The the popular tech press perpetuates this perception, for it’s much sexier to hear about fundraising than it is to talk about actual monthly revenues. That is, if there are any monthly revenues to report at all, considering that reality bites for most startups.
Yet not all entrepreneurs are concerned with funding, as some don’t even need it. Clay Collins, the founder of LeadBrite, counts himself amongst the lucky few. LeadBrite’s primary product, LeadPages, is a SaaS for marketers creating, deploying and optimizing landing pages.
LeadBrite had achieved a seven-figure run rate within 9 months of launching, now exceeding $100K gross revenue per month. At this steady pace, Collins expects well over $1.3 million this year, a figure reached without any outside investment. He shared a bit about his course during Minnebar earlier this year.
“Raising money is a PR event that bootstrapped startups simply don’t experience. In a way, it’s become more noteworthy to raise money than actually acquiring users and making money. It’s become cool to talk about how much money you’ve borrowed as a startup, or how much backing there is, but how often are you hearing about the real metric of business success in terms of actual revenue?” he posits.
Unlike most tech startups, LeadPages has been charging for their products since day one, foregoing a the freemium model that has become so popular in the customer acquisition process.
For tech startups in Minnesota, LeadBrite is a shining example that users are willing to pay for great products done right from the onset. Collins has proven that angel or VC investment is not necessary to build a successful tech company — one that’s primarily concerned with making money vs. chasing it, as so many misguided startups are these days.