Jon Darbyshire, CEO and co-founder of work management platform B2B SaaS SmartSuite sat down with the GetLatka team to discuss how a brand new SaaS could close over 400 new paying customers in just four weeks. Darbyshire explained how SmartSuite offers enterprise-level features to SMBs at a price they can afford to help grow their business. He explained that the platform came out of firsthand critical learnings from other companies he was helping launch. Darbyshire shared why his launch was so quiet, where his first 400 customers came from, and how he managed to build the platform with only nine full-time employees.
Back in 2000, Darbyshire built his own no-code platform company, Archer Technologies. At the time, the only other substantial no-code platform that existed was Salesforce. He sold the company to EMC for $200m cash. EMC later sold to Dell. Darbyshire, along with his mom and wife, were the sole owners of Archer Technologies; they used the cash to found the Archer Foundation.
The foundation focuses on supporting entrepreneurs, women, and youth. In the last decade, they have invested in 400 companies. According to Darbyshire, the companies they invest in always ask how to manage internal processes to build their business. After cobbling together systems for years, he got frustrated and built his own tool for what he believes organizations need to manage all processes in a single place—SmartSuite.
- 9 people
- 90 outside developers worked 3 years to build the core platform
- 400 customers in 4 weeks at $100,000 MRR
Built for the 23- to 38-Year-Old Millennials and Gen Z Workforce
Darbyshire purposefully built his platform with a rich UI specifically for the millennial and Gen Z workforce. He felt they are the most likely target to use the platform today. Before building SmartSuite, he took the time to understand what appeals to that market—how they liked to collaborate, communicate, and manage files.
$250 ARPU for First 400 Customers
Darbyshire built a platform that one reporter recently described as a blender version of Airtable, Notion, and Clickup. He believes that’s an accurate description of the platform, which is designed to help SMBs work and collaborate all within one tab. SmartSuite’s enterprise-level features in a single platform make it an enticing B2B SaaS with a starting price of just $10 per user per month.
3 Pricing Levels, from $10 to $35
SmartSuite currently offers three pricing levels per seat per month: $10 for Team, $25 for Pro, and $35 for Enterprise. They are currently seeing an average of 10-12 seats per customer. About half of the paying customers chose Team, and half Pro. The platform offers a short trial to begin.
Supports up to 5,000 Seats at the Enterprise Level
Since their launch four weeks ago, the largest deal they’ve closed is for 150 seats, but Darbyshire is confident they will continue to grow bigger seat deals once they get a sales and marketing team up and running. So far, Darbyshire explained, many sales have been closed without the need for sales support. However, in several instances, his wife has jumped in to have a quick conversation and run a demo before closing the sale.
400 Accounts in 4 Weeks from Multiple Sources
SmartSuite launched with a small waitlist. The B2B SaaS added many customers in the second week after making a big (organic) push on LinkedIn. They set up a company profile page, and the founders used their connections to reach their combined community of 8,000 connections. Word of mouth to that community, combined with 2-3 posts per week on their launch and value proposition helped motivate customers to try the low-risk SaaS.
20-25 Customers from Product Hunt with 25% Discount Code on 3-months
Of their first 400 paying customers, approximately 5% came from Product Hunt, where SmartSuite offered a 25% discount. They started on Capterra two weeks ago to show potential customers how the SaaS compares to other competitors. SmartSuite already has 23 reviews without the premium service. Darbyshire indicated they’ve compiled a list of 30 comparison sites and are on nine so far, including 3 Gartner sites.
Former Company Prepares to go Public with $600m ARR
As Archer Technologies prepares to go public with an estimated ARR of $600m, Latka queries Darbyshire about his remaining equity position in the company. When Darbyshire sold to EMC, Archer Technologies was making $40m in ARR. He reveals that he no longer owns any equity in Archer Technologies. Instead, he opted for the full cash buyout deal of $200m. Darbyshire adds that he has no regrets about the deal, citing the Archer Foundation’s impact over the last decade.
First $12.5m Self-funded
SmartSuite’s first line of code was written in 2019. Darbyshire has spent the last three years quietly creating the platform. He believed that in order to compete in this space, he needed to launch with a fully functional platform that included features that others don’t have.
3 Outside Development Firms, Found by Searching the Internet
When Darbyshire started, he expected to find a US-based developer to build the no-code platform he envisioned. He scoured the internet, posted on Upwork, and narrowed the field to 5 candidates. Darbyshire kept coming back to one firm in Kyiv. Finally, he flew to Ukraine to meet him. They had an immediate connection. Darbyshire referred to Gearheart.io as a group of great people who he called “technically superior.” He then added Agency Enterprise (AE Studio) in Venice, which does high-end development for Elon Musk, and eKreative.com, a mobile firm also in the Ukraine that he met in the US through a friend. These three firms dedicate a little over 100 people to SmartSuite’s business as contractors.
How SmartSuite Handles 100+ Outside Developers
When asked how he handles such a big outside team on the other side of the world, Darbyshire explains that the organization has a very stringent coordination system. He noted that his Co-Founder is a CTO and that they meet with the CTOs at each of the three firms regularly. Darbyshire indicated that SmartSuite benefits from a high level of expertise compared to a typical startup, so they coordinate with their dev teams daily. After the daily startups (at night in the US), his dev teams go to work, and Darbyshire wakes to find the completed work available for review.
Staff of 9 is Growing but Plans to Stay Small
Darbyshire explained that his staff of 9 is growing, but the long-term plan is to continue to minimize the fixed costs. SmartSuite is beginning to bring sales, marketing, and PR support to the organization. Latka weighed in, noting that he believes the small, remote staff is the wave of the future, as it allows for efficient development and growth.
Series A with Valuation in the $100m Range Expected in the Next 2 Months
The $12.5m investment into the firm made by Darbyshire is considered his Seed round funding. He and his wife together own 90% of the business, with their three other Co-founders sharing approximately 10%. He wants to raise the next round of funding for the connections, not the money. He sees the most significant value is the relationships that venture firms can bring to the table. Darbyshire expects the next round to include 2-3 investors who can help drive growth.
Fast Five with Jon Darbyshire
CEO and co-founder of SmartSuite Jon Darbyshire named The Bush Family Dynasty as the book that most intrigues him, as it describes the source of their wealth and plans to get two generations of family members into the White House. He followed CEO Steve Jobs closely.
He admired how Jobs built Apple by going against the grain, and he would like to take a similar tack with SmartSuite. Darbyshire’s favorite tool is Intercom. He gets 7 hours of sleep per night. He is 57 years old, married, with two children. Looking back, he would tell his 20-year-old self not to rush success. He would advise to keep chugging along, and it will happen.
