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 Rom C., the co-founder and COO of Softbrik. They discussed how this 18-month-old startup already has 3 customers paying $100k per year.

Rom has over two decades of experience, including stints at Google and AWS, where he helped launch products used by over 20 million people globally. Rom is also a co-founder of Softbrik, the conversational AI company, and advises European institutions on the upcoming EU Artificial Intelligence Act.

About Softbrik

Softbrik is a customer intelligence platform with conversational AI. Currently, it boasts 60 customers and three of them are paying over $100k per year. The company was launched just 18 months ago and is currently generating $30k in monthly revenue.

In its last funding round, Softbrik secured $900k in pre-seed funding at a pre-money valuation of $9 million, resulting in a sale of 20% of the business. Presently, the company has a team of 11 individuals, with six engineers and five sales representatives.

Each sales representative carries a quota of $150k per year. The company is currently aiming to raise $3.5 million in funding to support its growth and offset its monthly burn rate of $45k as it strives to acquire new customers.

Regarding pricing, Softbrik offers an annual plan with tiers. The average customer pays around $5k per year, with larger enterprise clients paying up to $100k per year. The pricing is based on the number of seats and messages included in the plan.

Challenges

Embracing entrepreneurial anxiety.

Rom also acknowledged the company's burn rate of $45k per month, which has led to some anxiety about runway. However, they are actively seeking additional funding to alleviate this concern and continue their growth.

Advice to Other Founders

Fearlessly target the top dog.

Rom didn't tiptoe into the competitive world of AI; he went straight for the big fish. He targeted the enterprise sector, where most startups fear to tread due to complex sales cycles and high expectations. By doing so, he set himself up for the challenge of landing those big deals.

Sleep is not overrated.

Despite the entrepreneur stereotype of burning the candle at both ends, Rom recognizes the value of a good night's sleep. He gets a solid 7-8 hours, defying the hustle-harder mantra. Sleep is the ultimate productivity hack.

Keep a lean team, focusing on quality rather than quantity.

While they have plans to hire more team members, their willingness to consider adjustments, such as increasing quotas for existing sales reps, shows their commitment to optimizing their team's performance. Be flexible and open to reevaluating your team structure as the business evolves.

Bonus

Rom mentioned that "Zero to One" by Peter Thiel is one of the books he enjoys.
He doesn't have a specific favorite tool but is proficient in Python. He also noted that he uses Canva for designing purposes.
Rom wished he had known when he was 20 years old the risk of pursuing entrepreneurship at an earlier stage in life. Being young could have provided a more favorable environment for rapid progress in his journey.

TL;DR

Softbrik is customer intelligence with conversational AI with 60 customers today of which three pay over $100k per year. They just launched 18 months ago doing 30k monthly revenue. His last round was a $900k pre-seed round last year at a $9 million pre-money valuation. Today, they’ve got 11 folks on the team looking to scale – six Engineers and five sales reps.

PS Here is a link to the full interview if you are interested in listening to the full episode: 18-Month-Old Startup Already Has 3 Customers Paying $100k/yr. Is AI overvalued?

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See you again next week.

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