Prashant Srivastava: That business would get better over time because it would learn from what works for each person and adapt whereas as we got bigger in a human capital business, the labor pool gets progressively less in quality. This would be something they would learn over time and be more effective at scale and deliver something at a very cost effective price point that would still be very comparable to what a human touch was doing at that time.
Sramana Mitra: It’s very interesting. The framing of the problem that you’ve done is interesting. I think there’s a lot to learn from that. How big a company are you today?
Prashant Srivastava: We are about 200 employees. It started with me and Peter, my co-founder at a restaurant.
Sramana Mitra: You’re about a $30 million company?
Prashant Srivastava: Between $30 million and $50 million.
Sramana Mitra: I believe you bootstrapped the company and just recently took some funding. Could you elaborate?
Prashant Srivastava: Since the birth of our business 10 years ago, we are owner-funded. We saw rapid growth as we pursued the journey to become the world’s guidance platform for benefits. With the proven base of customers and products we now have, we realized that we’ve reached an inflection point where the critical mass of customers are market leaders in the HR space.
Any enterprise that offers benefits would want to get the most out of every benefit dollar they spend. Our technology had customer needs coming together in such a way that we have increased demand for our product, and we have to be ready to respond to that right now. We are investing rapidly in those areas with investor funding.
Sramana Mitra: How much money have you raised?
Prashant Srivastava: We recently raised nearly a $40 million round.
Sramana Mitra: Is that $40 million all growth capital or did the founders take some liquidity off that round?
Prashant Srivastava: We have had friends and family investors, so we did work a little bit on the cap table but a lot of money is going into our future investments.
Sramana Mitra: So it was a combination of growth and investor liquidity.
Prashant Srivastava: Yes.
Sramana Mitra: Excellent. It’s very exciting to hear your story.
Prashant Srivastava: We still think of this as the second innings of a nine-innings game.
Sramana Mitra: Good that you have the stamina for that.
Prashant Srivastava: I’m a first-generation immigrant. This story is not one that happens everyday, but as I read your blog, I want entrepreneurs out there to know that if they think they can change the world, they can. They just have to commit to it. Once you commit, the universe gets out of the way and lots of good things happen. We have a great set of individuals who are authentic here at Evive.
Sramana Mitra: Awesome. Thank you for your time.