Disclosure certainty 4/5 debate potential 2/5

JustCall took $25,000 in debt from Stripe

Gaurav Sharma · JustCall Hits $2.5m ARR, 60% Profits, Bootstrapped Helping 1600 Teams Use Cloud Phone Systems · Jul 18, 2020 · at 13:32

JustCall founder Gaurav Sharma explains to Nathan Latka why his bootstrapped company is experimenting with revenue-based debt rather than raising equity.

0:00 / 0:14exact quote · 14.5s
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“We got, like, some debt, I mean, just raised some debt from Stripe, like, that 25,000 dollars, you know, just to play around with, like, how it works. Then we're also talking to Clearbank to get some 50, 60 K to, you know, pay to some of the agencies that we are hiring.”

quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →

More from Gaurav Sharma

Assertion Not checkable as stated
Clearbanc financing costs JustCall roughly 12% annualized
“So it's actually like a six months payback, and that's like six-ish percent, so that's 12% a year.”
Gaurav Sharma Jul 18, 2020 ▶ 14:32 JustCall Hits $2.5m ARR, 60% Profits, Bootstrapped Helping 1600 Teams Use Cloud Phone Systems
Assertion Not checkable as stated
JustCall converts roughly 60% of product demos into paid customers
“So we normally convert like 60% demos into paid customers.”
Gaurav Sharma Jul 18, 2020 ▶ 6:49 JustCall Hits $2.5m ARR, 60% Profits, Bootstrapped Helping 1600 Teams Use Cloud Phone Systems
Disclosure
JustCall offers a 70% discount for the first month over free trials
“So another one thing so we don't give any free trials. So our first month is at 70% discount.”
Gaurav Sharma Jul 18, 2020 ▶ 7:11 JustCall Hits $2.5m ARR, 60% Profits, Bootstrapped Helping 1600 Teams Use Cloud Phone Systems
Disclosure
JustCall waited for 24 months of runway before increasing spending
“So what's the plan for last two years was, you know, I can make enough money to pay people for next 24 months. So now that we have money in the bank and we are safe for next two years, now we can spend money.”
Gaurav Sharma Jul 18, 2020 ▶ 9:39 JustCall Hits $2.5m ARR, 60% Profits, Bootstrapped Helping 1600 Teams Use Cloud Phone Systems
Assertion Not checkable as stated
Bootstrapped JustCall operates at close to a 60% EBITDA margin
“Yeah, that's close.”
Gaurav Sharma Jul 18, 2020 ▶ 10:49 JustCall Hits $2.5m ARR, 60% Profits, Bootstrapped Helping 1600 Teams Use Cloud Phone Systems
Disclosure
JustCall distributes 20% to 30% of annual net profits to employees
“So what we do is we take out about 20% to 30% of the profits after the year end, the financial end. And then we have this formula built in where the money's divided among people depending on that formula. So formula, it's actually based on how, for how long yo…”
Gaurav Sharma Jul 18, 2020 ▶ 11:09 JustCall Hits $2.5m ARR, 60% Profits, Bootstrapped Helping 1600 Teams Use Cloud Phone Systems
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