Jun 11, 2016 · 19m · top-founders

He Was 26 And Gave Up a $400k+ Salary for HourlyNerd.com, EP 276: Rob Biederman

Nathan Latka · 8m spoken Rob Biederman · 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 HourlyNerd co-founder and CEO Rob Biederman about leaving a lucrative private equity career to build an on-demand talent marketplace. Biederman shares insights on marketplace unit economics, cold-emailing Mark Cuban for seed funding, and scaling company revenue from $150,000 to over $5 million.

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 51.4% of the talking time here. How this is scored →

Nathan as informed peer 3.3 Guest teaching 1.7 Guest disagreement 0.7 Nathan pushing back 2.3
05100:0010:001:45–3:52 · Nathan as informed peer 4/10 HourlyNerd Business Model and Enterprise Client Case Study Nathan drills into the mechanics of the marketplace, questioning if it operates like SaaS or project-based billing. Rob clearly explains the take rate and typical project sizes with Fortune 500 clients like GE.3:52–7:09 · Nathan as informed peer 3/10 Leaving Private Equity and Founding HourlyNerd Nathan presses Rob to specify the exact salary and comp plan he walked away from in private equity to give listeners a concrete number. Rob complies openly, estimating $400k to $600k plus carried interest.7:11–11:08 · Nathan as informed peer 6/10 Founder Equity Splitting and Scaling Company Operations Nathan offers his own perspective on vesting schedules, suggesting an 8-year vesting period to avoid dead equity on cap tables, which Rob acknowledges as an interesting idea. Nathan also pushes Rob to reveal revenue boundaries above $5 million.11:08–14:59 · Nathan as informed peer 5/10 Venture Fundraising and Securing Mark Cuban's Investment Nathan shares his own experience raising capital without technical founders to dig into the exact valuation cap Rob accepted with Mark Cuban. Rob shares the story of cold emailing Mark Cuban after dropping out of Shark Tank.15:00–18:05 · Nathan as informed peer 2/10 HostGator Mid-Roll Sponsorship and Community Giveaways Segment features Nathan's mid-roll sponsor ad read for HostGator followed by the rapid-fire Famous Five questionnaire, which proceeds smoothly with friendly banter.18:07–19:07 · Nathan as informed peer 0/10 Episode Conclusion and Listener Promotional Offers Solo host outro segment featuring promotional offers and instructions for listener giveaways. No guest interaction takes place.1:45–3:52 · Guest teaching 3/10 HourlyNerd Business Model and Enterprise Client Case Study Nathan drills into the mechanics of the marketplace, questioning if it operates like SaaS or project-based billing. Rob clearly explains the take rate and typical project sizes with Fortune 500 clients like GE.3:52–7:09 · Guest teaching 2/10 Leaving Private Equity and Founding HourlyNerd Nathan presses Rob to specify the exact salary and comp plan he walked away from in private equity to give listeners a concrete number. Rob complies openly, estimating $400k to $600k plus carried interest.7:11–11:08 · Guest teaching 2/10 Founder Equity Splitting and Scaling Company Operations Nathan offers his own perspective on vesting schedules, suggesting an 8-year vesting period to avoid dead equity on cap tables, which Rob acknowledges as an interesting idea. Nathan also pushes Rob to reveal revenue boundaries above $5 million.11:08–14:59 · Guest teaching 2/10 Venture Fundraising and Securing Mark Cuban's Investment Nathan shares his own experience raising capital without technical founders to dig into the exact valuation cap Rob accepted with Mark Cuban. Rob shares the story of cold emailing Mark Cuban after dropping out of Shark Tank.15:00–18:05 · Guest teaching 1/10 HostGator Mid-Roll Sponsorship and Community Giveaways Segment features Nathan's mid-roll sponsor ad read for HostGator followed by the rapid-fire Famous Five questionnaire, which proceeds smoothly with friendly banter.18:07–19:07 · Guest teaching 0/10 Episode Conclusion and Listener Promotional Offers Solo host outro segment featuring promotional offers and instructions for listener giveaways. No guest interaction takes place.1:45–3:52 · Guest disagreement 1/10 HourlyNerd Business Model and Enterprise Client Case Study Nathan drills into the mechanics of the marketplace, questioning if it operates like SaaS or project-based billing. Rob clearly explains the take rate and typical project sizes with Fortune 500 clients like GE.3:52–7:09 · Guest disagreement 1/10 Leaving Private Equity and Founding HourlyNerd Nathan presses Rob to specify the exact salary and comp plan he walked away from in private equity to give listeners a concrete number. Rob complies openly, estimating $400k to $600k plus carried interest.7:11–11:08 · Guest disagreement 1/10 Founder Equity Splitting and Scaling Company Operations Nathan offers his own perspective on vesting schedules, suggesting an 8-year vesting period to avoid dead equity on cap tables, which Rob acknowledges as an interesting idea. Nathan also pushes Rob to reveal revenue boundaries above $5 million.11:08–14:59 · Guest disagreement 1/10 Venture Fundraising and Securing Mark Cuban's Investment Nathan shares his own experience raising capital without technical founders to dig into the exact valuation cap Rob accepted with Mark Cuban. Rob shares the story of cold emailing Mark Cuban after dropping out of Shark Tank.15:00–18:05 · Guest disagreement 0/10 HostGator Mid-Roll Sponsorship and Community Giveaways Segment features Nathan's mid-roll sponsor ad read for HostGator followed by the rapid-fire Famous Five questionnaire, which proceeds smoothly with friendly banter.18:07–19:07 · Guest disagreement 0/10 Episode Conclusion and Listener Promotional Offers Solo host outro segment featuring promotional offers and instructions for listener giveaways. No guest interaction takes place.1:45–3:52 · Nathan pushing back 2/10 HourlyNerd Business Model and Enterprise Client Case Study Nathan drills into the mechanics of the marketplace, questioning if it operates like SaaS or project-based billing. Rob clearly explains the take rate and typical project sizes with Fortune 500 clients like GE.3:52–7:09 · Nathan pushing back 4/10 Leaving Private Equity and Founding HourlyNerd Nathan presses Rob to specify the exact salary and comp plan he walked away from in private equity to give listeners a concrete number. Rob complies openly, estimating $400k to $600k plus carried interest.7:11–11:08 · Nathan pushing back 4/10 Founder Equity Splitting and Scaling Company Operations Nathan offers his own perspective on vesting schedules, suggesting an 8-year vesting period to avoid dead equity on cap tables, which Rob acknowledges as an interesting idea. Nathan also pushes Rob to reveal revenue boundaries above $5 million.11:08–14:59 · Nathan pushing back 3/10 Venture Fundraising and Securing Mark Cuban's Investment Nathan shares his own experience raising capital without technical founders to dig into the exact valuation cap Rob accepted with Mark Cuban. Rob shares the story of cold emailing Mark Cuban after dropping out of Shark Tank.15:00–18:05 · Nathan pushing back 1/10 HostGator Mid-Roll Sponsorship and Community Giveaways Segment features Nathan's mid-roll sponsor ad read for HostGator followed by the rapid-fire Famous Five questionnaire, which proceeds smoothly with friendly banter.18:07–19:07 · Nathan pushing back 0/10 Episode Conclusion and Listener Promotional Offers Solo host outro segment featuring promotional offers and instructions for listener giveaways. No guest interaction takes place.

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

0:00 · Nathan 63.6% · guest 36.4%0:00 · Nathan 63.6% · guest 36.4%3:00 · Nathan 32.7% · guest 67.3%3:00 · Nathan 32.7% · guest 67.3%6:00 · Nathan 40.9% · guest 59.1%6:00 · Nathan 40.9% · guest 59.1%9:00 · Nathan 35.2% · guest 64.8%9:00 · Nathan 35.2% · guest 64.8%12:00 · Nathan 34.7% · guest 65.3%12:00 · Nathan 34.7% · guest 65.3%15:00 · Nathan 84% · guest 16%15:00 · Nathan 84% · guest 16%18:00 · Nathan 95.9% · guest 4.1%18:00 · Nathan 95.9% · guest 4.1%
Sharpest disagreement ▶ 10:54 Rob holds the line on confidential revenue figures

Rob politely but firmly declines to reveal current revenue figures, stating it is confidential while confirming it is well above five million dollars.

Hardest push from Nathan ▶ 6:02 Nathan pushes Rob for specific compensation figures

Nathan refuses to accept generic answers about leaving a comfortable job, insisting on extracting the exact compensation package Rob walked away from.

Biggest teaching moment ▶ 2:04 Rob explains enterprise talent procurement economics

Rob educates Nathan on how large enterprises like GE use the platform to source specialized academic experts rather than hiring costly consulting firm teams.

Nathan holds their own ▶ 8:18 Nathan pitches extended vesting to prevent dead equity

Nathan demonstrates startup knowledge by suggesting non-standard 8-year vesting schedules with acceleration clauses to protect cap tables, prompting Rob to admit he had never considered it.

the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
HourlyNerd Business Model and Enterprise Client Case Study 4312 Nathan drills into the mechanics of the marketplace, questioning if it operates like SaaS or project-based billing. Rob clearly explains the take rate and typical project sizes with Fortune 500 clients like GE.
Leaving Private Equity and Founding HourlyNerd 3214 Nathan presses Rob to specify the exact salary and comp plan he walked away from in private equity to give listeners a concrete number. Rob complies openly, estimating $400k to $600k plus carried interest.
Founder Equity Splitting and Scaling Company Operations 6214 Nathan offers his own perspective on vesting schedules, suggesting an 8-year vesting period to avoid dead equity on cap tables, which Rob acknowledges as an interesting idea. Nathan also pushes Rob to reveal revenue boundaries above $5 million.
Venture Fundraising and Securing Mark Cuban's Investment 5213 Nathan shares his own experience raising capital without technical founders to dig into the exact valuation cap Rob accepted with Mark Cuban. Rob shares the story of cold emailing Mark Cuban after dropping out of Shark Tank.
HostGator Mid-Roll Sponsorship and Community Giveaways 2101 Segment features Nathan's mid-roll sponsor ad read for HostGator followed by the rapid-fire Famous Five questionnaire, which proceeds smoothly with friendly banter.
Episode Conclusion and Listener Promotional Offers 0000 Solo host outro segment featuring promotional offers and instructions for listener giveaways. No guest interaction takes place.

Statements from this episode (12)

Assertion Not checkable as stated
Biederman: General Electric is one of HourlyNerd's largest customers
“GE, General Electric, is one of our largest customers.”
Rob Biederman Jun 11, 2016 ▶ 2:11
Assertion Not checkable as stated
Biederman: HourlyNerd projects average $25,000 to $30,000
“The projects now are about 25, 30,000 dollars on average.”
Rob Biederman Jun 11, 2016 ▶ 2:54
Assertion Not checkable as stated
Biederman: HourlyNerd pays 80% to 85% of project fees to consultants
“Every project is variable, but typically between 80 and 85% goes to the to the consultant.”
Rob Biederman Jun 11, 2016 ▶ 3:27
Assertion Not checkable as stated
Bain and McKinsey forced clients into multi-million dollar bundled teams
“We hired Bain and McKinsey a bunch to help us with, ah, on-demand expertise, but the problem we found when we hired them was that they were so large and so bundled that we had to get a team of seven that would cost a few million dollars, and we rarely had need…”
Rob Biederman Jun 11, 2016 ▶ 4:04
Assertion Not checkable as stated
Biederman: HourlyNerd founders took no salary for first 18 months
“Starting a startup, we didn't even pay ourselves for the first 18 months.”
Rob Biederman Jun 11, 2016 ▶ 5:55
Assertion Not checkable as stated
Biederman gave up $400k to $600k in PE compensation for HourlyNerd
“It was probably going to be sort of between four and 600,000.”
Rob Biederman Jun 11, 2016 ▶ 6:15
Insight
Biederman: Founder equity vesting is mandatory to prevent dead equity
“I'd say that's the, that's mandatory. There's no good reason not to have vesting equity for founders.”
Rob Biederman Jun 11, 2016 ▶ 8:14
Assertion Not checkable as stated
HourlyNerd has worked with 5,000 customers and 21,000 consultants
“We worked with about 5000 customers and we haven't got 21,000 nerds.”
Rob Biederman Jun 11, 2016 ▶ 9:12
Assertion Not checkable as stated
HourlyNerd generated $150,000 in revenue in 2013
“It was a 150,000 dollars in 2013.”
Rob Biederman Jun 11, 2016 ▶ 10:48
Assertion Partly supported
Biederman: HourlyNerd has raised about $10M across three rounds
“So we've raised about ten million dollars over three rounds so far.”
Rob Biederman Jun 11, 2016 ▶ 11:17
Assertion Supported
Biederman: HourlyNerd raised $750K seed at $3.75M cap
“It was about 20%, so we raised 750 K at a 3.75 million dollar cap.”
Rob Biederman Jun 11, 2016 ▶ 12:36
Assertion Supported
Biederman: HourlyNerd raised $7.8M Series B in January 2015
“That was 7.8 million and we raised that in the fall of 20 14. That was, it closed in like January of 15.”
Rob Biederman Jun 11, 2016 ▶ 14:13
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