$40M Series B to Level Up Your Procurement Process

Hello listeners, welcome to The SaaS CFO Podcast. I'm your host, Ben, and today, Dave Campbell, co-founder and CEO of Tropic, is here with us. Dave's eclectic background shaped his understanding of intricate procurement problems, leading to the inception of Tropic, a cutting-edge procurement platform turning heads in the SaaS world.  In this episode, we dive into how Tropic's keen focus on customer health scores and engagement drives retention and growth. We'll uncover the strategies that have attracted major feature releases, exclusive partnerships, and a noteworthy $65 million in funding—propelling them toward a $100 million ARR goal.  Dave's going to share a treasure trove of insights, from the importance of storytelling in fundraising to the metrics that matter most for long-term success. With exciting advancements and a unique approach to simplifying software spend management, Tropic is on a mission to reshape the procurement landscape.  Ready for some financial wisdom and operational tips from a true SaaS trailblazer? Stay tuned for a session that promises to enrich your SaaS knowledge!  Show Notes:  00:00 Read an American novel, had an entrepreneurial revelation, worked in digital marketing with the rise of blogs.  03:26 Summary: Founder starts at Tropic, worked at Microsoft, realizes big companies are not for him, gains clarity.  09:03 Make finance approvals easier with automated platform for spend tracking and utilization.  12:35 Initially capped at 1000, now expanded to 10,000 with new features and target market shift. Planning to expand into other industry verticals.  15:06 Improved adoption = better spend management. Consumer-grade UX helps with procurement challenges. Tropic aids under-resourced teams.  17:06 Not a fit for real estate or physical goods, but good for software. Eyeing healthcare and higher ed markets for procurement.  22:20 Praising insightful and diligent company, aligning with fund for quick series B, facing rigorous assessment.  26:00 Meet top funds, control access to data room, stage meetings, keep it tight.  29:09 Customer health scores crucial for business growth and retention. Monitoring through dashboards.  31:42 Realizing customer needs and product-market fit in business endeavors.  33:39 Insight partners helped with pricing, packaging, and capacity planning.  Links:  SaaS Fundraising Stories: https://www.thesaasnews.com/news/tropic-raises-40-million-in-series-b  David Campbell’s LinkedIn: https://www.linkedin.com/in/davidtropic/  Tropic’s LinkedIn: https://www.linkedin.com/company/tropicapp/ To know more about Ben check out the links below: Subscribe to Ben’s daily metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page SaaS Metrics courses here: https://www.thesaasacademy.com/ Join Ben’s SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout Follow Ben on LinkedIn: https://www.linkedin.com/in/benrmurray