Lexicata has operated cash-flow positive since its inception
Michael Chasen · 1308 Salesforce for Lawyers Passes $3m in ARR, Basically Bootstrapped · Feb 22, 2019 · at 11:02
Michael Chasen is co-founder and CEO of legal CRM software platform Lexicata, speaking with Nathan Latka about the company's bootstrapping approach.
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“Yeah, we always have been. That's always run the business.”
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More from Michael Chasen
Chasen: Lawyers are difficult software buyers lacking business and tech skills
“They're very argumentative and they are very educated in their craft. However, they're not as educated in like ways of running a business or technology.”
Chasen leverages partner channels because law firms resist direct online marketing
“Really we've been getting a lot of our a lot of our acquisitions through partner channels. So it's a lot harder to just like market to law firms cause they're not really a huge online business. Like you know, like a fast company would be, or an enterprise comp…”
Lexicata maintains a customer acquisition cost of roughly $50
“Like it's in the, like, you know, 50 to hour range mainly because we don't do a ton of marketing because it's just hard to like
Find these people.”
Lexicata's average customer pays approximately $100 per month
“Average customer is about a hundred bucks a month.”
Lawkick pivoted to Lexicata after nearly exhausting its initial seed funding
“So when we first started the company that was Lawkick, we raised a few 100,000 dollars, And we basically were close to out of money and that's what kind of like forced the pivot. And since then we've been completely bootstrapped off the status.”