Episode Description
Seven years selling a nice-to-have. Then 1,000 customers in year one. Adam Markowitz spent nearly a decade grinding in edtech before finding product-market fit at Drata. In this episode, founders will learn how to tell the difference between a vitamin and a painkiller - and why that distinction changes everything.
Adam shares how experiencing a compliance pain at his first startup became the foundation for Drata, why he refused to sell until his team used their own product to get SOC 2 compliant, and how a "give before you take" approach to AWS made Drata a top 5 ISV on Marketplace in under two years.
Drata has over 8,000 customers across 60 countries, more than 600 employees, and crossed $100 million in ARR before its fourth birthday. The company has raised over $300 million.
This episode is brought to you by:
🔑 Key Lessons
- 🎯 Product-market fit shows in buyer urgency, not just signups: Drata signed 100 customers in 6 weeks and 1,000 in year one - a stark contrast to Adam's edtech company where the first 5 university customers took years to close.
- 🛠️ Dogfood your product before selling it: Drata refused to accept customers until they used their own tool to get SOC 2 compliant, giving them instant credibility and proving the product worked under real conditions.
- 🔍 Validate by talking to every stakeholder, not just buyers: Adam spoke with dozens of companies and auditors before writing code, discovering identical pain patterns that made the initial product scope obvious.
- 🤝 Give before you take with strategic partners: Drata brought thousands of first-time customers to AWS Marketplace before asking for anything in return, becoming a top 5 global ISV in under two years.
- 📉 Selling a vitamin versus a painkiller changes everything: Seven years in edtech taught Adam what product-market fit feels like when you don't have it. At Drata, customers lined up because compliance wasn't optional.
- 🚀 Reassemble a proven team to compress execution time: Adam brought back the same co-founders, engineers, and go-to-market team from Portfolium. The muscle memory from working together for 7 years accelerated every phase of Drata's launch.
- 🏢 Keep partners independent to build a distribution moat: Drata's Auditor Alliance kept audit firms independent rather than competing with them. Two-thirds of Drata's pipeline is now sourced or influenced through partner channels.
Chapters
- Introduction
- What Drata does and the trust problem it solves
- Revenue, customers, and team size
- From astronaut dreams to NASA's Space Shuttle program
- Building Portfolium after NASA retired the shuttle
- Teaching himself to code and finding a CTO
- Selling Portfolium for $43 million
- The long road to product-market fit in edtech
- The university sales cycle that changed everything
- How the Portfolium pain led to founding Drata
- Validating the problem before writing code
- Getting the band back together
- Using Drata to get their own SOC 2 before selling
- Signing 100 customers in six weeks
- How Drata differentiated in a crowded market
- What broke at 1,000 customers
- Building the Auditor Alliance partner program
- The AWS Marketplace strategy and give-before-you-take
- Why aggressive sales culture was intentional
- AI tailwinds for compliance and trust
- Lightning round
- Closing thoughts
💌 Get weekly 5-minute SaaS insights: https://saasclub.io/email
SaaS Club Programs
- Join the SaaS Club founder community: https://saasclub.co/plus
- Build your $10K MRR SaaS: https://saasclub.io/launch
- Scale from 6-figures to $1M ARR Faster: https://saasclub.io/mastermind
- Get 1:1 async coaching from Omer: https://saasclub.io/accelerate
Resources
- Full show notes: https://saasclub.io/471
- Subscribe to the podcast: https://saasclub.io/subscribe