1418 $2.4M ARR Marketing Automation Company CEO Would Sell for $10M Today

SaaS Interviews with CEOs, Startups, Founders

Nathan Latka

Ceo, Entrepreneurs, Founders, Software, Business, Entrepreneurship, Saas, Startups

4.6 • 683 Ratings

🗓️ 12 June 2019

⏱️ 19 minutes

🔗️ Recording | iTunes | RSS

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Summary

1418 $1m on $10m pre would raise. Would sell for $10m today. Sean Leonard $2.4M ARR Marketing Automation Company CEO Would Sell for $10M Today

Sean Leonard is the CEO and co-founder of ActiveDEMAND (https://www.activedemand.com/)

🕒 Time Stamped Show Notes:

00:00 – Nathan's introduction to today's show

0:35 – How ActiveDEMAND functions as a marketing automation platform

1:15 – Why they've decided to feature professional services

1:50 – How the average customer pays them $400 monthly

3:20 – Why he launched the company in 2014 out of an agency

4:40 – How they've scaled to serve 500 agencies

5:00 – Why they are doing between $200k and $300k in MRR

6:00 – How ActiveDEMAND is growing 30% year over year

6:50 – Why they are growing through a land and expand model

7:30 – How they are landing agencies through partner webinars and content marketing

9:40 – Why they spend $800 to land a new customer

11:10 – How they've grown to less than 50 full-time employees in Alberta

11:40 – Why they are planning on raising capital

13:00 – How he would be happy with a $10M pre-money valuation

14:00 – "Would you sell for $10M today?"

15:00 – The Famous Five

Transcript

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0:00.0	My new book, How to Be a Capitalist, without any capital is out. You can get it at
0:04.9	Capitalistbook.com. Here's what Nicholas said on March 6th on Amazon. Incredibly incisive,
0:11.2	useful, and sensible. The author is not greedy and is in fact extremely generous and does
0:15.8	not hold back on the knowledge he imparts. I've barely made it halfway to the book,
0:19.8	and I'm already gushing over the book
0:21.3	because it's an absolute gem.
0:23.1	Nathan gets to the point, quick, shows proof,
0:25.4	and best of all,
0:26.3	shows you not just what to do,
0:27.4	but how to do it in explicit detail.
0:29.7	To say the book is actionable,
0:31.2	is an understatement.
0:32.8	Now, you guys, I listen to the podcast,
0:34.1	know I'm detail-oriented, so that review might not surprise you, but I hope you
0:37.5	grab the book. It's now a Wall Street Journal, instant national bestseller. Grab it at capitalist
0:42.7	book.com. Audible version is available, too. Marketing Automation Company active demand launched in
0:48.8	2014. Sean Founder says he would have started earlier. Today, they're doing, call it, between
0:52.9	200 and 300 grand per month. That's up 30% year over year from last year. They're bootstrapped, serving
0:58.7	between 500 and 1,000 customers that pay on average, call it 400 bucks per month. He's willing to
1:03.7	spend up to two months of a value on acquisition, so call 800 bucks on acquisition, two-month
1:09.0	payback period. Team of 50 people in
1:11.1	Alberta, Canada, and Ukraine building the company. This is the top entrepreneurs podcast where
	...

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