Hopscotch has grown like crazy in the last few months. In May, we will have added as much revenue as we did June through December last year. It’s not just revenue that’s growing either. We’ve grown new accounts 37% MoM and transaction volume by 73% MoM over the last 6 months. In fact, we’ve processed more volume in the last two months than we did in all of 2023. I thought it’d be interesting to share what led to this inflection point in the business. 1/ We shipped something businesses need Early on in Hopscotch’s life, we recognized we had a unique opportunity to modernize an industry that has remained relatively untouched by tech: factoring. I’ll spare you the history lesson, but those who are familiar with factoring know the experience isn't great (more here: https://shorturl.at/YQEom). To test our thesis about an alternative to traditional factoring, we launched an alpha version of Flow and made it available to a small subset of our invoicing / bill pay customers (<25). Within weeks, we saw there was a clear market need, but there was still a lot of work to do on our invoicing / bill pay product so we pushed Flow to the side. That was a mistake. During our 2023 annual review, we realized the unit economics for Flow were extremely compelling: enterprise SaaS-like LTVs, high retention, etc. Once we saw the numbers, we moved quickly to build a beta version of Flow that more of our customers would be able to access. In May, we launched Flow 2.0. Even though Flow is still only available to <100 businesses out of the 7k+ on Hopscotch, we’ve been able to grow revenue like crazy. The expansion opportunity is compelling and we’re working hard to get it in the hands of more of our users. 2/ We identified a major GTM unlock It’s no secret that SMBs are often difficult to acquire, monetize, and retain over long periods of time. To make the Hopscotch model work, we focused on building a product that is inherently viral. If we acquire one business, we need to be able to organically acquire their clients and vendors. In other words, we set out to build a negative-CAC product with the potential to achieve exponential growth. While the above remains true to this day (we convert 10% of all businesses that receive an invoice or bill from one of our users to the platform), we identified a major GTM unlock in late March that has enabled us to grow like wildfire. I’m not going to share the specifics on LinkedIn (yet), but we’ve been able to build a niche channel partner network that consistently drives new accounts and revenue to our platform. At first, this network started as an experiment with a single partner, but once we saw traction we quickly formalized a process to identify, onboard, and manage new parters. Today, we know how much each new partner will drive in volume and revenue on a monthly basis. There are tens of thousands of these partners out there and we’re onboarding about 3-5 per month.
crushing it reed!!! keep it up 🚀
"Money is Time" and Hopscotch is proving it. Well done Reed and the team
this is beautiful
🚀 🚀 🚀
Awesome, great to see this Reed Switzer 👏
Good to hear Reed Switzer ! Congrats
📈
Reed, terrific post! Really appreciate it.
Amazing Reed, super exciting 📈
Founder @ Soleo. Ghostwriting for the world's most innovative B2B leaders. Clients include Series A/B SaaS firms, YC-backed startups, and 8-figure marketing agencies.
1moCongrats, Reed. Just want to say, your company has an amazing name and branding; there's just something about it, dunno.