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Dave Link: How ScienceLogic Used Partnerships to Build a $100M+ ARR AIOps Platform
ScienceLogic is transforming IT operations through its innovative AI ops and observability platform. With over $140 million in funding and a 22-year journey, ScienceLogic has evolved from a bootstrapped startup to an industry leader competing successfully against tech giants like IBM, HP, and Broadcom. In a recent episode of Unicorn Builders, we sat down with David Link, CEO and Co-Founder of ScienceLogic, to learn about the company's contrarian approach to product development, its capital-efficient growth strategy, and how it built a partner-led sales model that now drives 75-80% of revenue.
Topics Discussed:
- ScienceLogic's origin solving the fragmented IT monitoring landscape
- The "opposite day" approach to product differentiation
- Evolution from an appliance-based solution to cloud services
- Bootstrapping for 7 years before taking institutional funding
- Building a partner-first go-to-market strategy
- Multiple platform reinventions to stay ahead of technological shifts
- The integration of generative AI capabilities
GTM Lessons For B2B Founders:
- Build the opposite of industry conventions: David developed ScienceLogic's strategy by identifying how incumbents were failing customers and deliberately doing the opposite. "We started looking at the industry before we started the company and realizing if were to start with a clean slate, what would we do? Totally the opposite way. Like so differentiated, so obviously different," he explained. This approach led to 220 differentiating features that set them apart from industry giants. B2B founders should examine their industry's standard practices and question which ones might be reinvented to deliver superior customer value.
- Create force multipliers through partner selling: ScienceLogic achieved remarkable capital efficiency by turning partners into their primary sales channel. "Our go to market wasn't going to be us selling. It was being a reference architecture that these partners who already had a customer ecosystem would then show," David shared. This sell-through model now drives 75-80% of their revenue. B2B founders should consider how their solution could become an essential component of their partners' offerings, creating a force multiplier effect where "that sales team becomes an extension of our sales team."
- Bootstrap until product-market fit is proven: ScienceLogic operated as a break-even business for seven years before taking institutional funding, growing organically through sales rather than capital infusion. "I put a $400,000 mortgage on my house... We had five credit cards. That was good for another 70,000," David recalled. This bootstrap approach allowed the founders to maintain significant ownership while proving their model. B2B founders should consider whether bootstrapping longer might lead to better outcomes and valuations when they eventually raise capital.
- Reinvent your company every 3-5 years: To sustain growth over decades, ScienceLogic has completely replatformed its architecture three times to adapt to major technology shifts. "I think every three to five years I have to say, what is the next science logic? In three to five years from now, what are we going to be?" David explained. This forward-thinking approach has kept them relevant through mainframe, client-server, cloud, and now generative AI eras. B2B founders should build continuous reinvention into their company DNA rather than waiting until disruption forces change.
- Take capital efficiently on your terms: Despite having major investors like NEA, Goldman Sachs, and Silver Lake, ScienceLogic has maintained a disciplined approach to funding. "We Always took less capital than we could have used. We took what we thought was the right amount of capital for that moment in time, then prove out the next growth spurt and then have the next round of capital at a lower dilution," David explained. This approach preserved significant founder and employee ownership while still enabling growth. B2B founders should resist the temptation to raise maximum amounts and instead focus on capital efficiency.
- Authenticity creates customer longevity: ScienceLogic has maintained many customers for 15+ years through a genuine commitment to their success. "Being authentic with your customers, being real with them, having their backside when things aren't perfect and giving them more than maybe you should," David advised. This approach stands in stark contrast to the industry trend of aggressive price increases. B2B founders should focus on building authentic, long-term customer relationships even when it sometimes means short-term profit sacrifices.
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