Hey - Marc here.


Happy Saturday morning, motivated B2B SaaS Founders!


Here's at least one tip to keep in mind as you grow your B2B SaaS company:


Today's issue takes about 5 minutes to read.

 

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In today's issue, I share some key takeaways from a recent interview between Nathan Latka, the host of Daily Interviews with SaaS Founders, and Alessandro Garcia, the CEO of Solides. They discussed how he hit $35m ARR up from $15m ARR and raised $100m at an $800m valuation.

Alessandro has 20 years of experience in the tech industry, with a focus on enterprise software and IT services. He worked as a consultant for various companies in Brazil, where he gained extensive knowledge in HR processes and technology.

 

About Solides

Solides is Brazil's number one HR tech for small and medium companies. The company provides basic holistic talent management software where you can attract, develop, and retain talent using people analytics artificial intelligence and behavioral management. 

The company was founded in 2010. It initially struggled to gain traction, with its first few years marked by slow growth and difficulty in attracting customers. However, the company's fortunes began to turn around in 2015, when Alessandro decided to pivot to a subscription-based model. 

Since then, Solides has continued to see impressive growth, with its revenue increasing from $15 million ARR in 2019 to $35 million ARR in 2021. The company has also raised significant amounts of funding, with a Series B round in 2020 raising $100 million at an $800 million valuation.

PS They currently serve more than 20,000 customers, totaling 4.5 million lives impacted by their platform.

 

Challenges

Attracting customers and gaining traction.

In the early days of Solides, they were a relatively unknown player in the HR software industry, and there were already many established competitors in the market. The journey wasn't easy – it took them four years to reach their first million-dollar year.

 

Advice to Other Founders

Invest in research and development. 

This may involve developing new features, improving existing ones, or exploring emerging technologies. By investing in R&D, you can ensure that your product stays relevant and continues to meet the changing needs of your customers.

Pivoting can be a good thing.

Alessandro launched Solides in 2010, but it wasn't until 2015 when he pivoted to a subscription model that he saw significant growth. This decision allowed him to offer a more scalable product and ultimately led to his company's success.

Don't underestimate the power of partnerships.

Alessandro credits much of Solides' success to his partnerships with other companies in Brazil. By partnering with established companies, he was able to expand his customer base and gain more exposure.

 

Bonus

  1. Alessandro’s favorite book is "The 48 Laws of Power" by Robert Greene.
  2. He is impressed by Rippling’s CEO Parker Conrad. He currently studies his work.
  3. Alessandro frequently uses Google Calendar to build Solides.
  4. At 45, he’s married and has two kids who are over 10 years old.
  5. He wishes he knew the power of the subscription model back then. It's a fascinating concept that he thinks he could have explored better.


TL;DR

Solides generates $2.6 million per month in revenue today, which translates to a run rate of $31.2 million, up from $15.6 million a year ago. Alessandro believes they will finish 2023 with a run rate of $60 million. However, the journey wasn't easy. The company was launched in 2010 and pivoted to a subscription model in 2015. It took four years to reach their first million-dollar year, which was in 2019. Last year, Solides raised a series B funding round of approximately $100 million, at an $800 million valuation. The company is now looking at making additional acquisitions and hopes to go public in a couple of years once they reach $200 million in revenue.


PS Here is a link to the full interview if you are interested in listening to the full episode: Rippling of Brazil, Solides, hit $35m ARR up from $15m ARR and raised $100m at an $800m valuation

 

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See you again next week.


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