Founders should raise maximum capital or fully bootstrap, says Seth Lieberman
Seth Lieberman · 898 SaaS: SnapApp Lands Amazon as Customer, Passes $8m in ARR · Jan 8, 2018 · at 12:46
SnapApp CEO Seth Lieberman discusses fundraising trade-offs based on his startup experience.
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“Increasingly I think you should do one of two things. You should either figure out how much money you can raise, and you should raise every dollar plus one, right?”
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“I think we as a company will always have a higher churn rate on the customer count over the next five years than an established vertical, right? Like, you know, a lot of the, you know, CRM, marketing automation, analytics, those guys, their churn rates should …”
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“You know, so if HubSpot buys a 20,000 dollar license from us, and Amazon, and they're not a customer, Amazon is a customer actually, and Amazon buys a twenty million dollar, our CAC is still the same, right?”
SnapApp is approaching $10 million in annual recurring revenue
“Yeah, we're getting to 10. We've got a little bit of work to do, but I keep hearing the gong ring over in the sales bullpen.”
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“Our average customer these days starts about 30 grand a year. Our enterprises can be in the six figures. We don't have any seven figure customers yet. But that's typically where they are. We've got, we're closing in on about 300 customers, give or take.”