I had a chance to catch up with René Lacerte, CEO of $27B+ @billcom this week
Bill has managed to build a $27B business selling to 120k SMBs
With an epic 125% NRR
My 10 learnings and our convo here: 🔽🔽🔽
Bill has managed to build a $27B business selling to 120k SMBs
With an epic 125% NRR
My 10 learnings and our convo here: 🔽🔽🔽
#1. You can’t rush a network
Bill.com had to develop a network that today has millions on vendors processing bills and payments on it. But they couldn’t rush it. So they let folks use the platform the way they wanted, from paper checks to fax and more.
Bill.com had to develop a network that today has millions on vendors processing bills and payments on it. But they couldn’t rush it. So they let folks use the platform the way they wanted, from paper checks to fax and more.
#2. You can’t always rush a fintech product.
It took a decade to come together. Rene cautioned folks to understand the regulatory & fraud elements of doing payments are significant. But it paid off.
Since IPO, payments have grown to a stunning 50% of Bill’s revenues
It took a decade to come together. Rene cautioned folks to understand the regulatory & fraud elements of doing payments are significant. But it paid off.
Since IPO, payments have grown to a stunning 50% of Bill’s revenues
#3. Channels matter in SMBs, too. But each one is different
Bill has direct sales force, even at $2k ACV. And self-service component. And 2 big channels — accountants + banks. Banks are a longer-term play, and accountant channel is high volume, SMB play.
Bill has direct sales force, even at $2k ACV. And self-service component. And 2 big channels — accountants + banks. Banks are a longer-term play, and accountant channel is high volume, SMB play.
#4. There are 6m SMBs that buy SaaS software.
Rene really simplified this. There are 6m customers out there just in SMB. Go find them. Even at 120,000 customers today, Bill is just getting going
Rene really simplified this. There are 6m customers out there just in SMB. Go find them. Even at 120,000 customers today, Bill is just getting going
#5. Virtual credit cards have radically changed spend management.
Bill bought Divvy for $2B+, but the whole category of next-gen spend management software for SMBs wasn’t really practical before the relatively recent development of true virtual credit cards
Bill bought Divvy for $2B+, but the whole category of next-gen spend management software for SMBs wasn’t really practical before the relatively recent development of true virtual credit cards
#6. It took until “Series I” for Bill to IPO.
Bill's a huge success story, but not an overnight one. 15 years to get there, with the vast amount of market cap and value growth happened around Year 13.
Bill's a huge success story, but not an overnight one. 15 years to get there, with the vast amount of market cap and value growth happened around Year 13.
#7. Loving an unloved niche is a superpower.
Rene loves accounting and accounting software. It’s in his blood. And he notes few others really do. That's a quiet moat.
Rene loves accounting and accounting software. It’s in his blood. And he notes few others really do. That's a quiet moat.
#8. NRR up to 124% — from SMBs. This truly is stunning from SMBs.
The keys both are adding more payments and services (like international transfer and payments), but also more seats. Even in SMBs, they can get more folks at a small business approving and paying on Bill.
The keys both are adding more payments and services (like international transfer and payments), but also more seats. Even in SMBs, they can get more folks at a small business approving and paying on Bill.
#9. A good acquisition expands the TAM.
Rene sees the $2b+ acquisition of Divvy truly expanding their TAM. Once you trust a vendor for one core product, you’ll likely buy more from them.
A second core product can really have you scale past $100m-$200m ARR
Rene sees the $2b+ acquisition of Divvy truly expanding their TAM. Once you trust a vendor for one core product, you’ll likely buy more from them.
A second core product can really have you scale past $100m-$200m ARR
#10. Word-of-mouth scales forever.
Like HubSpot and more, Bill still gets a large percent of its new customers from word-of-mouth. That’s the magic in SMB SaaS. Over-invest in it.
Like HubSpot and more, Bill still gets a large percent of its new customers from word-of-mouth. That’s the magic in SMB SaaS. Over-invest in it.
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