SaaS: College Business Plan Turned $4m Biz, “We Just Raised $6m”

Tom Coburn

In Episode #858, Nathan interviews Tom Coburn. He’s the cofounder and CEO of Jebbit. He left Boston College to pursue the company and is currently in the Forbes 30 under 30 list. He’s also the cofounder of Enjoy Life Education, a non-profit that empowers teens to be the best versions of themselves, and SSC Ventures which invests in Boston College entrepreneurs.

Famous Five:

  • Favorite Book? – The Hard Thing About Hard Things
  • What CEO do you follow? – Elon Musk
  • Favorite online tool? — Doodle
  • How many hours of sleep do you get?— 5
  • If you could let your 20-year old self, know one thing, what would it be? – “How long these things take. Be patient”

Screen Shot 2017-11-29 at 11.52.53 AM

Source: https://getlatka.com/companies/jebbit

 

Time Stamped Show Notes:

  • 01:50 – Nathan introduces Tom to the show
  • 02:21 – Jebbit takes up the majority of Tom’s time
  • 02:27 – Jebbit is a declared data platform which works with large enterprise platforms to solve their problems on customer data
  • 03:04 – Jebbit gets the most important things out of the customers
  • 03:17 – Jebbit allows the companies to create interactive mobile experiences which take consumers a minute or two to complete
  • 04:08 – The questionnaires are shown only in the areas where brands are already engaging with their customers
  • 05:37 – An average of 60% of the consumers answer the questionnaires
    • 05:50 – The questionnaires aren’t pop out survey but they’re well thought of and valuable
  • 06:54 – Jebbit is a SaaS business
  • 07:03 – ACV is around $3000-4000 a month
  • 07:14 – Jebbit was launched in 2012 while Tom was still in Boston College
  • 07:47 – Jebbit has raised under $10M with a convertible note to start and a seed round in 2013 and 2015
    • 08:03 – Series A of $6.8M just recently closed
  • 08:10 – Team size is under 40
  • 08:19 – Jebbit has around 50 customers
  • 09:17 – Tom is now 26
  • 09:30 – Average MRR
  • 10:04 – Pricing leverage
    • 10:09 – Jebbit started with a charge of $500 a month which slowly increased after the customers see the value
  • 11:17 – Logo churn in 2016 is around 20% annually
  • 11:30 – Jebbit has net -10% revenue churn
  • 12:34 – CAC is $10K-15K
    • 12:50 – Jebbit has spent $5K-$10K to paid ads in LinkedIn and Google
    • 13:10 – For LinkedIn, Jebbit pays a couple of hundred dollars per qualified lead
  • 13:40 – LTV
  • 14:18 – Half of the team are engineers
  • 14:58 – Gross margin
  • 15:20 – Goal for 2017 is to get close to $10M in ARR
  • 15:40 – 2016 ARR was $2M
  • 17:50 – The Famous Five

3 Key Points:

  1. A college dropout can be successful in business too.
  2. Consumers won’t ignore questionnaires if they see value in them.
  3. Some things take time, just be patient.

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