David Cummings: Selling Pardot for US$95m

Summary:

In this episode, Dave interviews David Cummings, and one of two founding partners of Pardot, a company that dedicated itself to redefining the way B2B marketing automation is handled. Listen in as Dave and David discuss the process of bootstrapping a SaaS juggernaut, the struggles of competing against VC money, and how to best handle the acquisition process.

Time Stamped Show Notes:

00:42 – Dave covers David’s background 01:49 – Started and sold Pardot (US$95 million cash) 03:25 – Dave’s introduction to entrepreneurship 04:30 – Statbook for baseball and softball statistics (1995) 05:45 – The ON start-up series 07:24 – David attended Duke University 07:57 – Why David went to college as opposed to sticking with his businesses 09:21 – The Hard Thing About Hard Things 11:02 – Making a product to update and change a website with ease 14:00 – David got in on the SaaS explosion at the ground floor 15:19 – In 2006, David had the idea for Pardot 17:11 – As the CEO, your job is to become LESS needed to the company—the more you’re needed, the more you’re doing wrong 18:37 – Find partners that complement (not replicate) your skillsets 19:53 – Coming to the realization that Pardot was a diamond in the rough 22:50 – By the time Pardot was sold, the company was averaging about $15K per customer per annum 25:12 – The value of having a passion for culture 25:50 – Be the best place to work, and the best place to be a customer 28:45 – Don’t use the word “value” use the meaning of “value”—actions are louder than words 31:20 – Culture and “schwag” are different—perks don’t create culture, they can help it, but they don’t create it 34:29 – Highlighting the “offer receiving” process 35:50 – Always use this line, “we’re not for sale, but what are you offering?” 37:12 – Walking through the acquisition process and valuation process 39:41 – No brokers, only an attorney—the David did the negotiation all on his own with his partner 42:27 – The deal is closed, the money is in the bank, the wire transfer is complete—but David can’t say a THING for 48 hours because the acquiring company is public 44:46 – Atlanta Tech Village 45:08 – AtlantaTechVillage.com

 

3 Key Points:

Find business partners that complement your skills, not replicate them. “Schwag” and perks will not create a winning culture in your business—they can help amplify a winning culture, but they can’t create it. “We’re not for sale but what are you offering?”—Nine words you need to memorize in the even someone expresses interest in acquiring your business.

Resources Mentioned:

Entrepreneur's Organization – The EO Network Atlanta Tech Village – Collaborative office space for startups in Atlanta The Hard Thing About Hard Things – A fantastic book recommended by both Dave and David Pardot – The crown jewel of David’s entrepreneurial accomplishments David Cummings – Today’s guest

Credits:

Show Notes provided by Mallard Creatives