FinTech: Businesses Process $10b+ In Supplier Payments Through NvoicePay

Karla Friede

In Episode #852, Nathan interviews Karla Friede. She’s the CEO, cofounder and member of the board of directors at Nvoicepay. She has 20 years of experience in management, finance and marketing roles at both large and early stage companies. Along with the founding team, Karla has grown Nvoicepay into a leading B2B payment automation software company. Before this company, she was the president and CEO of a privately held company and VP of marketing for GeoTrust, which was acquired by VeriSign in 2006. Cofounder of The Ascent Group, a strategy consulting firm servicing technology firms in The Bay area. She was also the director of marketing at Mentor Graphics along with being a part of PBS Team at KPMG.

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Famous Five:

  • Favorite Book? – Crossing the Chasm
  • What CEO do you follow? – Jeff Bezos and Meg Whitman
  • Favorite online tool? — Google Docs
  • How many hours of sleep do you get?— 6.5
  • If you could let your 20-year old self, know one thing, what would it be? – “Relax, it will be okay. Have fun because life is short”

Time Stamped Show Notes:

  • 01:44 – Nathan introduces Karla to the show
  • 02:40 – Nvoicepay is transporting the massive manual effort that goes into the payment process for businesses
  • 03:28 – Nvoicepay brings simplicity to the payment world
  • 03:37 – Nvoicepay’s model is both SaaS and transaction-based
    • 03:43 – Nvoicepay supplies software and they also get paid per transaction
  • 03:54 – Karla is wanting the SaaS model to become a more meaningful revenue stream in the future
    • 04:11 – The transactional fees are more meaningful for Nvoicepay‘s growth at the moment
  • 04:28 – Nvoicepay was launched in 2009 with three founders
  • 05:54 – Nvoicepay has raised capital
  • 06:11 – Nvoicepay’s challenge is being able to grow faster than the market
  • 06:25 – Nvoicepay has raised around $25M
  • 07:05 – Karla shares why they’ve raised multiple rounds of fundraising
  • 08:24 – Nvoicepay has around 2500 customers
  • 08:55 – Nvoicepay has hit their billion dollar mark in transaction volume in 2011
  • 09:33 – Karla doesn’t talk about their transaction volume because they’re still competing with the biggest banks
  • 10:16 – Nvoicepay has passed their $10B dollar mark in transaction volume
  • 10:54 – Nvoicepay has 300K suppliers
  • 11:55 – Nvoicepay isn’t considering IPO yet
  • 12:05 – Nvoicepay’s network has their own network
  • 12:36 – Transaction fees are the same regardless of the amount of money per transaction
  • 13:22 – The problem is how to pay the suppliers
  • 14:14 – Nvoicepay doesn’t get a cut on the transaction volume
  • 14:30 – The model in the industry is evolving
  • 15:00 – The customers are paying a flat fee per transaction, but the suppliers aren’t paying anything
  • 15:53 – Team size is 100-150
  • 17:40 – The Famous Five

3 Key Points:

  1. Banks aren’t trying to solve the problem regarding payments because they won’t benefit from it.
  2. More ecommerce businesses are looking for the simplest way to handle their payment transactions.
  3. Give credit where credit is due.

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