Why a $36 Million Run Rate Was “Not That Interesting”
Jarvis describes the shock of learning that a strong, rapidly growing company can still disappoint venture investors. Because venture capital seeks exceptionally large exits, a valuable and profitable business may be treated as inadequate if it appears unlikely to reach a billion-dollar valuation.
- CreativeLive reached a $36 million annual recurring revenue run rate.
- The company was growing approximately 40% year over year.
- A prominent investor still considered the result uninteresting.
- Venture capital incentives can conflict with building a durable, moderately sized company.
“And the investor looked me in the eyes across the table just after a great board meeting and said, it's just not that interesting.”