Few young software Companies had a great year like ClickUp in San Diego. The company, which makes business productivity tools for task management, goals, and documents, raised its first external funding in mid-2020.
Just six months later, the company hit a $ 1 billion valuation after doubling its customer base and growing revenue nine times when companies opted for remote work.
The new funding and valuation after just a few months of strong growth shows how closely investors are watching the productivity software space. I spoke to ClickUp CEO Zeb Evans yesterday to get his insights into the challenges of hypergrowth and why it made sense to say “yes” to the check.
This interview has been edited for length and clarity.
TechCrunch: This has been an awfully busy year for your team. What has happened since we talked about your Serie A?
Zeb Evans: The last time we spoke to you, we were at a turning point where we had seen a lot of growth before and after the COVID. We saw that growth continued. We just really kept those growth rates and really increased in some areas. When we last chatted, we had about 100,000 teams and now we're more than double the size of over 200,000 teams using our software. I think we've had around a million users and now we're well over two million users using the product as well.
This is interesting, so does it sound like you've found a sweet spot in terms of team size?
Yes, our number of users per team is roughly 10 people or a little more. And it really has remained that way from six months ago until today.
How has the size of your own team changed?
We have around 200 employees right now, so we've definitely more than doubled since the last call, and hopefully we'll double again in the next quarter so we have an aggressive hiring plan.
Cool, so you've doubled your user base as well as your team in six months. How did your team adapt to scaling so quickly?
That's a good question. I think the most important thing we have always focused on is sending out a new version of ClickUp every week. That is our differentiation. We created these iterative cycles called Natural Products Market Adjustment and it was difficult to keep up with. I mean we did it, but when you scale you know you have a lot more users and more thought to take into account every feature you change and develop.
I think that was the biggest thing we focused on and we listened to this community that is growing every week. Of course, the attitude is always paramount, and we didn't do that as quickly as we'd like. But we're making improvements there and we're getting there.
Many startups have played opportunistic rounds in what appeared to be a very hot market. When did you think it might make sense to raise even more money after completing this Serie A?
So our Serie A was our first external asset and we didn't really know what that was going to do at the time. When we launched this fund, we saw that we could really accelerate our vision and our product. We used these resources very efficiently and achieved a great standard economy. And as you mentioned, it is certainly a good time and a great market – the productivity market is just the hottest right now. So it was kind of a trifecta of it, but the real reason for the increase was certainly to be able to continue the product growth and acceleration of scale that comes with fundraising.