How Gong Built a $7B+ Company in the Age of Vibe Coding | Amit Bendov
Amit Bendov, co-founder and CEO of Gong, argues that code is only one piece of the software moat. The real advantage comes from customer context, proprietary...
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Intro
- 00:00A lot of companies stall not because of
- 00:03external conditions. It's because maybe
- 00:05the market like isn't large enough. If
- 00:07your market is too small, very little
- 00:09else matters. There is like in math this
- 00:12thing of local optimum, right? You're
- 00:14climbing a hill and you reach the top,
- 00:16but you're not getting to the mountain.
- 00:18You can get to like 50 million, 100
- 00:20million, right? You're not going to
- 00:22reach like a billion. Which market do
- 00:24you play in? That's like more than
- 00:25anything [music] else. We've built the
- 00:27system over 10 years. There's a lot of
- 00:28complexity. You know, you can't vibe
- 00:30code it even like with a 100 engineers.
- 00:32Otherwise, why are we not seeing one
- 00:34right now? Why are we not seeing like a
- 00:36competitor? If you're in an early
- 00:37market, which we are right now in AI,
- 00:40there is so many possibilities. Why
- 00:42would you like try to like one up a
- 00:45competitor, right? There more. Just just
- 00:47go and keep looking. Why don't go where
- 00:49all the other kids are going?
- 00:50Competition should be more like like an
- 00:52Easter egg hunt than like a football
- 00:54match that you're you got to match like
- 00:56every play that the other opponent is
- 00:57doing. It's not a zero- sum game like in
- 00:59in the early stages. Hi, I'm Amit
- 01:02Bendov, co-founder and CEO of Gong. Gong
- 01:05is the leader in revenue AI which helped
- 01:08company maximize their revenue
- 01:09potential. We saw an opportunity in
- 01:12[music] automating revenue with AI. That
- 01:14was like in 2016 before AI was like uh
- 01:17all the rage and uh today we're one of
- 01:19the fastest growing company. Our growth
- 01:21rate is over 50%. Every quarter we're
- 01:23actually growing faster than the
- 01:25previous quarter for almost like 12
- 01:27consecutive quarters now. So pretty
- 01:29incredible times.
Design Product Like a Music Producer
- 01:39I grew like in a very humble background.
- 01:42I mean great family, loving family, but
- 01:44most of my family like did not even like
- 01:46go to college or university. So from my
- 01:49family's perspective, if I was like
- 01:50seller at a retail store, it'll be just
- 01:52fine. They love me still the same
- 01:54because it's a job and that's what you
- 01:56do. So my original dream as a teenager,
- 01:59I wanted to be a guitar player at a rock
- 02:01band. I was pretty good to be honest,
- 02:04but not like not top 1%. And I was like
- 02:07in a small country, Israel, it's not you
- 02:09can't even if you're big, like it's not
- 02:11all that big. That's a miss. But I
- 02:13started my career actually selling
- 02:15professional audio equipment at a retail
- 02:17store like like a guitar center. I was
- 02:19hoping to uh get close to the uh the
- 02:22show. But I realized okay maybe like you
- 02:24know I don't want to play in weddings
- 02:26when I'm 40 [laughter] to pay the bills
- 02:29and I was really intrigued by [music]
- 02:31computer science. So I signed up. There
- 02:33was a fork in the road for me. My first
Gong’s Origin: CRM Had Nothing in It
- 02:36job was an engineer. I wrote code. Uh
- 02:39many people don't know that. Then I I
- 02:40led an R&D team. Then I moved from Tel
- 02:43Aviv to the US to start uh my first
- 02:45company, Click Software. It's not part
- 02:47of Salesforce. And I became a CEO of a
- 02:50company called Cyence in Business
- 02:52Intelligence. We're growing pretty fast.
- 02:54And then all of a sudden, we had a
- 02:55quarter that wasn't great at all. I have
- 02:58no idea what was going on. We're
- 02:59analyzing a lot of data from the CRM
- 03:01that everybody thought this is the way
- 03:03to manage customer. It's a single source
- 03:05of truth. There was nothing there. it's
- 03:08actually relies on people telling it
- 03:09[music] what happened and that didn't
- 03:11make sense. So only 1% of the
- 03:14information ever [music] actually makes
- 03:15its way to the CRM. It's all in people's
- 03:18heads. Uh now what happens the companies
- 03:20only half the sales people are making
- 03:22their numbers. Nine out of 10
- 03:24opportunities are not one without the
- 03:27company ever knowing why. And I thought
- 03:30wow this just totally doesn't make
- 03:32sense. like uh there was the year that
- 03:34AI was already beating the world
- 03:36champion in Go. You remember like Alpha
- 03:39Go and Deep Mind [music] and the thought
- 03:41was can we create like a system that
- 03:43will relieve people from the needs to
- 03:46update CRM. That was the idea that when
- 03:49I left Cyence I thought hey maybe we
- 03:51could build a company around that. The
- 03:53idea was like an autonomous system uh
- 03:55that automatically captures context from
- 03:58conversations and uses AI to turn it
- 04:01both to insight and and action. Are you
- 04:03using uh like a meeting assistant today?
How Gong Invented the Meeting Assistant
- 04:06We invented this. This was from my
- 04:08background in music industry. First, if
- 04:10we capture a meeting that we have
- 04:13usually would have like multiple people,
- 04:15but we didn't want people to listen to
- 04:18like 45 minute meetings, right? We want
- 04:21to know like here are like the
- 04:22interesting points out there. So things
- 04:25like markers,
- 04:26topics. Today it's pretty standard but
- 04:30that did not exist. So we have uh first
- 04:33drew and I plagorized a little bit from
- 04:36uh Soundcloud. That was the play buttons
- 04:39and uh where we put in and you have
- 04:41those like tracks. If you was like
- 04:42Garage Band or something, you'll see
- 04:44like here's a drum, guitar, bass, right?
- 04:47So if you look at gong, you'll see those
- 04:49tracks. all the concept like listen to
- 04:51talk ratio. This is the first
- 04:53application. It was like measuring how
- 04:54much you're listening versus talking.
- 04:56How it tracks competitors. We invented
- 04:59this thing that was uh pretty pretty
- 05:01innovative and we went to raise [music]
- 05:04money. I said, "Let's start a company."
- 05:06I was pretty sure it's going to be a
- 05:07walk in the park, but it [music] was a
- 05:09far cry from that. It was like very
- 05:11frustrating and almost nobody wanted to
- 05:14invest in us. They obviously took a
- 05:16meeting and like another meeting and
- 05:18what about this and what about that and
- 05:20people thought that sellers are going to
- 05:22hate Gong because they're going to see
- 05:24it as a big brother. Google and Amazon
- 05:26are going to own this space that the
- 05:29technology is not there. When we started
- 05:31like AI was nowhere near uh where it is
- 05:34right now. So it was it was a hard job.
- 05:36So, we struggled to raise money, but
- 05:38finally we found like a couple investors
- 05:40that gave us the money and that allowed
- 05:42us to uh start the company and it was
- 05:44pretty smooth from that point on.
EO Partner Highlight: Meet Attio
- 05:50What if your CRM kept up with the
- 05:52conversations that matter for you? Meet
- 05:55Atoio, the AI CRM for modern businesses.
- 05:58[music] Connect your email, calls, and
- 06:00product data, and AIO instantly builds
- 06:02your CRM with complete context. [music]
- 06:05Then ask anything, spot a deal at risk,
- 06:08draft outreach, uncover new prospects,
- 06:11spend less time in your CRM and more
- 06:14time building relationships. Whether
- 06:16you're running productled growth or
- 06:17enterprise sales, AIO adapts [music] to
- 06:20how your team sells and grows. And if
- 06:22you're building with AI agents, plug any
- 06:24MCP client straight [music] into your
- 06:26CRM, so your agents always have the
- 06:28context they need to act. 9,000
- 06:30companies build with AIO, including
- 06:32Granola, Modal, and Whisper [music]
- 06:34Flow. Try Atoio free at aio.com/eo.
How to Build a Cult and Pull Ahead
- 06:47At Gong, we have our number one
- 06:49operating principles like raving fans.
- 06:50We're not happy with just happy
Make Raving Fans, Not Just Happy Customers
- 06:52customers. Happy is like, yeah, I could
- 06:54be happy with a with a chair, right?
- 06:56That's not We want something people talk
- 06:57about that is a level above, right? What
- 07:00if I sit on a chair like here in the
- 07:02kitchen and all of a sudden it start to
- 07:04give me like a back rub and it adjust
- 07:06the temperature. Oh, what just happened
- 07:08here? Right? I mean, that's you get
- 07:10people to talk about it and it surprises
- 07:12you for the better. It does something
- 07:14that you don't uh don't expect. You got
- 07:16to understand your mission is not
- 07:18feature or AI or all of that. That's
- 07:20like what people buy. That's what they
- 07:21ultimately want to accomplish. First we
- 07:24focus on value not just features. So we
- 07:26said what does it do? So we have like
- 07:28two things that the gong will try to do.
- 07:30First like 75% of a seller's time is
- 07:33non-productive. All right it's like
- 07:34updating CRM it's like doing forecast
- 07:37doing training doing like sifting
- 07:39through a list. So what can we remove
- 07:40out of that second [music]
- 07:42when they're with talking with customers
- 07:44how do we help them be better on their
- 07:46job? So these are the two northstar
- 07:50metric people move from like somewhat
- 07:52reluctant to use it like ah is it like
- 07:55invasive to go oh wow like you just did
- 07:58that right so you get that that wow all
- 08:01the time and the product surprises you
- 08:02and what it does and it needs to work
- 08:04well and it needs to be above what you
- 08:06expect. We do have like a rough patch in
- 08:092023 because that was the postcoid
How Gong Pushed Through a Crisis
- 08:13growth right the hangover a lot of our
- 08:15customers have overhired people and got
- 08:18into uh financial stress so we saw like
- 08:22uh higher churn we also had competition
- 08:24that went in and and bought like a bunch
- 08:27of competing products and they're going
- 08:29to our customers and consolidating. They
- 08:32say oh we're going to do like all three
- 08:34or four products in one. the products
- 08:36were not very good but at that time
- 08:38customers were just looking at a
- 08:39spreadsheet and say okay like yeah 1 2 3
- 08:41and so our growth slowed down
- 08:44substantially 23 I wouldn't say
- 08:46existential but it was definitely like
- 08:49uh not not fun days so we raised a lot
- 08:51of money but we barely touched it we
- 08:54just saved it for if and when we're
- 08:56going to need that so that gave us a lot
- 08:59of confidence and and the ability to
- 09:00execute and we knew that if we struggle
- 09:03right now all of our competition is
- 09:04struggling If you're in an early market,
- 09:07which we are right now in AI, there is
- 09:09so many possibilities. Why would you
- 09:12like try to like one up a [music]
- 09:14competitor, right? Just try go like in a
- 09:17different direction and there's so many
- 09:19option that could be like way better.
- 09:21I'm stealing from Jeff Bezos, right? Who
Are You Truly Customer-Obsessed?
- 09:23said that like most people say they're
- 09:25obsessed with customer. They're not.
- 09:26They're really competitor driven. They
- 09:28look, oh, they did this, I'm going to do
- 09:29that, too, and I'm going to do better,
- 09:31right? That's the wrong thing. So, what
- 09:33do you do? We step on a gas pedal,
- 09:36right? So, we know that everybody's
- 09:38going to struggle. We have the cash and
- 09:39we're going to invest in engineering.
- 09:41I'd much rather invest in people and
- 09:43engineering than than in office space.
- 09:46Cuz like I remember like in 99 I was
- 09:50stuck with like an office that was like
- 09:51all like steel and plastic bags, all the
- 09:54area and chairs and like you know
- 09:55millions of dollars. It was like giving
- 09:57goosebumps even to watch it and say like
- 09:59why do we do that? I mean we we we spent
- 10:01money on real estate and not on people,
- 10:03right? Is there anything that I could
- 10:05have done right that would have like
- 10:06changed the outcome? So we only do like
- 10:09two or three year leases right I think
- 10:11for now for the first time we did like a
- 10:12four-year lease in an office but
- 10:14generally we've been in we work at
- 10:16weiworks like since day one and we still
- 10:18are offices like either they're too
- 10:21small you grow so fast that you need to
- 10:23move out or if you don't grow then
- 10:25you're stuck now with a lot of space. So
- 10:27we built like two more products. Now we
- 10:30added our fourth. Then we started like
- 10:32uh consulting and now they're they're
- 10:34behind.
- 10:36I'm an amateur cyclist. When you're
- 10:38climbing, right, you know, everybody's
- 10:40exhausted, then you attack, right? You
- 10:42just give it like all you and then just
- 10:44psychologically it breaks your if you're
- 10:47good, right? If you're able to
- 10:48accelerate that, everybody just gives up
- 10:50because they know that they're barely
- 10:52breathing and now you're charging ahead.
- 10:55And that's exactly what we did.
- 10:56Competition should be more like like an
Competition Should Be an Easter Egg Hunt
- 10:58Easter egg hunt than like a football
- 11:01match that you're you got to match like
- 11:03every play that the other opponent is
- 11:04doing. It's not a zero sum game like in
- 11:06in the early stages. Just there they're
- 11:08more just just go and keep looking. Why
- 11:10don't go where all the other kids are
- 11:11going?
Local Optimum: The Trap Founders Miss
- 11:16A lot of companies stall not because of
- 11:20external conditions. It's because maybe
- 11:22the market like isn't large enough,
- 11:24right? So there's like uh in math there
- 11:26is, you know, everybody suddenly knows
- 11:28there's this thing of local optimum,
- 11:30right? You're climbing a hill and you're
- 11:32you're climbing and first it looks like
- 11:34very very exciting and you reach the top
- 11:36but now you're you're not getting to the
- 11:38mountain. The most important thing is
Why Your Market Matters Most
- 11:39the market like which market you're in
- 11:41like which market do you play in that's
- 11:43like more than anything else if you get
- 11:45it right then you could be okay in the
- 11:47others. There are two choices. Either
- 11:49you join an existing category. Let's say
- 11:51the advantage it's already established.
- 11:53People are buying and you just need to
- 11:55explain why you're better. There's
- 11:56already budget for this. Starting
- 11:58category is like uh is very compelling
- 12:00people. Oh, I'm going to start like a
- 12:01whole new category of of music or
- 12:04whatever, right? It's also hard because
- 12:06people don't have budget. They don't
- 12:07know how to think about it. So, there's
- 12:09a lot of education. And if you want to
- 12:12be precise, you can start a category. A
- 12:14category is by definition like a number
- 12:17of companies doing the same thing. If
- 12:19it's just you, you're not a category.
- 12:21You're a unique product. So you start by
- 12:23creating a unique product. If you're if
- 12:24you're not successful, then nothing
- 12:27happens. If you're successful, it's
- 12:28guaranteed that other will try to like
- 12:31either copy or do something better than
- 12:33you or like something different. That's
- 12:35when you start to have a category. It
- 12:37does take time. Today, Gong is
- 12:39considered or something like Gong
- 12:41revenue AI. Most companies say we need
- 12:45that but it wasn't like a must-have when
- 12:47we started like people had to find
- 12:50budget for it. It didn't exist right it
- 12:52wasn't like a CRM or a contact database.
- 12:54[music] So creating a category sounds
- 12:56very exciting and I'm I have no regrets
- 12:59but if you're an entrepreneur don't
- 13:01think that oh I need to start like a new
- 13:02category. So first understand if you're
- 13:04stuck understand if this is like
- 13:06intrinsic to your business or something
- 13:09that's happening right now. There are a
- 13:10lot of companies that are for example,
- 13:12oh we develop solutions for SDRs, right?
- 13:15Don't do that. If you live in the Bay
- 13:17Area, you think like everybody has SDR.
- 13:19Companies in Wisconsin don't have. So
- 13:20this is example of a small market. I
- 13:22mean you can get to like 50 million 100
- 13:24million, right? You're not going to
- 13:26reach like a billion. So understand if
- 13:28you're stuck uh because you've reached a
- 13:30local optimum of your market. Uh also if
- 13:32if it's a small market and it's very
- 13:34competitive, that that's that's the
- 13:36worst thing. It's like five hungry dogs
- 13:39like fighting for a very small piece of
- 13:41[music] meat, right? For us, we
- 13:42understood, listen, we have like a
- 13:44trillion dollar opportunity. Like, if we
- 13:46don't succeed, like it's not the market,
- 13:48it's us. The noise that's happening
Advice for AI Software Builders
- 13:50right now with AI, I know it's very
- 13:52confusing. Just just make a bet and just
- 13:55keep going. Ignore the noise. Right now,
- 13:57people are very emotional. It's almost
- 13:58like when, you know, people fall in love
- 14:00with someone that, you know, it's more
- 14:02like the hormone thinking versus like
- 14:04the brain. The dust will settle. At some
- 14:06point it'll be clearer. So if you have a
- 14:08direction, hopefully it's good. Just
- 14:10keep going, keep plowing, do your own
- 14:12thing. Look a little bit like to what's
- 14:14going on, but don't be enamored with
- 14:17like things around you. If I have to
- 14:19distill it to one, this is it. Like who
- 14:21do you cater to and what do you offer?
Why the “SaaSpocalypse” Is Overblown
- 14:31Apocalypse. There's some truth in that
- 14:33but it's like a way like overreaction of
- 14:35the market right now. It's like uh uh
- 14:37investors are worried like if AI is has
- 14:40this like power of god anybody can do
- 14:43software. So what what is the mode? It's
- 14:45a natural question but it's way way
- 14:48exaggerated cuz most companies will
- 14:51probably like um open source their code
- 14:54and it will feel the difficult for
- 14:56someone to compete with them. The code
- 14:57is just a part. What about like running
- 14:59it? Like there's like a security
- 15:01vulnerability that you need to patch a
- 15:03package, a library, like what do you
- 15:04call it like 3:00 a.m. Just writing the
- 15:07code is one part of a software company,
- 15:10but actually like running it right and
- 15:13supporting production driving adoption
- 15:16is extremely hard. So even if like work
- 15:19there or Salesforce's like code was out
- 15:21there on the internet, it would still be
- 15:23extremely difficult for anybody to
- 15:26compete with them. CRM and HR are
- 15:28incredibly complex, right? People just
- 15:30underestimate it. They think, you know,
- 15:32you can't vibe code that like uh even
- 15:34like with 100 engineers or otherwise,
- 15:37why are we not seeing one right now? Why
- 15:39are we not seeing like a competitor? We
- 15:40have to understand that sales is
- 15:42asymmetrical engagement. So buyers don't
- 15:46necessarily tell you everything. They
- 15:48might even lie to you. I don't have a
- 15:49budget, right? Or I am the decision
- 15:52maker even though you're not. We're
- 15:53looking at a few of their competitors.
- 15:55they might not tell you what they are
- 15:56and they might not be looking at
- 15:57anything. So this is like already like
- 15:59AI needs to have like excellent context
- 16:02or data right when you negotiate like
- 16:05you want to lower the price you want to
- 16:07increase the price. So that's like uh
- 16:09one thing. Second at least for us like
- 16:12we help mostly with B2B sales which is
- 16:15complex. It's like multiple people
- 16:17selling to multiple people.
- 16:18Understanding the power dynamics, the
- 16:20political power structure, all of that
- 16:23something that AI will struggle.
- 16:24Ambiguity is not where it's good.
- 16:26Reading the room and judgment,
- 16:28creativity, right? AI is very
- 16:30straightforward. It's trained on u being
- 16:33plausible. Sometimes the creative moves
- 16:36aren't the ones that are plausible. It's
- 16:38just doing something like that seems
- 16:39unreasonable, but still like a winning
- 16:42place.
- 16:44when we're alone, like nobody cares.
- 16:46Once you're you're head there's a
- 16:48crosshair on your back, so everybody
- 16:49wants to kill you, right? And that's
- 16:51like we take it as a compliment. We've
- 16:53built the system over 10 years and and
- 16:55again, it's there there's a lot of
- 16:56complexity. Our vision was we thought of
Gong’s Vision: A Self-Driving Revenue System
- 16:58it as a self-driving car, right? So when
- 17:00we started Gong, we wanted to build an
- 17:02autonomous system. Our inspiration was a
- 17:04was a Tesla self-driving car like five
- 17:06levels. Five is like full self-driving
- 17:08and one is getting like lanekeeping
- 17:10alerts. And he thought if you want to
- 17:12build a self-driving car and this is a
- 17:14self-managing customer management
- 17:16system, you need three things. First,
- 17:18you need the sensors to capture all the
- 17:20data. In a car, it'll be the radars, the
- 17:23lighter, cameras. So, this is our
- 17:25revenue graph. Second, you need to make
- 17:27sense of all of it, right? So, you see
- 17:29like a red light blinking. Is it a
- 17:31traffic light or is it a car or a
- 17:33motorcycle? Is it accelerating or
- 17:35decelerating? Right? So, this is like
- 17:37the AI level. And then there is the
- 17:38application layer. So we always thought
- 17:41about like the five levels and we said
- 17:44okay today we're like uh 2017 we're like
- 17:47a level one right and when can we get to
- 17:49level five so we built uh even though
- 17:52something like a lighter didn't exist or
- 17:54the AI wasn't strong enough to be full
- 17:57self driving so we built the framework
- 17:59so we can plug in like the technologies
- 18:01as they mature if you could vibe code it
- 18:03like overnight then uh then we have a
- 18:05problem but it's it's not it's not easy
- 18:07there's a lot of uh nuance in details
- 18:10that goes into especially deploying at a
- 18:12large scale. So I think it's like a
- 18:15underestimation of what it takes to
- 18:16really run a company right me not an
- 18:19investment advice I think it's a good
- 18:20good buying opportunity for the
- 18:22companies that are real [music] from the
- 18:23outside when you see a company growing
- 18:25right it looks like this but from the
- 18:27inside there are multiple revenue
- 18:29sources right and you need to layer them
- 18:31in a way that it looks smooth from the
- 18:33outside but each one is kind of like S
- 18:36shape right at some point it'll hit a
- 18:38glass ceiling you know you ask me about
- 18:40the people getting stuck because you're
- 18:42you're doing one thing and and that's
- 18:44it. Like it's not it's not growing as
- 18:46fast anymore. So, you always need to
- 18:47layer those things. You need to think
- 18:48about like two or three years in advance
- 18:50cuz uh when you realize that you need
- 18:52it, like it's already too late.