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Best of Bootstrapping: What is the Best Bootstrapping Tactic for B2B Startups?
If you haven’t already, please study our free Bootstrapping Course and Investor Introductions page. What is the best bootstrapping tactic for B2B startups? Solve an acute customer pain. Get paid an advance to do so. Leeyo Software Founder Jagan Reddy followed this strategy to bootstrap to $20 million. He built a niche software that solved a very specific problem
Bootstrapping to $20 Million: Jagan Reddy, CEO of Leeyo Software (Part 7)
Sramana Mitra: You have chosen to keep this bootstrapped until this point? Jagan Reddy: Yes. Sramana Mitra: What are your thoughts about that? You have a profitable structure. You must be getting tons of calls from investors, but it sounds like you have chosen not go in that direction. Jagan Reddy: We have spoken with
Bootstrapping to $20 Million: Jagan Reddy, CEO of Leeyo Software (Part 6)
Sramana Mitra: How did that revenue split between large enterprises and SMBs? Jagan Reddy: About 75% of revenue is from large enterprises. Sramana Mitra: You said you had to increase your marketing to get into the SMB customers. What did you do in terms of marketing? Jagan Reddy: It’s more outbound. The only trouble in
Bootstrapping to $20 Million: Jagan Reddy, CEO of Leeyo Software (Part 5)
Sramana Mitra: You still had enough cash to go through this SaaS transition and finish it in 2012? Jagan Reddy: We started the transition in 2012. It was a major shift, so it was not going to happen within a year. It has taken us, at least, two years to do the transition. Sramana Mitra: So
Bootstrapping to $20 Million: Jagan Reddy, CEO of Leeyo Software (Part 4)
Sramana Mitra: Awesome. Can you talk about cash flow in all this? The startup story is all about cash flow. How did you navigate your cash flow journey in all this? Jagan Reddy: I bootstrapped the company, and then we sustained the business with our own cash flow. We manage the business very lean, but
Bootstrapping to $20 Million: Jagan Reddy, CEO of Leeyo Software (Part 3)
Sramana Mitra: How did you negotiate the deal with Brocade? How much were they willing to pay you for doing what you were going to do for them? Jagan Reddy: Today for a $2 billion company, our price point would be anywhere between $300,000 to half a million dollar annual subscription fee. At that point,
Bootstrapping to $20 Million: Jagan Reddy, CEO of Leeyo Software (Part 2)
Sramana Mitra: What was the conclusion? What was the insight that you drew from this process? Jagan Reddy: One of the fundamental things that I understood from the requirements perspective is, if you look at the FASB, which is the standard for accounting, it is very direct and clear about how you need to do
