Enterprise buyers avoid unbacked startups over continuity fears
Ilya Semin · EP 324: CEO of Datanyze Shares $6m Revenue Number · Jun 13, 2016 · at 4:46
Ilya Semin, founder and CEO of Datanyze, explains why Datanyze chose to raise venture capital despite already being profitable.
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“The problem when you start selling to enterprise customers is that they don't, Really like to deal with small companies, you know, two guys in the garage, like they don't like it. So they're like, well, well, we're going to sign this three-year contract. How do we know you're not going to go out of business tomorrow?”
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More from Ilya Semin
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“Well, there's not, well, obviously, salaries it's nine, 95, 98% of any startup costs, right?”
Semin: Startup co-founders should not split equity 50-50
“I don't think it's a good idea to split evenly, to be honest.”
Founders should avoid splitting startup equity evenly, says Semin
“No, I don't think it's a good idea to split it evenly, to be honest.”
Semin: Enterprise buyers avoid signing multi-year contracts with garage startups
“The problem when you start selling to enterprise customers is that they don't, Really like to deal with small companies, you know, two guys in the garage, like they don't like it. So they're like, well, well, we're going to sign this three-year contract. How d…”
Datanyze tripled its ARR from $2M to $6M in 2015
“In 2015, we went from about two million dollars at the beginning of the year to about six million at the end of the year.”
Datanyze is cash flow positive in most operating months
“No, we're cashflow positive, right? So some months, of course, especially if it's a big event, you know, like dream force, we'll spend more money. And in this case, we'll probably be cashflow negative, but in most cases we're cashflow positive.”