[SaaS Club] Starting over after hitting $1M ARR

Hey Reader

I hope you're doing well.

Here's a quick round up of what's been going on at SaaS Club:

🎧 Podcast

Kumospace: From $1M ARR to a Pivot Driven by Churn

In 2020, Brett was running a venture capital fund and hosting monthly in-person networking events. 

When the pandemic hit, he was forced to use Zoom which didn't feel like a great experience. He kept thinking that they're had to be a better way.

So when long-time friend and former co-founder Yang said he wanted to launch a startup, Brett suggested solving this video meeting problem.

After seeing early traction, Brett soon joined as co-founder.

Launching in the middle of the pandemic they quickly attracted hundreds of thousands of users. When they started charging money the following year, revenue skyrocketed to over $1M ARR in just 2.5 months!

But their celebrations were short-lived.

Churn spiked to 40% in a month as customers used the product more for one-off events than daily work. So there was little reason to renew.

The crisis forced the founders to make the tough call. They pivoted to a virtual office platform which basically meant going back to square one.

Growing revenue the second time was much slower and challenging.

However, fast forward to today, Kumospace has millions of users, is back to 7-figures in ARR with a team of just 16 people, and has raised $25M.

In this episode you'll learn:

• What led Brett and Yang to pivot their business model so drastically despite their rapid initial success.

• How they've successfully used TikTok to acquire customers and gained more traction from it than tradition B2B channels.

• How the founders have integrated product-led and sales-led strategies and figured the best timing for sales involvement.

• How influencer marketing has helped them with cost-effective B2B customer acquisition at scale.

• Why living inside your own product is critical for founders to identify friction as well as opportunities.

I hope you enjoy it!

Listen to the full podcast episode

 🧰 Attio: Radically Flexible CRM for SaaS Startups

If you’re a SaaS startup tired of wrestling with rigid and outdated CRM software that hinders your growth, then say hello to Attio.

Attio is a radically flexible CRM built for startups just like yours. It adapts to any go-to-market motion - product-led, sales-led, or beyond.

Attio configures seamlessly to your workflows and data structures, no matter how unique. It comes with powerful automations and enriches your customer data within minutes. Build systems that take your go-to-market to the next level.

Say goodbye to one-size-fits-all CRM and outdated user experiences. With Attio, you can scale your SaaS startup to the next level.

Signup for free at attio.com

📗 Book of the Week

This week's books recommendations is:

Endurance: Shackleton's Incredible Voyage by Alfred Lansing

 👩‍💻 Hostinger: AI Website Builder

Whether you're building a new website, creating a landing page, or testing an MVP idea, Hostinger makes it easy for your SaaS startup.

With their intuitive AI Website Builder, you can easily generate an entire professional-grade website in minutes by simply answering 3 questions. 

Let the AI Website Builder generate SEO-friendly content, including unique copy and relevant images, without needing coding or design skills. 

And you can choose from over 150 fully-customizable and responsive templates to create a stunning and professional looking website.

What's more, they offer 24/7 support and promise to respond in 3 minutes!

Get started with an exclusive 10% discount (Use code: saaspodcast)

🌐 Around the Web

YouTube Channel

Here's a link to the full video episode.

😍 Let's Get Social

Want to get more social? Follow me on Twitter or LinkedIn.

Have a great week!

- Omer

Interested in sponsoring The SaaS Podcast or this newsletter?


P.S. whenever you're ready, here are 3 ways I can help you:

1. SaaS Club Plus: We're re-launching a brand new community for SaaS founders with an exciting new offering. Join the waitlist!

2. SaaS Club Launch: Join an awesome mastermind group of early-stage SaaS founders supporting each other to 6-figures in revenue and beyond.

3. SaaS Club Clarity:  Book a 1-hour consulting session with Omer to get unstuck and gain clarity about your SaaS business.