Kadence’s innovative approach to hybrid work helps companies cut leasing costs and enhance workspace efficiency.
Key takeaways
- Companies can significantly reduce leasing costs by optimizing office space with Cadence.
- Hybrid work models require effective coordination of office meetings and space usage.
- The US corporate real estate market is vast, creating opportunities for innovative pricing models.
- Despite trends, the seat-based model remains viable and relevant.
- Maintaining a seed-stage cap table structure is crucial for attracting investor interest.
- The market is shifting focus from growth rates to the quality of revenue.
- A net dollar retention rate above 130% is considered world-class, indicating strong customer loyalty.
- The shift to hybrid work has altered workplace management needs for companies.
- Larger enterprises demand more comprehensive solutions for workspace logistics.
- CFOs prefer predictable spending models, impacting software pricing strategies.
- Cadence’s approach to hybrid work involves coordinating people and meetings effectively.
- The real estate market’s scale influences strategic pricing based on user engagement.
Guest intro
Dan Bladen is the co-founder and CEO of Kadence, a workplace operations system that has reached $15M ARR coordinating hybrid work for companies like Revolut and Boeing. He pivoted his wireless charging startup Chargify into Kadence during the pandemic after recognizing it was a vitamin not a painkiller. Today, Kadence serves over 600 enterprise customers with over 130 percent net dollar retention.
How Cadence optimizes office space
- Companies using Cadence can cut their leasing costs significantly.
They’ve gone from 10.1 to 4,700,000 square feet roughly saving about half $1,000,000,000 a year in annual leasing costs and they use cadence to coordinate the people and how they meet inside of those offices.
— Dan Bladen
- Cadence facilitates the coordination of people and meetings within office spaces.
Cadence works with all of the above [structured hybrid works]… to coordinate the people and how they meet inside of those offices.
— Dan Bladen
- Understanding hybrid work’s impact on real estate is crucial for leveraging Cadence.
- The platform’s value proposition is showcased through its financial benefits.
- Cadence addresses the challenges companies face in managing hybrid workspaces.
- The system is designed to optimize space usage and reduce unnecessary costs.
The vast potential of the US corporate real estate market
- The US corporate real estate market is valued at $22 trillion.
There’s $22,000,000,000,000 of corporate real estate in the us alone and so what we wanted to do was fix our pricing not to squarefoot but to the people that use that space.
— Dan Bladen
- This market presents opportunities for innovative pricing models.
- Cadence’s pricing strategy is based on user engagement rather than square footage.
- The scale of the market influences strategic decisions in pricing.
- Companies can benefit from adjusting their real estate strategies.
- The potential for cost savings is significant in this vast market.
- Understanding the implications of this market is crucial for strategic planning.
The resilience of the seat-based model
- Contrary to popular belief, the seat-based model is not obsolete.
We are literally a seat based model literally sitting a butt in a seat you’re fine.
— Dan Bladen
- This model remains viable in the age of AI and digital transformation.
- The seat-based approach offers a counter-narrative to emerging trends.
- Traditional business models still hold relevance in certain contexts.
- Companies can continue to leverage seat-based strategies effectively.
- The persistence of this model suggests resilience in traditional approaches.
- Understanding the ongoing relevance of seat-based models is important for strategic planning.
Strategies for attracting investor interest
- Maintaining a seed-stage cap table structure is crucial for securing investment.
I went to my board at the time and said hey this is gonna be really difficult to get this round done because the investors that are coming in are going to want to see me north of 40% ownership again they’re going to want it to look like a seed stage cap table.
— Dan Bladen
- Investors have specific expectations regarding ownership and cap table structures.
- Founders must navigate these expectations to secure funding successfully.
- Strategic approaches to fundraising can enhance investor appeal.
- Understanding investor dynamics is key to effective fundraising.
- Maintaining ownership levels can impact investor interest and confidence.
- Founders should be aware of the importance of cap table structures in fundraising.
The shift in market focus from growth to revenue quality
- Quality of revenue is becoming more important than growth rates.
I think you know whatever the phrase is the cows are gonna come home on growth rates versus the quality of revenue later this year I think quality of revenue is going to go back into vogue.
— Dan Bladen
- This shift reflects changing market priorities and investment strategies.
- Companies may need to adjust their focus to align with these priorities.
- Revenue quality can impact company valuations and investor interest.
- Understanding this shift is crucial for strategic planning and decision-making.
- The emphasis on revenue quality could influence future business strategies.
- Companies should be prepared to adapt to these changing market dynamics.
The importance of net dollar retention rates
- A net dollar retention rate above 130% is considered world-class.
I’d say world class is like 140 150 so that wow that’s that’s congratulations yeah super sticky software.
— Dan Bladen
- This metric indicates strong customer loyalty and retention.
- High retention rates are critical for long-term company success.
- Companies should strive to achieve and maintain high retention rates.
- Understanding industry benchmarks is important for assessing performance.
- Retention rates can impact company growth and investor confidence.
- Companies with strong retention rates are better positioned for success.
The evolving needs of workplace management
- The shift to hybrid work has changed workplace management needs.
Nine out of 10 companies are now in some sort of hybrid modality that might mean one day in the office a month all the way through to four and a half five days a week in the office.
— Dan Bladen
- Companies require more comprehensive solutions for managing workspace logistics.
What we’ve discovered as we’ve gone upmarket is just how much more product we need to ship to secure repeatably 6 figure deals.
— Dan Bladen
- Understanding these evolving needs is crucial for product development.
- Companies must adapt to the changing demands of hybrid work environments.
- Enhanced product offerings can meet the needs of larger enterprises.
- Effective workplace management solutions are essential for success.
The preference for predictable spending models
- CFOs prefer predictable spending models over uncapped limits.
What I do know for sure is that CFOs like to know what they’re gonna be spending each year and they don’t like to have an uncapped limit.
— Dan Bladen
- This preference impacts software pricing strategies in the industry.
- Companies should consider CFO preferences when developing pricing models.
- Predictable spending models offer financial stability and control.
- Understanding financial decision-making preferences is crucial for pricing strategies.
- Companies can benefit from aligning their pricing models with CFO preferences.
- Predictable models can enhance customer satisfaction and retention.
Kadence’s innovative approach to hybrid work helps companies cut leasing costs and enhance workspace efficiency.
Key takeaways
- Companies can significantly reduce leasing costs by optimizing office space with Cadence.
- Hybrid work models require effective coordination of office meetings and space usage.
- The US corporate real estate market is vast, creating opportunities for innovative pricing models.
- Despite trends, the seat-based model remains viable and relevant.
- Maintaining a seed-stage cap table structure is crucial for attracting investor interest.
- The market is shifting focus from growth rates to the quality of revenue.
- A net dollar retention rate above 130% is considered world-class, indicating strong customer loyalty.
- The shift to hybrid work has altered workplace management needs for companies.
- Larger enterprises demand more comprehensive solutions for workspace logistics.
- CFOs prefer predictable spending models, impacting software pricing strategies.
- Cadence’s approach to hybrid work involves coordinating people and meetings effectively.
- The real estate market’s scale influences strategic pricing based on user engagement.
Guest intro
Dan Bladen is the co-founder and CEO of Kadence, a workplace operations system that has reached $15M ARR coordinating hybrid work for companies like Revolut and Boeing. He pivoted his wireless charging startup Chargify into Kadence during the pandemic after recognizing it was a vitamin not a painkiller. Today, Kadence serves over 600 enterprise customers with over 130 percent net dollar retention.
How Cadence optimizes office space
- Companies using Cadence can cut their leasing costs significantly.
They’ve gone from 10.1 to 4,700,000 square feet roughly saving about half $1,000,000,000 a year in annual leasing costs and they use cadence to coordinate the people and how they meet inside of those offices.
— Dan Bladen
- Cadence facilitates the coordination of people and meetings within office spaces.
Cadence works with all of the above [structured hybrid works]… to coordinate the people and how they meet inside of those offices.
— Dan Bladen
- Understanding hybrid work’s impact on real estate is crucial for leveraging Cadence.
- The platform’s value proposition is showcased through its financial benefits.
- Cadence addresses the challenges companies face in managing hybrid workspaces.
- The system is designed to optimize space usage and reduce unnecessary costs.
The vast potential of the US corporate real estate market
- The US corporate real estate market is valued at $22 trillion.
There’s $22,000,000,000,000 of corporate real estate in the us alone and so what we wanted to do was fix our pricing not to squarefoot but to the people that use that space.
— Dan Bladen
- This market presents opportunities for innovative pricing models.
- Cadence’s pricing strategy is based on user engagement rather than square footage.
- The scale of the market influences strategic decisions in pricing.
- Companies can benefit from adjusting their real estate strategies.
- The potential for cost savings is significant in this vast market.
- Understanding the implications of this market is crucial for strategic planning.
The resilience of the seat-based model
- Contrary to popular belief, the seat-based model is not obsolete.
We are literally a seat based model literally sitting a butt in a seat you’re fine.
— Dan Bladen
- This model remains viable in the age of AI and digital transformation.
- The seat-based approach offers a counter-narrative to emerging trends.
- Traditional business models still hold relevance in certain contexts.
- Companies can continue to leverage seat-based strategies effectively.
- The persistence of this model suggests resilience in traditional approaches.
- Understanding the ongoing relevance of seat-based models is important for strategic planning.
Strategies for attracting investor interest
- Maintaining a seed-stage cap table structure is crucial for securing investment.
I went to my board at the time and said hey this is gonna be really difficult to get this round done because the investors that are coming in are going to want to see me north of 40% ownership again they’re going to want it to look like a seed stage cap table.
— Dan Bladen
- Investors have specific expectations regarding ownership and cap table structures.
- Founders must navigate these expectations to secure funding successfully.
- Strategic approaches to fundraising can enhance investor appeal.
- Understanding investor dynamics is key to effective fundraising.
- Maintaining ownership levels can impact investor interest and confidence.
- Founders should be aware of the importance of cap table structures in fundraising.
The shift in market focus from growth to revenue quality
- Quality of revenue is becoming more important than growth rates.
I think you know whatever the phrase is the cows are gonna come home on growth rates versus the quality of revenue later this year I think quality of revenue is going to go back into vogue.
— Dan Bladen
- This shift reflects changing market priorities and investment strategies.
- Companies may need to adjust their focus to align with these priorities.
- Revenue quality can impact company valuations and investor interest.
- Understanding this shift is crucial for strategic planning and decision-making.
- The emphasis on revenue quality could influence future business strategies.
- Companies should be prepared to adapt to these changing market dynamics.
The importance of net dollar retention rates
- A net dollar retention rate above 130% is considered world-class.
I’d say world class is like 140 150 so that wow that’s that’s congratulations yeah super sticky software.
— Dan Bladen
- This metric indicates strong customer loyalty and retention.
- High retention rates are critical for long-term company success.
- Companies should strive to achieve and maintain high retention rates.
- Understanding industry benchmarks is important for assessing performance.
- Retention rates can impact company growth and investor confidence.
- Companies with strong retention rates are better positioned for success.
The evolving needs of workplace management
- The shift to hybrid work has changed workplace management needs.
Nine out of 10 companies are now in some sort of hybrid modality that might mean one day in the office a month all the way through to four and a half five days a week in the office.
— Dan Bladen
- Companies require more comprehensive solutions for managing workspace logistics.
What we’ve discovered as we’ve gone upmarket is just how much more product we need to ship to secure repeatably 6 figure deals.
— Dan Bladen
- Understanding these evolving needs is crucial for product development.
- Companies must adapt to the changing demands of hybrid work environments.
- Enhanced product offerings can meet the needs of larger enterprises.
- Effective workplace management solutions are essential for success.
The preference for predictable spending models
- CFOs prefer predictable spending models over uncapped limits.
What I do know for sure is that CFOs like to know what they’re gonna be spending each year and they don’t like to have an uncapped limit.
— Dan Bladen
- This preference impacts software pricing strategies in the industry.
- Companies should consider CFO preferences when developing pricing models.
- Predictable spending models offer financial stability and control.
- Understanding financial decision-making preferences is crucial for pricing strategies.
- Companies can benefit from aligning their pricing models with CFO preferences.
- Predictable models can enhance customer satisfaction and retention.
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