Disclosure certainty 4/5 debate potential 2/5

ShipHero refuses VC until they prove a reliable customer acquisition formula

Aaron Rubin · Shiphero Raised $50m last week, inside their metrics · Jul 7, 2021 · at 18:46

ShipHero founder and CEO Aaron Rubin explains his operational criteria for accepting outside venture capital.

0:00 / 0:07exact quote · 7.7s
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“Cause I don't have a formula for growth where X dollars equals Y customers. I need to figure that out before I take any more serious money.”

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More from Aaron Rubin

Insight
Rubin: Debt is always cheaper than equity for successful startups
“That's always cheaper than equity. If you think you're going to be successful, that is always cheaper.”
Aaron Rubin Jul 7, 2021 ▶ 13:03 Shiphero Raised $50m last week, inside their metrics
Disclosure
ShipHero generates approximately $5M in annual recurring revenue
“We don't disclose exactly, but in like the five million ARR bull book.”
Aaron Rubin Jul 7, 2021 ▶ 5:45 Shiphero Raised $50m last week, inside their metrics
Assertion Not checkable as stated
ShipHero reached $5M ARR with no marketing team or SDRs
“We hired a first salesperson in September. So whatever that was like eight months ago. And but it's not, we have no SDRs. And we didn't, we don't actually have a marketing team.”
Aaron Rubin Jul 7, 2021 ▶ 14:42 Shiphero Raised $50m last week, inside their metrics
Disclosure
ShipHero averages $1,500 monthly per customer, with 3PLs paying up to $10K
“Average customer pays us. About 1500 a month. But our three PLs generally are paying us between five and 10,000 a month because they have a lot of More shipments, they're shipping for a lot of merchants versus if someone was shipping on their own in their own …”
Aaron Rubin Jul 7, 2021 ▶ 1:41 Shiphero Raised $50m last week, inside their metrics
Disclosure
Rubin: ShipHero has around 300 direct-paying customers
“People that pay us directly, so not counting the merchants on the three PL around 300.”
Aaron Rubin Jul 7, 2021 ▶ 5:22 Shiphero Raised $50m last week, inside their metrics
Disclosure
Rubin: ShipHero grew 2.6x in 2018 compared to 2017
“Well, so 2018, we were 2.6 X 20 17.”
Aaron Rubin Jul 7, 2021 ▶ 6:00 Shiphero Raised $50m last week, inside their metrics
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