Since it spun out from the wildly popular online media company TechCrunch in 2015, Crunchbase has been blazing its own trail. The company recently raised $50 million in a Series D round, and it comes at a difficult time for raising funds—not just for B2B software as a service, but for the industry as a whole. Nobody knows that better than Crunchbase’s CEO, Jager McConnell. In this episode, Michael and Jager explore how he managed to raise the funds, how he managed the uncertainty, and how his experience at Salesforce helped him drive Crunchbase to the level of success it's seen so far. Michael and Jager discuss the company’s latest funding round, the importance of giving back to the community, and some of the toughest lessons he’s learned while building an enterprise product.
Set realistic business goals
It’s been a difficult time for growth equity rounds. However, according to Jager, the decimation of multiples is a good thing for the ecosystem. When valuations are hyper inflated, the gap between a company’s current revenue and where it’s valued forces them to pursue aggressive growth at all costs. That’s why Jager believes it’s better for the entire ecosystem to set realistic valuations and achievable goals, rather than chasing unsustainable levels of growth.
Focus on efficiency and measured growth
Jager compares the times we find ourselves in now to the dot-com crash of the early 2000s. Looking back, it was the companies that focused on rebuilding with efficiency and measured growth that came out on top, and he believes the same will be true of today. Ultimately, the great reset will enable us all to build back stronger and take advantage of new, more interesting opportunities in the future.
Give back to the community
During his time at Salesforce, Jager learned about the value of giving back to the community. With its Pledge 1% program and regular charitable giving practices, Crunchbase is taking a similar approach. As someone who considers himself a social-driven individual, Jager has made it part of his mission as CEO to lead by example and champion charitable causes, inclusion and diversity.
CIBC Innovation Banking is a trusted financial partner to entrepreneurs and investors. Get in touch with our team at cibc.com/innovationbanking.
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