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SaaS Interviews with CEOs, Startups, Founders

Collabogence Pivoting from $300k Agency, Raising $1.5m on $5m Pre?

20 Jan 2021

Transcription

Chapter 1: What inspired Peter Smit to start Collabogence?

0.031 - 1.854 Peter Smith

First year was about 70,000. Okay.

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2.215 - 2.736 Nathan Latka

Yep.

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3.317 - 23.052 Peter Smith

And probably in the hundreds last year. And right now, because we've done a major shift toward helping organizations with the workplace strategy, both the work from home and new office environments, we see that going up to probably a run rate of close to a million by the second half of this year.

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25.124 - 45.748 Nathan Latka

You are listening to Conversations with Nathan Latka. Now, if you're hearing this, it means you're not currently on our subscriber feed. To subscribe, go to getlatka.com. When you subscribe, you won't hear ads like this one. You'll get the full interviews. Right now, you're only hearing partial interviews.

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45.728 - 56.822 Nathan Latka

And you'll get interviews three weeks earlier from founders, thinkers, and people I find interesting. Like Eric Wan, 18 months before he took Zoom public.

57.023 - 61.548 Peter Smith

We've got to grow faster. Minimum is 100% over the past several years.

61.568 - 72.883 Nathan Latka

Or bootstrap founders like Vivek of QuestionPro. When I started the company, it was not cool to raise. Or Lookers CEO Frank Behan before Google acquired his company for $2.6 billion.

73.032 - 77.057 Unknown

We want to see a real pervasive data culture, and then the rest flows behind that.

77.858 - 104.513 Nathan Latka

If you'd like to subscribe, go to getlatka.com. There, you'll find a private RSS feed that you can add to your favorite podcast listening tool, along with other subscriber-only content. Now look, I never want money to be the reason you can't listen to episodes. On the checkout page, you'll see an option to request free access. I grant 100% of those requests, no questions asked. Hello, everyone.

Chapter 2: How did Collabogence transition from consulting to a SaaS model?

421.282 - 444.7 Nathan Latka

Okay, so you can't have a six total team size and then six engineers and then one extra. That would be seven total. Seven total. Okay, seven total, including you? Yes, including me. Okay, so that means five of them are engineers and then you have this COO guy and then you. Correct. I see. Okay, and so give us more of the backstory here. What sort of got you into this space?

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445.681 - 464.9 Peter Smith

So what... After business school, which I did in the United States, I landed at Honeywell's European head office and then went to a Swiss company, which is now part of Siemens in Switzerland and in global roles because I speak a bunch of languages. I was launching products globally, global account management, these types of things.

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465 - 485.68 Peter Smith

And if I fast forward to five years ago with the inception of Collabagence was really the idea that I saw companies that were looking to do one of three things or all three at the same time. One was to change the culture and the way they work with each other. So they needed to have a better understanding of how they work with each other and they wanted to become more collaborative.

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485.66 - 505.798 Peter Smith

They were changing their workplace strategy and office utilization and shifting from the assigned desk environment to the activity-based workspace model. and also with the goal of becoming more productive and collaborative. And then they were busy implementing a lot of technology tools, which were also enablers to improve collaboration.

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505.818 - 527.815 Peter Smith

And my comment was that they were spending millions of dollars on each of these initiatives and had no ability to establish a baseline and no ability to measure any actual impact or change in the behavior. We don't profess to measure productivity. What we can show you is changes in effectiveness and productivity, which is a proxy for a change in productivity.

529.117 - 534.308 Nathan Latka

How can you not measure productivity, but be able to measure change in productivity? It feels like you have to have both.

534.348 - 549.99 Peter Smith

It came out of the industrial revolution where they were looking at how many widgets can we produce? And in a knowledge-based environment, productivity is a very difficult thing to measure. And other than the financial results of a company overall. So really, if you want to

550.308 - 560.303 Peter Smith

if you want to do it and we're having some early discussions with some clients that want to start looking at tying change in this measure to performance management.

561.045 - 570.76 Nathan Latka

So what does that mean though? This, this all, these all feel like big fancy sort of Harvard business review book sort of words to me versus practical, real things actually happening in dev shops and dev teams.

Chapter 3: What challenges did Peter face in the early stages of Collabogence?

815.953 - 819.378 Peter Smith

So that would be in between five to seven.

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821.021 - 824.986 Nathan Latka

And I mean, people are going to push you on that. You're basically pre-revenue right now. Why are you worth five to 7 million bucks?

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825.547 - 833.298 Peter Smith

Well, that's the assumption that the contracts that we would be signing would all be quarter of a million to $500,000 each.

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834.803 - 838.809 Nathan Latka

So what if you don't sign those contracts? How much runway do you have?

838.829 - 839.67 Peter Smith

Continue bootstrapping.

841.352 - 846.079 Nathan Latka

Well, I assume you can't pay seven people full time on $200,000 of total annual revenue.

846.639 - 847.2 Peter Smith

Correct.

847.22 - 849.303 Nathan Latka

So who's putting in the money when there's a gap? You?

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