Startups can hit $1M ARR with bad ideas, but rarely $10M
Dave Kellogg · 778: SaaS: With $80M Raised, He Left Salesforce to Bring Finance Departments to The Cloud · Sep 10, 2017 · at 10:36
Dave Kellogg, CEO of Host Analytics, describes his evaluation criteria when screening startup CEO opportunities.
0:00 / 0:12exact quote · 12.8s
720p mp4 · rendered on demand · StarZero watermark
“You can get to one million with a bad idea. It's hard to get to 10 with a bad idea, right? So, so it's kind of a rite of passage to say there's a lot of risks taken out of it. If you can, you know, get to order a magnitude ten million in ARR there's a lot of risk off the table.”
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 Dave Kellogg
EPM software seat counts depend on centralization philosophy, not company size
“Corporate finance departments don't actually scale that much with the size of a company, and the number of users of our kind of software actually varies much more with the corporation's centralization philosophy. So some big companies are super centralized, an…”
Host Analytics won CFO deals using 75-cent 'I heart EBITDA' stickers
“And we've won business literally for the cost of a 75 cent sticker. I met a CFO of a public company in a restaurant. One of my guys met a CFO of a public company in a bar. People just come up and start talking to you and wow, 75 cents.”
Discounting multi-year prepays below your churn rate creates a win-win
“If you're giving a discount smaller than your churn rate for a multi-year prepay, everybody wins.”
Cloud penetration in enterprise performance management software is only around 5%
“If you look at the cloud penetration of this market, it's around five percent.”