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Hank Leber

๐Ÿ‘ค Speaker
228 total appearances

Appearances Over Time

Podcast Appearances

SaaS Interviews with CEOs, Startups, Founders
1110 Why His $1.2m ARR SaaS Company Shut Down

And the team said, if human beings can still use Twitter and be a new Twitter user, we can figure this out.

SaaS Interviews with CEOs, Startups, Founders
1110 Why His $1.2m ARR SaaS Company Shut Down

We just don't know what they've changed.

SaaS Interviews with CEOs, Startups, Founders
1110 Why His $1.2m ARR SaaS Company Shut Down

And I said, all right, well, then that's it.

SaaS Interviews with CEOs, Startups, Founders
1110 Why His $1.2m ARR SaaS Company Shut Down

Let's all get in.

SaaS Interviews with CEOs, Startups, Founders
1110 Why His $1.2m ARR SaaS Company Shut Down

We floored it and went straight toward the cliff.

SaaS Interviews with CEOs, Startups, Founders
1110 Why His $1.2m ARR SaaS Company Shut Down

The sad news is it took longer than three weeks to figure out that it was a reduction in the automation threshold.

SaaS Interviews with CEOs, Startups, Founders
1110 Why His $1.2m ARR SaaS Company Shut Down

It went from a thousand actions per day down to about 200 per day.

SaaS Interviews with CEOs, Startups, Founders
1110 Why His $1.2m ARR SaaS Company Shut Down

So they did an 80% reduction in their tolerance.

SaaS Interviews with CEOs, Startups, Founders
1110 Why His $1.2m ARR SaaS Company Shut Down

And that took us about two months to figure out long after everybody had sort of dispersed our investors.

SaaS Interviews with CEOs, Startups, Founders
1110 Why His $1.2m ARR SaaS Company Shut Down

It was all smaller checks.

SaaS Interviews with CEOs, Startups, Founders
1110 Why His $1.2m ARR SaaS Company Shut Down

Nobody wanted to really defend their original investment.

SaaS Interviews with CEOs, Startups, Founders
1110 Why His $1.2m ARR SaaS Company Shut Down

Yeah, it was all in a safe note.

SaaS Interviews with CEOs, Startups, Founders
1110 Why His $1.2m ARR SaaS Company Shut Down

And, you know, you look at like angel, angel investing and,

SaaS Interviews with CEOs, Startups, Founders
1110 Why His $1.2m ARR SaaS Company Shut Down

The conundrum is you've got to push real hard and get that 15%, 20% month-over-month growth rate to qualify for angel investment checks these days.

SaaS Interviews with CEOs, Startups, Founders
1110 Why His $1.2m ARR SaaS Company Shut Down

However, that makes for a very dangerous business because you think about it, we could have diversified across other platforms, would have lowered our growth rate, but it would have made us less interesting and harder to raise money.

SaaS Interviews with CEOs, Startups, Founders
1110 Why His $1.2m ARR SaaS Company Shut Down

So it's kind of like damned if you do, damned if you don't.

SaaS Interviews with CEOs, Startups, Founders
1110 Why His $1.2m ARR SaaS Company Shut Down

Oh, absolutely.

SaaS Interviews with CEOs, Startups, Founders
1110 Why His $1.2m ARR SaaS Company Shut Down

The thing that I found was it wasn't that they didn't believe in the team or in our capabilities, mine or anybody else in the team, they did.

SaaS Interviews with CEOs, Startups, Founders
1110 Why His $1.2m ARR SaaS Company Shut Down

There's a trigger that's happening.

SaaS Interviews with CEOs, Startups, Founders
1110 Why His $1.2m ARR SaaS Company Shut Down

I think a lot of investors have seen this or heard stories about getting burned by building a SaaS company on the back of another platform that could kill you is a very dangerous thing to do.