Scaling a Cloud-Based Disaster Recovery Business in Silicon Valley: Axcient CEO Justin Moore (Part 4)

Sramana Mitra: We’re now in 2006?

Justin Moore: Yes.

Sramana Mitra: What did you do next?

Justin Moore: We started thinking conceptually about Ancient in 2006 and started investing seriously in 2007 and all of 2008. I took a bit of time quite frankly. I moved from the Peninsula up to San Francisco. I was a city boy. Then I was in the Peninsula, just working all the time. I moved to the city and got back to things I was interested in. >>>

ServiceNow an Attractive Acquisition Target

According to a recent survey conducted by enterprise cloud services provider ServiceNow (NYSE: NOW), more than half of the respondents now choose cloud for default IT projects. Of the 1,850 mid- to senior-level managers surveyed in a global study, it was found that 52% choose cloud for new business applications and nearly 77% of them would complete the shift of their organizations to the cloud within the next two years. Given the trend, ServiceNow’s recent quarterly results are not very surprising.

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Scaling a Cloud-Based Disaster Recovery Business in Silicon Valley: Axcient CEO Justin Moore (Part 1)

If you haven’t already, please study our Bootstrapping Course and Investor Introductions page.

Justin tried his hand in other businesses and never had the time to go back and finish his degree at Stanford. He learnt business on the job. Today, he has a thriving Disaster Recovery Cloud venture, for which he has raised over $60 million. The company has not IPO’d or exited yet. Instead, it is moving upmarket from its SME customer roots.

Sramana Mitra: Let’s start at the very beginning of your story. Where are you from? Where were you born and raised? What is your backstory?

Justin Moore: I was born and raised in Manhattan. I moved to London when I was in my early to mid teens and then came out to California for college. >>>

Still GREAT Opportunities for Entrepreneurs in the Cloud

Scaling a SaaS Business to 11,000 Customers: Booker.com CEO Josh McCarter (Part 6)

Sramana Mitra: What are some of the inflection points in the business when things started clicking in gear? We’ve talked about one of the key issues which is really turning into this metrics-driven organization. What other inflection points have you experienced in building this business?

Josh McCarter: I think there are a few. The early stage was just pulling the company out of the original parent company because that gave us the opportunity to go out and create our own business, our own P&L, and the ability to raise capital by ourselves. Being able to go out and start generating our early sales was very important.

Sramana Mitra: I’m asking a very specific question. It’s about an inflection point about customer adoption. As you trace the graph of >>>

Scaling a SaaS Business to 11,000 Customers: Booker.com CEO Josh McCarter (Part 5)

Sramana Mitra: What is your conclusion about where you wanted to pin your customer acquisition cost? How does that correlate to your lifetime value for your SaaS business?

Josh McCarter: All of the benchmark studies say that you need to be north of three times LTV. That seems to be the number where people feel like you’ve got your acquisition cost in line. Obviously, when you’re in enterprise sales, your months-to-payback are sub-12 months. When you’re in SMB SaaS, they’re usually sub-20 months. One of the things that we’ve really focused on is how to change some of our go-to market strategies so that we are less reliant on direct sales and more reliant on channel partners. >>>

Thought Leaders in Financial Technology: Mike Ward, Chief Revenue Officer at World First (Part 4)

Mike Ward: The ability to land one client at a time is not necessarily as scalable. You have so many people trying to do it. It doesn’t create a unique acquisition channel out there. That one to many is a unique opportunity. There are people out there with API’s who are landing one to many and partnering with someone who already has a group of clients or potential clients. I don’t think as many people are thinking about that as a true game changer.

The other thing, especially in financial services, is all of us have gone with this mono-line focus and pick apart a single product or service from large financial institutions. We have the belief that no consumer corporations out there will say, “I want multiple relationships. I want eight apps to manage.” The power of us integrating this into one is where the industry is going to go. >>>

Scaling a SaaS Business to 11,000 Customers: Booker.com CEO Josh McCarter (Part 4)

Sramana Mitra: What happened after you raised the $15 million? How did the business move? What were the strategic moves that you made to get to the next level?

Josh McCarter: The major move that we made was, we started investing in sales and marketing. We started building out our team. We took on some larger contracts that, in hindsight, were not the best things for us to do over the long-term for the company. They were big contracts. They were big name companies that helped us gain credibility with our investors and with other people in different segments. They were all multi-million dollar, multi-year contracts.

Sramana Mitra: What was wrong with those contracts? Typically, multi-million multi-year contracts are good news. Why was it bad news? >>>