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Mitchell Reichgut

๐Ÿ‘ค Speaker
153 total appearances

Appearances Over Time

Podcast Appearances

SaaS Interviews with CEOs, Startups, Founders
786: How This Ad Tech Company Used $1m+ In Mezzanine Debt to Grow Profitably

So that's a top line number for us.

SaaS Interviews with CEOs, Startups, Founders
786: How This Ad Tech Company Used $1m+ In Mezzanine Debt to Grow Profitably

A million dollars back in 2007 or whatever was all the revenue that was coming into the company and our profits would fall out of that.

SaaS Interviews with CEOs, Startups, Founders
786: How This Ad Tech Company Used $1m+ In Mezzanine Debt to Grow Profitably

Yeah, it's the latter.

SaaS Interviews with CEOs, Startups, Founders
786: How This Ad Tech Company Used $1m+ In Mezzanine Debt to Grow Profitably

Got it.

SaaS Interviews with CEOs, Startups, Founders
786: How This Ad Tech Company Used $1m+ In Mezzanine Debt to Grow Profitably

50K, here's 5K, and you build a million dollars scratching around with that kind of stuff.

SaaS Interviews with CEOs, Startups, Founders
786: How This Ad Tech Company Used $1m+ In Mezzanine Debt to Grow Profitably

Yeah, I don't even have that handy because I'll tell you what, we did not take home a lot of money personally.

SaaS Interviews with CEOs, Startups, Founders
786: How This Ad Tech Company Used $1m+ In Mezzanine Debt to Grow Profitably

We kept putting it back into the business so that we could grow it and grow it and grow it.

SaaS Interviews with CEOs, Startups, Founders
786: How This Ad Tech Company Used $1m+ In Mezzanine Debt to Grow Profitably

And back then, cash flow management was really something we had to be stringent about.

SaaS Interviews with CEOs, Startups, Founders
786: How This Ad Tech Company Used $1m+ In Mezzanine Debt to Grow Profitably

I should mention that we had a wonderful partner in those years or shortly after there called WTI, Western Technology Investment, that we did a round of mezzanine debt.

SaaS Interviews with CEOs, Startups, Founders
786: How This Ad Tech Company Used $1m+ In Mezzanine Debt to Grow Profitably

And that really helped us get through the early years and ramp up.

SaaS Interviews with CEOs, Startups, Founders
786: How This Ad Tech Company Used $1m+ In Mezzanine Debt to Grow Profitably

Oh, gosh, I don't even remember.

SaaS Interviews with CEOs, Startups, Founders
786: How This Ad Tech Company Used $1m+ In Mezzanine Debt to Grow Profitably

We did a couple of deals with them, but it was an enormous help and something that a lot of entrepreneurs don't think about.

SaaS Interviews with CEOs, Startups, Founders
786: How This Ad Tech Company Used $1m+ In Mezzanine Debt to Grow Profitably

Debt is wonderful.

SaaS Interviews with CEOs, Startups, Founders
786: How This Ad Tech Company Used $1m+ In Mezzanine Debt to Grow Profitably

It's kind of like going to Chase Bank, except you're not putting your house on the line.

SaaS Interviews with CEOs, Startups, Founders
786: How This Ad Tech Company Used $1m+ In Mezzanine Debt to Grow Profitably

They're going to charge you a little bit more interest, but they get into your business and they think it's a good bet because they know the industry.

SaaS Interviews with CEOs, Startups, Founders
786: How This Ad Tech Company Used $1m+ In Mezzanine Debt to Grow Profitably

And we've been partners with them ever since, and they're just wonderful guys.

SaaS Interviews with CEOs, Startups, Founders
786: How This Ad Tech Company Used $1m+ In Mezzanine Debt to Grow Profitably

No, we haven't.

SaaS Interviews with CEOs, Startups, Founders
786: How This Ad Tech Company Used $1m+ In Mezzanine Debt to Grow Profitably

But you can imagine with 75 coming probably pretty close to 80 people this year, it's significantly higher.

SaaS Interviews with CEOs, Startups, Founders
786: How This Ad Tech Company Used $1m+ In Mezzanine Debt to Grow Profitably

Remember that raise isn't like, I guess some of the press called it a series A, but it really wasn't your typical series A. Again, we're a profitable company.

SaaS Interviews with CEOs, Startups, Founders
786: How This Ad Tech Company Used $1m+ In Mezzanine Debt to Grow Profitably

already well on our path.