Vendasta bootstrapped with a $1.3M consulting prepayment from Ritchie Bros
Brendan King · 925 How to Grow ARR 48% YoY from $17m to $28m in SMB SaaS Space · Feb 4, 2018 · at 7:44
Brendan King, CEO of Vendasta, describes how the company funded its initial operations during the 2008 financial crisis.
0:00 / 0:12exact quote · 12.8s
720p mp4 · rendered on demand · StarZero watermark
“It was about, I think it was about one point, you know, 1.3 million, and what we did was, is we got money from, ah, from a heavy equipment industrial auctioneer called Richie Brothers, and we used what they prepaid us to start that company.”
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 Brendan King
King: SMB software adoption is driven by trusted resellers, not product superiority
“One thing we've come to know is that all products, you know, that are pretty good is the small business is going to rely on the expertise of someone they trust and they're going to, you know, and in any given case, you could argue one product's better than ano…”
Vendasta operates at a remarkable 18-to-1 LTV to CAC ratio
“So overall, our LTV to CAC is, is really, really good. Like we're running, you know 18 to one right now.”
King: Vendasta achieves 117 percent net revenue retention
“So we're you know, right now about 17% net negative or said differently.”
King: Vendasta generated over $2.3 million in revenue last month
“No, I think we, I told you before. So this year we're just, we're about, we just did 2.3 and change last month.”
King: Vendasta adopted value-based pricing to reduce low-end customer churn
“So what we've actually done in the last six to seven months to mitigate that is we is we started to do what we call value-based pricing. We're at the low end. We actually don't charge as much But there's not that expectation. So they work up into our product, …”