Paul Lynch, CEO of Assembla, shares customer count and growth metrics following the company's acquisition by venture equity firm Scaleworks.
Insight
Mid-sized 10-year-old software companies are stranded between VC and PE
“You've got a business that's doing, say, you know, three to ten million. Private equity aren't interested in them, in that they're too small. Venture, venture capital aren't interested in them, in that, you know, if they're 10 years old, if they haven't hockey…”
Opinion
Lynch: Pay-per-click ads fail to drive new enterprise customer growth
“In, in, in terms of, like new logo growth, in terms of, you know, PPC, it doesn't work. I mean, there's so much noise out there in the market right now. The only people making money out of PPC are, or Google.”
Opinion
Developers ignore SOC 2, leaving enterprise white space that GitHub misses
“GitHub is a great company, but it's a developer company. It's a developer tool loved by developers. You show me a developer that's concerned about SOC two or GDP or you know, I'll buy a bottle of Dom Perignon. They just aren't.”
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Lynch: Assembla increased monthly ARPA from two figures to $500–$1,500
“We bought the business and would have had an ARPA sort of a low, you know, two-figure kind of ARPA. Now we're up to, say, you know, between five, 515 hundred per month would be our sort of sweet spot.”
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Lynch: Assembla had 32 staff and was profitable when acquired
“I think we bought the business. There was 32 staff, and it was doing a couple of million bucks. It was making money.”
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Lynch: Assembla has generated a profit every month since March 2016
“And since we took this business, which was March, 2016, we returned a profit every month. We've not lost money in a single month that we ran it.”