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Dax Dasilva: $900M ARR at $2.6BN Market Cap?! Lightspeed, The Most Undervalued Public Company |E1188

Dax Dasilva is the Founder & CEO Lightspeed Commerce, one of the most incredible stories in startups. For 7 years they did not raise outside funding and ran a very profitable business. Ultimately they partnered with Accel and Innovia before going public on the Canadian Stock Exchange with just $70M in ARR. Lightspeed also undertook 9 acquisitions over the course of a four year period to consolidate the global market. Today they have a whopping $900M in ARR but are only valued at $2.6BN. Today we ask the question, is Lightspeed one of the public market’s most misunderstood companies? ----------------------------------------------- Timestamps: (00:00) Intro (01:04) Childhood Challenges That Shaped Dax (03:55) The Inspiration Behind Starting Lightspeed (05:36) Lessons on Product-Market Fit with Lightspeed (07:21) Would Early Funding Have Changed Lightspeed's Path? (09:09) What Dax Would Change with More Early Capital (12:32) Do Modern SaaS Investors Overlook Potential Gems? (13:33) Lessons on Winning in Competitive Markets (14:34) Key Lessons for Global Expansion Beyond North America (22:11) Reducing Implementation & Hardware Costs to Improve Margins (28:44) Misaligned Capital Market Expectations vs. Business Needs (30:58) Should SaaS Companies Go Public Earlier? (35:00) Leadership (36:57) Quick-Fire Round ----------------------------------------------- In Today’s Episode with Dax Dasilva We Discuss: 1. VC Funding is Distorting SaaS: Why did Dax decide not to raise money for Lightspeed in the early days? Does Dax believe Lightspeed would have been successful had they have raised a seed round like many do today in SaaS? Why does Dax believe venture funding is distorting a generation of SaaS companies today? How does Dax advise founders scaling their business today from $0-$1M in ARR? 2. What Went Wrong: The Founder Returns: Why did Dax feel he had to come back to the role of CEO in 2024? What was not working? What was the single biggest problem that the public markets had with Lightspeed? What were some of the biggest challenges that came with the intense amount of M&A? What would Dax most like to do that the public market will not allow? 3. What Makes a Great Leader: How it Changes: What required skills in leadership change with the changing scale of the company? What skill does Dax have that he is slightly ashamed of but has most contributed to his success? What did Dax not know when he founded Lightspeed that he wishes he had known? What question is Dax never asked that he should be asked more? ----------------------------------------------- Subscribe on Spotify: https://open.spotify.com/show/3j2KMcZTtgTNBKwtZBMHvl?si=85bc9196860e4466 Subscribe on Apple Podcasts: https://podcasts.apple.com/us/podcast/the-twenty-minute-vc-20vc-venture-capital-startup/id958230465 Follow Harry Stebbings on Twitter: https://twitter.com/HarryStebbings Follow Dax Dasilva on Twitter: https://twitter.com/daxdasilva Follow 20VC on Instagram: https://www.instagram.com/20vchq Follow 20VC on TikTok: https://www.tiktok.com/@20vc_tok Visit our Website: https://www.20vc.com Subscribe to our Newsletter: https://www.thetwentyminutevc.com/contact ----------------------------------------------- #20vc #harrystebbings #daxdasilva #lightspeed #venturecapital #leadership #ceo #saas

Dax DasilvaguestHarry Stebbingshost
Aug 8, 202450mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

Bootstrapped To A Billion: Lightspeed’s Slow-Burn SaaS And Profit Pivot

  1. Dax Dasilva, founder and CEO of Lightspeed, explains how the company grew from a bootstrapped, product-obsessed startup to a nearly $1B revenue public business he believes is deeply undervalued. He attributes early product-market fit to relentless coding, extreme proximity to customers, and seven years of profitable, slow, deliberate growth before ever raising venture capital. Once public, Lightspeed pursued aggressive M&A and payments expansion, and is now in a ‘profitable growth’ phase focused on simplifying the story, integrating acquisitions, cutting OpEx, and clarifying its ideal customer profile. Dasilva also discusses leadership evolution, the emotional realities of layoffs, strategic tradeoffs between market expectations and what’s best for the business, and his broader environmental and community-driven philosophy.

IDEAS WORTH REMEMBERING

5 ideas

Deep, hands-on customer immersion can shortcut to robust product‑market fit.

Dasilva spent two years coding until 4 a.m. and physically sitting with his first four customers, watching workflows and shipping weekly iterations—giving him insight into what customers actually needed versus what they asked for.

Bootstrapping for years can build stronger product, culture, and identity than raising early.

Lightspeed bootstrapped for seven years to $10M in revenue, profitable and balanced; Dax believes easy capital often pushes founders to shortcut fundamentals and pursue metrics over product depth and business quality.

Know your true value and narrow ICP to where you have a right to win.

Rather than competing on ‘taking payments,’ Lightspeed focuses on complex, inventory-heavy merchants doing >$500K in annual transaction volume, accepting that simpler, smaller merchants are better served by Square, Shopify, and others.

Channel strategy mistakes are expensive; cutting out partners can destroy durable advantage.

Early on, a global reseller community fueled growth with zero ad spend, but over-rotating to direct, high-velocity sales eroded that ecosystem—something Lightspeed is now trying to rebuild for more complex segments.

Public markets reward simplicity and predictability as much as raw growth.

After multiple acquisitions and a shift into payments, Lightspeed became harder to model; Dasilva is now focused on simplifying metrics (e.g., location and software growth clarity), integrating backends, and avoiding new large M&A to restore investor confidence.

WORDS WORTH SAVING

5 quotes

“The first two years, I coded literally till 4:00 in the morning every day.”

Dax Dasilva

“The slow burn… there’s quality that happens in that process. Let it cook.”

Dax Dasilva

“It used to be so easy to model the business. Today, it’s extremely difficult… and investors can lose interest if it’s super hard to model.”

Dax Dasilva

“We are no longer a teenager next year. We’re turning 20. I want us to be a great adult.”

Dax Dasilva

“If you’re such an environmentalist, how come your company supports consumerism?”

Dax Dasilva (posing a question he’s rarely asked but thinks about)

Founding story and immigrant background shaping Dax’s mindsetEarly product development, customer proximity, and achieving product-market fitBootstrapping vs. venture funding and the virtues of “slow burn” growthGo-to-market evolution: resellers, high-velocity direct sales, and ICP focusPublic markets, undervaluation, M&A integration, and the pivot to profitabilityLeadership evolution, layoffs (RIFs), and founder return as CEOEnvironmentalism, local businesses, and the role of individuals in change

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