Sramana Mitra: Do your merchants have $100,000 in revenue or are they $2 million in revenue? Is there any kind of cut-off there? Mitch Harper: Our customers’ revenue typically ranges from $1 million to $30 million of revenue per year. Sramana Mitra: Your customer base is more in the $1 million to $30 million range. Then, the
Sramana: What I’m trying to understand is how did you manage to bootstrap the Version 1.0 piece of your journey? Was there some of the services money that this company was paying you that went into building the product? Rik Chomko: Yes. That’s exactly how we did it. So we bootstrapped it and were trying
Sramana Mitra: The competition for keywords has gone up in the course of this, right? Azim Makanojiya: Significantly. What we used to pay 20 cents for, we now pay $6 to $7. Sramana Mitra: How has that impacted the business?
Sramana Mitra: Was there any geographical bias in the 2,000-customer base? Mitch Harper: They were mainly from North America and Australia. Sramana Mitra: Why were they pre-ordering? Why were they interested in your product? This is a segue into the discussion about your competitive landscape. There are a few players in that space. There is
Rik Chomko: Once we shut down the services company, my business partner and I wanted to start a product company. Our idea was to provide software to corporations which would allow them to modify logic without any coding effort. Sramana: What year are we talking here? Rik Chomko: This is in 2002.
Azim Makanojiya: The other company then told them that they can still service us. They got their orders for three weeks but didn’t pay the factory. In the meantime, they built their own factory in China and started doing orders. They left the factory with unpaid bill of about $175,000. We’re now basically the sole company that sources from
Sramana Mitra: Is it the same team that you had in Sydney that got Bigcommerce off the ground? Mitch Harper: Not really. As I had mentioned, I used to be an engineer and built the first version along with Chris who was one of our early employees from that initial team. He’s still with us
Rik and his team had to navigate a long journey, including a recession that disrupted one of their key customer segments dramatically. Read how they survived. Sramana: Rik, let’s start with the beginning of your story. Where are you from? Where were you raised? What kind of circumstances? Give us some of the back story.