Practical Founders Podcast

Phil Dur, co-founder of PeakSpan Capital, discusses the benefits of growth equity for capital-efficient software founders. Topics include differences between venture capital and growth equity, the importance of partnering with the right firm, and the advantages of focus and specialization for business success.

Joe McMenemon and his college roommate, Brendan, knew they wanted to start a business together. They had run their college fraternity chapter and saw the problem of managing members and collecting payments. So they lived frugally and built a software solution for fraternities and sororities to solve this problem. ChapterSpot grew slowly over several years as they sold to local chapters. Eventually, the national associations came calling, requesting an enterprise solution to manage hundreds of chapters in one system. They rewrote the platform to run on Salesforce and grew faster with more employees. ChapterSpot grew profitably to over 30 employees, with 40 large organizations managing thousands of chapters and millions of members on the platform. ChapterSpot was acquired in early 2024 by BillHighway, a strategic acquirer with a payments platform. Quote from Joe McMenemon, CEO of ChapterSpot "Long shots are probably not as crazy as you may think they are, but they're just going to require time. If you think you'll make a bunch of money in three years, it's probably very unlikely. But if you're willing to put in the time and work at it every day, you're most likely going to be able to figure out the right path to success. "My favorite quote is from James Clear: It's the courage to start, a few lucky breaks along the way, and a ton of hard work. That's the formula. "Once you get started, are you putting yourself in a position where you can do it at a level that's best in the world for the problem you are solving? If you're the only one trying to solve the problem and you do it long enough to catch a few lucky breaks, well, eventually, you'll get there." Links Joe McMenemon on LinkedIn ChapterSpot on LinkedIn ChapterSpot website BillHighway website The Practical Founders Podcast Tune into the Practical Founders Podcast for weekly in-depth interviews with founders who have built valuable software companies without big funding. Subscribe to the Practical Founders Podcast using your favorite podcast app. Get weekly Practical Founders newsletter and podcast updates at practicalfounders.com.

Jeromy Wilson, Founder of Niche Academy, discusses his journey of founding a profitable software company for libraries without VC funding. He emphasizes the benefits of independence, customer focus, and work-life balance in building a successful business in a niche market.

Paul Van Metre was the co-founder of a successful machine shop that manufactured custom parts for the aerospace and medical device industries. Over 15 years, they created and improved software to run their entire business, which created huge efficiencies and helped them manage their growth. They sold that business in 2014 to focus on selling their complete software platform, called ProShop, to other forward-thinking machine shops. ProShop is now one of North America's leading ERP (enterprise resource planning) software platforms for machine shops. The software manages every aspect of a machine shop business, from orders, finances, inventory, and shop floor operations. The company grew quickly with no outside funding as happy customers spread the word in their industry. Their software company focuses on processes, customer service, and company culture. In 2024, ProShop received a $32 million growth equity investment from Mainsail Partners, which allowed the founders to take money off the table and fund new growth. Links Paul Van Metre on LinkedIn ProShop on LinkedIn ProShop website Mainsail Partners website The Practical Founders Podcast Tune into the Practical Founders Podcast for weekly in-depth interviews with founders who have built valuable software companies—without big funding.

Chris Savage, co-founder of Wistia, shares insights on bootstrapping Wistia to profitability, turning down acquisition offers, and aligning the team for long-term growth. They discuss the evolution of Wistia's video marketing platform, balancing profitability and growth, and embracing a remote-first approach for small to medium-sized businesses.

Rand Fishkin, founder of Moz, shares the struggles of VC funding and the shift towards practical funding for his new venture. Discussions on the challenges of big VC funding, work ethic in startups, angel investing, and navigating growth hurdles in the SEO industry. Emphasis on the harsh realities of VC funding, organic audience building, and modern marketing strategies.

Nathan Hirsch, co-founder of FreeUp, shares his journey of building and selling the company, highlighting niche targeting, software-people combo in operations, and organic marketing strategies. FreeUp grew to $12 million in revenue before being acquired. The podcast delves into the challenges and successes of scaling a tech-enabled marketplace, strategies for rapid business growth, and operational excellence in Amazon seller business.

Ian Brodie, the co-founder and CEO of Levanta, shares his journey of building a successful SaaS company in the affiliate marketing space. Levanta is an affiliate marketing platform for Amazon sellers, enabling them to connect with content creators, publishers, and influencers to drive sales and traffic to their Amazon storefronts. The company has experienced rapid growth, with over 700 brands and 3,000 affiliates on the platform. Ian discusses the challenges and opportunities of the affiliate marketing industry, working with Amazon, and the importance of building credibility and confidence as a young founder. He also discusses his experience of successful selling his previous company, Grovia, an affiliate partner recruiting services company that was acquired by Acceleration Partners in 2022. Learn more at practicalfounders.com.

Gregg Scoresby founded CampusLogic in Phoenix in 2021 to provide software for colleges and universities in the US to make it easier for students to apply for college loans and grants online. Initially self-funded, CampusLogic raised investment and grew faster, becoming a leading provider of software to universities with $50 million in revenue. In 2022, CampusLogic was acquired by Ellucian for an undisclosed amount. In 2023, Gregg launched PHX Ventures, a $27 million seed-funded supporting early-stage B2B SaaS founders in Phoenix, Arizona. Unlike the traditional VC approach, PHX Ventures supports startups that are growing fast with a capital-efficient approach. PHX Ventures also helps the larger software community in Phoenix with educational events and networks to connect founders, talent, experts, and capital. In this expert episode, Gregg answers common questions about when practical venture funding can be useful for founders and what it means to be capital efficient. Learn more at practicalfounders.com.

Esben Friis-Jensen, founder of Userflow, sold his profitable SaaS company with $4 million ARR to Beamer for $60 million. Insights include benefits of a buyout deal, efficient communication, AI assistant integration, and lessons for bootstrapped founders in the SaaS industry.