SaaS: Recruiting Tool w/ $60m Raised, 2000 Customers, Unleashes CRM

Daniel Chait

In Episode #806, Nathan interviews Daniel Chait. He’s the CEO and co-founder of Greenhouse, which designs tools that help create and navigate a new world of work. Daniel has been a technology entrepreneur in New York for nearly 20 years. Before Greenhouse, he co-founded Lab49, a global firm providing technology consulting solutions for the world’s leading investment banks. He’s a proud graduate of the computer engineering program at the University of Michigan.

Famous Five:

  • Favorite Book? – Nudge
  • What CEO do you follow? – Kim Scott
  • Favorite online tool? — Trello
  • How many hours of sleep do you get?— 7.5
  • If you could let your 20-year old self, know one thing, what would it be? – “The dotcom crash”

Time Stamped Show Notes:

  • 01:35 – Nathan introduces Daniel to the show
  • 02:10 – Greenhouse sells recruiting software that corporations use to design and execute their hiring process
  • 02:40 – Greenhouse is a SaaS company
  • 02:50 – Average customer pay per year varies
    • 03:05 – The pricing model depends on the size of the company
  • 03:40 – Greenhouse tends to price higher than their competitors’ because they offer a premium software solution
  • 04:05 – Greenhouse is in the recruiting software space which is currently crowded
    • 04:15 – Daniel shares some of their competitors depending on the categories
    • 05:10 – The competition is extremely fragmented
    • 05:33 – Greenhouse falls into all the categories, from the smaller ones to enterprise
  • 06:05 – Greenhouse offers three tiers
  • 06:24 – Greenhouse was launched in 2012
  • 06:32 – First year revenue was around $50
  • 07:33 – Post product revenue is around $1M
  • 08:25 – Greenhouse currently has 2000 customers
  • 09:03 – Team size is 195, based in San Francisco and New York
  • 09:30 – Greenhouse has raised $16M from their series C round
  • 09:53 – Daniel enjoyed doing their fund raising and he believes in their investors
    • 10:13 – Every round is different
    • 10:40 – This was the first time that Daniel raised outside the investment
  • 11:19 – Greenhouse has a world-class retention rate
    • 11:36 – 97% of their customers have renewed
  • 11:55 – Most of the team is in inside sales
  • 12:36 – Daniel shares where their expansion comes from
  • 13:11 – Greenhouse’s newest product is Greenhouse CRM which is still in beta
  • 14:10 – The inside sales team job is heat mapping the products used by a customer
    • 14:41 – The expansion is through additional growth
  • 15:15 – LTV-CAC ratio
    • 15:48 – “We have a healthy ratio”
  • 16:04 – Payback period
  • 17:00 – The weirdest thing Daniel did to acquire new customers
    • 17:43 – They went from market research to marketing
  • 17:57 – ARR
    • 18:07 – Daniel on hitting the $50M ARR mark by end of 2017
  • 19:40 – The Famous Five

3 Key Points:

  1. Create something that will make you stand out in a competitive and crowded market.
  2. Focus on how you can increase your customer retention rate—perhaps it’s by adding new products that will better serve them.
  3. Raising a capital round can help you gain new customers.

Resources Mentioned:

  • Simplero – The easiest way to launch your own membership course like the big influencers do but at 1/10th the cost.
  • 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
  • GetLatka – Database of all B2B SaaS companies who have been on my show including their revenue, CAC, churn, ARPU and more
  • Klipfolio – Track your business performance across all departments for FREE
  • Hotjar – Nathan uses Hotjar to track what you’re doing on this site. He gets a video of each user visit like where they clicked and scrolled to make the site a better experience
  • 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
  • Show Notes provided by Mallard Creatives