Assertion certainty 3/5 debate potential 1/5

Ardius neared a $1M annual run rate before its Gusto acquisition

Josh Lee · Ardius Finds $500m in Tax Credits for Startups, Exits to Gusto · Aug 5, 2021 · at 17:04

Josh Lee, founder of Ardius, responds to Nathan Latka asking about Ardius's revenue run rate prior to selling to Gusto.

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“We were close. Yeah.”

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Assertion Not checkable as stated
Big Four accounting firms are too expensive for early-stage startups
“And so we actually took them to my former big four and they couldn't service us. We were just too small. Some of our companies were pre-revenue and, you know, the, You know, the labor intensity and the bill rates were just too high for the startups to actually…”
Josh Lee Aug 5, 2021 ▶ 3:07 Ardius Finds $500m in Tax Credits for Startups, Exits to Gusto
Assertion Supported
Ardius competitors raised capital at valuations up to $500 million
“I mean, we have our, like I said, competitors out there raising it like, you know, half a billion dollar valuations, right? Or in the hundreds of millions.”
Josh Lee Aug 5, 2021 ▶ 10:44 Ardius Finds $500m in Tax Credits for Startups, Exits to Gusto
Insight
Constant regulatory changes make the tax code ideal for software automation
“And so I think tax is one of those areas that, that we feel are most conducive for software, right? Because the tax code, internal revenue code changes all the time. And it actually makes a lot of sense to, you know, to change and program that at the top level…”
Josh Lee Aug 5, 2021 ▶ 11:47 Ardius Finds $500m in Tax Credits for Startups, Exits to Gusto
Assertion Not checkable as stated
Ardius received Series A offers at $50M to $100M+ valuations
“We got offers anywhere at a fifty million, a hundred million. I mean, even one that was above that as well.”
Josh Lee Aug 5, 2021 ▶ 18:15 Ardius Finds $500m in Tax Credits for Startups, Exits to Gusto
Disclosure
Mucker Capital invested $200,000 in Ardius through its accelerator program
“They have an accelerator program, so that check size was roughly about 200,000.”
Josh Lee Aug 5, 2021 ▶ 5:34 Ardius Finds $500m in Tax Credits for Startups, Exits to Gusto
Assertion Not checkable as stated
Ardius charged 10% to 30% of recovered tax savings as success fees
“Right now we're averaging anywhere from 10 to about 30.”
Josh Lee Aug 5, 2021 ▶ 6:41 Ardius Finds $500m in Tax Credits for Startups, Exits to Gusto
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