#120: Practical Founder Exits for $300 Million Cash with Identity Verification Platform – Bill Spruill

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Nov 29, 2024

In this engaging discussion, Bill Spruill, former CEO and co-founder of Global Data Consortium, shares insights from his journey in identity verification. He reveals the slow, challenging path to success, highlighting the critical pivot from address validation to a booming KYC service. Bill discusses the emotional rollercoaster of a $300 million acquisition and the importance of a frugal growth strategy. He also reflects on the hurdles of securing venture capital, especially for unconventional founders, and the value of strategic partnerships in a competitive landscape.

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ANECDOTE

Initial Exit Expectations

Bill Spruill and his co-founder initially aimed for a $20 million exit.
They envisioned each walking away with $4-5 million, not anticipating the eventual $300 million outcome.

ANECDOTE

Pivoting the Business Model

Global Data Consortium started as an address validation business.
They pivoted twice, first to address validation via APIs, and finally to identity verification due to GDPR.

ANECDOTE

Bootstrapping and Struggles

Bill Spruill and Charles bootstrapped for five years, facing financial struggles.
They even put their houses on the line with an SBA loan.

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Bill Spruill had a successful sales and executive career with two exits before he and his cofounder struck out on their own in the location verification market serving financial and e-commerce companies. Sales grew slowly for several years as they scraped by and kept going. Eventually, they pivoted the company to focus on identity verification and know-your-customer (KYC) with a new approach, and sales grew steadily every month.

Global Data Consortium (GDC) partnered with data providers and fintech companies who became loyal customers, trusted partners, and potential acquirers. The company grew over 100% for several years, acquiring new partners and adding experienced leaders to their small team. In 2022, the London Stock Exchange Group (LSEG) acquired GDC for $300 million in an all-cash deal.

Bill talks about the lessons he learned in their patient growth journey, the challenges of trying and failing to raise startup capital, their frugal focus, their incredible acquisition story, and what he is doing now as a successful former founder.

Quote from Bill Spruill, founder of Global Data Consortium (GDC)

“There was a low point in the business where we were just struggling with, Why are we doing this? Are we going to make it? So we stepped back and said, We’re gonna do something very simple. We’re gonna focus on 10% growth every month, which wasn’t a big number then.

“We focused on moving the needle 10% every month with revenue. And then you get into the power of compounding. Every month we moved it 10% and we would celebrate. We kept moving that needle 10%, 10%, 10%.

“Eventually, that number got to be very sizable where we cracked through $5 million in revenue and we paid off all of our debt. And we became profitable and we kept growing fast. That unleashed the ability to accelerate our growth, growing 100% a year as we got bigger.”

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