Patrick Campbell based ProfitWell, an advisory platform for SaaS firms, in 2012 after stints on the U.S. Division of Protection and Google. He offered the enterprise final yr for $200 million.
ProfitWell had no exterior traders. Campbell paid himself a $74,000 annual wage. He had $20,000 within the financial institution when the deal closed.
How does a founder, or anybody, alter to $200 million from $20,000? Campbell addressed that query and extra in our latest interview.
The complete audio of that dialog is embedded under. The transcript is condensed and edited for readability.
Eric Bandholz: What do you do?
Patrick Campbell: I based an organization in 2012 known as ProfitWell. We assist subscription companies perceive their metrics with a free software plugged into fee platforms resembling Stripe, Recharge, and Braintree. We now have a few merchandise that assist with retention and with pricing and monetization.
I offered that enterprise to Paddle, a billing and fee firm, in early 2022 for roughly $200 million. We had about 45,000 manufacturers signed up on the time. I’m now Paddle’s chief technique officer.
Once we offered, I had just below $20,000 in my checking account. We had been doing over $10 million in recurring income. My common wage over the ten years was $74,000. We had been needing to lift cash to proceed our progress. We had self-funded the enterprise — solely bootstrapped. We weren’t pondering of promoting.
Whenever you promote an organization for $200 million, everybody treats you want a god. Former workers and ex-girlfriends attain out. Everybody thinks it’s wonderful.
Imposter syndrome begins to kick in. You surprise if it was a fluke and for those who might do it once more. I by no means feared demise earlier than, however now I do as a result of there’s this pile of cash in my financial savings account. Am I going to be “wealthy” appropriately? There are numerous bizarre feelings.
Bandholz: You went public with how a lot you made.
Campbell: The thought was this can be a huge win for a bootstrap firm. I by no means thought of the benefits and downsides of publicizing it as a result of my persona has been public in constructing ProfitWell. There are downsides for positive.
As an illustration, of us hit me up for cash. I’m a goal for scammers. It’s a brand new set of worries. Six individuals hit me up for funds on the day of the announcement. There have been only a few congratulations or presents to catch up. I’ve needed to alter how I interface with sure of us.
Bandholz: Final yr you had $20,000 within the financial institution. Now it’s many hundreds of thousands.
Campbell: That’s the second a part of the journey. Instantly, I need to be extra educated about wealth administration. I had no cash out there. I had a paid-off home and $19,000 in money. That’s about it.
After the deal closed, the primary curiosity fee got here into my financial savings account. I assumed, “This can be a completely different world. That’s years of my prior mortgage.” I began speaking to wealth managers and insurance coverage brokers. I assumed, “I can do something, so let’s do every part.” I employed 17 workers. I discovered extra about taxes. I even purchased 19 fuel stations as an funding.
I then began contemplating what my spouse and I needed. I by no means needed to enter enterprise. This wasn’t the factor that I needed to do with my life. However I like constructing. I get pleasure from having a wall to punch via, go round, or climb over.
Bandholz: You acquire a residence in Puerto Rico.
Campbell: Paddle’s a distant firm, so we might reside anyplace. My spouse and I began taking a look at a bunch of locations. Puerto Rico wasn’t on the checklist till somebody instructed me in regards to the tax benefits. However you must reside there. It’s not simply 183 days. Your physician’s received to be there. It’s important to personal your main residence in Puerto Rico.
We adore it. And what’s the purpose of getting cash for those who can’t reside anyplace?
Bandholz: The place can listeners comply with you?
Campbell: I’m @Patticus on Twitter, or go to ProfitWell.com.
