Sramana: At that time, there was a lot of activity in CRM. What functionality did existing vendors miss? Clate Mask: Our customers were very small businesses, typically between two and ten employees.They needed e-mail marketing integrated with their customer relationship management. Our software program was as much an e-mail marketing program as it was a
Sramana: What did you do in 1999 when the company you were working for was acquired? What path did you take? Clate Mask: I stayed on board for another couple of years. About.com was the fourth-largest Internet company due to their roll-up of other companies. They were right behind Yahoo!, MSN, and AOL. It was
Clate Mask, who has a JD and an MBA from Brigham Young University, is the co-founder and CEO of the fast-growth software company Infusionsoft. He is also the co-author of the New York Times bestseller “Conquer the Chaos: How to Grow a Successful Small Business without Going Crazy.” Mask raised nearly $17 million in venture capital
Sramana: Are the investors you work with accredited, or are they more friends and family without much of a professional investment angle? John Duffy: In most cases, we require people to be accredited investors. We have several professional investors on our cap chart, but their personal funds are used instead of having professional investors. But we
Sramana: Did you self-finance the company or did you raise money? John Duffy: We self-financed the company from 2005 through early 2007. We did a small friends and family round in 2007 and another one in 2008. We became profitable in 2009, and since then we have not taken any additional capital.
Sramana: Of your technology and administrative offerings, what is your core value proposition? John Duffy: The technology enables us to deliver our administrative offering which is our core value proposition. Our sweet spot is ensuring that compliance is handled properly. Carriers are always up to date with what our clients are doing and that they
Sramana: Why did you move from a processes-oriented business to a company that developed technologies when there were already other larger companies building communication technologies in the same space? John Duffy: One of the things we were concerned about when we first got into this business was that the technology would change very quickly. I
Sramana: When you sold that company in 2002, you received a return. Had you had any other returns from other businesses, or was that the first? John Duffy: That was the first, and to date it has been the only exit I have ever had. I did well, but I did not get rich by