$60M Raised To Help CIO’s Manage Their Cloud with CEO Ben Nye

ben-nye

In Episode #467, Nathan is joined by Ben Nye. Ben joined Bain Capital Ventures in 2004 and leads their infrastructure software team. Listen as Ben talks about how he became Turbonomic’s CEO and how they got to Series D.

Subscribe_Buttons_iPhone

Subscribe_Button_Android

iTunes, Google Play, Stitcher, Soundcloud, How to Subscribe

Famous Five:

  • Favorite Book? – Steve Jobs Book
  • What CEO do you follow? – Jeff Bezos
  • Favorite online tool? — LinkedIn
  • Do you get 8 hours of sleep?— No
  • If you could let your 20-year old self know one thing, what would it be? – “I wish I knew about the power of equity”

Time Stamped Show Notes:

  • 01:34 – Nathan introduces Ben to the show
  • 02:00 – Ben joined Bain Capital Ventures in 2004
  • 02:15 – Capitalized Turbonomic as an investor in 2009 and first delivery of product in GA in 2010
  • 02:30 – Joined the company full-time in 2013
  • 02:40 – Bain Capital Ventures is a sector focus
    • 02:55 – They want something with a prepared mind
    • 03:17 – They cover multiple sectors
  • 03:38 – Total capital raised
  • 03:59 – Ben is the lead investor at Bain Capital Ventures for Turbonomic
  • 04:17 – There was 3 CEO in Turbonomic
    • 04:46 – There was an issue between the founder and the CEO that was hired
    • 04:58 – The board made a decision, making Ben the CEO
  • 06:15 – Passive equity in the company
    • 06:22 – They kept the best people
    • 06:42 – The company has to retire passive shares and it is covered by investors right agreement
    • 07:00 – They have bought people’s equity, who left the company
  • 07:15 – Turbonomic is a soft managing self-organizing control system
    • 07:40 – They have the capability to provide enhance performance for high workloads
  • 08:15 – They have on-premises and off- premises sectors
    • 08:30 – In on-premises, there is per socket and per core based pricing
    • 08:35 – In off-premises, there are no sockets so you work virtually in public cloud
  • 08:55 – They are not SaaS, but users can purchase on term basis
    • 09:20 – Some users request how to acquire the software
    • 09:35  – They measure the environment based on sockets and core count
    • 09:52 – 91% of the customers have a 3-month full payback
  • 10:19 – Ben offers a scenario how the model works
  • 11:34 – At Bain Capital Ventures, they research the companies and pick which they think will win
  • 12:53 – The startups competing in the market
  • 13:15 – In Turbonomic, there are 16,000 CIO who invested in them
  • 13:28 – They have 400 employees
  • 14:00 – Revenue growth in 2016
  • 14:36 – In November of 2014, they did a $ 50 million series-d
  • 15:35 – Going to series-d will depend on the nature of the company
    • 15:41 – Ben’s company is an intellectual property strategy company
  • 16:30 – Connect with Ben through his website and join Green Circle Community
  • 18:30 – The Famous Five

3 Key Points:

  1. People can voluntarily sell their equity when the leave a company.
  2. Getting to series-d will depend on the nature of the company.
  3. Know your market.

Resources Mentioned:

  • Toptal – Nathan found his development team using Toptal  for his new business Send Later. He was able to keep 100% equity and didn’t have to hire a co-founder due to quality of Toptal  developers.
  • Host Gator – The site Nathan uses to buy his domain names and hosting for the cheapest price possible.
  • Freshbooks – The site Nathan uses to manage his invoices and accounts.
  • Leadpages  – The drag and drop tool Nathan uses to quickly create his webinar landing pages which convert at 35%+
  • Audible – Nathan uses Audible when he’s driving from Austin to San Antonio (1.5 hour drive) to listen to audio books.
  • Assistant.to – The site Nathan uses to book meetings with one email.
  • Acuity Scheduling – Nathan uses Acuity to schedule his podcast interviews and appointments
  • Drip – Nathan uses Drip’s email automation platform and visual campaign builder to build his sales funnel.
  • Turbonomic.com – Ben’s website
  • Green Circle Community – Ben’s online community
  • Show Notes provided by Mallard Creatives

Leave a Reply

Your email address will not be published. Required fields are marked *