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Timo Rein, CEO and co-founder of Pipedrive, a provider of sales CRM software that gives sales teams control over their selling processes. After spending $15,000 on a CRM for his own business that ended up being a total waste of money, Timo brought together a few engineering friends to create a better CRM solution for his own needs. This was the genesis of Pipe Tribe, which now has over 30,000 small business users worldwide and has reached $13.4 million in VC funding.

Famous Five:

• Favorite Book? \u2013 Turning Pro
• What CEO do you follow? \u2013\xa0 Stephen Curry and Gregg Popovich

• Favorite online tool? \u2014 Slack and Viber
• Do you get 8 hours of sleep?\u2014 \u201cNo, still trying.\u201d
• If you could let your 20-year old self know one thing, what would it be? \u2013 \u201cTake action. It is important to work hard first. Discover who I am and know where my energy flows.\u201d

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Time Stamped Show Notes:

• 01:47 \u2013 Nathan introduces Timo to the show
• 02:31 \u2013 It was in 2002 when Timo spent $15,000 on a business
• • 02:41 \u2013 It turned out that the business wouldn\u2019t have much return
• 02:56 \u2013 Pipe Tribe helps small businesses around the world control their complex processes
• 03:23 \u2013 Pipe Tribe was founded in June 2010 and the product came out March 2011
• 03:30 \u2013 Current team size
• 03:48 \u2013 They have an office in Estonia and Manhattan
• 04:28 \u2013 Timo is based in California
• 04:50 \u2013 In 2010, revenue is zero
• 05:30 \u2013 2015: total revenue
• 06:16 \u2013 Current ARR
• 06:30 \u2013 They are doing about a million dollars per month
• 06:48 \u2013 They have 30,000 paying customers
• 07:00 \u2013 Pipe Tribe\u2019s pricing
• • 07:07 \u2013 They have 3 plans at the moment
• 07:25 \u2013 Average customers\u2019 pay per month
• 08:21 \u2013 They are doing cohort tracking
• 08:30 \u2013 Monthly customer churn
• • 08:37 \u2013 Churn tends to be quite high
  • 09:32 \u2013 The churn depends on the tool and business size
• 10:45 \u2013 CAC will depend on the company\u2019s growth
• 12:00 \u2013 25% of new sign-ups are paying annually
• 12:28 \u2013 How do you drive the company?
• • 12:45 \u2013 Timo and his co-founders built the company from the ground up
  • 13:22 \u2013 They have an internal goal
• 13:33 \u2013 They raised $9 million from Series A
• 13:53 \u2013 Some of the money they raised was from seed investors
• 14:13 \u2013 Timo won\u2019t sell his business for $90 million or even $150 million
• 14:49 \u2013 Timo sees the company as a work undone
• 15:11 \u2013 \u201cWhen you build a startup, it seems like you\u2019re building an airplane while you are on air\u201d
• 16:22 \u2013 They have a revenue goal and customer goal
• 16:45 \u2013 Connect with Timo through his LinkedIn
• 18:25 \u2013 The Famous Five

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3 Key Points:

• The world around us changes\u2014the economy goes up and down.
• When you build a startup, it seems like you\u2019re building an airplane while you are on air.
• Take action. It is important to work hard first. Discover who you are and know where your energy flows.

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Resources Mentioned:

• Toptal\xa0\u2013 Nathan found his development team using Toptal\xa0 for his new business Send Later. He was able to keep 100% equity and didn\u2019t have to hire a co-founder due to the quality of Toptal\xa0 developers.
• Host Gator\xa0\u2013 The site Nathan uses to buy his domain names and hosting for the cheapest price possible.
• Freshbooks\xa0\u2013 The site Nathan uses to manage his invoices and accounts.
• Leadpages\xa0 \u2013 The drag and drop tool Nathan uses to quickly create his webinar landing pages which convert at 35%+
• Audible\xa0\u2013 Nathan uses Audible when he\u2019s driving from Austin to San Antonio (1.5-hour drive) to listen to audio books.
• Assistant.to \u2013 The site Nathan uses to book meetings with one email.
• Acuity Scheduling \u2013 Nathan uses Acuity to schedule his podcast interviews and appointments
• Drip \u2013 Nathan uses Drip\u2019s email automation platform and visual campaign builder to build his sales funnel.
• LinkedIn \u2013 Timo\u2019s LinkedIn account
• Show Notes provided by Mallard Creatives