Josh Pigford
@Shpigford76K followers
Serial dabbler who built and sold Baremetrics for $4M, now shipping AI products
Baremetrics, Maybe, Knockoff +5
exit story · 2020 · analytics & data
How Josh Pigford Sold Baremetrics to Xenon Partners (2020)
Baremetrics was built by Josh Pigford and sold to Xenon Partners in 2020 for $4M cash (~2.65x ARR).
Key facts
- Buyer
- Xenon Partners ↗
- Year
- 2020
- Price
- $4M cash (~2.65x ARR)
- Revenue at sale
- —
- Years operated
- 7 years
- Channel
- Direct sale
Why they sold: Josh Pigford said he is more of a maker than a manager, the CEO role had become stressful especially after COVID, and he wanted to start new things and reach financial independence for his family.
The story of Baremetrics
Baremetrics is a subscription analytics tool for Stripe and other billing platforms, which Josh Pigford built and launched in about eight days in October 2013. It became a poster child of the open startup movement by publishing its own revenue and metrics publicly.
An earlier sale fell through after months of draining due diligence. Xenon Partners, a tech private equity firm whose co-founder Pigford already knew, approached him in April 2020, and the deal closed in November 2020, about six weeks after the letter of intent.
The price was $4M in cash, roughly 2.65x ARR, of which Pigford kept about $3.7M. It was paid in three instalments with no earnout and a guaranteed payout regardless of diligence findings; investors who had put in $800K agreed to write off their investment to make the deal work.
Lessons Josh Pigford shared
- 1.Avoiding an earnout mattered most; founders who must stay for years to get paid often accept worse deals.
- 2.A guaranteed fixed payout and a fast close after the LOI remove the risk of late price cuts.
- 3.Slow, near-breakeven growth and a technically complex product lead to modest multiples; most real deals are below headline multiples.
Paraphrased from the maker's public posts and interviews (see sources).
The maker
See the Baremetrics product page or Josh Pigford's full profile for everything they have built since.
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Sources
Facts are taken from the maker's and buyer's public statements and press coverage. Prices and revenue are shown only when publicly stated; self-reported figures are not independently verified.
Keep exploring
Baremetrics acquisition FAQ
Who bought Baremetrics?
Baremetrics was acquired by Xenon Partners in 2020 from Josh Pigford.
How much did Baremetrics sell for?
Baremetrics sold for $4M cash (~2.65x ARR), as publicly stated.
Why did Josh Pigford sell Baremetrics?
Josh Pigford said he is more of a maker than a manager, the CEO role had become stressful especially after COVID, and he wanted to start new things and reach financial independence for his family.
How long did it take Baremetrics to get acquired?
Baremetrics was sold about 7 years after launch, through a direct sale (sold directly to a buyer, often a competitor, customer or acquirer that reached out).
What did Josh Pigford learn from selling Baremetrics?
Avoiding an earnout mattered most; founders who must stay for years to get paid often accept worse deals. A guaranteed fixed payout and a fast close after the LOI remove the risk of late price cuts.