Practical Founders Podcast

#130: Profitable Product-Led Growth to $30 Million Before Big Exit – Joe Hyrkin

Feb 7, 2025

Joe Hyrkin, former CEO of Issuu, shares insights from leading the content publishing platform to $30 million in revenue before its acquisition. He discusses the balance of profitable growth and debt management in the tech landscape. Joe highlights the transformation from print to digital marketing, and the importance of building long-term relationships over chasing venture capital. Additionally, he emphasizes sustainable practices and strategic planning needed for success in an evolving market, showcasing how to thrive through challenges.

01:07:58

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Episode guests

Joe Hyrkin

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Episode notes

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Quick takeaways

Joe Hyrkin emphasized the importance of adopting a 'pro-grow' approach by balancing profitability with growth, enabling Issuu to thrive sustainably.

Issuu's strategic decision to leverage $20 million in non-dilutive debt allowed for essential upgrades and market expansion without sacrificing equity control.

Engaging multiple interested parties during the acquisition process highlighted the importance of fostering long-term industry relationships for successful exits.

Deep dives

The Journey to Building Issue

Issue is a significant digital publishing platform that allows businesses to create, host, and share marketing materials such as brochures and catalogs. The company was originally established in Denmark but transitioned to a US-based operation under the leadership of Joe Herkin, who served as the CEO for over a decade. During this time, the team expanded to around 130 employees and generated approximately $30 million in revenue. Herkin’s approach included strategic debt financing and a focus on practical investor relationships rather than relying solely on traditional venture capital.

Intro

3min

Silicon Valley's AI Revolution

4min

Transforming Print Content into Digital Versatility

3min

Navigating Growth and Profitability

9min

Navigating Growth and Leadership in Tech

13min

Navigating Product-Led Growth and Funding Strategies

12min

Navigating Debt in Venture Capital for Successful Business Exits

2min

Navigating Debt and Acquisition Strategies

19min

Empowering Founders with Non-Dilutive Growth Funding

3min

Joe Hyrkin is the former CEO of Issuu, a content publishing platform for interactive marketing content. Issuu allows you to easily publish printable and PDF materials in various formats to websites and social media. It’s a global product-led success story with millions of customers and a successful and sustainable business.

Issuu was started by four Danish founders before the company was moved to Silicon Valley in 2013 when Joe was hired as the CEO. Joe ran the company for almost 12 years, growing it profitably most years to almost $30 million in revenue before it was sold in mid-2024 to Bending Spoons, an Italian holding company that is an active acquirer of software companies.

Joe talks about working with their early venture capital investors with a practical and patient approach. In 2021, Issuu raised $20 million in debt to invest in marketing and address technology issues, which helped them grow faster before being acquired.

Quote from Joe Hyrkin, former CEO of Issuu

“From 2016 to 2020, we ran Issuu profitably, with what I like to call a ‘pro-grow’ approach—profitable and growing. Then, we raised debt to grow faster to about $30 million in revenue. The final year before we sold, we got back to profitability. So we got to profitability twice.

“By being profitable, you’re committing to your customers that you’re going to be around and that they will not have to go find some other solution. You’re communicating to your team that this company can be counted on. In 2024 and 2025, everybody wants profitability, unless you’re an AI company.

“Not having a profitability plan actually creates a lot of risk. I’m not saying you always have to be profitable, but you always have to have a foundation to know how we get to profitability. It’s a different way of thinking.”

Links

Podcast Sponsor – Cypress Growth Capital

This week’s podcast is sponsored by my friends at Cypress Growth Capital. For 15 years, Cypress has provided non-dilutive growth funding to bootstrapped SaaS founders, including many successful founders I’ve interviewed here on this podcast.

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Practical Founders Podcast

#130: Profitable Product-Led Growth to $30 Million Before Big Exit – Joe Hyrkin

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

The Journey to Building Issue

Embracing Profitability in a Competitive Landscape

Utilizing Debt as a Growth Strategy

Navigating the Acquisition Process

Advice for Practical Founders

Remember Everything You Learn from Podcasts