Live from CVF 2023: Marcos Torres, CFO of Huntress Labs
Jan 2, 2024
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In this podcast, Marcos Torres, CFO of Huntress Labs, discusses the company's focus on providing managed EDR services for SMBs. They explore the evolution of the business model to SaaS, the challenges of scaling ventures, and the unique staffing approach at Huntress Labs. The conversation also delves into the differences in influencing company strategy between startups and large corporations, emphasizing the opportunities for experimentation in early-stage companies.
Establishing fundamental financial metrics is crucial for strategic decision-making and growth at Huntress Labs.
Adapting go-to-market strategies and understanding different sales channels enabled Huntress Labs to expand its customer base and sales approach.
Deep dives
Building a Strong Foundation: Understanding Customer Segments and Financial Metrics
An important initial focus at Huntress for the speaker was on establishing a solid foundation by understanding who their customers are and why they are buying the product. This involved setting up fundamental financial metrics, such as reporting clear numbers consistently to raise capital and ensure compliance. By gaining clarity on revenue streams, contract types, and metrics like churn rate, Huntress could lay the groundwork for strategic decision-making and future growth.
Market Expansion and Sales Strategy Evolution: Transition from MSPs to Mid-Market Direct Sales
Initially selling exclusively through MSPs in 2019, Huntress recognized the opportunity for growth in the mid-market segment and shifted towards direct sales. This strategic evolution required a nuanced understanding of different sales channels and pricing models to accommodate the unique needs of the mid-market customers. By adapting the go-to-market strategy and understanding the nuances of selling through resellers, Huntress was able to diversify its customer base and sales approach.
Resource Planning and Strategy Development: Balancing Operational Efficiency with Growth Initiatives
As Huntress expanded its operations, resource planning became crucial, particularly in a small company environment with limited headcount and budget constraints. The speaker highlighted the importance of establishing operational basics before delving into strategic initiatives like core competency assessment and competitive analysis. By aligning budget allocation with key growth drivers and fostering a culture of continuous reinvestment, Huntress aimed to accelerate its growth trajectory sustainably.
Continuous Hiring and Capital Positioning: Future Expansion Plans and Investment Considerations
With a strong focus on continuous hiring, Huntress anticipates significant headcount growth in the upcoming year to support its expansion plans. While the company recently secured funding from Sapphire Ventures, the speaker hinted at potential future raises to fuel further growth and capitalize on market opportunities. As Huntress navigates post-Series C stage towards potential public readiness, balancing profitability goals with strategic investment decisions remains a key consideration for future financial planning.
Marcos is CFO of Huntress Labs, which provides managed EDR services for SMBs. In the episode we discuss Marcos's role as CFO and why Huntress decided to focus on SMBs. This episode was recorded live at Blu Ventures' Cyber Venture Forum event in October. Thank you again to the Blu team!