What's it like getting acquired by Spotify? (Dave Zohrob from Chartable)
Episode
55 min
Read time
2 min
Topics
Health & Wellness, Investing, Startups
AI-Generated Summary
Key Takeaways
- ✓Venture capital timing: Chartable raised $1.3 million after identifying podcasting's massive opportunity, choosing aggressive growth over bootstrapping because the market size justified external funding and faster execution despite increased pressure and accountability to investors.
- ✓Health insurance barrier: COBRA health insurance cost thousands monthly between leaving AngelList and raising funds, creating existential financial pressure that significantly impacts US entrepreneurship decisions compared to countries with universal healthcare, forcing faster fundraising timelines or employment decisions.
- ✓Acquisition preparation: Clean financial accounting matters critically during due diligence—properly classifying cost of goods sold versus R&D expenses, maintaining rigorous revenue models, and understanding business levers at investor-grade detail, not just internal planning standards, accelerates the process.
- ✓International expansion opportunity: Podcast growth in non-US markets represents a mega-trend over five to ten years, but requires solving language barriers, developing local ad markets, and infrastructure investments that bootstrap companies struggle to fund compared to global platforms.
What It Covers
Dave Zohrob discusses Chartable's acquisition by Spotify, contrasting venture-backed versus bootstrapped paths, navigating culture shock from an eleven-person team to an 8,000-person company, and the future of international podcast growth.
Key Questions Answered
- •Venture capital timing: Chartable raised $1.3 million after identifying podcasting's massive opportunity, choosing aggressive growth over bootstrapping because the market size justified external funding and faster execution despite increased pressure and accountability to investors.
- •Health insurance barrier: COBRA health insurance cost thousands monthly between leaving AngelList and raising funds, creating existential financial pressure that significantly impacts US entrepreneurship decisions compared to countries with universal healthcare, forcing faster fundraising timelines or employment decisions.
- •Acquisition preparation: Clean financial accounting matters critically during due diligence—properly classifying cost of goods sold versus R&D expenses, maintaining rigorous revenue models, and understanding business levers at investor-grade detail, not just internal planning standards, accelerates the process.
- •International expansion opportunity: Podcast growth in non-US markets represents a mega-trend over five to ten years, but requires solving language barriers, developing local ad markets, and infrastructure investments that bootstrap companies struggle to fund compared to global platforms.
Notable Moment
Zohrob describes visiting Spotify's Manhattan office for the first time as a country kid from Alberta, mistaking the massive waiting room for the entire office, then discovering multiple floors above with water views.
Episode Transcript
This podcast is hosted by transistor. F m. Hello, and welcome to build your SaaS. This is the behind the scenes story of building web apps in 2022. I'm Justin Jackson from transistor. And today on the program, I have Dave Zorob, who is the founder co founder of charitable, which was recently acquired by Spotify. Lots of great discussion in here, especially since Dave chose the venture capital route and Transistor chose the bootstrapped route, and it's just interesting to contrast those two and to talk a little bit about, yeah, the charitable exit, the acquisition, with Spotify, and a bunch of other topics. It's a really great episode. I think you'll enjoy it. Let's get into it. Have have you started going into the Spotify office, or is the megaphone office remote? I go in, like, once a week. Yeah. So Spotify has worked from anywhere. Okay. So they've, like you know, during the pandemic, totally committed to this, remote culture. Got it. My understanding is that it was actually pretty different prior to the pandemic. I mean, I obviously wasn't there. So, but, you know, they have this absolutely gorgeous office I've been there. Downtown Manhattan. It's amazing. Yeah. It the the view of It's really amazing. Like, the view of the water is I was like It's crazy. I remember they brought me up to I mean, I'm a country kid. I grew up in this little farm town in Alberta. And, I was meeting a few people there that day, and I've only been I had only been to New York once before that. So I remember just going into that building, and they're like, you're gonna have to check-in. And so there's, like, security guards that I had to check-in there. And then they bring me up to another place, in the elevator, and then it's like this massive waiting room. And then they're like, oh, yeah. And then they check on the computer. They're like, oh, yeah. You're meeting with, Bill, and then you're meeting with okay. Yeah. Sure. And then they just tell you to wait. And in my mind, I'm thinking this waiting room is the the office. Like, this is this is it. You know? And Yeah. Like, maybe there's some offices on this floor, like, just, like, around the corner or whatever. And and then, I think I met with Bill first, and he's like, alright. Well, let's hop in the elevator. I'm like, wait. There's more floors? There's more. And he's like, oh, yeah. And so we went up and Wow. It just it's just mind boggling to me. The scale for you, is there a little bit of culture shock? Because how big was Charitable? For sure. Because Charitable's like a 11 people. Yeah. Yeah. So it's obviously regardless of, like you know, I think, you know, just to be totally clear, like, part of why we ended up with Spotify is that we really felt like …
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