Disclosure certainty 4/5 debate potential 1/5

Sridhar: Progress matched the highest acquisition offer for Kinvey

Sravish Sridhar · 849: SaaS: Kinvey Acquired for $50m To Help Frontend Devs Be Backend Devs · Nov 20, 2017 · at 16:39

Kinvey founder Sravish Sridhar discusses competing M&A bids and why Kinvey chose to be acquired by Progress Software.

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“No, I think to Progress's credit, they matched the best offer.”

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More from Sravish Sridhar

Assertion Partly supported
Sridhar: Kinvey coined and created the 'backend as a service' category
“We coined the phrase and created this category, and now it's a thing.”
Sravish Sridhar Nov 20, 2017 ▶ 2:35 849: SaaS: Kinvey Acquired for $50m To Help Frontend Devs Be Backend Devs
Opinion
Sridhar: M&A earnout handcuffs create a toxic post-acquisition company culture
“You're going to be motivated because you really want to work at the company. It's not tied to some artificial handcuffs, right? Which I think is a wrong culture.”
Sravish Sridhar Nov 20, 2017 ▶ 21:56 849: SaaS: Kinvey Acquired for $50m To Help Frontend Devs Be Backend Devs
Disclosure
Sridhar: Kinvey Business Edition customers pay about $24,000 annually
“The next class of customer is what we call business edition, so this is a business that is typically just doing one app and these customers, because they have higher SLA requirements and more feature-rich requirements, They pay us on an average about 24,000 do…”
Sravish Sridhar Nov 20, 2017 ▶ 4:20 849: SaaS: Kinvey Acquired for $50m To Help Frontend Devs Be Backend Devs
Disclosure
Sridhar: Kinvey charges enterprise clients six figures annually per instance
“And then we have large enterprise customers like Schneider Electric, Farmers Insurance, et cetera that have what we call enterprise edition, which is a pretty sophisticated version of the platform. And that's usually about six figures a year per instance.”
Sravish Sridhar Nov 20, 2017 ▶ 4:40 849: SaaS: Kinvey Acquired for $50m To Help Frontend Devs Be Backend Devs
Disclosure
Sridhar: Kinvey's ASP is probably $80K to $90K annually
“Yeah, we have significantly more enterprise customers than we do business edition and startup customers. So it's probably in the 80 to 90 K a year is probably our ASP.”
Sravish Sridhar Nov 20, 2017 ▶ 5:08 849: SaaS: Kinvey Acquired for $50m To Help Frontend Devs Be Backend Devs
Assertion Supported
Kinvey Raised $18 Million Over Six Years Prior to Acquisition
“So we raised a total of about eighteen million dollars over a period of six years before the acquisition.”
Sravish Sridhar Nov 20, 2017 ▶ 6:06 849: SaaS: Kinvey Acquired for $50m To Help Frontend Devs Be Backend Devs
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