Glen Coates. He’s the co-founder and CEO of Handshake. It focuses on putting the right product on every shelf in every store. He goes between Sydney, San Diego and New York City.
Famous Five:
- Favorite Book? – The Five Dysfunctions of a Team
- What CEO do you follow? – Dave Yarnold
- Favorite online tool? — Boomerang for Gmail
- Do you get 8 hours of sleep?— Yes
- If you could let your 20-year old self, know one thing, what would it be? – Glen wished he knew how intense running this company was going to be and to spend a lot more time making music and going surfing.
Time Stamped Show Notes:
- 01:37 – Nathan introduces Glen to the show
- 02:15 – Handshake is about getting the right product on every shelf, in the world
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- 03:30 – Handshake brings the Amazon-like buying and selling platform to businesses
- 03:55 – Handshake Rep is the mobile app used by sales reps who work for the brand
- 04:21 – Handshake Direct is the mobile and web-based ecommerce for B2B
- 05:00 – Handshake is a SaaS business and they sell to manufacturers and distributors
- 05:10 – Handshake’s customers are the manufacturers, distributors, and their customers who log into Handshake
- 05:22 – Handshake has a similar model to Salesforce
- 05:40 – Glen started working with Handshake in 2010 and got their first customer in 2011
- 05:51 – First year revenue
- 06:16 – Average number of customers at the moment
- 06:51 – The pricing model is per seat per year for Handshake Rep, Handshake Direct is made-to-order
- 07:37 – Average customer pay per month
- 08:24 – December 2016: total average revenue range
- 09:35 – Handshake used to have monthly contracts
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- 09:59 – Most of the contracts now are annual contracts
- 10:07 – Total capital raised is around $24M inclusive of Series B
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- 10:29 – Series B closed in February 2016
- 10:40 – Handshake isn’t in any acquisition talk
- 12:03 – What Glen and his team is building is grand in scale and requires a lot of hard work
- 12:44 – Team size and location
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- 13:05 – Glen shares the number of people per team
- 14:10 – LTV
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- 14:15 – “I don’t think much about lifetime value”
- 16:51 – “I care about delivering 100% growth with a better payback period than I care about delivering 200% growth with like a terrible payback period”
- 17:05 – Handshake growth is 100% annual
- 17:30 – Glen shares the flagged payback period in VC communities
- 18:48 – Glen is currently burning close to $500K a month
- 18:56 – Glen thinks that it should take at least 6 months before having to raise again
- 19:50 – Glen usually raises for a couple of years and each time he raises gives them 2 years of runway
- 20:15 – Gross annual customer churn
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- 20:30 – Churn has come down when they shifted their market
- 21:25 – Glen shares what they did to combat high monthly churn
- 22:38 – Handshake always has a negative revenue churn
- 23:30 – Glen wouldn’t sell Handshake for Nathan’s sample offer
- 25:10 – The Famous Five
3 Key Points:
- It’s difficult to create a SaaS that is web-based and mobile-based – it takes hard work.
- Delivering 100% growth with a better payback period is better than delivering 200% growth with a terrible payback period.
- Raising usually takes 6 months and it is the CEO’s responsibility to decide how he can leverage each raise.
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