This feature on CNN looks at the milestones in the 30-year journey of the dot-com era since the first .com domain was registered on 15 March, 1985. For this week’s posts, click on the paragraph links. >>>
Sramana Mitra: You raised $15 million in this round?
William King: Yes.
Sramana Mitra: That’s all the financing that you have raised so far?
William King: Correct.
Sramana Mitra: Tell me a bit about how you framed TAM for your business. What is the TAM model that you’ve been using?
William King: I’ll just give you a couple of numbers here. The worldwide pharmaceutical market was worth $956 billion two years ago. It will be well over a trillion dollars now. We looked at the revenues from a cost standpoint. How are they being generated? In particular, what we looked at is a >>>
Sramana Mitra: What do you want to do with this company? You have built a profitable company growing at 80%. What do you want to do with it?
John Rauscher: We want to become public. We want to keep on building and growing. As we have been positive, becoming public may come sooner than we think. When we think that it will be time to accelerate and raise money through IPO, then it will be the time to go public. Being profitable year after year is critical.
Sramana Mitra: From an IPO scale point of view, you’re still too small. >>>
Sramana Mitra: This, by the way, is also a trend. For the longest time, the buyers of IT were IT departments of corporations. Today and going forward, the buyers are much more going to be the business users. The marketing department, for instance, is becoming a huge buyer of IT and other departments as well. Everywhere in the organization, there are SaaS capabilities that address specific problems. The uptake of SaaS solving specific business workflows is huge outside of IT. IT is no longer the largest buyer of information technology.
William King: I love hearing that. You get to look across the landscape. That’s certainly what we hope. We’re seeing it in our buyers, but I love that that’s a trend. Another thing that we’ve done that I’m so proud of is we democratized the data. First of all, we wrangle all the data. We do all the heavy lifting. For the BI tools, when you talk to people who use them, they say, “75% to 80% of our time is spent wrangling the data.” 15% to 25% of the time, they’re actually looking at it and analyzing it. What we’ve been able to do is take that effort out and then present it in a way that a business user can make good use of. That is so powerful. That is where we get a lot more buyers. >>>
Entrepreneurs are invited to the 253rd FREE online 1M/1M roundtable mentoring session on Thursday, April 2, 2015, at 8 a.m. PST/11 a.m. EST/8:30 p.m. India IST.
If you are a serious entrepreneur, register to “pitch” and sell your business idea to Sramana Mitra. You’ll gain straightforward feedback, advice on next steps, and she’ll answer any of your questions. Others can register to “attend” to watch, learn, and interact through the online chat.
Sramana Mitra: That’s the beauty of this bootstrap first, raise money later model. You’re going out to raise from a position of strength as opposed to weakness. You’re not begging for money. You’re in the negotiating position. In any given time in the market, there is more money chasing fundable deals than fundable solid deals chasing money. If you are in that position where you have bootstrapped to a certain level of validation, success, and customer traction, the likelihood of you calling the shots in negotiation is high.
William King: Exactly. I appreciate that commentary. One of the things that was important to me is our mindset of not creating a one-off product. I’m here in Silicon Valley, but I think I’m unusual in the standpoint that I’m from Princeton and I worked for a traditional company. We’ve always focused on truly building a company. That is one of the most important lessons I’ve learned at J&J. The credo, culture, and this idea of creating sustainability—these are core tenets that made a deep impression on me. What I wanted to do was go out and >>>
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According to a survey of small and medium businesses conducted by CAN Capitol, 38% of SMB owners plan to increase their advertising and marketing activities this year. Billion Dollar Unicorn club member HubSpot is a rising star in this market, focusing on the inbound marketing segment for these SMBs.