Assertion certainty 4/5 debate potential 1/5

Groove reached profitability and $1M revenue on just $800K raised

Chris Rothstein · 1455 How Groove Scaled To 400 Customers, $5M in ARR on $3.8M Raised · Jul 19, 2019 · at 6:05

Chris Rothstein, CEO of Groove, describes the company's early capital efficiency and bootstrapping history.

0:00 / 0:05exact quote · 5.5s

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“We built up and with that eight, our first 800 K we became profitable. We had over a million in revenue with that.”

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The claim, plainly

Groove reached profitability and generated over $1 million in revenue using its initial $800,000 in funding.

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Mentioned

Groove

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More from Chris Rothstein

Assertion Not checkable as stated

Groove currently generates $5 million in annual recurring revenue

“Five million ARR.”

Chris Rothstein Jul 19, 2019 ▶ 6:57 1455 How Groove Scaled To 400 Customers, $5M in ARR on $3.8M Raised

Insight

Groove uses a weighted point system to compensate its SDRs

“SDRs have a meeting goal, and we use a point system, which I think is the way to go. Basically, if they, if there's certain competitors that we think we could win against more, we go after them, and they get more points or certain sizes, or they get a top 10 l…”

Chris Rothstein Jul 19, 2019 ▶ 13:21 1455 How Groove Scaled To 400 Customers, $5M in ARR on $3.8M Raised

Assertion Not checkable as stated

Groove differentiates from competitors by focusing on AEs rather than SDRs

“We focus more on AEs where a lot of the space focus on the sales development area. So I think that is one thing different.”

Chris Rothstein Jul 19, 2019 ▶ 17:22 1455 How Groove Scaled To 400 Customers, $5M in ARR on $3.8M Raised

Assertion Not checkable as stated

Groove customers pay an average of $13,000 per month

“The average is probably around 13,000.”

Chris Rothstein Jul 19, 2019 ▶ 3:16 1455 How Groove Scaled To 400 Customers, $5M in ARR on $3.8M Raised

Assertion Not checkable as stated

Groove deployments scale from 30 seats up to 8,000 seats

“We really focus on 30 and above, but we scale up to our largest customer has about 7000 seats. And then we have our 8000. Now we have a bunch of above a thousand.”

Chris Rothstein Jul 19, 2019 ▶ 3:26 1455 How Groove Scaled To 400 Customers, $5M in ARR on $3.8M Raised

Assertion Supported

Google is a paying customer of Groove

“They're a customer as well, so.”

Chris Rothstein Jul 19, 2019 ▶ 4:09 1455 How Groove Scaled To 400 Customers, $5M in ARR on $3.8M Raised

Groove reached profitability and $1M revenue on just $800K raised

More from Chris Rothstein

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