing they must be raising or selling, which Pearce denies by pointing out they are nearing cash flow break-even. Nathan also pushes on non-founder equity motivation.14:55–17:19 · Guest teaching 5/10 2016 Revenue Target and Go-To-Market Channels Pearce jokingly calls out Nathan for only focusing on spreadsheets and ignoring the human and leadership aspects of management, offering to rewrite his interview questions.17:21–19:24 · Guest teaching 0/10 Sponsor Segment: Toptal Freelance Developer Network Nathan reads sponsor promos for Toptal and HostGator in a solo ad block.19:24–20:36 · Guest teaching 2/10 The Famous Five Rapid-Fire Questions Nathan runs through the Famous Five rapid-fire questions, where Pearce playfully deflects naming her top customer's CEO.0:49–3:09 · Guest disagreement 1/10 Send Later Acquisition and Toptal Partnership Nathan introduces the guest, outlines her background, and quickly analogizes LiquidPlanner to a sexy Gantt chart, which Pearce readily agrees with.3:10–5:11 · Guest disagreement 1/10 SaaS Pricing Model and Tiered Packaging Nathan breaks down their pricing tiers and probes into how Pearce transitioned from a freelance marketing contractor into the CEO role.5:11–9:13 · Guest disagreement 2/10 Venture Capital Fundraising and Founder Transition Dynamics Nathan calculates MRR run rates and queries cap table issues with departed founders, while Pearce explains their strategy of moving upmarket to enterprise tiers.9:13–12:06 · Guest disagreement 3/10 Gross Churn Dynamics and CAC-to-LTV Ratios Nathan drills down on CAC-to-LTV metrics and unit economics. When Nathan asserts she mentioned a 20% enterprise mix, Pearce playfully corrects him that she never said that.12:06–14:55 · Guest disagreement 4/10 Capital Strategy and Approaching Cash-Flow Break-Even Nathan insists that given their Series B timing they must be raising or selling, which Pearce denies by pointing out they are nearing cash flow break-even. Nathan also pushes on non-founder equity motivation.14:55–17:19 · Guest disagreement 4/10 2016 Revenue Target and Go-To-Market Channels Pearce jokingly calls out Nathan for only focusing on spreadsheets and ignoring the human and leadership aspects of management, offering to rewrite his interview questions.17:21–19:24 · Guest disagreement 0/10 Sponsor Segment: Toptal Freelance Developer Network Nathan reads sponsor promos for Toptal and HostGator in a solo ad block.19:24–20:36 · Guest disagreement 2/10 The Famous Five Rapid-Fire Questions Nathan runs through the Famous Five rapid-fire questions, where Pearce playfully deflects naming her top customer's CEO.0:49–3:09 · Nathan pushing back 2/10 Send Later Acquisition and Toptal Partnership Nathan introduces the guest, outlines her background, and quickly analogizes LiquidPlanner to a sexy Gantt chart, which Pearce readily agrees with.3:10–5:11 · Nathan pushing back 3/10 SaaS Pricing Model and Tiered Packaging Nathan breaks down their pricing tiers and probes into how Pearce transitioned from a freelance marketing contractor into the CEO role.5:11–9:13 · Nathan pushing back 4/10 Venture Capital Fundraising and Founder Transition Dynamics Nathan calculates MRR run rates and queries cap table issues with departed founders, while Pearce explains their strategy of moving upmarket to enterprise tiers.9:13–12:06 · Nathan pushing back 5/10 Gross Churn Dynamics and CAC-to-LTV Ratios Nathan drills down on CAC-to-LTV metrics and unit economics. When Nathan asserts she mentioned a 20% enterprise mix, Pearce playfully corrects him that she never said that.12:06–14:55 · Nathan pushing back 6/10 Capital Strategy and Approaching Cash-Flow Break-Even Nathan insists that given their Series B timing they must be raising or selling, which Pearce denies by pointing out they are nearing cash flow break-even. Nathan also pushes on non-founder equity motivation.14:55–17:19 · Nathan pushing back 3/10 2016 Revenue Target and Go-To-Market Channels Pearce jokingly calls out Nathan for only focusing on spreadsheets and ignoring the human and leadership aspects of management, offering to rewrite his interview questions.17:21–19:24 · Nathan pushing back 0/10 Sponsor Segment: Toptal Freelance Developer Network Nathan reads sponsor promos for Toptal and HostGator in a solo ad block.19:24–20:36 · Nathan pushing back 2/10 The Famous Five Rapid-Fire Questions Nathan runs through the Famous Five rapid-fire questions, where Pearce playfully deflects naming her top customer's CEO.

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

0:00 · Nathan 77.4% · guest 22.6%0:00 · Nathan 77.4% · guest 22.6%3:00 · Nathan 38.3% · guest 61.7%3:00 · Nathan 38.3% · guest 61.7%6:00 · Nathan 33.4% · guest 66.6%6:00 · Nathan 33.4% · guest 66.6%9:00 · Nathan 46.8% · guest 53.2%9:00 · Nathan 46.8% · guest 53.2%12:00 · Nathan 50.6% · guest 49.4%12:00 · Nathan 50.6% · guest 49.4%15:00 · Nathan 56.4% · guest 43.6%15:00 · Nathan 56.4% · guest 43.6%18:00 · Nathan 87.2% · guest 12.8%18:00 · Nathan 87.2% · guest 12.8%21:00 · Nathan 99% · guest 1%21:00 · Nathan 99% · guest 1%
Sharpest disagreement ▶ 12:17 Rejecting binary fundraising assumption

Pearce flatly rejects Nathan's assumption that she is either raising a round or in buyout talks, pointing out they are approaching break-even.

Hardest push from Nathan ▶ 12:29 Pressing on fundraising cycle timing

Nathan repeatedly pushes on Pearce, insisting that 12 to 18 months post-Series B standardly requires an acquisition or new funding round.

Biggest teaching moment ▶ 16:16 Schooling on leadership and the human side

Pearce playfully takes control of the interview dynamic by pointing out Nathan's total omission of team leadership and organizational soft skills.

Nathan holds their own ▶ 10:34 Calculating LTV and CAC economics

Nathan rapidly estimates customer LTV ranges between $15k and $25k based on rough churn and tenure data to derive CAC thresholds.

the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Send Later Acquisition and Toptal Partnership 5212 Nathan introduces the guest, outlines her background, and quickly analogizes LiquidPlanner to a sexy Gantt chart, which Pearce readily agrees with.
SaaS Pricing Model and Tiered Packaging 6313 Nathan breaks down their pricing tiers and probes into how Pearce transitioned from a freelance marketing contractor into the CEO role.
Venture Capital Fundraising and Founder Transition Dynamics 7324 Nathan calculates MRR run rates and queries cap table issues with departed founders, while Pearce explains their strategy of moving upmarket to enterprise tiers.
Gross Churn Dynamics and CAC-to-LTV Ratios 7435 Nathan drills down on CAC-to-LTV metrics and unit economics. When Nathan asserts she mentioned a 20% enterprise mix, Pearce playfully corrects him that she never said that.
Capital Strategy and Approaching Cash-Flow Break-Even 6446 Nathan insists that given their Series B timing they must be raising or selling, which Pearce denies by pointing out they are nearing cash flow break-even. Nathan also pushes on non-founder equity motivation.
2016 Revenue Target and Go-To-Market Channels 5543 Pearce jokingly calls out Nathan for only focusing on spreadsheets and ignoring the human and leadership aspects of management, offering to rewrite his interview questions.
Sponsor Segment: Toptal Freelance Developer Network 0000 Nathan reads sponsor promos for Toptal and HostGator in a solo ad block.
The Famous Five Rapid-Fire Questions 4222 Nathan runs through the Famous Five rapid-fire questions, where Pearce playfully deflects naming her top customer's CEO.

Statements from this episode (14)

Assertion Not checkable as stated
Pearce: LiquidPlanner Generated $35,000 in First-Year Revenue
“I think it was 35,000 dollars.”
Liz Pearce Oct 1, 2016 ▶ 3:54
Assertion Supported
Pearce: LiquidPlanner Raised $3M Angel Round and $10M Series B
“We raised about a three million dollar angel run that lasted us five years, and then we raised a series B about two years ago for ten million.”
Liz Pearce Oct 1, 2016 ▶ 5:14
Assertion Not checkable as stated
Pearce Raised LiquidPlanner's $10M Series B; Former CEO Raised Angel
“I raised a series B, so I raised the ten million, and then the former CEO raised the angel round.”
Liz Pearce Oct 1, 2016 ▶ 5:30
Assertion Not checkable as stated
Pearce: LiquidPlanner Generated Around $7M in 2015 Revenue
“I think we were just I should know this number off the top of my head. Just around seven.”
Liz Pearce Oct 1, 2016 ▶ 6:29
Assertion Not checkable as stated
Pearce: LiquidPlanner Historically Generated Under $10K ARR Per Customer
“We've had kind of a transactional business for the most part, sub-ten K annual recurring revenue per customer.”
Liz Pearce Oct 1, 2016 ▶ 8:03
Assertion Not checkable as stated
Pearce: LiquidPlanner Has Multiple Six-Figure ARR Customers
“We now have, you know, many customers that are above six figures in annual recurring revenue.”
Liz Pearce Oct 1, 2016 ▶ 8:13
Assertion Not checkable as stated
Pearce: LiquidPlanner has not achieved net negative revenue churn
“Not yet. You know, we're still selling to the SMB and there's a lot of froth in the SMB market.”
Liz Pearce Oct 1, 2016 ▶ 10:04
Assertion Not checkable as stated
Pearce: LiquidPlanner employs approximately 65 people
“We're about 65.”
Liz Pearce Oct 1, 2016 ▶ 11:38
Assertion Not checkable as stated
Pearce: LiquidPlanner has roughly 1,800 active customers
“We have about 1800 customers.”
Liz Pearce Oct 1, 2016 ▶ 11:45
Assertion Not checkable as stated
Pearce: LiquidPlanner serves a few hundred enterprise customers
“Yeah, I would say a few hundred are what we would refer to as enterprise customers.”
Liz Pearce Oct 1, 2016 ▶ 12:01
Assertion Not checkable as stated
Pearce: LiquidPlanner is approaching cash flow break-even while growing
“No, we're getting close to a cash flow break even, which is a great place to be, and you know, we're still growing, so.”
Liz Pearce Oct 1, 2016 ▶ 12:21
Assertion Not checkable as stated
Pearce: LiquidPlanner's primary competitor remains Microsoft Project
“It's still Microsoft Project, ironically.”
Liz Pearce Oct 1, 2016 ▶ 14:06
Prediction Not checkable as stated
Pearce: LiquidPlanner is pacing toward a $10M run rate in 2016
“So we're on track for you know, a ten million dollar run rate, which I think is, is a big milestone for us.”
Liz Pearce Oct 1, 2016 ▶ 15:02
Disclosure
Pearce Studies the CEOs of LiquidPlanner's Top Five Customers
“I'm studying the CEOs of my top five customers.”
Liz Pearce Oct 1, 2016 ▶ 19:38
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