FunctionFox has paid dividends continuously since becoming profitable in year four
Karina Ludwig · She Doesn't Want Your VC Check, $10m+ In Dividends Paid Out for Time Tracking Tool · May 2, 2021 · at 8:21
Karina Ludwig, CEO of FunctionFox, explains how the bootstrapped SaaS company allocates capital and distributes profit to early investors.
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“But we've been paying dividends ever since we've been profitable, which was like year four or five.”
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More from Karina Ludwig
FunctionFox investors have returned 20x their initial money via dividends
“So they've, they want their money 20 times over in some cases.”
FunctionFox has paid out over $10 million in total dividends
“Oh, yeah, definitely. Much more than that.”
FunctionFox runs exclusively on internally built software and operational tools
“So today to run our business, we use nothing but our own internal tools. So not just FunctionFox, but we have our own SMS system, sales management system, CRM system. We do all of our own billing and tracking and anything that we need for our system we've buil…”
FunctionFox raised just $500k from friends and family and stopped
“It was a half a 1,500,000 from friends and family. One was a big chunk from sort of one investor that was really a family friend and we haven't raised money since.”
FunctionFox took 15 years to hit its first-year revenue projections
“We did projections in our first year and, you know, we were really optimistic. We thought we'd do really well. And I think we hit those projections maybe in year 15. So we were a bit out to lunch in terms of our projections.”
Over half of FunctionFox's 18 employees have tenures exceeding seven years
“So we're 18 strong right now, really a senior team, so a large majority of the senior members have all been there for 21 years, then there's a good chunk that's over 15, More than half the team is over seven. And so yeah, pretty much everyone's over five years…”