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 12 months for $200 million.
ProfitWell had no exterior buyers. 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, regulate to $200 million from $20,000? Campbell addressed that query and extra in our latest interview.
All the audio of that dialog is embedded beneath. The transcript is condensed and edited for readability.
Eric Bandholz: What do you do?
Patrick Campbell: I based an organization in 2012 referred to as ProfitWell. We assist subscription companies perceive their metrics with a free device plugged into cost platforms akin to 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 cost 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.
After we offered, I had just below $20,000 in my checking account. We have been doing over $10 million in recurring income. My common wage over the ten years was $74,000. We have been needing to lift cash to proceed our progress. We had self-funded the enterprise — fully bootstrapped. We weren’t pondering of promoting.
While you promote an organization for $200 million, everybody treats you want a god. Former staff and ex-girlfriends attain out. Everybody thinks it’s wonderful.
Imposter syndrome begins to kick in. You surprise if it was a fluke and when you may 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” accurately? There are lots of bizarre feelings.
Bandholz: You went public with how a lot you made.
Campbell: The thought was this can be a large win for a bootstrap firm. I by no means thought-about the benefits and downsides of publicizing it as a result of my persona has been public in constructing ProfitWell. There are downsides for certain.
As an example, people 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 affords to catch up. I’ve needed to regulate how I interface with sure people.
Bandholz: Final 12 months you had $20,000 within the financial institution. Now it’s many tens of millions.
Campbell: That’s the second a part of the journey. All of a sudden, I wish 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 cost got here into my financial savings account. I assumed, “It is a totally 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 the whole lot.” I employed 17 staff. I discovered extra about taxes. I even purchased 19 fuel stations as an funding.
I then began contemplating what my spouse and I wished. I by no means wished to enter enterprise. This wasn’t the factor that I wished to do with my life. However I like constructing. I get pleasure from having a wall to punch by way of, go round, or climb over.
Bandholz: You acquire a residence in Puerto Rico.
Campbell: Paddle’s a distant firm, so we may dwell anyplace. My spouse and I began taking a look at a bunch of locations. Puerto Rico wasn’t on the listing till somebody instructed me concerning the tax benefits. However you need to dwell there. It’s not simply 183 days. Your physician’s acquired to be there. You need to personal your major residence in Puerto Rico.
We like it. And what’s the purpose of getting cash when you can’t dwell anyplace?
Bandholz: The place can listeners comply with you?
Campbell: I’m @Patticus on Twitter, or go to ProfitWell.com.