When Should HipLead Go All In on SaaS?

Finding the right leads can be difficult, yet critical to optimizing your business’s deal flow. If your sales team is wasting their valuable time pursuing the wrong prospects, your CAC will soar with minimal benefit.

HipLeads was designed to help B2B sales teams increase the accuracy of their leads, in order to increase conversion and close more deals. Their services have helped companies like Freshdesk, Import.io, and Lyft get targeted, accurate leads and increase performance.

How much is HipLead doing in MRR today?

HipLead functions as both a professional services provider and software company. According to CEO Conor Lee, HipLead is the company’s light-touch consulting product while Sona is their software offering. Today, the company serves more than 50 total customers across both.

With an ARPU of $3k, Lee noted that HipLead is currently doing $150k in MRR. Of that revenue, roughly $30k comes from their pure-play SaaS product, with the remainder associated to agency customers. The company has been flat over the last two years as they’ve begun the transition to a SaaS business model.

What is HipLead’s churn?

Launched just 2 months ago, HipLead has not exhibited any churn thus far from their Sona product. Lee also shared encouraging metrics around renewals, explaining that three customers had already renewed and upgraded.

To this point, HipLead has acquired new SaaS customers mostly through their agency component and are in the process of rolling out their marketing efforts.

How much has HipLead raised?

Overall, HipLead has only raised $200k in outside capital, making them essentially bootstrapped. Lee voiced no intentions of raising additional capital in the near future.

The distributed team of 17 full-time employees has their sights set on growing their new SaaS offering in the near term. Going forward, Lee understands we will eventually have to sell or spin off the agency component of the business, but is hesitant to do so right now. The combination of profitability and continued ability to learn from their customers pain points remains appealing to the HipLead team.