Prospectify Raises $1M at $4M Post Money Valuation, $25k MRR, for Better Prospecting with CEO Matt Ekstrom

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In Episode #553, Nathan interviews Matt Ekstrom. He’s one of the founders of Prospectify and formerly co-founded HiringSolved. He’s in-charge of all things revenue for Prospectify, which is a promising sales and intelligence platform.

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Famous Five:

  • Favorite Book? – Sales Acceleration
  • What CEO do you follow? – Gary Vaynerchuk
  • Favorite online tool? — Google Search and HubSpot
  • 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 would have studied more about startups and being an entrepreneur”

Time Stamped Show Notes:

  • 01:30 – Nathan introduces Matt to the show
  • 01:55 – Prospectify is a SaaS model
  • 02:14 – Prospectify’s long term goal is to be able to scale personalization from the sales standpoint
  • 02:25 – Prospectify has monthly subscriptions
  • 02:45 – Prospectify’s pricing:
    • 03:25 – The prices from the website are $40, $190, $490, and $975
  • 03:33 – Average customer pay per month is $352
  • 03:50 – Prospectify was launched in February 2016, and was in beta in January 2016
  • 04:16 – Current number of customers is around 100
  • 04:46 – MRR is over $20K
  • 05:09 – Prospectify is based in Phoenix
  • 05:20 – Prospectify just closed their first month
    • 05:25 – It was in Angels and a million dollar round
  • 05:45 – Matt shares why he decided on an equity round and not a convertible note
  • 06:31 – Matt uses the trajectory to argue for higher valuation
  • 07:29 – Prospectify is about to launch their company search which includes 12 million companies starting in the USA
  • 08:10 – The people Prospectify has targeted
  • 08:18 – Prospectify’s customer base is diverse
  • 08:45 – Annual customer churn
  • 09:45 – Matt shares what he will do to keep customers paying and NOT cancel after receiving all the data
  • 11:10 – Prospectify’s top data sources
    • 11:22 – Matt shares what they used to validate the concept of Prospectify
  • 12:18 – Fixed cost per month for crawling
  • 13:11 – Matt shares where to get credits
  • 14:00 – Customer LTV
  • 14:34 – Current team size
    • 14:45 – Headcount expenses
  • 16:30 – The Famous Five

3 Key Points

  1. Keep people up to date—that way, they will keep on paying.
  2. Decide whether an equity round or convertible note will be most advantageous for you.
  3. Discern what is the right track and try to stay on

Resources Mentioned:

  • 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
  • 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.
  • Audible– Nathan uses Audible when he’s driving from Austin to San Antonio (1.5-hour drive) to listen to audio books.
  • The Top Inbox – The site Nathan uses to schedule emails to be sent later, set reminders in inbox, track opens, and follow-up with email sequences
  • Jamf – Jamf helped Nathan keep his Macbook Air 11” secure even when he left it in the airplane’s back seat pocket
  • Show Notes provided by Mallard Creatives