Jason M. Lemkin says SaaS companies at $100M+ ARR risk stagnation without new products, but adding them takes two to three years to generate real revenue. Rippling succeeded where Zenefits failed by getting the sequencing and relationships right.
And there are so many folks north of 100 million ARR today that are single product that behind closed doors are fracked. Today it's too late. It takes time to build up a suite like ZoomInfo. Even if you build the products in a year, it takes so long for that revenue to get material, doesn't it? Two, three years. So if you start now at 100 million or 200 million in revenue to try to go to IPO, you're kind of fracked. There's so many single product companies at 100 million. And I don't know if we've gone on a tangent. These are the two things I obsess about this, that I was. I was good at the second, but not in your mind, who's done, who's done a second product? Well, I mean, the one that has kicked us in the ass in a way, in a fun way is rippling. And it took me a while to get it with Parker. I've known, I've known Parker since the beginning of Disaster. He was on Quora, so known him since then. And he started to talk about the compound startup of how after the Zenefits experience, he wanted to build all the HR products, right? And I think he was informed. Like he started Zenefits and then Gusto Zen Payroll is over here and they're all friends. And within two years, Zenefits bill payroll and payroll build insurance and it all collapsed even further than in other categories. And he talks about compound startups and he did it live at SAS Europa watch on YouTube. It's really good. But he's also owned his.
