Navigating Growth in a Changing Environment | Paul Lippe on BeyondSaaS Ep 006

by | Mar 26, 2025 | BeyondSaaS | 0 comments

Paul Lippe, CEO of xMentium, discusses the transformative power of language in business operations, the evolving landscape of SaaS and AI, and the importance of domain knowledge for success on this episode of BeyondSaaS. He emphasizes the need for companies to adapt to changing market dynamics and the challenges of scaling operations in a chaotic environment. Paul shares insights on the future of SaaS, the role of AI in enhancing business processes, and offers advice for emerging CEOs navigating these changes.

Takeaways

  • Everything’s going to change in the next 24 months.
  • Most business language is kind of paint by numbers. 30% of their time is just organizing stuff.
  • The hype is so far ahead of the reality for AI.
  • Yes, SaaS is dead.
  • You can’t just pretend you’re in the club, you have to actually bring something of value.
  • Don’t be too wedded to the 2014 playbook.
  • You need to customize your messages.

Show Notes

See Full Transcript

Jason Niedle Today we’re talking with Paul Lippe, CEO of xMentium, about scaling operations, why SaaS is due for a major overhaul, and how to unlock the value of enterprise language.

Welcome to BeyondSaaS, Paul. Before we dive in, have you got a golden nugget for us today?

Paul Lippe Well, I’ve been around this for a long time, and here’s my take: if you’re selling to large enterprises with IT, almost everything we’ve come to accept as the norm for growing a SaaS company is about to change. If you’re still running the 2014 playbook, it’s time to revisit what you think “normal” is.

Jason Niedle That’s a big one to start with. Mine’s a bit more personal. I’ve spent the last two weeks tracking every minute of my day in a spreadsheet. I added a column for “What can I hand off?” and realized there are a few hours a week I can delegate. The clarity was powerful.

Let me introduce Paul properly—he has a JD from Harvard Law, undergrad from Yale, and has been CEO of xMentium for the last six years. The company helps people deliver the right words, right away, and has been ahead of the curve on GenAI.

Tell me a little more about xMentium and your role today.

Paul Lippe I’ve had the same idea for 30 years: most business documents are paint-by-number. I’m a lawyer by background, but I was also head of biz dev at Synopsys, one of the biggest AI companies out there. Whether it’s a contract, policy, RFP, or earnings release—most of what people write is just a re-skinned version of something they wrote before.

The problem is latency. It just takes too long to get things out the door. That delays cash flow and distracts from optimization. GenAI, like the steam engine in 1781, is a tool that’s powerful but not yet fully understood. Right now, there’s a lot of thrashing. We believe our thrashing is the right kind. Time will tell.

Jason Niedle What keeps you motivated to keep doing this?

Paul Lippe Like anyone, I’m scratching my own itch. I’ve worked with lawyers for years—they often overcomplicate things and miss the big picture. The same is true for other knowledge workers like HR, marketing, and procurement. They haven’t really adapted to scalable systems.

Meanwhile, documents function like code. They define what a company is going to do. But unlike software, only three or four people touch most documents. GenAI shouldn’t eliminate jobs—it should reshore the ones we lost. That’s the kind of future I want to help build.

Jason Niedle That’s a fascinating take. So where is xMentium in the growth curve? And what’s the big goal?

Paul Lippe We’re past startup, but this era feels more chaotic than the early internet. In the ’90s, I lived across the street from Netscape. The internet felt hyped, but nothing like today. Back then, capital availability was limited. Now, capital drives hype. GenAI spending is mostly speculative.

There are no true success stories yet—outside of software development and advanced help desks. But we think our approach can deliver value. We’re not following the 3-3-2-2 SaaS playbook anymore. That model is dead. Product, customer, and UX still matter—but the old growth tactics? They’re not going to work.

Jason Niedle Do you have a specific growth goal?

Paul Lippe Theoretically, growing 30x in a year sounds crazy. But practically? Maybe. We’re in a world where theory is inverted and reality is up for grabs. So who knows?

Jason Niedle What are the biggest challenges in getting there?

Paul Lippe Scaling our “language engineering” function. It’s like application engineering for enterprise language. Our engineers—many of them lawyers—help customers tag data, build taxonomies, and configure workflows.

DevOps can scale quickly. Sales scales linearly. And thanks to our listing on Azure Marketplace and support from Microsoft, we have leverage. But the real question is: can we scale language engineering fast enough to meet demand? That’s what we’re working on.

Jason Niedle If you had a magic wand to help sales this year, what would you change?

Paul Lippe We focus on the Global 2000—especially entertainment, telecom, utilities, and finance. Those sectors talk to each other. Two years ago, it would’ve been tough to get attention. Now, we’re talking to lots of enterprise GenAI task forces. We’ve earned a seat at the table.

Jason Niedle And how big is your team?

Paul Lippe Small but mighty.

Jason Niedle You mentioned Azure Marketplace. What else is working well?

Paul Lippe Contract lifecycle management (CLM) is a space that’s been broken for 25 years. Tons of money has been poured into CLMs, but there’s been no real improvement. We think the entire CLM category will collapse into a broader “language intelligence” stack—and that’s where we live.

Jason Niedle What’s working in terms of marketing and lead gen?

Paul Lippe LinkedIn is almost useless now—too spammy. We’re working with a lead gen firm that approached us thoughtfully. That stood out. Most people don’t even follow up.

But the best leads still come through friends-of-friends. A Microsoft exec told us, “You guys are really good at brother-in-law and roommate selling.” That’s what gets us meetings with SVPs at Fortune 50 companies.

Culture fit matters more than ever. Once you’re in, it’s winner-take-all.

Jason Niedle Let’s circle back to your earlier point—what worked in the past won’t work in the next 24 months. Tell me more.

Paul Lippe The old SaaS model—subscriptions, function-specific UX, narrow problem-solving—isn’t sustainable. Companies are realizing their language defines their business logic. If that logic lives in 200 vendors’ software, they’re hollowing themselves out.

IT and finance are starting to see that. They’re not just worried about InfoSec anymore—they’re worried about losing institutional know-how. SaaS fragmentation weakens strategic position. And GenAI just accelerates that risk.

Jason Niedle So what should tech leaders be doing now?

Paul Lippe The first challenge is structuring your internal data into usable knowledge sets. You can’t just prompt ChatGPT and call it good. You need domain knowledge and structured data. That’s non-negotiable.

The “Y Combinator” mindset—build something, talk to users, A/B test it—isn’t enough anymore. You need to actually understand how the work gets done.

Jason Niedle Any tools or tactics in lead gen you recommend?

Paul Lippe Honestly? Be human. Customize your outreach. Follow up. And switch to email if someone asks.

Most of our success comes from people we’ve known for years. This space is full of cultural blockers. Once you find fit, it’s usually winner-take-all. That’s why domain knowledge is crucial—and why elite consulting firms are losing credibility in GenAI. They’re not bringing anything of substance to the table.

Jason Niedle That keeps coming up—domain knowledge, deep understanding.

Paul Lippe Exactly. GenAI is about intelligence—not just artificial, but actual understanding. If you don’t get how your customer thinks or operates, you won’t last.

Jason Niedle If you had one piece of advice for CEOs earlier in their journey, what would it be?

Paul Lippe Get exposed to as many smart people as possible—and then filter carefully. We were lucky to listen to the right ones. Don’t just seek affirmation. Seek insight.

Jason Niedle Where can our audience find you?

Paul Lippe I’m on LinkedIn—just be clear why you’re reaching out and please follow up. Also check out xMentium.com—spelled just like it sounds.

Jason Niedle Paul, thanks so much for being on BeyondSaaS. And to our audience: if you’re a mid-stage tech leader looking to grow, visit tethos.com. We’d love your feedback

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BeyondSaaS helps mid-stage B2B tech leaders break through growth plateaus and scale toward next-level funding or an exit. Featuring insights from SaaS, AI, cybersecurity, and B2B data leaders, we explore the real-world strategies that drive revenue, optimize marketing, and accelerate success.

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