Posted on Thursday, Jul 15th 2021
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CEO Chris Farrell and his co-founder bootstrapped Tallie to a high growth Inc. 500 company in four years. After that, the product had to be re-architected, and slowed down for a couple of years, before picking up again. Read how they competed in a crowded marketplace and built a robust position. After we spoke in 2014, Tallie became a part of Emburse in 2017.
Sramana Mitra: Let’s start at the beginning of your journey. Where are you from? Where were you born and raised, and in what kind of background? Chris Farrell: I was born in San Francisco. I was basically born and raised in the Bay Area, mostly down on the peninsula. I got my start in my career with Arthur Andersen as an accountant. Then I worked my way up through the accounting ranks and eventually was a Controller of a public company and a CFO of a public company. Along the way, having been steeped in technology in the Bay Area, I set out on the latest part of my journey, which is running a software company. Sramana Mitra: What public company were you the CFO of? Chris Farrell: Occam Networks, a telecom equipment manufacturer. Sramana Mitra: Obviously, the finance function is something that you bring a lot from into your startups. I’m checking if there are any other touch points that we should investigate. Chris Farrell: You and I probably overlapped at certain companies at various points when Arthur Andersen worked on Cadence. I think you were there for some time. I also worked at other companies such as Oracle. Sramana Mitra: What year did you start Tallie? What were the circumstances? Chris Farrell: I was a co-founder and I started it in 2008. In 2007, we were working at Occam Networks. We were venture-backed and public. I attended a CFO roundtable at Palo Alto at Norwest Venture – one of the four primary VCs in that company. At the CFO roundtable, we essentially discussed the problems we were facing and the opportunities that we saw for growing and maintaining successful finance organizations.
One of the areas that we were discussing at that time was the area of expense reporting. Three of us among 20 CFOs concurred. We talked about the pros and cons relative to Excel. There was an opportunity for building a system that’s going to be little bit different than what was going on in the industry at that time. I decided the time was right to make the leap.
Sramana Mitra: How did you get it started? Was it something that you bootstrapped? What were the circumstances in which the company was launched? Chris Farrell: We launched it on a bootstrapped basis. Given my background, I was very much risk-averse and we didn’t want to bring too much capital in. I think we also knew that it was going to be an exploratory journey. We started with a self-funded $100,000 in the bank and we started looking at the industry and the opportunity very closely. We essentially built it on that basis for the last several years. Sramana Mitra: Who was your co-founder? How did you meet? Chris Farrell: His name is Brad Pirtle. We met through a mutual friend. I started exploring my connections to see if there was a natural pairing out there. My background being specifically in accounting, I needed to have a technology partner. Brad and I met. We found that we had a strong mutual interest in the space and we got going together. It was pretty easy. I think that’s a big advantage of being in the Valley.
Our conversation continues
here. This segment is a part in the series : Best of Bootstrapping . Bootstrapping to an Exit . Why is Bootstrapping Important? . How Can You Play this Low-Probability Game Intelligently? . Do NOT Go to VCs as Beggars - Go as Kings . Excess is NOT Required for Success . Bootstrap First and Raise Money Later . Some Bootstrapping to Exit Case Studies . The Buy Side of Bootstrapping to an Exit . Blitzscaling vs. Bootstrapping . Bootstrapping to Unicorns More »» . Cinedigm Acquires Bootstrapped 1Mby1M Company Future Today for $60 Million . Mailchimp Bootstraps to $600M Revenue . Bootstrapping from Arizona to $10 Million . Bootstrapped Basecamp Executes a No Nonsense Strategy . How Under30Experiences Bootstrapped to $5 Million . Bootstrapping with a Paycheck . How Algo.ai CEO Amjad Hussain Bootstrapped using Services from Michigan . Seed Investors Who Like Bootstrapped Businesses . How iHeartRaves CEO Bootstrapped a Niche e-Commerce Company to $20 Million . Bootstrapping with Services . How The Intern Group CEO David Lloyd Bootstrapped to $13 Million . How Passageways CEO Paroon Chadha Bootstrapped from Indiana . How SmartBuyGlasses CEO David Menning Bootstrapped to $50 Million . Death by Overfunding . How RainmakerForce CEO Mack Sundaram Bootstrapped Decisively to $5 Million+ . How FormAssembly CEO Bootstrapped a Virtual Company with a Paycheck . TimeSlips CEO Mitch Russo Bootstrapped to Exit with Sage . The VC-Entrepreneur Compensation Disbalance . BioConnect CEO Bootstraps with Sophisticated Strategic Maneuvering . Tremend CEO Marius Hanganu Bootstraps from Romania . Gesture CEO Jim Alvarez Bootstraps to $10 Million . SproutLoud CEO Bootstraps to $30 Million from Florida . Tuft & Needle CEO Bootstraps to Over $100 Million . Co-founders Bootstrap Linguamatics to Over $10M from the UK . Ownership Matters . Vainu Co-founder Mikko Honkanen Bootstraps from Finland . Entrepreneur Couple Bootstraps to $10M from Colorado . 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Discussing the Evolution of the Indian Startup Industry with Sasha Mirchandani, Kae Capital . Lean Company Bootstraps to $7M . Saatva Co-founder Bootstrapped a $25M E-Commerce Company . Looking at Terms with Heidi Roizen of Threshold Ventures . ADDA Co-founder CEO Bootstrapped with a Paycheck in India . Duda Co-founders Bootstrap with Paychecks . The Importance of Building Value with Shomit Ghose, Onset Ventures . Get Real Health Founder Bootstrapped Using Services . Bootstrapping Unique Vintage Using a Paycheck . Discussing E-commerce Startup Trends with Daniel Gulati, Forecast Fund . Bootstrapping a Digital Startup with a Paycheck . Discussing Seed Stages with Amir Banifatemi of K5 Ventures . Bootstrapping Avelead Using Services from Atlanta . Founder Bootstrapped a Big Data Company Using Services . Discussing Future Unicorns with Warren Weiss, Foundation Capital . Founder Bootstrapped Axosoft with a Paycheck . Raised a Series A with $10 Million in the Bank . Discussing Unicorn Investments with Ravi Mohan of Shasta Ventures . Bootstrapping a $7M Company in Houston . A View into Pre-Seed Funding with Gaurav Jain, Afore Capital . Bootstrapping to $13M in Niche E-commerce . Discussing European Startup Funding with Alastair Mitchell, EQT Ventures . Founder Bootstrapped Category Leading E-commerce Company Shoplet . Discussing Trends With Yanev Suissa, SineWave Ventures . Founder Mark Organ Bootstrapped Eloqua and Crowdfunded Influitive . Sourcing Global Ventures with Ann Winblad of Hummer Winblad . JAM CEO Survives Covid with a Bootstrapped Venture . E-commerce and Investing with Tod Francis, Shasta Ventures . How An Entrepreneur Couple Bootstrapped RuffleButts To $5M . TextMe Founders Bootstrapped an App to $10M . Bootstrapped Journey of a Child Entrepreneur in India . Discussing Alternatives to Traditional Venture Capital with Bryce Roberts, Indie.vc . Solo Founder Bootstrapped Wingify to $7 Million in India . Co-founder Bootstrapped a SaaS Company in India . Bootstrapped MindTouch to $12M+ and Exit . Mobiliya Technologies was Bootstrapped Using Services . What Traditional VCs are Looking for with Scott Sandell, NEA . Bootstrapped Srishti Software Applications with Services from India . How Robust SaaS Company RateGain was Bootstrapped from India . Bootstrapped eGroup to $20M in Charleston, South Carolina . Gravitant CEO Bootstrapped Using Services to $15M in Venture Capital . CEO Bootstrapped Sitecore Using Services from Denmark . Co-founder Dan Hermann on Bootstrapping Paint Nite . Founder Krishna Kumar Bootstrapped App Orchid Using Services . Bootstrapping a Web Hosting Company to $60M . Bootstrapping CloudSense with Services on Force.com from London . Bootstrapped Book E-Commerce Business BookPal . Student Entrepreneurs Bootstrapped a Zero-Logistics E-Commerce Company to $19M . Bootstrapped to a High Growth Inc. 500 Company . Bootstrapping Using Services and Scaling Using Content Marketing . Bootstrapped from London, Went Public and Scaled to $450M . Bootstrapped Credit Card Processing Business Payscape . Bootstrapped TEOCO to $175M with Services . InRule Was Bootstrapped Using Services . HighQ was Bootstrapped Using Services from London . Ingenious Med was Bootstrapped with a Paycheck from Atlanta . Bootstrapped VistaVu to $10M from Canada . OnSIP CEO Mike Oeth Bootstrapped in Pennsylvania . Pramata Founder Bootstrapped in Minnesota . Conversocial was Bootstrapped Using Services from London . Zephyr Health Bootstrapped First, Raised Money Later . iText was Bootstrapped from Belgium . CTO Bootstrapped InteliSecure Using Services from Colorado . Bootstrapping Evariant Using Services . Dave Elkington Bootstrapped Billion Dollar Unicorn InsideSales.com Using Services from Utah . PMG Founders Bootstrapped Using Services from Atlanta . Ensighten Founder Bootstrapped First, Raised Money Later . Bootstrapping LittleThings First, Raising Money Later . Bootstrapping eMazzanti Technologies Using Services . Reltio Founder Bootstrapped Using Services . Co-founders Bootstrapped Ateb Using Services from North Carolina . Bootstrapped HireVue While in School, Raised Money Later, All in Utah . Bootstrapping the First Venture, Raising Money for the Second . Co-founders Bootstrapped BeenVerified with Angel Money . Bootstrapping a Significant Software Company from Australia . Bootstrapping Meltwater to $200 Million . Bootstrapping Casewise from London and Scaling in the US . Bootstrapping Lessons Learned by FairWarning Founder Kurt Long . Abacus Group Founder Bootstrapped a Virtualization Services Company . Seismic Audio CEO Bootstrapped a $10 Million E-Commerce Business . PhishMe was Bootstrapped Using Services First, Raised Money Later . Firmex Scaled with Angel Money in Canada . Wrike Founder Bootstrapped First, Raised Money Later . Bay Dynamics Co-founders Bootstrapped Using Services . Building an AI Software Company from Dallas . RJMetrics Co-founders Bootstrapped First, Raised $22M Later . Bootstrapping Niche E-Commerce Business BuyAutoParts to Exit . TemplateMonster was Bootstrapped to $15 Million . Bootstrapping Edge Hosting to $18 Million . Bootstrapping, Fund Raising and Exiting with Sefaira . Bootstrapping IdeaScale to $5M from Scratch . Bootstrapping to $10M from Finland . Happy Grasshopper CEO Dan Stewart Bootstrapped to Inflection . Bootstrapping Gravity Pro Using Services . Founder Builds Multiple Bootstrapped Education Software Companies . Bootstrapping to $10M from Australia, Raising $25M from the US . Bootstrapped Y Soft to $30M from the Czech Republic . Bootstrapped from Belarus, Raised Money from Silicon Valley . Bootstrapped SproutLoud to $30M from Florida . Bootstrapped 2600Hz Using Services . A Serial Bootstrapping Entrepreneur’s Journey . Bootstrapped First, Raised Money Later from Udupi, Karnataka . Bootstrapped with Services, Raised Money, and then Acquired by Salesforce . Bootstrapping Niche E-Commerce Company Modded Euros . Bootstrapping KURU Footwear from Utah . Bootstrapped to $5M First, Raised Money Later . Ninth Wave Founder Bootstrapped Using Services . Bootstrapping Vantage Circle from Guwahati, India . Bootstrapping JobNimbus First, Raising Money Later . Bootstrapping Infragistics for 30 Years . Bootstrapping Zimit Using Services to $10M . Entrepreneur Couple Bootstraps an E-commerce Business Using a Paycheck and Crowdfunding . Co-founders Bootstrapped Using Services, then Raised $10M and Scaled to $16M . SearchStax Founder Bootstraps to $10M Using Services . Bootstrapping an AI Startup Using Services . Bootstrap to Exit and THEN do a VC-Funded Venture . Bootstrapping Using Services to $26M and a Fabulous Exit . Solo Entrepreneur Bootstraps with a Paycheck to over $15M . Bootstrapped and Later Raised Money from Oregon . Bootstrapping Evenica by Piggybacking . Bootstrapping a Vertical CRM Product using Services . Bootstrapping Using Services from Helsinki, Finland . Solo Entrepreneur Bootstraps First, Raises Money Later in Utah . Art.com Co-founder on Bootstrapping First, Raising $30M Later . Bootstrapping to Exit . Why is Bootstrapping So Important? . How Can You Play the Low-Probability Game of Start-up Funding Intelligently? . Don’t Go to VCs as Beggars – Go as Kings! . Excess is NOT a Requirement for Success . Bootstrap First, Raise Money Later . More Bootstrapping to Exit Case Studies . The Buy Side of Bootstrap to Exit Startups . Blitzscaling versus Bootstrapping . Bootstrapped Unicorns . Bootstrapped from Arizona to $10M . Bootstrapping Under30Experiences to $5M . Bootstrapping Algo.ai with Services from Michigan . Seed Investors Who Like Bootstrapped Startups . Bootstrapping a Niche E-commerce Company to $20M . Bootstrap Using Services . Bootstrapping The Intern Group to $13M . Bootstrapping OnBoard from the US Midwest . Bootstrapping SmartBuyGlasses to $50M . Startup Deaths by Overfunding . Bootstrapping RainmakerForce Decisively to $5M+ . Bootstrapping a Virtual Company with a Paycheck . The Entrepreneur - VC Compensation Disbalance . Mitch Russo Bootstrapped Timeslips to Exit with Sage . Bootstrapping with Sophisticated Strategic Maneuvering . How Ownership Matters . Bootstrapping with Services from Romania to over $5M . Bootstrapping to $30M from Florida . Bootstrapping Tuft & Needle to Over $100M . Bootstrapping Linguamatics to Over $10M from the UK . Co-founders Bootstrap a SaaS Company from Finland . Entrepreneur Couple Bootstrapped to $10M from Colorado . Bootstrapping Power2Motivate to $80M from Canada . Founder Bootstrapped to Over $10M from Australia . Bootstrapping Niche E-commerce Brand Big Barker . PrecisionLender Bootstrapped to Over $10M from North Carolina . Master Bootstrappers with $1+ Billion in Exits . Bootstrapped Ultra Mobile to Over $100 Million . Bootstrapping a 2-Sided Marketplace to $10M