Jay Bean is a serial founder discussing the early growth and acquisition of his pay-per-click search startup aha.com.
Disclosure
Bean: Carried over $500K in personal credit card debt for startups
“I've had times where I've had Well, more than a half million dollars on, on credit cards.”
Disclosure
Bean: Orange Soda floated Google ad payments on credit cards for runway
“In orange soda's case, I mean, yeah, We were, we would just use credit card to help us float our Google payments and other things. Well, so it gave you 60 days of extra runway on without raising more money.”
Prediction Not checkable as stated
Bean: Fresh Lime targets a $4M to $5M run rate by 2017
“Our revenue this year is pretty low. I mean, we'll do about two 50 next year by this time, I mean, we'll have a, Probably a, I don't know, a four or five million dollar run rate. I mean, we'll grow that much next year”
Assertion Not checkable as stated
Bean: Aha.com investors achieved an estimated 15x return
“The overall return for our investors was probably, I don't know, 15 X.”
Insight
Bean: Service-heavy software businesses take large valuation multiple hits
“Anything that has a service component that is a little bit more service than software. You take a huge hit on, on kind of that, that multiple”
Assertion Partly supported
Bean: Deluxe acquired Orange Soda for $28M to $30M plus stock
“Orange soda was acquired for about 28, thirty million, somewhere in there. Plus there's obviously stock and other things for the internal guys”