Topics / 💰 Fundraising

The journey growing Help Scout to $35M ARR

Rob Walling interviews Help Scout co-founder Nick Francis about 15 years building the company to over $35 million in revenue. Francis covers raising $28 million despite being a bootstrapper at heart, a failed per-contact pricing test, and stepping down as CEO. He says he would not raise money again.

Listen to the original on startupsfortherestofus.com ↗

We link to the original and never republish it. All credit to Nick Francis.

Key takeaways

  1. Francis says he got early customers by walking around his Techstars space asking neighbors about their support setup, and by phoning every new signup to ask why they signed up, not to sell.
  2. Raising venture money changes the game: Francis says there is never enough growth for investors, and looking back at 15 years he would not have raised.
  3. Francis decided to raise because he thought Help Scout could be a $100 million business, and says that if you believe that, you owe it to the business to lean in even when it is uncomfortable.
  4. Help Scout tested usage-based pricing per contact over 12 months, and customers rejected it even when they would pay less, because they feel they control costs better per seat. The company landed on seats plus paying for AI resolutions.
  5. Francis built six AI prototypes in a two-week hackathon after ChatGPT arrived, and chose to optimize for the customer's customer, keeping a human easy to reach.

Who it's for

Founders weighing whether to raise venture capital or stay bootstrapped, especially in SaaS with a product already making money.

Why it's worth your time

It is a candid account of the tension between bootstrapper values and investor growth expectations, told by a founder who lived it for 11 funded years and says what he would change.

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