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Combining Strong Growth With A New Level of Efficiency. HubSpot’s operating margins have scaled into the double-digits the past two quarters for the first time. A reminder of just how important being multi-product is at scale. Their focus is customers with 2-2,000 employees, and “up market” is 200-2000.
Their competitor bought them out in April 2000, couldn’t IPO, and was bankrupt by August. He joined StubHub as CTO, but didn’t get nearly as much equity as the other CTO — because he “wasn’t committed enough.” You can’t build a whole new product, but you can tweak what you have.
You’ll also learn how leading SaaS companies are able to scale and thrive in this complex, dynamic environment. And the same customer challenges that we were being presented, which was: How do you scale? In the last two years there have been so many new services around security, around machine learning that literally did not exist.
What about, as someone who’s gone from your own solo GP fund in 2012 to a team, how does a founder think about a new partner? Because, on the one hand it’s exciting, and what I see a lot today is founders often bond with a new partner. If I get picked, do I want the more experienced partner, the new partner?
I remember when I was in business school the internet was brand new and back then the hero was Jerry Yang. But my co-founders has done an amazing job, creating a scale platform that now has 600,000 reviews and 3 million SaaS software buyers coming every month looking for products like yours. This was in 1997, and I spent two years.
Over the past few years, we've seen a new role emerging at within scaling startups - the growth engineer. These roles are filled by engineers that roll up to the CMO/COO (not CTO) as part of a growth team. We've Spotted the trends, tactics & techniques from sitting deep in the data layer of scaling SaaS teams.
At SaaStr Annual we had a great session with HubSpot Founder & CTO, Dharmesh Shah, and their Chief People Officer, Katie Burke, on building happier employees. We add human touches to as many things as possible, and then we innovate and listen to our employees, at scale, and the results, I think, speak for themselves.
So you guys are open up a new chapter down there. And we’ve had conversations in the past where it’s like, you’ve got to build division, you’ve got to sell division, and then you’ve got to scale division. You are the customer service representative for our CRO, our CTO. They might be new.
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