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Oct 12, 2023 · 19m · top-founders

This SaaS For Fund Manager's Just Hit $40k of MRR charing a % of AUM Managed

Badri Malinar · 10m spoken Nathan Latka · 6m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

Nathan Latka interviews Badri Malinar, co-founder of Avestor, exploring how the FinTech platform empowers real estate sponsors to build customizable private funds while surpassing $40,000 in MRR on $60 million in AUM. Malinar details Avestor's hybrid SaaS-plus-AUM monetization model, evergreen fund architecture with sub-5% churn, and capital-efficient growth strategy.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 37.2% of the talking time here. How this is scored →

Nathan as informed peer 6.8 Guest teaching 5.6 Guest disagreement 3.0 Nathan pushing back 6.4
05100:0010:001:14–4:07 · Nathan as informed peer 6/10 Introducing Badri Malinar and Explaining Customizable Private Funds Nathan presses Badri to define private funds concretely and questions why fund managers would ever forfeit discretion to passive LPs. Badri clearly educates Nathan on the LP demand for choice and how early GPs use customizable deals to establish trust.4:07–7:15 · Nathan as informed peer 6/10 Revenue Mechanics, Fund Sizes, and Evergreen Churn Resilience Nathan challenges the business model by arguing that GPs will naturally graduate and churn once they gain confidence. Badri decisively schools Nathan on evergreen PPM structures and multi-year deal lock-ins that keep lifetime churn under five percent.7:16–10:49 · Nathan as informed peer 7/10 Platform Distribution, Minimum Pricing, and Mastermind Value Nathan drills down on the BIP calculation and probes whether free services dilute profitability, asking if Avestor is a coaching mastermind or a true FinTech platform. Badri clarifies the four-hundred-dollar monthly minimum and community network effects.10:50–15:06 · Nathan as informed peer 8/10 Revenue Run-Rate, Customer Acquisition, and Seed Funding Nathan catches a mathematical contradiction between Badri's claim of ninety percent BIP revenue and the minimum platform fee, driving Badri to clarify his definitions. Nathan rigorously pins down actual monthly recurring revenue and historical fund counts.15:07–17:59 · Nathan as informed peer 7/10 Valuation Discipline, Advertising Strategy, and Team Size Nathan questions the logic of fundraising in a down valuation climate, prompting Badri to push back firmly on typical seed dilution benchmarks. Badri deflects exact future dilution limits while Nathan probes ad spend figures.1:14–4:07 · Guest teaching 6/10 Introducing Badri Malinar and Explaining Customizable Private Funds Nathan presses Badri to define private funds concretely and questions why fund managers would ever forfeit discretion to passive LPs. Badri clearly educates Nathan on the LP demand for choice and how early GPs use customizable deals to establish trust.4:07–7:15 · Guest teaching 8/10 Revenue Mechanics, Fund Sizes, and Evergreen Churn Resilience Nathan challenges the business model by arguing that GPs will naturally graduate and churn once they gain confidence. Badri decisively schools Nathan on evergreen PPM structures and multi-year deal lock-ins that keep lifetime churn under five percent.7:16–10:49 · Guest teaching 5/10 Platform Distribution, Minimum Pricing, and Mastermind Value Nathan drills down on the BIP calculation and probes whether free services dilute profitability, asking if Avestor is a coaching mastermind or a true FinTech platform. Badri clarifies the four-hundred-dollar monthly minimum and community network effects.10:50–15:06 · Guest teaching 4/10 Revenue Run-Rate, Customer Acquisition, and Seed Funding Nathan catches a mathematical contradiction between Badri's claim of ninety percent BIP revenue and the minimum platform fee, driving Badri to clarify his definitions. Nathan rigorously pins down actual monthly recurring revenue and historical fund counts.15:07–17:59 · Guest teaching 5/10 Valuation Discipline, Advertising Strategy, and Team Size Nathan questions the logic of fundraising in a down valuation climate, prompting Badri to push back firmly on typical seed dilution benchmarks. Badri deflects exact future dilution limits while Nathan probes ad spend figures.1:14–4:07 · Guest disagreement 2/10 Introducing Badri Malinar and Explaining Customizable Private Funds Nathan presses Badri to define private funds concretely and questions why fund managers would ever forfeit discretion to passive LPs. Badri clearly educates Nathan on the LP demand for choice and how early GPs use customizable deals to establish trust.4:07–7:15 · Guest disagreement 3/10 Revenue Mechanics, Fund Sizes, and Evergreen Churn Resilience Nathan challenges the business model by arguing that GPs will naturally graduate and churn once they gain confidence. Badri decisively schools Nathan on evergreen PPM structures and multi-year deal lock-ins that keep lifetime churn under five percent.7:16–10:49 · Guest disagreement 3/10 Platform Distribution, Minimum Pricing, and Mastermind Value Nathan drills down on the BIP calculation and probes whether free services dilute profitability, asking if Avestor is a coaching mastermind or a true FinTech platform. Badri clarifies the four-hundred-dollar monthly minimum and community network effects.10:50–15:06 · Guest disagreement 3/10 Revenue Run-Rate, Customer Acquisition, and Seed Funding Nathan catches a mathematical contradiction between Badri's claim of ninety percent BIP revenue and the minimum platform fee, driving Badri to clarify his definitions. Nathan rigorously pins down actual monthly recurring revenue and historical fund counts.15:07–17:59 · Guest disagreement 4/10 Valuation Discipline, Advertising Strategy, and Team Size Nathan questions the logic of fundraising in a down valuation climate, prompting Badri to push back firmly on typical seed dilution benchmarks. Badri deflects exact future dilution limits while Nathan probes ad spend figures.1:14–4:07 · Nathan pushing back 5/10 Introducing Badri Malinar and Explaining Customizable Private Funds Nathan presses Badri to define private funds concretely and questions why fund managers would ever forfeit discretion to passive LPs. Badri clearly educates Nathan on the LP demand for choice and how early GPs use customizable deals to establish trust.4:07–7:15 · Nathan pushing back 6/10 Revenue Mechanics, Fund Sizes, and Evergreen Churn Resilience Nathan challenges the business model by arguing that GPs will naturally graduate and churn once they gain confidence. Badri decisively schools Nathan on evergreen PPM structures and multi-year deal lock-ins that keep lifetime churn under five percent.7:16–10:49 · Nathan pushing back 7/10 Platform Distribution, Minimum Pricing, and Mastermind Value Nathan drills down on the BIP calculation and probes whether free services dilute profitability, asking if Avestor is a coaching mastermind or a true FinTech platform. Badri clarifies the four-hundred-dollar monthly minimum and community network effects.10:50–15:06 · Nathan pushing back 7/10 Revenue Run-Rate, Customer Acquisition, and Seed Funding Nathan catches a mathematical contradiction between Badri's claim of ninety percent BIP revenue and the minimum platform fee, driving Badri to clarify his definitions. Nathan rigorously pins down actual monthly recurring revenue and historical fund counts.15:07–17:59 · Nathan pushing back 7/10 Valuation Discipline, Advertising Strategy, and Team Size Nathan questions the logic of fundraising in a down valuation climate, prompting Badri to push back firmly on typical seed dilution benchmarks. Badri deflects exact future dilution limits while Nathan probes ad spend figures.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 58.4% · guest 41.6%0:00 · Nathan 58.4% · guest 41.6%3:00 · Nathan 26.3% · guest 73.7%3:00 · Nathan 26.3% · guest 73.7%6:00 · Nathan 27.5% · guest 72.5%6:00 · Nathan 27.5% · guest 72.5%9:00 · Nathan 39% · guest 61%9:00 · Nathan 39% · guest 61%12:00 · Nathan 25.4% · guest 74.6%12:00 · Nathan 25.4% · guest 74.6%15:00 · Nathan 37.2% · guest 62.8%15:00 · Nathan 37.2% · guest 62.8%18:00 · Nathan 52.8% · guest 47.2%18:00 · Nathan 52.8% · guest 47.2%
Sharpest disagreement ▶ 15:23 Badri rejects standard dilution assumptions

Badri directly interrupts and dismisses Nathan's assertion that seed rounds require twenty to twenty-five percent dilution, emphasizing single-digit figures.

 Hardest push from Nathan ▶ 12:20 Nathan calls out revenue source inconsistency

Nathan refuses Badri's vague revenue assertions by confronting him with his previous statement that over ninety percent of revenue came from AUM BIPs.

 Biggest teaching moment ▶ 6:04 Badri teaches evergreen PPM retention mechanics

Badri dismantles Nathan's churn thesis by explaining how single-PPM evergreen funds create multi-year lock-in effects that make the platform indispensable.

 Nathan holds their own ▶ 7:38 Nathan dissects annualized BIPs vs monthly cash flow

Nathan exhibits financial expertise by immediately converting sixty million AUM at fifty basis points into annualized versus monthly revenue reality.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Introducing Badri Malinar and Explaining Customizable Private Funds 6625 Nathan presses Badri to define private funds concretely and questions why fund managers would ever forfeit discretion to passive LPs. Badri clearly educates Nathan on the LP demand for choice and how early GPs use customizable deals to establish trust.
Revenue Mechanics, Fund Sizes, and Evergreen Churn Resilience 6836 Nathan challenges the business model by arguing that GPs will naturally graduate and churn once they gain confidence. Badri decisively schools Nathan on evergreen PPM structures and multi-year deal lock-ins that keep lifetime churn under five percent.
Platform Distribution, Minimum Pricing, and Mastermind Value 7537 Nathan drills down on the BIP calculation and probes whether free services dilute profitability, asking if Avestor is a coaching mastermind or a true FinTech platform. Badri clarifies the four-hundred-dollar monthly minimum and community network effects.
Revenue Run-Rate, Customer Acquisition, and Seed Funding 8437 Nathan catches a mathematical contradiction between Badri's claim of ninety percent BIP revenue and the minimum platform fee, driving Badri to clarify his definitions. Nathan rigorously pins down actual monthly recurring revenue and historical fund counts.
Valuation Discipline, Advertising Strategy, and Team Size 7547 Nathan questions the logic of fundraising in a down valuation climate, prompting Badri to push back firmly on typical seed dilution benchmarks. Badri deflects exact future dilution limits while Nathan probes ad spend figures.

Statements from this episode (17)

Assertion Not checkable as stated
Malinar: Private funds have nearly overtaken public markets in size
“Today, the private fund industry is almost overtaken the public markets. There are trillions.”
Badri Malinar Oct 12, 2023 ▶ 1:36
Assertion Not checkable as stated
95% of Avestor LPs prefer picking specific deals over blind pools
“What we have found is 95% of our investors really prefer to pick and choose which deals you want, which asset classes you want, which timeframe you want.”
Badri Malinar Oct 12, 2023 ▶ 2:42
Disclosure
Avestor runs a $5M internal fund to test transaction volumes
“The company run fund is less than five million, about five million dollars. It's less than the intent of that fund was never to grow the fund. It was purely to test out large volumes of transactions.”
Badri Malinar Oct 12, 2023 ▶ 3:42
Assertion Not checkable as stated
Avestor charges 30-50 bps AUM fees across 100+ hosted funds
“We have more than a hundred funds now, and based on the assets under management, we charge a AUM fee, which ranges from 30 basis points to 50 basis points of the AUM, so.”
Badri Malinar Oct 12, 2023 ▶ 4:35
Assertion Not checkable as stated
Malinar claims Avestor has under 5% lifetime fund churn
“In fact, it's strange that you mentioned that we have probably the lowest amounts of churn, less than five percent for a SaaS business.”
Badri Malinar Oct 12, 2023 ▶ 5:45
Assertion Not checkable as stated
Malinar claims Avestor is the only customizable evergreen fund platform
“We are the only platform in the world which offers a customizable fund, and a customizable fund is an evergreen fund.”
Badri Malinar Oct 12, 2023 ▶ 6:11
Assertion Not checkable as stated
Avestor manages about $60M in total AUM across customer funds
“It's still low, growing. It's about sixty million.”
Badri Malinar Oct 12, 2023 ▶ 7:05
Assertion Not checkable as stated
Only 30 of Avestor's funds have closed their first deal
“About 30 funds have done their first deal. 30 funds have launched, still waiting for their first deal.”
Badri Malinar Oct 12, 2023 ▶ 7:21
Disclosure
Avestor charges a $400 monthly minimum fee covering $1M AUM
“There is a minimum of 400 dollars per month, even if you have so we have kind of converted into a membership model where you have to pay 400 dollars because we have a mastermind where people can interact with other fund managers, and that 400 dollars a month i…”
Badri Malinar Oct 12, 2023 ▶ 8:57
Assertion Not checkable as stated
Avestor hosts fewer than 1,000 LPs across its 100 funds
“It's still less than a thousand.”
Badri Malinar Oct 12, 2023 ▶ 10:37
Assertion Not checkable as stated
Avestor had 25 to 30 funds on platform one year ago
“We had less than I would say, 25 funds or so. So 25 or 30 funds about a year back.”
Badri Malinar Oct 12, 2023 ▶ 13:04
Disclosure
Avestor raised under $1M seed from early customers and LPs
“We raised a little less than a million dollars, not because we really needed the money. We wanted to reward our early investors in our fund and the early fund managers. So they wanted to invest. And so we raised that.”
Badri Malinar Oct 12, 2023 ▶ 14:21
Disclosure
Avestor plans to explore Series A in late 2023 or 2024
“I think we'll look at a series, say maybe end of the year or early next year.”
Badri Malinar Oct 12, 2023 ▶ 14:36
Assertion Not checkable as stated
Avestor stopped its seed round early because it nears cash-flow positive
“We didn't even complete the seed round because we are almost cashflow positive anyway.”
Badri Malinar Oct 12, 2023 ▶ 14:49
Disclosure
Avestor gave up single-digit equity for its sub-$1M seed round
“They are in the single digit range or less.”
Badri Malinar Oct 12, 2023 ▶ 15:32
Assertion Not checkable as stated
Facebook ads outperform Google and YouTube for Avestor's fund SaaS
“And but Facebook has been the most effective so far.”
Badri Malinar Oct 12, 2023 ▶ 17:44
Disclosure
Avestor runs with 7 US employees and 12 in India
“There are about seven full-time folks in the U S and about a dozen in India.”
Badri Malinar Oct 12, 2023 ▶ 17:50
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