Harrison Rose: The Story of Paddle ($1.4 Billion Valuation)

Welcome to another episode of Unicorn Builders!

Today, our unicorn builder is Harrison Rose , co-founder of Paddle , a payments infrastructure provider for SaaS companies that has raised $300 million in funding. Harrison's journey from starting his first business at 18 to stepping back and co-founding Good Fit provides a unique glimpse into the mind of a successful tech entrepreneur. Paddle, now with 300 staff and 3000 global customers, exemplifies the trials and triumphs of scaling a global tech business.

Key topics discussed:

• Harrison's entrepreneurial journey from co-founding Paddle at 18 to stepping back and starting Good Fit.
• The inspiration and challenges behind creating Paddle, aimed at solving B2B payment issues for software companies.
• Early days of Paddle, including stories of raising funds without understanding the VC world and learning from mistakes.
• Insights into Paddle's growth strategy, focusing on software verticalization and the shift from a marketplace model to providing comprehensive payments infrastructure.
• The evolution of Paddle's marketing philosophy, transitioning from heavy reliance on outbound sales to investing in brand and market presence.
• Harrison's reflections on the importance of founder self-awareness and the ability to adapt and grow with the company.
• Good Fit's inception, leveraging the lessons learned at Paddle and focusing on changing how companies approach go-to-market strategies.

Actionable Takeaways for Builders:

1. Embrace Educational Marketing: As Paddle grew, educating the market on the benefits of their comprehensive solution became crucial. Founders should consider how educational content can play a role in their GTM strategy, particularly when introducing new or complex solutions.
2. Your Brand Narrative Will Evolve Over Time: Initially, Paddle's marketing leaned into the founders' stories, resonating with startups and small software developers by adding a human touch and relatability to the brand. However, as their focus shifted towards larger, enterprise clients, the narrative evolved to emphasize the practical value and problem-solving capabilities of their product. This transition underlines the importance of tailoring your company's story to match the interests and needs of your evolving target audience, ensuring your messaging remains relevant and impactful across different stages of growth.
3. Invest in Brand Building Early: Initially, Paddle did not heavily invest in traditional marketing or branding, focusing instead on outbound sales. Over time, they realized the critical role of brand in building trust, credibility, and market presence. As your company grows, especially when targeting larger accounts or entering new markets, investing in your brand can significantly enhance your competitive edge.
4. Brand as a Foundation for Trust and Credibility: For B2B companies, particularly in the payments infrastructure space like Paddle, trust and credibility are paramount. Investing in your brand is not just about visibility; it's about establishing your company as a reliable, authoritative figure in your industry, which is crucial for engaging with enterprise-level clients.
5. Category Creation vs. Category Evolution: Harrison’s experience with category creation at Paddle offers a cautionary tale. While creating a category can be appealing, it’s a challenging and often long-term endeavor. Participating in an emerging category or focusing on defining your unique value in an existing category might provide a more immediate impact on your GTM strategy.

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