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SaaS Interviews with CEOs, Startups, Founders

1657 How He Grew $10M ARR on Just $500k Raised

SaaS Interviews with CEOs, Startups, Founders

Nathan Latka

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

4.6683 Ratings

🗓️ 6 February 2020

⏱️ 16 minutes

🧾️ Download transcript

Summary

David Hood, CEO of VanillaSoft, is a successful software entrepreneur with extensive international experience in finance, business development, sales, and marketing. Under his leadership, VanillaSoft has grown over the past decade from a small start-up to a leader in the sales engagement market.

Transcript

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0:00.0

Vanelsov back in 2005, really ushering in the inside sales movement.

0:03.5

They got a nice head start.

0:04.5

Today, 650 customers, a grand a month.

0:06.3

So they've broken or they're pushing about 10 million bucks in terms of ARR.

0:09.7

They're about 30% lower than that a year ago.

0:11.4

So doing about 620 grand a month a year ago.

0:13.8

They're cash-trial positive.

0:14.7

Only 500 grand raised in the space, which I love, 55 employees between Canada and Texas, 1.2 per month revenue turn per month, 3% expansion.

0:22.9

So 89% net revenue retention annually, spending about $1,500 to get a new customer.

0:27.3

So two-month payback period.

0:28.8

Cohort performs nicely $30,000 ACV or lifetime value in those cohorts.

0:34.7

Hello, everybody.

0:35.4

My guest today is David Hood.

0:37.3

He's the CEO of Vanelsoft,

0:39.0

a successful software entrepreneur with extensive international experience in finance, business

0:42.6

development, sales and marketing. Under his leadership, Vanelsoft has grown over the past decade

0:46.3

from a small startup to a leader in the sales engagement market. David, are you ready to take us to

0:50.7

the top? We're ready to go. All right, inside sales, it's a hot space. Tell me how you guys are playing in the space and what's your revenue model. How do you make money?

0:58.0

So actually, we've been, we kind of like to say we're the original sales engagement platform.

1:02.6

So we've been in this since 2005 before it was really well-known. And we're completely

1:08.0

recurring revenue model. Okay, got it.

1:11.6

And help me understand what you're doing for customers.

...

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