Sramana: It sounds like you were showing substantial revenue by the time you finished your product and got your second round of financing. Paulo Rosado: I did not take another round of financing until we were at the breakeven point. The original intention was to go to the market at the end of 2002 and
Sramana Mitra: How do you describe the value proposition of what you’re delivering to your customer base today? John Sundberg: Generally speaking, most companies already think that they’re all messed up internally and it’s very hard for them to get something done. They already see the pain. What we do is we come in and
Sramana: I know you had experience developing software and you knew the change process. You had a basic understanding of the problem domain. As you were building the company, did you bring together a set of customers to work with as you were developing the product? Paulo Rosado: Fortunately we did, yes. Sramana: What was
Sramana Mitra: What is the ramp of the company? You said you did $100,000 and then $250,000 in the second year. John Sundberg: We were doubling every year for about six years. Then it went flat for about five years during the economic slowdown. Last year, we did $7.5 million and the year before $5 million.
Sramana: Did the company go public? Paulo Rosado: We were on the path right as the bubble burst. We were supposed to float on the NASDAQ, but we missed the window by about two months. We had to delay the IPO and it never actually happened. I left the company in 2001 with the idea of
Sramana Mitra: What do you have in terms of the content team? How do you run your content production farm? John Sundberg: We have consultants and developers. We have product marketing managers. Those are all internal people that we have. We probably have a handful of customers that have done a couple of things too.
We’ve looked at a few case studies of European companies successfully turning themselves into global ones. SDL, Mendix, and Sitecore are just a few examples. In that select club, OutSystems is a key player. Sramana: Paulo, let’s start out at the beginning of your story. Where were you born and raised? What was your journey
Sramana Mitra: Unfortunately, that’s the problem with enterprise sales cycles. They are just so very long. John Sundberg: Exactly. I did so many demos of the software to them. It was ridiculous. In one of the demos I did for them, they had people from all over the world call. I had given a 1-800