675: Would you acquire Mattermark? Artesian $700k MRR, $40M Raised w/ CEO Andrew Yates

0.031 - 9.041 Nathan Latka

This is The Top, where I interview entrepreneurs who are number one or number two in their industry in terms of revenue or customer base.

9.522 - 27.523 Nathan Latka

You'll learn how much revenue they're making, what their marketing funnel looks like, and how many customers they have. I'm now at $20,000 per talk. Five and six million. He is hell-bent on global domination. We just broke our 100,000-unit soul mark. And I'm your host, Nathan Latka.

27.503 - 54.878 Nathan Latka

i just finished traveling southeast asia for 41 days and i usually always get sick when i travel and quite frankly eating is difficult for me it's hard to find a restaurant and i'm spoiled in austin with my personal chef well i took these little packets with me this time 30 of them in my carry-on suitcase they kept me totally healthy with 11 different secret ingredients you can see them at nathanlaca.com forward slash juice i'll tell you more later on in the show that's nathanlaca.com forward slash juice

54.858 - 59.906 Nathan Latka

This is episode 675. Coming up tomorrow morning, Mike Wynn joins us.

60.347 - 75.351 Nathan Latka

They've raised $30 million, and I asked him a simple question. I said, Mike, will DroneDeploy be and create and make you the first trillionaire? Tune in to see what he says. Good morning, everybody. My guest this morning is Andrew Yates.

75.371 - 94.397 Nathan Latka

He's the CEO and founder of Artesian, and they want to make sellers more effective at engaging with buyers using smart data and new techniques to create the right impact. He's been involved in sales and marketing for the past 25 years and is aiming to make a difference to people by creating software companies who will make a meaningful dent in the universe.

94.417 - 100.966 Nathan Latka

We'll cover a bunch of those companies and much, much more with Andrew today. Andrew, are you ready to take us to the top? I'm ready.

101.227 - 105.656 Nathan Latka

All right. So tell us first, what does Artesian do and how do you make money? What's the business model?

106.698 - 133.026 Andrew Yates

So we provide a sales acceleration platform and it's all about providing deep contextual insight on companies and the people inside them. With Artesian, you can track every single customer, prospect, competitor, every day, spot business opportunities, and critically manage your pipeline risk. So we help businesses that we have a phrase, which is customer curious businesses.

133.225 - 140.455 Andrew Yates

And we help those businesses increase their credibility, competitiveness, and drive customer satisfaction and ultimately revenue.

161.812 - 179.427 Andrew Yates

What we do that's a little bit different is we combine thermographic data with the real-time contextual intelligence. So, you know, you can ask Artesian to find you a company that fits a certain profile in terms of revenue, sales, number of employees, location, market sector.

179.447 - 195.203 Andrew Yates

But then layered on top of that, you can say that are in the news because they're growing, expanding, hiring in M&A discussions, winning deals, signing contracts, entering into partnerships. you regard as being a sales trigger.

195.443 - 210.364 Andrew Yates

We've got some pretty cool natural language processing science that allows us to scan over 10 million sources of structured and unstructured data, and hopefully we'll find the killer insight that you need on that company, that marketplace, or that person.

225.191 - 226.834 Nathan Latka

And that'll tell us how old it is today.

227.641 - 252.903 Andrew Yates

So we started providing service around 2010. And just to give you an idea on scale, we're at about 30,000 paying subscribers, got over 100 large enterprise customers. Companies like Cisco, Hewlett Packard Enterprise, NetApp, American Express, Lloyds, Barclays, HSBC, Ernst & Young, KPMG. There's quite a broad sector coverage.

254.086 - 264.229 Andrew Yates

But the one thing that's pretty common about all of those customers is that they are in high value relationship oriented sales engagement.

275.937 - 280.328 Andrew Yates

Now we're established in the U.S. We expect that to accelerate and grow.

280.308 - 285.077 Nathan Latka

Andrew, is that what you're at right now? Sorry, is that what you're at right now or that's your goal, what you want to hit by December 2017?

285.357 - 286.599 Andrew Yates

That's our goal for this year, yeah.

309.831 - 327.354 Nathan Latka

And so if I assume a minimum, so you said 30,000 customers, now you give a big range for ARPUs. You said between 10 and all the way up to $2 million annually. If I divide that out and kind of do a monthly and get about $1,000 per month per customer, multiplied times the 30,000 customers, is that math right? Can I get about a 30? Well, that's not right because it's too high.

327.654 - 331.099 Nathan Latka

But that comes out to about 30 million in MRR, which is wrong. So how's my math wrong?

331.359 - 358.459 Andrew Yates

Yeah. so of the 30,000, we've got, we've got, we basically had two services in the early days. We, we provided, um, trigger based news as a service on its own. Um, and that is a relatively low cost per seat type service that we licensed in the thousands to large enterprises, a company like Barclays bank, you know, 10,000 users in their enterprise and get, um, uh, a market, uh, news, uh,