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SaaS Interviews with CEOs, Startups, Founders

Clickup Breaks $85m ARR, "On Track for $200m in 2022" says CEO Zeb Evans

16 Nov 2021

Transcription

Chapter 1: What recent milestones has ClickUp achieved in terms of user growth?

0.031 - 16.572 Zeb Evans

Yeah, we can't really talk specific revenue numbers right now, but we've grown. We now actually have 800,000 teams that use our product. We had 200,000 when we raised our Series B, and I believe around 100,000 in Series A.

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19.184 - 31.621 Nathan Latka

You are listening to Conversations with Nathan Latka, where I sit down and interview the top SaaS founders, like Eric Wan from Zoom. If you'd like to subscribe, go to getlatka.com.

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32.121 - 54.549 Nathan Latka

We've published thousands of these interviews, and if you want to sort through them quickly by revenue or churn, CAC, valuation, or other metrics, the easiest way to do that is to go to getlatka.com and use our filtering tool. It's like a big Excel sheet for all of these podcast interviews. Check it out right now at getlatka.com. Hey folks, my guest today is Zeb Evans.

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54.569 - 71.286 Nathan Latka

He's the founder and CEO of ClickUp, the all-in-one productivity platform that empowers more than 300,000 teams and 3 million people around the world to save time and live more productive lives. He's a serial entrepreneur. He started several software companies with over 100 million in revenue with a focus on building tools that increase productivity and save people time.

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71.346 - 89.178 Nathan Latka

Zeb, you ready to take us to the top? Let's do it, Nathan. How much of this productivity focus, you casually mentioned it in your last round financing, you've had four near-death experiences. How does that actually make you move faster? And how do you pass that urgency off to your team who maybe hasn't had four near-death life experiences?

90.761 - 110.141 Zeb Evans

Yeah. I mean, look, at the end of the day, those experiences made me obsess over time and efficiency. And productivity is equivalent to time. And so on a personal level of time, on a business level, time ends up being money. So businesses should care about productivity more than ever. Individuals should care about it more than ever for where their time goes.

111.202 - 125.719 Zeb Evans

And so, you know, for us, it's easy to cascade down to everyone in our company when everyone sees the impact of the product that we're creating. We can kind of create that obsession and that culture around saving people time and making people more productive.

125.969 - 134.799 Nathan Latka

Now, you 18 months ago had bootstrapped, I believe. You launched the business in 2017. You bootstrapped. I think you shared up to like a $20 or $25 million run rate, right?

135.7 - 138.844 Zeb Evans

Yeah. We bootstrapped until our Series A about 18 months ago.

Chapter 2: How did Zeb Evans navigate near-death experiences to enhance productivity?

274.51 - 275.511 Nathan Latka

And if so, how many engineers?

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276.853 - 286.386 Zeb Evans

Yeah, we have just shy over 800 employees today. And on the engineering side, about 100 engineers.

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286.687 - 302.705 Nathan Latka

And so you've done a really interesting thing in terms of, I think you have, at least in terms of quantifying your engineering power based off number of integrations you've launched and all of your comparable pages where it's ClickUp versus Jira versus Trello versus Monday. You talk about, again, more integrations. Why is that marketing line working so well?

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302.725 - 306.87 Nathan Latka

And how have you instrumented your engineering team to pump these integrations out so quickly and keep them updated?

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308.853 - 327.422 Zeb Evans

Yeah, we say one app to replace them all. That's the familiar messaging that we place. But the reality is, you know, we're not trying to replace every single application. We do think that we can put all of your workplace productivity software in one place. And that is ultimately our true mission. And outside of that, we play very nicely with every other integration on the market.

328.023 - 344.284 Zeb Evans

And so we built our platform in a scalable way where we can build integrations very quickly. And we can also build features very quickly that actually use separate teams that don't even affect our core product teams, but are still within that same platform, the same ecosystems.

344.5 - 360.016 Zeb Evans

So we've been very mindful of doing that since day one, because essentially with our vision, we're putting 15 different products inside of one. And so traditionally, that's not the thing you do in software, right? You're supposed to do one thing and do it well. And we've kind of always been the antithesis of that.

361.037 - 368.384 Nathan Latka

Talk to me about growth. So since 2020, when you guys decided to go in and do that series A, 35 million series A, how much have you grown revenue since then?

368.424 - 379.652 Zeb Evans

Yeah, we can't really talk specific revenue numbers right now. Um, but you know, we've, we've grown, we now actually have 800,000 teams that, that use our product.

Chapter 3: What strategies did ClickUp use to transition from bootstrapping to raising capital?

474.006 - 495.822 Zeb Evans

So you'll have four just backend engineers. If it's front end, you'll have a mixture between those. And then you'll have a designer that's kind of tied to that team, which we don't actually count as part of that team. So that'd be a plus one in addition to that because designers have multiple themes. And so that's what has allowed us to scale EPD engineering product and design is really

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496.004 - 503.317 Zeb Evans

building these hyper-focused teams that are focused on very, very specialized pieces of our product. And product growth is one of those teams.

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503.898 - 509.628 Nathan Latka

Can you go deep on one of those? I mean, can we talk about the new Docs product a little bit more and the team specifically around that and how it split up?

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511.03 - 532.71 Zeb Evans

Yeah. So our Docs product is actually one of our larger ones. I think it's 12 people. So it's kind of an abnormality there, but it is a big piece of our product. And so we have a real-time collaboration. There's two people working on real-time collaboration. So if you picture any doc where you can see somebody's cursor and typing, that stuff is very complicated to make great.

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532.994 - 555.449 Zeb Evans

And so we have two people that are fully focused on that. And then within that, the rest of that team got five or so front-end engineers and three or four back-end engineers. And then you, of course, got our PM, a product manager, and you got an engineering manager there as well. And so Docs was one that we've been working on for a long time in the background.

555.469 - 571.819 Zeb Evans

It was probably a six-month ongoing project that we've been working on. And we really felt that, you know, we needed to be kind of the category leader there in our space and get feature parity with those point solutions in order for people to replace those point solutions with ClickUp.

571.839 - 587.858 Nathan Latka

How do you think about putting together these many squad teams for digging for new ideas? Like the PM is talking to 100 customers a month. They're testing stuff with engineering. And then can you tell me a story about one that you shut down where you spun that team up? They tested it for X amount of time and you said no because the metrics didn't work or whatever.

589.238 - 612.471 Zeb Evans

Yeah, so we have a Zeb team also. And the Zeb team is for the things that you're talking about, really. It's for the bets, right? The big bets that we're taking. And it's really our early kind of principal engineers that are on my team. And we take big bets. I have an idea on Monday and we'll try to get it shipped by Friday. Lots of times we will test it. We'll only put it in certain workspaces.

612.491 - 623.607 Zeb Evans

You've got to enable it. We'll see the feedback from that. And, you know, sometimes we'll shut it down and sometimes we'll continue shipping. Um, but it's, it's the fun. It's the fun.

Chapter 4: How does ClickUp maintain a focus on sustainable growth despite rapid expansion?

722.04 - 738.034 Zeb Evans

I knew PHP. And I don't really know JavaScript, at least in the back end side of it. And so when we were starting By the way, Mango is just the name for the parent company for ClickUp. Mango is a DBA for ClickUp.

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738.396 - 741.927 Nathan Latka

That wasn't a venture studio. You weren't testing a bunch of ideas. It was ClickUp from day one.

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742.058 - 759.115 Zeb Evans

No, you're right. We were testing. We actually were going to do a Craigslist competitor where you could pay in-app and remove sketchiness from Craigslist. And we built ClickUp as an internal tool in order to build Craigslist. And we just kind of, I had always been obsessed with efficiency and time, again, from those near-death experiences.

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759.175 - 777.397 Zeb Evans

And so I was always that person that was trying to squeeze out an extra hour a day and trying to get an extra 10% more productivity for everyone on the team. And that's why we built ClickUp was so that we could do that. And it wasn't one of those Slack stories where, you know, we were using it for years and then kind of decided that this was the product. It was like a matter of a month.

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777.417 - 787.219 Zeb Evans

It was like a month where we started building this and we just realized we were more passionate about this than the Craigslist idea. And that there was a lot of opportunity here, even in a very competitive category.

790.051 - 805.748 Nathan Latka

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805.728 - 828.511 Nathan Latka

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828.952 - 846.45 Nathan Latka

Check it out today at founderpath.com forward slash products. That's plural forward slash valuations. Again, both plural founderpath.com forward slash products forward slash valuations. Now, Zeb, you had no idea. Alex had no idea where CookUp would be today back then, right? So maybe you do things differently.

846.47 - 851.715 Nathan Latka

But back then, did you guys just split to, you know what, let's just split equity right down the middle 50-50 day one or did you do something different?

Chapter 5: What role does the engineering team play in ClickUp's product development?

930.778 - 950.079 Zeb Evans

And then I wanted to be able to look at who's following you. Back then they didn't have APIs to do that. Twitter didn't have their own reporting platform to do that. And so I kind of just built things that scraped your follower list and was able to show like who's following you. You can automate engagement with people. And so we kind of, it was a SaaS model before I knew what SaaS was.

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950.48 - 967.115 Zeb Evans

We started getting people paying a monthly subscription. And then it turned into more of what we found the real money was in was managing more high profile celebrities, social accounts in order to gain followers, gain engagement, and increase the quality of their content based on who was following them.

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967.135 - 968.717 Nathan Latka

How much revenue did you get in the best year there?

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970.999 - 971.72 Zeb Evans

Several million dollars.

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972.301 - 972.901 Nathan Latka

And you sold it?

973.983 - 995.759 Zeb Evans

I did not sell it. I actually, so I had my third near death experience and I realized during that period that that business was not adding net positive value for the world. I actually felt bad about it. I was like, we were inflating people's egos on social media. And we spent four years of my life doing that. And so I felt like I had wasted so much time. And so we shut it down.

996.52 - 1018.495 Zeb Evans

We paid everybody six months at the company, but we shut the company down. And that was when I moved out to Palo Alto, drove across the country from Virginia and thought that, I got to Palo Alto. I was picturing Vegas with startup lights, just like startups everywhere. And anybody that's been to Palo Alto, it's like the sleepiest town in the world.

1018.735 - 1020.998 Zeb Evans

In fact, they have an ordinance against putting signs up.

1021.018 - 1024.621 Nathan Latka

It's like the sweet green on the corner is the most exciting thing you're going to see.

Chapter 6: How does ClickUp approach team structure and project management?

1416.454 - 1424.803 Nathan Latka

That was hard for you. Okay. Are you going to be building tools? I mean, look at Canva. Are you going to be building tools for designers here? Are you going to focus mainly on productivity teams?

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1425.444 - 1439.099 Zeb Evans

We focus on just productivity as a whole. There will be things like virtual whiteboarding in the very near future. But at the end of the day, we're not trying to compute point solutions for designers.

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1439.6 - 1443.084 Nathan Latka

Number four, how many hours of sleep do you get every night?

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1444.582 - 1445.644 Nathan Latka

That's not a ton, is it?

1445.684 - 1465.073 Zeb Evans

No, it's not. I actually have, I was diagnosed with narcolepsy a long time ago and I went to a Tony Robbins conference and he only slept four hours a night and I was like, I've got to try this. I used to be that guy that slept like 12 hours and I was always wasting time and I started sleeping less and I was more energized. I changed a lot of things. Don't get me wrong.

1465.094 - 1473.288 Zeb Evans

I changed my diet, changed my health, but I also was able to sleep less. Um, so yes, I sleep 4.5 to five hours now and I feel great.

1473.729 - 1477.694 Nathan Latka

I love that. All right. Five. And then I think what you had a birthday, right? You're 31 now.

1479.516 - 1482.019 Zeb Evans

Uh, I'm 32, but you can, you can say I'm 29. 32.

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