When we acquired Churn Buster, we raised money from family and friends. The raise covered the purchase price, with no budget left over for operations or growth. We’d just drive that through revenue, right?
Over the first 12 months of running the company, every penny in…went right back out.
We weren’t building up any reserves to drive sales, grow the team, or increase the stability of the company.
Our situation improved throughout 2017, yet forecasting revealed that without raising more capital, we’d limp along undercapitalized, forever falling short of our vision for Churn Buster.
We asked ourselves what raising a round would look like for Churn Buster. How could it change growth? Who would we hire? How could we overdeliver for our customers, de-risk the company, and achieve our long term goals without being reckless with an all-or-nothing raise.
- Raise from leaders of companies we admire, who’ve grown businesses optimized for longevity.
- Raise at a realistic valuation, so we’re happy running the business, and investors aren’t pushing towards bad outcomes for us and our customers.
- Carefully calculate what’s needed to hit our goals, aim a bit higher than that, and not over-raise (the advice we most commonly received).
A Few of Our Investors
We ended up moving forward with the raise, and are happy to announce some immediate changes:
- Scott Albertson has joined us as Product & Integrations Engineer. He’s taking what was originally a product only for Stripe and Stripe Subscriptions, and making it work with any billing system. No small feat. He’s amazing. He also created Hound and previously worked at thoughtbot and Delighted.
- Kristen DeCosta has joined us as Growth Marketer. She is focused on sharing the lessons we’ve learned along the way, and teaching subscription business leaders about the havoc of involuntary churn at-scale. She previously worked at Selz.
And I’m also happy to share a MAJOR product announcement. Nine months ago we started a full rebuild of Churn Buster, re-imagining how we’d solve the involuntary churn problem if we were starting from scratch. The result is unlike anything available on the market, and is going to have a huge impact for subscription businesses looking to get churn under control. It’s been a long-road, full of difficult challenges, and the end product is everything we’ve always wanted. Stay tuned.
What this means for our customers?
Many of our customers have been with us since we acquired Churn Buster, and some since the first lines of code were written by Andrew Culver in August 2013.
You probably have a lot of questions about how these changes will affect you. Rest assured, your pricing won’t be changing, the migration will be smooth, and we’ll be starting migrations in May. We’ll be sharing more about the new platform in the coming weeks, and we’ll share more information about migrations before they happen.
Currently we don’t plan on raising additional rounds of funding. Profitability is our aim, and we’re in this for the long haul.
Thanks for being an early supporter,