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For the most part, it has leveled out in the 8-10x forward revenue multiple range and is largely consistent with where things traded from 2008 to 2018. That doesn’t mean they were all great returns along the way, but if you got into Amazon, Yahoo, eBay, or PayPal, you did quite well.
The company started back in 2007, 2008. And those of you who know Reid Hoffman from PayPal days and co-founder of LinkedIn, he has this great podcast series called Masters of Scale. So we’re into our second decade. As I was introduced, we have 17,000 customers. And I think we just got into analysis paralysis.
So the first product we launched had an integration with PayPal that made it very easy for the event organizers to get all their ticket sales directly into their PayPal account as they were happening in real time. That’s the one key metric we use. I think that you’ve heard that before.
Stewart : If we had started in 2008, your question before, we would not have taken off like this, for a number of other reasons. I met you probably before that, you come out of PayPal and all this, and it’s a change. There’s actually more similarities to PayPal with Zenefits than there are to Yammer.
We looked at the world in 2008, 2009, and we said, “How come it’s almost impossible to connect two companies to do business, especially if they have complex business processes, but we can all connect as consumers on LinkedIn, Facebook, Twitter, every single day we want to do business? We really wanted to simplify supply chains.
Really the last major acquisition they did was in 2008, 2009 when they bought Bear Stearns in Washington Mutual. We compete with Stripe and PayPal and Adyen and these are sort of very well funded, very sort of driven technology companies. Bill Clerico : And by the way, I think that’s so atypical in acquisitions.
In this episode, David Skok , General Partner @ Matrix Partners , uncovers the crucial step missing when it comes to finding product-market fit for B2B companies, how to set-up your sales team for success early on, and what metrics really matter when it comes to a payback period. We’re obviously in a very unique situation today.
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