Pipedrive Passes $10M ARR, Helping 30,000 Customers w/ CRM with CEO Timo Rein

timo-rein

In Episode #483, Nathan is joined by Timo Rein, CEO and co-founder of Pipedrive, a provider of sales CRM software that gives sales teams control over their selling processes. After spending $15,000 on a CRM for his own business that ended up being a total waste of money, Timo brought together a few engineering friends to create a better CRM solution for his own needs. This was the genesis of Pipe Tribe, which now has over 30,000 small business users worldwide and has reached $13.4 million in VC funding.

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Famous Five:

  • Favorite Book? – Turning Pro
  • What CEO do you follow? – Stephen Curry and Gregg Popovich
  • Favorite online tool? — Slack and Viber
  • Do you get 8 hours of sleep?— “No, still trying.”
  • If you could let your 20-year old self know one thing, what would it be? – “Take action. It is important to work hard first. Discover who I am and know where my energy flows.”

Time Stamped Show Notes:

  • 01:47 – Nathan introduces Timo to the show
  • 02:31 – It was in 2002 when Timo spent $15,000 on a business
    • 02:41 – It turned out that the business wouldn’t have much return
  • 02:56 – Pipe Tribe helps small businesses around the world control their complex processes
  • 03:23 – Pipe Tribe was founded in June 2010 and the product came out March 2011
  • 03:30 – Current team size
  • 03:48 – They have an office in Estonia and Manhattan
  • 04:28 – Timo is based in California
  • 04:50 – In 2010, revenue is zero
  • 05:30 – 2015: total revenue
  • 06:16 – Current ARR
  • 06:30 – They are doing about a million dollars per month
  • 06:48 – They have 30,000 paying customers
  • 07:00 – Pipe Tribe’s pricing
    • 07:07 – They have 3 plans at the moment
  • 07:25 – Average customers’ pay per month
  • 08:21 – They are doing cohort tracking
  • 08:30 – Monthly customer churn
    • 08:37 – Churn tends to be quite high
    • 09:32 – The churn depends on the tool and business size
  • 10:45 – CAC will depend on the company’s growth
  • 12:00 – 25% of new sign-ups are paying annually
  • 12:28 – How do you drive the company?
    • 12:45 – Timo and his co-founders built the company from the ground up
    • 13:22 – They have an internal goal
  • 13:33 – They raised $9 million from Series A
  • 13:53 – Some of the money they raised was from seed investors
  • 14:13 – Timo won’t sell his business for $90 million or even $150 million
  • 14:49 – Timo sees the company as a work undone
  • 15:11 – “When you build a startup, it seems like you’re building an airplane while you are on air”
  • 16:22 – They have a revenue goal and customer goal
  • 16:45 – Connect with Timo through his LinkedIn
  • 18:25 – The Famous Five

3 Key Points:

  1. The world around us changes—the economy goes up and down.
  2. When you build a startup, it seems like you’re building an airplane while you are on air.
  3. Take action. It is important to work hard first. Discover who you are and know where your energy flows.

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 the quality of Toptal
  • 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.
  • LinkedIn – Timo’s LinkedIn account
  • Show Notes provided by Mallard Creatives

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