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- Matt Elson is the CEO of Evotix, a company that helps companies manage health, safety, and risk and engage with their employees to create safe and compliant workplaces.
- The company currently has 400-500 paying customers and 50 million total employees on its platform.
- The company has seen significant growth, with revenue increasing by 50% year-over-year.
- Evotix has raised VC funding to support its growth and expansion plans.
How Matt Elson acquired the Evotex business for $1
- Elson discovered the opportunity to buy a software company in distress for $1.
- The software company was 15 years old and had 200 customers.
- Evotix is now in its second decade of business and has double-digit millions in revenue.
- He acquired the company for $1, navigating a lawsuit from a former customer and maintaining company culture as the team grew from 50-150+ employees.
Evotix Growth Path
- At the time of its purchase, the company had 200 customers with an average revenue per user (ARPU) of $2,000.
- After settling the lawsuit, Elson focused on growing the business by identifying the company’s best customers and building a traditional sales team with business development representatives (BDRs) and quota-carrying reps.
- This strategy allowed the company to expand to other divisions and geographies within existing accounts, doubling the number of customers and increasing the average contract value (ACV) 12 times to $25,000.
- Between 2018 and 2020, CEO Elson raised $10 million in external capital through Series A and B funding rounds.
- The company closed $6 million in Series A funding, taking $3 million each in 2018 and 2019, and another $5 million in Series B funding in 2020.
- The company’s annual recurring revenue (ARR) first crossed $1 million in 2014 and reached $14 million when the Series B funding was raised.
- CEO Elson’s classic direct sales and marketing team of 50 has grown the company’s revenue by 43% over the past year.
- The team, consisting of marketing to drive awareness, BDRs to nurture opportunities, and sales reps to close, has helped the company pass $1.2 million in annual recurring revenue (ARR).
- As the team has grown from 50 to 150 people, it has become challenging for Elson to know everyone individually.
- To maintain the company culture, Elson travels to meet people and holds Town Hall meetings every two weeks.
- The Town Hall meetings are 30 minutes long and cover customer success stories, birthdays, anniversaries, and High 5s to call out values.
- Elson uses 15five.com to help engage his team and maintain the company’s pulse, which he believes is essential for driving business.
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