SaaS Interviews with CEOs, Startups, Founders
Clientpoint Breaks $3m ARR, Raising $5m on $45m Valuation now
22 Jul 2022
Chapter 1: What is ClientPoint and how does it enable business relationships?
that puts you around 400 grand a month in revenue or around a $5 million run rate. Is that generally correct?
Yeah. Like I say, we don't share numbers, but I love your math.
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.
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 Andy Jenak.
He's a seasoned venture-backed high-growth CEO who has led a number of digital media, SaaS, IoT, mobile, and app businesses. He currently serves as president and CEO of ClientPoint, a top-rated global SaaS platform. In past lives, he's played European pro basketball and produced television for NBC. Andy, you ready to take us to the top?
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Chapter 2: What unique features does ClientPoint offer compared to other SaaS solutions?
Absolutely, Nathan. Good to see you again.
Good to see you too. You have to tease us here with this NBC thing. What was your favorite show that you worked on?
Well, I actually worked on a show called Money Matters, which was fantastic because my set designer won an Emmy for design and my producer won an Emmy for the show open, which is the thing that happens in the first 20 seconds of the show. So my team did really well with that. And so that makes it my favorite.
That's amazing. Okay. So how do you get into ClientPoint and what is ClientPoint doing for customers today?
Absolutely. And ClientPoint is really interesting in the sense that we have a totally different view of how we do SaaS. Most solutions out there solve a problem. E-sign, video conferences, document sharing, calendar scheduling.
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Chapter 3: How did Andy Jenak become involved with ClientPoint?
We don't look at ourselves as a solution to solve a problem. We look at ourselves as a solution to help enable relationships. We call ourselves a business relationship enablement tool. And everything a relationship needs online today, especially in this remote COVID world, happens all in one place called a client point.
So you meet with someone at one link, you chat there, you schedule meetings, you share documents, you e-sign. Anything you want to do happens at one link between you and whoever you're doing business with.
Interesting. Okay, so that's what you're doing now. What are customers paying on average per month or per year to use your tool?
Yeah, on average, it goes across the board. If you look at from the very, very biggest to the very smallest, it's probably an average of about $75 per user per month.
Okay, so that's consistent since 2018. No real ARPU expansion there.
Yeah, I think what's happened is actually our rates have gone way up, but also our largest customers have grown many, many, many times over.
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Chapter 4: What is the revenue model for ClientPoint and how much do customers typically pay?
And so the bigger you get, the cheaper it is, the price per seat. So it stayed about the same as it was four years ago on average across the board.
I see. Can I ask, don't obviously name the customer, but what's the largest customer pay you today?
Oh, we are, well, I don't talk about our specific numbers, but I'll say it's better than seven figures.
Okay. I was going to say, some of these publicly traded SaaS companies, it's amazing. You see that 100 customers paying a million dollars per year, but you've got at least one paying seven figures, which is great.
Yeah, we do. We do. And it's broken up. It's interesting. Our tool, our solution, we're really alone out there. There's no one doing exactly what we do. And when you look at all of our customers, one-third of our revenues are enterprise, one-third of our revenues are mid-market, and one-third of our revenues are SMBs.
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Chapter 5: What strategies are in place for ClientPoint's growth and customer acquisition?
Interesting. What's now out of curiosity, if you look at all your revenue as a percentage, as a pie, is it also 30% enterprise revenue, 30% or is enterprise 60%?
And that's what I meant. It's actually, if you look at it, a pie is all of our revenues. It's about 33% enterprise income, 30% mid-market, 33% small business. So a lot more small business users, which is so exciting because there's such a need even for solo players out there to be able to have a tool like this where everything's all in one place. The alternative is, you know, you want to schedule
Calendly is a great tool. We'll go over to Calendly. You want to meet? Zoom is incredible. Go over to Zoom. You want to have an e-sign? We'll go over to DocuSign. Everything's all over the place in B2B relationships.
Chapter 6: How does ClientPoint plan to utilize the upcoming $5 million funding?
And then it's all anchored by email. You want to share a document? Use a great tool called DocSend or something else. We just take all those tools. We put them into one place, whether it's those people that I named or if people would prefer to use our own version of those tools and pay less.
Interesting. Yeah, that makes sense. Now, when did you join the business? I joined at the beginning of 2018. Okay. And the company was founded in what, 2008?
Yeah, it was actually started in 2009. It was built within a company that had a need to compete and wanted to do a better job. So they built the software for themselves then. And then a few years later, they actually started selling it to other companies about 2011.
Chapter 7: What are the future goals for ClientPoint in terms of customer base?
Okay.
And why they bring you in and what excited you back in 2018?
Three things. First off, one of the board members, I had more than enough going on in my life, but one of the board members pulled the friend card and said, you've got to meet the CEO. He said, do me a favor. They're looking to level up. They're looking to bring in a SaaS guy. I'm a former Silicon Valley tech CEO board member. They've got an incredible business. You got to meet this guy.
And I said, okay, I'll have coffee with him. Fantastic guy and a fantastic group of founders. Wonderful people. That was number one. I really, really appreciate good culture and good people.
Chapter 8: What advice does Andy have for entrepreneurs based on his experiences?
Number two, they had built an amazing product over several years and they just listened to their largest customers. And every week, every month, every quarter, they kept adding more features based on what? Based on what their customers said they wanted. And they'd managed to build out a very, very deep and extensive product. enterprise-grade SaaS tool.
And then number three, they didn't know what they had. I mean, literally what they had built was something that could change the face of B2B SaaS. And those three things, I said, you know what, I'm going to jump in. So I changed my life and jumped in at the time.
I love that. Now, Andy, you mentioned a board. So how much did they have? Had they raised a bunch of capital before you joined? If so, how much?
Yeah, almost nothing. They brought in about a quarter million and the rest they'd really done on their own. They bootstrapped the company from the beginning. They had brought in a quarter million. And then after that, we brought me on and that we expanded it from there. But we haven't brought too much capital in, which is interesting.
So no other outside capital besides the 250K, even after you joined?
We have a bunch of individual investors. Most of them are our customers. Most of them are CEOs of our companies who just love our product and want a piece of the action. They've all invested, but the total investment of the company is less than $5 million. We've just done really, really well on our own steam.
How have you structured that? Let's say someone listening right now also wants to let their customers, CEOs write checks. Do you do an individual convertible note for every single investor or an RUV and an SPV, or how do you structure it?
Yeah, we do a convertible note. There's a lot of ways to do it. And I think for your listeners, if they're interested in investing, there's a lot of CEOs out there who are going to put pre-money, they're going to put a big price tag on their company saying, this is a $40 million idea. So you invest on a convertible note and it's a $40 million valuation.
I think that there's a lot of people who value the company too high. We didn't do that. We took a very fair handed amount of valuation with the company. We've slowly grown that amount, the cap of the note, the discount to a note over time as we've shown that we've been able to grow the company. So it was very fair, very even handed.
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