20VC: ServiceTitan Would Not Be the Success if We Raised VC Earlier: How to Build a Dominant Vertical SaaS Business, How to Master Going Into Enterprise, When & How to Launch Second Products with Ara Mahdessian, Co-Founder @ServiceTitan
Jul 10, 2024
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Ara Mahdessian, Co-Founder of ServiceTitan, discusses why they initially didn't want VC funding, lessons on going upmarket, building a premium brand, and mastering the enterprise market. Insights on strategic decision-making, childhood experiences, customer success, and leadership growth are also shared.
ServiceTitan initially did not want to raise VC funding but later chose to and achieved great success with strategic investors.
ServiceTitan learned valuable lessons in going upmarket and adapting products and organizational structure accordingly.
Ara Mahdessian emphasizes the importance of building a strong brand and offering premium pricing in vertical SaaS for success.
Deep dives
Great Leadership and Extraordinary Outcomes
Great leadership is about delivering extraordinary outcomes, which involves making strategic decisions about where to focus efforts. Successful execution requires numerous smart decisions in the implementation process.
Service Titan's Growth and Impact
Service Titan has emerged as one of the premier vertical SaaS companies, serving over 11,800 trade partners. With substantial funding and a high valuation, they exemplify success in the industry.
Command Bar: Enhancing User Experience
Command Bar offers AI-driven chatbot solutions that provide personalized responses, deflect tickets, and offer proactive assistance. It has been adopted by renowned companies, improving user interactions.
Venture Fund Innovation and Democratization
The Fundrise Innovation Fund revolutionizes venture capital by allowing public investment, not limited to accredited investors. It has made significant investments in top AI and data infrastructure companies.
Squarespace: Simplifying Online Presence
Squarespace offers a comprehensive website platform for entrepreneurs to enhance their online presence effortlessly. With advanced AI and SEO tools, flexible payment options, and content optimization features, Squarespace facilitates seamless website creation and success.
Ara Mahdessian is the Co-Founder and CEO @ ServiceTitan, one of the great vertical SaaS business of the last decade. Today the company powers over 11,800 trade customers and has raised over $1.4BN from some of the best including Bessemer, Battery, Index, ICONIQ and more. Their latest valuation pegged the business at a reported $7.3BN.
In Today's Episode with Ara Mahdessian We Discuss:
1. We Did Not Want To Raise VC Money:
Why did Ara not want to raise VC funding in the early days?
What convinced Ara to change his mind? Why did he choose Byron and Bessemer?
Does Ara believe that ServiceTitan would have been the success that it is, if it had raised in today's market, a $5M on $25M seed round? What would they have done differently?
2. How to Master Going Upmarket:
What are Ara's biggest lessons on what it takes to go upmarket?
How does the product need to change? How does the org of the company change?
When is the right time to go upmarket?
What did ServiceTitan get wrong in their move into enterprise? What did Ara learn from this?
3. How to Build a Brand in SaaS and Have Premium Pricing:
What are some of Ara's biggest lessons in how to build the best brand in vertical SaaS?
What works in brand building in SaaS? What does not? What would he do differently?
What have been Ara's biggest lessons on pricing? ServiceTitan is 3x their competitors, how does Ara think about what is required to have such premium pricing?
4. How to Master the Second Product & Be the Best at Customer Success:
When is the right time to do a second product? Why is it too late to wait for PMF with your first product to do the second product?
What product did ServiceTitan wait too long to release? What did they learn?
What product did they release too early? What did they learn?
What are the two core reasons why customer success is the most important element in a business?
5. The Core Pillars of Great Leadership:
Why do product builder founders have such an increased chance of success in startups?
Why do you have to have expertise in the domain you are hiring for to hire the best?
What does truly great leadership mean to Ara today? How has his style of leadership changed?
What has Ara learned from soccer that he has applied to being a CEO?
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