If you haven’t already, please study our Bootstrapping Course and Investor Introductions page. Joe founded CloudHealth as an EIR at a Boston VC firm. Last year the SaaS company had 300 customers. The story explores how he achieved product market fit and found its stride. Sramana Mitra: Let’s start at the very beginning of your personal journey. Where are
Sramana Mitra: What was the trigger to leave Peoplesoft? Peter Gassner: The management team had changed at Peoplesoft. I had started as a developer there. At the end of nine years, I was handling a team of 500 people. I worked hard there. I loved the team I assembled. Then, the management team changed. Culture changed
Sramana Mitra: How did IBM figure out, given that you have a strange background from their perspective, that you would be good at this stuff? Peter Gassner: My first internship was at IBM. Sramana Mitra: They noted you then. Peter Gassner: Yes, “That’s a kid that can work hard. He gets work done. He’s got
Sramana Mitra: Also, what you have going in your favour is that the market is starting to understand that on the Internet, content is the brand. I think that understanding is going to drive further and further into the industry in general. Yaron Galai: I don’t view Facebook as being in the business of social networks
Sramana Mitra: The publishers are paying a lot more than $10 a month. Yaron Galai: We kept it, initially, at $10 a month but it couldn’t sustain them that way. The publishers said, “If you let us pay on a per-click basis, then we know exactly how many audience we get.” We pivoted on the
Sramana Mitra: Computer Science is not ambiguous. It’s clear and logical. Part of the thing that I’ve observed at this point in my life, having seen a little bit of life, is that there is a lot of ambiguity and a lot of lack in logic in how human beings operate. I’m a very rational,
Sramana Mitra: The ratings and the Internet recommendations were free. There were no monetization model around any of that? Yaron Galai: That’s right. Sramana Mitra: The first monetization effort was with the paid recommendation of external content into these larger publishers. What was wrong? Why did the first iteration fail?
If you haven’t already, please study our Bootstrapping Course and Investor Introductions page. Peter Gassner is a self-described late bloomer. In a wonderfully authentic interview, Peter describes here how he turned his middle-age crisis into a multi-billion dollar market cap company. Veeva, in 2016, will do well over $500 million in revenue and trades at a market cap of