Aug 24, 2023 · 22m · top-founders

eCommerce SaaS hits $13m 2021 GMV, How He's Hedged Chile Interest Rates, Macroeconomic Headwinds

Alan Giloff · 14m spoken Nathan Latka · 5m spoken
0:00 / 0:00

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

ShipIt co-founder Alan Giloff discusses how his Chilean e-commerce logistics company survived macroeconomic contraction and a failed fundraising round by downsizing staff from 110 to 25, raising take rates to 26%, and pivoting from severe cash burn to $500,000 in EBITDA profitability.

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 25.6% of the talking time here. How this is scored →

Nathan as informed peer 4.1 Guest teaching 2.9 Guest disagreement 1.0 Nathan pushing back 1.7
05100:0010:0020:000:35–3:33 · Nathan as informed peer 4/10 Executive Summary of ShipIt's Pivot to Profitability Nathan asks for specific customer use cases and probes into operational staffing costs. Alan explains their hybrid logistics model and clarifies why local Chilean labor regulations forced them to switch hero couriers to contractors.3:34–7:16 · Nathan as informed peer 4/10 End-to-End Parcel Responsibility and Take Rate Model Alan refutes Nathan's comparison to freight marketplace platforms, explaining that ShipIt takes end-to-end liability and operates on a 25% take rate. Alan then details how Chilean macroeconomic factors caused GMV to decline from $13M to $6M.7:17–9:26 · Nathan as informed peer 5/10 Failed Venture Round and Accumulating Debt Nathan quickly calculates equity dilution when Alan explains their failed $10M venture round at a $30M pre-money valuation. Alan explains how delayed investor approvals led to the term sheet collapsing and $2M in supplier debt.9:26–12:29 · Nathan as informed peer 3/10 Executing Headcount Reductions and Carrier Restructuring Alan recounts executing layoffs of 85 employees, restructuring daily supplier payables, and turning the business from burning $200k monthly to $40k positive cash flow. Nathan listens supportive and validates the difficult turnaround.12:31–15:01 · Nathan as informed peer 5/10 Investor Conflicts and Equity Buyback Attempts Nathan asks why Alan did not repurchase equity at a steep discount after existing investors told him to declare bankruptcy. Alan explains shareholder dynamics, ego clashes, and legal right-of-first-refusal maneuvers.15:01–18:07 · Nathan as informed peer 4/10 Chilean Political Landscape and 2024 Economic Outlook Alan breaks down Chilean constitutional politics and details his successful price hike strategy that boosted take rate to 26% while suffering minimal revenue churn.18:08–21:25 · Nathan as informed peer 4/10 Personal Wellness, Routine, and Founder Support Systems Alan shares personal wellness habits and partner communication advice during the Famous Five section. Nathan notes ShipIt's strategic position to offer embedded fintech.0:35–3:33 · Guest teaching 3/10 Executive Summary of ShipIt's Pivot to Profitability Nathan asks for specific customer use cases and probes into operational staffing costs. Alan explains their hybrid logistics model and clarifies why local Chilean labor regulations forced them to switch hero couriers to contractors.3:34–7:16 · Guest teaching 6/10 End-to-End Parcel Responsibility and Take Rate Model Alan refutes Nathan's comparison to freight marketplace platforms, explaining that ShipIt takes end-to-end liability and operates on a 25% take rate. Alan then details how Chilean macroeconomic factors caused GMV to decline from $13M to $6M.7:17–9:26 · Guest teaching 3/10 Failed Venture Round and Accumulating Debt Nathan quickly calculates equity dilution when Alan explains their failed $10M venture round at a $30M pre-money valuation. Alan explains how delayed investor approvals led to the term sheet collapsing and $2M in supplier debt.9:26–12:29 · Guest teaching 2/10 Executing Headcount Reductions and Carrier Restructuring Alan recounts executing layoffs of 85 employees, restructuring daily supplier payables, and turning the business from burning $200k monthly to $40k positive cash flow. Nathan listens supportive and validates the difficult turnaround.12:31–15:01 · Guest teaching 2/10 Investor Conflicts and Equity Buyback Attempts Nathan asks why Alan did not repurchase equity at a steep discount after existing investors told him to declare bankruptcy. Alan explains shareholder dynamics, ego clashes, and legal right-of-first-refusal maneuvers.15:01–18:07 · Guest teaching 3/10 Chilean Political Landscape and 2024 Economic Outlook Alan breaks down Chilean constitutional politics and details his successful price hike strategy that boosted take rate to 26% while suffering minimal revenue churn.18:08–21:25 · Guest teaching 1/10 Personal Wellness, Routine, and Founder Support Systems Alan shares personal wellness habits and partner communication advice during the Famous Five section. Nathan notes ShipIt's strategic position to offer embedded fintech.0:35–3:33 · Guest disagreement 1/10 Executive Summary of ShipIt's Pivot to Profitability Nathan asks for specific customer use cases and probes into operational staffing costs. Alan explains their hybrid logistics model and clarifies why local Chilean labor regulations forced them to switch hero couriers to contractors.3:34–7:16 · Guest disagreement 3/10 End-to-End Parcel Responsibility and Take Rate Model Alan refutes Nathan's comparison to freight marketplace platforms, explaining that ShipIt takes end-to-end liability and operates on a 25% take rate. Alan then details how Chilean macroeconomic factors caused GMV to decline from $13M to $6M.7:17–9:26 · Guest disagreement 1/10 Failed Venture Round and Accumulating Debt Nathan quickly calculates equity dilution when Alan explains their failed $10M venture round at a $30M pre-money valuation. Alan explains how delayed investor approvals led to the term sheet collapsing and $2M in supplier debt.9:26–12:29 · Guest disagreement 1/10 Executing Headcount Reductions and Carrier Restructuring Alan recounts executing layoffs of 85 employees, restructuring daily supplier payables, and turning the business from burning $200k monthly to $40k positive cash flow. Nathan listens supportive and validates the difficult turnaround.12:31–15:01 · Guest disagreement 1/10 Investor Conflicts and Equity Buyback Attempts Nathan asks why Alan did not repurchase equity at a steep discount after existing investors told him to declare bankruptcy. Alan explains shareholder dynamics, ego clashes, and legal right-of-first-refusal maneuvers.15:01–18:07 · Guest disagreement 0/10 Chilean Political Landscape and 2024 Economic Outlook Alan breaks down Chilean constitutional politics and details his successful price hike strategy that boosted take rate to 26% while suffering minimal revenue churn.18:08–21:25 · Guest disagreement 0/10 Personal Wellness, Routine, and Founder Support Systems Alan shares personal wellness habits and partner communication advice during the Famous Five section. Nathan notes ShipIt's strategic position to offer embedded fintech.0:35–3:33 · Nathan pushing back 2/10 Executive Summary of ShipIt's Pivot to Profitability Nathan asks for specific customer use cases and probes into operational staffing costs. Alan explains their hybrid logistics model and clarifies why local Chilean labor regulations forced them to switch hero couriers to contractors.3:34–7:16 · Nathan pushing back 3/10 End-to-End Parcel Responsibility and Take Rate Model Alan refutes Nathan's comparison to freight marketplace platforms, explaining that ShipIt takes end-to-end liability and operates on a 25% take rate. Alan then details how Chilean macroeconomic factors caused GMV to decline from $13M to $6M.7:17–9:26 · Nathan pushing back 2/10 Failed Venture Round and Accumulating Debt Nathan quickly calculates equity dilution when Alan explains their failed $10M venture round at a $30M pre-money valuation. Alan explains how delayed investor approvals led to the term sheet collapsing and $2M in supplier debt.9:26–12:29 · Nathan pushing back 1/10 Executing Headcount Reductions and Carrier Restructuring Alan recounts executing layoffs of 85 employees, restructuring daily supplier payables, and turning the business from burning $200k monthly to $40k positive cash flow. Nathan listens supportive and validates the difficult turnaround.12:31–15:01 · Nathan pushing back 2/10 Investor Conflicts and Equity Buyback Attempts Nathan asks why Alan did not repurchase equity at a steep discount after existing investors told him to declare bankruptcy. Alan explains shareholder dynamics, ego clashes, and legal right-of-first-refusal maneuvers.15:01–18:07 · Nathan pushing back 1/10 Chilean Political Landscape and 2024 Economic Outlook Alan breaks down Chilean constitutional politics and details his successful price hike strategy that boosted take rate to 26% while suffering minimal revenue churn.18:08–21:25 · Nathan pushing back 1/10 Personal Wellness, Routine, and Founder Support Systems Alan shares personal wellness habits and partner communication advice during the Famous Five section. Nathan notes ShipIt's strategic position to offer embedded fintech.

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

0:00 · Nathan 63.5% · guest 36.5%0:00 · Nathan 63.5% · guest 36.5%3:00 · Nathan 26.8% · guest 73.2%3:00 · Nathan 26.8% · guest 73.2%6:00 · Nathan 15.8% · guest 84.2%6:00 · Nathan 15.8% · guest 84.2%9:00 · Nathan 5.3% · guest 94.7%9:00 · Nathan 5.3% · guest 94.7%12:00 · Nathan 12.9% · guest 87.1%12:00 · Nathan 12.9% · guest 87.1%15:00 · Nathan 10.6% · guest 89.4%15:00 · Nathan 10.6% · guest 89.4%18:00 · Nathan 27.7% · guest 72.3%18:00 · Nathan 27.7% · guest 72.3%21:00 · Nathan 64.9% · guest 35.1%21:00 · Nathan 64.9% · guest 35.1%
Sharpest disagreement ▶ 4:05 Direct rejection of freight-forwarding comparison

Alan rejects Nathan's framing that ShipIt merely acts like an e-commerce freight-forwarding matching board, clarifying that ShipIt retains complete liability from start to finish.

Hardest push from Nathan ▶ 6:40 Nathan presses on margin distinction between GMV and take rate

Nathan interrupts to ensure absolute clarity on whether the 25% figure represents net bottom-line profit or the company's gross revenue take rate.

Biggest teaching moment ▶ 4:05 Alan educates on parcel contract ownership and margin structure

Alan educates Nathan on ShipIt's business model, explaining that merchant customers never select carriers directly and that ShipIt captures the full parcel price with built-in SLA margins.

Nathan holds their own ▶ 7:49 Nathan instantly calculates capitalization dilution

Nathan immediately dissects the financial mechanics of the proposed $10M raise on a $13M pre-money valuation, instantly identifying that the founders were surrendering over 40% equity.

the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Executive Summary of ShipIt's Pivot to Profitability 4312 Nathan asks for specific customer use cases and probes into operational staffing costs. Alan explains their hybrid logistics model and clarifies why local Chilean labor regulations forced them to switch hero couriers to contractors.
End-to-End Parcel Responsibility and Take Rate Model 4633 Alan refutes Nathan's comparison to freight marketplace platforms, explaining that ShipIt takes end-to-end liability and operates on a 25% take rate. Alan then details how Chilean macroeconomic factors caused GMV to decline from $13M to $6M.
Failed Venture Round and Accumulating Debt 5312 Nathan quickly calculates equity dilution when Alan explains their failed $10M venture round at a $30M pre-money valuation. Alan explains how delayed investor approvals led to the term sheet collapsing and $2M in supplier debt.
Executing Headcount Reductions and Carrier Restructuring 3211 Alan recounts executing layoffs of 85 employees, restructuring daily supplier payables, and turning the business from burning $200k monthly to $40k positive cash flow. Nathan listens supportive and validates the difficult turnaround.
Investor Conflicts and Equity Buyback Attempts 5212 Nathan asks why Alan did not repurchase equity at a steep discount after existing investors told him to declare bankruptcy. Alan explains shareholder dynamics, ego clashes, and legal right-of-first-refusal maneuvers.
Chilean Political Landscape and 2024 Economic Outlook 4301 Alan breaks down Chilean constitutional politics and details his successful price hike strategy that boosted take rate to 26% while suffering minimal revenue churn.
Personal Wellness, Routine, and Founder Support Systems 4101 Alan shares personal wellness habits and partner communication advice during the Famous Five section. Nathan notes ShipIt's strategic position to offer embedded fintech.

Statements from this episode (13)

Disclosure
ShipIt Shifted Logistics Pickup Staff From Full-Time Employees to Contractors
“At the beginning, there were like full-time employees for us, but then we had them change to a, like, company contractors, right?”
Alan Giloff Aug 24, 2023 ▶ 2:54
Opinion
Giloff: South American Employee Laws Make Payroll Logistics Workers Too Expensive
“Chilean laws and actually like South American laws are very like employer, sorry, employee focused. So it's actually very, very hard to have them in your payroll. Like it's going to be expensive.”
Alan Giloff Aug 24, 2023 ▶ 3:10
Assertion Not checkable as stated
Giloff: ShipIt GMV peaked at nearly $13M before dropping to $6M
“Twenty-nineteen, we're selling 2.5 million. Twenty-twenty, we sold ten million. Twenty-twenty-one, we sold like, almost thirteen million. And twenty-twenty-two, we sold- One, three? Yeah, 13. And then 20, 22, we sold six million.”
Alan Giloff Aug 24, 2023 ▶ 5:31
Prediction Not checkable as stated
Giloff: ShipIt will generate about $500K in EBITDA in 2023
“And probably as an EBITDA, like bottom line, like you say, it's going to be like 500 thousand.”
Alan Giloff Aug 24, 2023 ▶ 7:04
Disclosure
Giloff: VCs withdrew signed term sheet for ShipIt fundraising
“We had a term sheet signed with two VCs, and they withdrew the term sheet.”
Alan Giloff Aug 24, 2023 ▶ 7:28
Disclosure
Giloff: ShipIt attempted to raise $10M at a $13M valuation
“We were raising ten million at the 13 pre-money valuation, and out of those 10,000,005 were for, like working capital and five were for to purchase a Mexican company.”
Alan Giloff Aug 24, 2023 ▶ 7:36
Disclosure
Giloff: ShipIt accumulated $2 million in debt
“At the time being, I'd say, like, we have a two million dollar debt.”
Alan Giloff Aug 24, 2023 ▶ 8:33
Disclosure
Giloff: ShipIt downsized staff from 110 to 25 employees
“And I had to decrease the team from one 10 to 25 guys.”
Alan Giloff Aug 24, 2023 ▶ 9:22
Disclosure
Giloff: ShipIt's existing investors refused $600k bridge and advised bankruptcy
“I went to my investors and I was like, Hey guys, we have a problem. We don't have a term sheet anymore. But I made out a plan. I need 600 K to do all the changes I need. I need to close Mexico operation. I need to fire people, pay their money. So I need that a…”
Alan Giloff Aug 24, 2023 ▶ 10:30
Assertion Not checkable as stated
Giloff: ShipIt pivoted from -$200k/month burn to +$40k/month cash flow
“Since the changes, I went from -200 K to a positive 40 K per month.”
Alan Giloff Aug 24, 2023 ▶ 11:39
Disclosure
Giloff: ShipIt co-founders own roughly 49% of the company
“Probably around 49%.”
Alan Giloff Aug 24, 2023 ▶ 14:56
Assertion Not checkable as stated
Giloff: ShipIt increased its take rate from 18-19% to 26%
“And actually my take rate went from probably 1819 to a nice juicy 26%, which is almost a 40% increase.”
Alan Giloff Aug 24, 2023 ▶ 17:23
Assertion Not checkable as stated
Giloff: ShipIt lost 200 customers with only 7% revenue churn
“Obviously I had to do some discounts, but I went down from 1000 customers to probably 800, and I had a churn of probably like seven percent revenue.”
Alan Giloff Aug 24, 2023 ▶ 17:46
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