Chapter 1: What is the main topic discussed in this episode?
My new book is out on Audible, How to Be a Capitalist Without Any Capital. You can grab it right now. Here's what a user, Thomas Lornaviticus, said. Latke is the real deal. Five stars. Hey, Nathan, I just listened to your podcast with JLD. You killed it. I saw your book earlier last week and thought, meh, I'll wait when Kindle costs $199 or whatever, as I have over 150 books to catch up with.
But then I sensed that this book may have something I need right now. I bought it for full price, but didn't really start reading it. Then talking with JLD, you mentioned that the strategies may not work if you wait. And that's so true. I read it. I'm feeling pumped to devour it even more. Thank you for sharing it all and kicking ass.
Guys, all of you that listen to the podcast, you were the reason I wrote the book. SaaS CEOs, founders, entrepreneurs, go grab it today at capitalistbook.com. Especially if you like audio, go grab the audible version right now. Again, capitalistbook.com. This interview is for all of you college students right now worrying about your 2.8 GPA, worry less about grades, more about hustle.
Adam created his company after a pivot in 2015, really got focused on PeopleGrove, landed Stanford as their first customer. Today, they've got about 170 customers paying, call it 20 grand per year. So about 280 grand per month right now in revenue. That's up from 88 grand or about a million bucks in ARR just a year ago in August of 2017. They've done this in an extremely capital efficient way.
They raised 2.5 million bucks, most recently 2 million about a year ago, which is all basically still in the bank. Economics are healthy, 96% logo retention annually, about 120% net revenue retention annually because upsells are going so well. Again, team of 32 people based between San Francisco and India.
This is the Top Entrepreneurs Podcast, where founders share how they started their companies and got filthy rich or crash and burn. Each episode features revenue numbers, customer counts, and other insider information that creates business news headlines. We went from a couple of hundred thousand dollars to 2.7 million. I had no money when I started the company.
It was $160 million, which is the size of many IPOs.
We're a bit strapped. We have like 22,000 customers. With over 5 million downloads in a very short amount of time, major outlets like Inc. are calling us the fastest growing business show on iTunes. I'm your host, Nathan Latka, and here's today's episode. Hello, everyone. My guest today is Adam Sabin. He is the co-founder of PeopleGrove and has served as its CEO since inception.
He previously worked at Google as a business analyst from 2013 to 2014, performing data analysis as well as informing strategic decisions on the online partnerships group. Before Google, he served as an investment banking analyst in the global technology group at Credit Suisse. He holds a BS in economics from the Wharton School of the University of Pennsylvania.
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Chapter 2: What inspired Adam Saven to start PeopleGrove?
Well, I know I don't want to go down everyone, but what would you say an average is 30, 40 grand a year?
All right.
Something in there. Okay, good. And let me just break that down for me. So someone that pays you 30 grand per year, what are they getting? Is it number of seats or what?
Yeah. So we, you know, we have a host of modules cause we're working with enrollment offices to drive yields, academic success to drive graduation. So it's,
based on what modules they're they're licensing from us and the size of their institution uh universities uh it's tough tough for them to do per seat because they need certainty of budget yep and otherwise you have to get approval every time they need more seats right which is a pain in the butt exactly so you know we're talking we typical term length three-year term got it well all cash up front
Uh, annual upfront.
So we don't, not the full three years, but I'd be pretty impressed if you're pulling three years of revenue forward, although I'd be great.
It's happened.
Yeah, that's great. All right. Put this on a timeline for me. When did you launch?
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Chapter 3: How did PeopleGrove's business model evolve?
Um, so are you operating at breakeven? I mean, if you had no money in the bank and you close a deal, I mean, you can't afford to go on the red, otherwise you'd be out of business. So are you at breakeven?
I mean, no, we're good. Like cash balance wise, the amount of money we raised a year ago is the exact balance we have today.
Um, Oh, you've raised more than 2.5. No, no, no.
I'm saying our cash balance today is, is the same as it were after we raised. So each month we're about break even. Sometimes net burn is a little bit negative with the new hiring we're making.
Yeah, sorry. I'm just trying to get us on a timeline. So you'd raised 500 grand. You took that down to nothing in 2015 when you pivoted. You then raised another 2 million about a year ago. And what you're saying is you basically have kept all that in the bank. Exactly. Oh, I see. Okay, great.
So just revenue, revenue burden has been about equal.
Yeah, that's great. So good, good position there. Talk to me about churn, you know, churns critical in a SAS company. Where are you guys at?
Customer logos, 96%. So of our 170, I think four total have churned.
That's retention annually.
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Chapter 4: What are the revenue numbers and customer metrics for PeopleGrove?
growing the business and all else kind of follows.
Adam, let's wrap up here with the famous five. Number one, what's your favorite business book?
Favorite business book. Give and take, give and take by Adam Grant.
Number two, is there a CEO you're following or studying right now? No. Number three, how many, sorry, what's your favorite online tool for building your business?
I like outreach.
Number four, how many hours of sleep do you get every night? Five or six. That's pretty good. And what's your situation? Married, single kids?
Fiancee just got engaged last month.
Congrats. That's exciting. No kids yet? No kids, but I've got an amazing puppy. And how old are you, Adam? I am 28. 28. Last question. What do you wish your 20-year-old self knew?
Well, I guess 20, I'm in college. Focus less on grades.
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