Skip to content
By using Twitter’s services you agree to our Cookies Use. We and our partners operate globally and use cookies, including for analytics, personalisation, and ads.

This is the legacy version of twitter.com. We will be shutting it down on June 1, 2020. Please switch to a supported browser, or disable the extension which masks your browser. You can see a list of supported browsers in our Help Center.

  • Home Home Home, current page.
  • About

Saved searches

  • Remove
  • In this conversation
    Verified accountProtected Tweets @
Suggested users
  • Verified accountProtected Tweets @
  • Verified accountProtected Tweets @
  • Language: English
    • Bahasa Indonesia
    • Bahasa Melayu
    • Català
    • Čeština
    • Dansk
    • Deutsch
    • English UK
    • Español
    • Filipino
    • Français
    • Hrvatski
    • Italiano
    • Magyar
    • Nederlands
    • Norsk
    • Polski
    • Português
    • Română
    • Slovenčina
    • Suomi
    • Svenska
    • Tiếng Việt
    • Türkçe
    • Ελληνικά
    • Български език
    • Русский
    • Српски
    • Українська мова
    • עִבְרִית
    • العربية
    • فارسی
    • मराठी
    • हिन्दी
    • বাংলা
    • ગુજરાતી
    • தமிழ்
    • ಕನ್ನಡ
    • ภาษาไทย
    • 한국어
    • 日本語
    • 简体中文
    • 繁體中文
  • Have an account? Log in
    Have an account?
    · Forgot password?

    New to Twitter?
    Sign up
patio11's profile
Patrick McKenzie
Patrick McKenzie
Patrick McKenzie
@patio11

Tweets

Patrick McKenzie

@patio11

I work for the Internet, at @stripe, mostly on accelerating startups. Opinions here are my own.

東京都 Tokyo
kalzumeus.com
Joined February 2009

Tweets

  • © 2020 Twitter
  • About
  • Help Center
  • Terms
  • Privacy policy
  • Imprint
  • Cookies
  • Ads info
Dismiss
Previous
Next

Go to a person's profile

Saved searches

  • Remove
  • In this conversation
    Verified accountProtected Tweets @
Suggested users
  • Verified accountProtected Tweets @
  • Verified accountProtected Tweets @

Promote this Tweet

Block

  • Tweet with a location

    You can add location information to your Tweets, such as your city or precise location, from the web and via third-party applications. You always have the option to delete your Tweet location history. Learn more

    Your lists

    Create a new list


    Under 100 characters, optional

    Privacy

    Copy link to Tweet

    Embed this Tweet

    Embed this Video

    Add this Tweet to your website by copying the code below. Learn more

    Add this video to your website by copying the code below. Learn more

    Hmm, there was a problem reaching the server.

    By embedding Twitter content in your website or app, you are agreeing to the Twitter Developer Agreement and Developer Policy.

    Preview

    Why you're seeing this ad

    Log in to Twitter

    · Forgot password?
    Don't have an account? Sign up »

    Sign up for Twitter

    Not on Twitter? Sign up, tune into the things you care about, and get updates as they happen.

    Sign up
    Have an account? Log in »

    Two-way (sending and receiving) short codes:

    Country Code For customers of
    United States 40404 (any)
    Canada 21212 (any)
    United Kingdom 86444 Vodafone, Orange, 3, O2
    Brazil 40404 Nextel, TIM
    Haiti 40404 Digicel, Voila
    Ireland 51210 Vodafone, O2
    India 53000 Bharti Airtel, Videocon, Reliance
    Indonesia 89887 AXIS, 3, Telkomsel, Indosat, XL Axiata
    Italy 4880804 Wind
    3424486444 Vodafone
    » See SMS short codes for other countries

    Confirmation

     

    Welcome home!

    This timeline is where you’ll spend most of your time, getting instant updates about what matters to you.

    Tweets not working for you?

    Hover over the profile pic and click the Following button to unfollow any account.

    Say a lot with a little

    When you see a Tweet you love, tap the heart — it lets the person who wrote it know you shared the love.

    Spread the word

    The fastest way to share someone else’s Tweet with your followers is with a Retweet. Tap the icon to send it instantly.

    Join the conversation

    Add your thoughts about any Tweet with a Reply. Find a topic you’re passionate about, and jump right in.

    Learn the latest

    Get instant insight into what people are talking about now.

    Get more of what you love

    Follow more accounts to get instant updates about topics you care about.

    Find what's happening

    See the latest conversations about any topic instantly.

    Never miss a Moment

    Catch up instantly on the best stories happening as they unfold.

    1. Patrick McKenzie‏ @patio11 5 Sep 2019
      • Report Tweet
      • Report NetzDG Violation

      Why was this my #1 ask? Let me screengrab the cashflow report for a SaaS company I used to run from a year where I really wanted this. Green is revenue, red is expenses, gold is profit. This graph starts at 0; the business is profitable every month.pic.twitter.com/L7fVrPCcFH

      2 replies 0 retweets 25 likes
      Show this thread
    2. Patrick McKenzie‏ @patio11 5 Sep 2019
      • Report Tweet
      • Report NetzDG Violation

      August was finally landing the payment for a large deal with a large enterprise. As you can imagine, that required a lot of pre-work. Pre-work costs current money. You would think a profitable software business with a contract in hand would get all the money from banks, right?

      2 replies 0 retweets 23 likes
      Show this thread
    3. Patrick McKenzie‏ @patio11 5 Sep 2019
      • Report Tweet
      • Report NetzDG Violation

      You would think that... if you've never gone through bank underwriting in the last 20 years. I visited, in person, eight banks in two countries. *Not one* was willing to loan money against either the existing extremely stable SaaS revenue stream or the upcoming work.

      1 reply 1 retweet 30 likes
      Show this thread
    4. Patrick McKenzie‏ @patio11 5 Sep 2019
      • Report Tweet
      • Report NetzDG Violation

      It wasn't an easy, "We just don't lend to small businesses" decline either. It was a "Hmm, interesting. Can we get together 50 pages of documentation from you, two years of taxes, a business plan, and a personal guarantee? Then we'll deny you 6 weeks from now."

      2 replies 1 retweet 37 likes
      Show this thread
    5. Patrick McKenzie‏ @patio11 5 Sep 2019
      • Report Tweet
      • Report NetzDG Violation

      I ended up paying the cash expenses (salaries, etc) for the pre-work with a combination of decreasing my own salary (and playing personal credit card games for 6 months), revolving balances on business cards, and getting a small line-of-credit from a non-bank lender.

      1 reply 0 retweets 22 likes
      Show this thread
    6. Patrick McKenzie‏ @patio11 5 Sep 2019
      • Report Tweet
      • Report NetzDG Violation

      This seems like a silly amount of work for a SaaS company, which by construction have EXTREMELY stable cash flows. They're so stable, in fact, that banks literally will not believe you when you explain how the math works. ("Oh you think revenue naturally recurs? That's cute kid")

      1 reply 1 retweet 42 likes
      Show this thread
    7. Patrick McKenzie‏ @patio11 5 Sep 2019
      • Report Tweet
      • Report NetzDG Violation

      So if you ever find yourself needing money to fund business expansion, and you'd like to get it from a company which can spell MRR and doesn't need to have a bespoke conversation with an underwriter because seriously why would we do that, check your dashboard.

      3 replies 1 retweet 42 likes
      Show this thread
    8. Alex Hillman @Home  💛 🏡‏ @alexhillman 5 Sep 2019
      • Report Tweet
      • Report NetzDG Violation
      Replying to @patio11

      I'm fascinated by this offer, and have seen it in our biz dahaboard for the last few months. I know and feel this problem very (extra so, with a brick and mortar). 10% fee seems high though, no? Granted not compounding, but my AMEX working capital loans is <4%.

      3 replies 0 retweets 4 likes
    9. Patrick McKenzie‏ @patio11 5 Sep 2019
      • Report Tweet
      • Report NetzDG Violation
      Replying to @alexhillman

      This might be the one time where you *don't* want me advising a software company about pricing. :) On a more serious note: the entrepreneur in me would tell anyone who thinks they can get a better offer to take the best offer available. There are some that come with strings.

      1 reply 0 retweets 4 likes
    10. Patrick McKenzie‏ @patio11 5 Sep 2019
      • Report Tweet
      • Report NetzDG Violation
      Replying to @patio11 @alexhillman

      Some of the strings matter to some entrepreneurs and not to others. A brief selection of ones that might be relevant: * Does one's personal credit rating affect eligibility? * Does the arrangement require a personal guarantee? * Is one restricted w/r/t how one can use the money?

      2 replies 0 retweets 4 likes
      Patrick McKenzie‏ @patio11 5 Sep 2019
      • Report Tweet
      • Report NetzDG Violation
      Replying to @patio11 @alexhillman

      Our answers are no, no, and no, respectively. I think many entrepreneurs will not have high quality options with those characteristics, but if their personal preferences/business circumstances/etc make another option a better one, I am enthusiastically in favor of them taking it.

      7:45 PM - 5 Sep 2019
      • 5 Likes
      • Phil Freo Sid Kapur Britt Alex Hillman @Home 💛🏡
      1 reply 0 retweets 5 likes
        1. New conversation
        2. Alex Hillman @Home  💛 🏡‏ @alexhillman 5 Sep 2019
          • Report Tweet
          • Report NetzDG Violation
          Replying to @patio11

          To your point: in my first 3-5 years of biz, I def wouldn't qualify for most loan options (including amex as my personal credit was a mess from college). This would have been a power move for @indyhall in our first expansion.

          1 reply 0 retweets 2 likes
        3. Alex Hillman @Home  💛 🏡‏ @alexhillman 5 Sep 2019
          • Report Tweet
          • Report NetzDG Violation
          Replying to @alexhillman @patio11 @indyhall

          And even with AMEX working capital, I can only send money *directly* to vendors vs distributing the $$ to our biz account.

          0 replies 0 retweets 3 likes
        4. End of conversation

      Loading seems to be taking a while.

      Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.

        Promoted Tweet

        false

        • © 2020 Twitter
        • About
        • Help Center
        • Terms
        • Privacy policy
        • Imprint
        • Cookies
        • Ads info