Pipefy $2.6M Raised, $50k MRR, Helping 400 Customers Organize Processes with CEO Alessio Alionco

Alessio Alionco

In Episode #633, Nathan interviews Alessio Alionco. He’s the founder and CEO of Pipefy, which is part of 500 Startups. He’s a passionate product manager.

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Famous Five:

  • Favorite Book? – The Lean Startup
  • What CEO do you follow? – Jason Lemkin
  • Favorite online tool? — Yesware and Salesforce
  • Do you get 8 hours of sleep?— Yes
  • If you could let your 20-year old self, know one thing, what would it be? – Alessio would tell himself to be aggressive with his goals

Time Stamped Show Notes:

  • 01:56 – Nathan introduces Alessio to the show
  • 02:12 – Pipefy is a workflow cooperation software
    • 02:21 – Alessio got Pipefy’s idea from his previous company
    • 02:36 – Alessio uses a CRM to manage Pipefy
    • 02:45 – Pipefy has a dozen of processes
  • 03:12 – “We coordinate people’s work”
  • 03:36 – Pipefy provides guidelines for a smooth, business process
  • 03:48 – Pipefy is more of a people coordination solution and Zapier is similar to IFTTT
  • 04:00 – Pipefy charges per user, per month
  • 04:10 – Average customer fee is $200/month
  • 04:20 – Pipefy started at the end of 2014
    • 04:26 – Pipefy had its beta
    • 04:36 – Pipefy released pre-signups in April 2015
    • 04:51 – Pipefy became one of the most voted products of the day
  • 05:23 – There was no revenue in 2015
  • 05:32 – Pipefy started charging in August 2016
  • 05:47 – Pipefy now has more than 400 paying customers
  • 06:00 – Average MRR
  • 06:54 – Pipefy offered a special price for customers who renew their subscriptions
  • 07:00 – Pipefy has more than 60K customers who use them for free
    • 07:24 – Only a small portion of the customers converted
    • 07:40 – SMBs don’t have business processes in place and aren’t willing to pay for one
    • 08:06 – Pipefy wants to focus on companies that are close to being considered enterprise companies
  • 08:42 – Pipefy has raised a seed round of $2.2M
  • 09:13 – Team size is 33
    • 09:32 – 27 are in Brazil and 6 are in San Francisco
    • 09:55 – Pipefy is still hiring more people
  • 10:00 – CAC
    • 10:30 – Overall CAC is around $900 per company
  • 10:50 – LTV is still hard to predict
  • 11:34 – Pipefy’s per seat pricing
  • 12:10 – Pipefy negotiates deals with companies with over 10K employees
  • 12:33 – 2017 revenue goal
  • 12:50 – “It’s really a huge funnel to raise the seed round”
    • 13:00 – The series A dynamic is completely different
  • 13:26 – 2016 total revenue
  • 14:00 – Pipefy is aiming for a $200K MRR which is 10x the growth
  • 16:05 – The Famous Five

3 Key Points:

  1. The best time to switch to a paid version of your product requires careful consideration to ensure the conversion takes place.
  2. Some SMBs rely on free business software and services for their processes—therefore, you may need to adjust your target audience.
  3. Be aggressive with your goals and just go for it.

Resources Mentioned:

  • 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
  • Organifi – The juice was Nathan’s life saver during his trip in Southeast Asia
  • Klipfolio – Track your business performance across all departments for FREE
  • Acuity Scheduling – Nathan uses Acuity to schedule his podcast interviews and appointments
  • 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
  • Freshbooks – Nathan doesn’t waste time so he uses Freshbooks to send out invoices and collect his money. Get your free month NOW
  • Show Notes provided by Mallard Creatives