Feb 20, 2023 · 18m · top-founders

$720k in ARR SaaS Raising at $12m Valuation Right Now for App Install SaaS

Jesse Lempiäinen · 10m 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

GeekLab co-founder Jesse Lempiäinen explains how his mobile app store optimization platform grew from $27k to $60k MRR ($720k ARR) and successfully navigated a $1.5 million seed round at a $12 million valuation.

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 33.5% of the talking time here. How this is scored →

Nathan as informed peer 5.7 Guest teaching 2.2 Guest disagreement 2.2 Nathan pushing back 4.5
05100:0010:001:26–3:49 · Nathan as informed peer 5/10 GeekLab Product Mechanics and Conversion Optimization Nathan seeks clarification on whether GeekLab operates as software or consulting, drawing comparisons to tools like Pendo. Jesse explains the app-store conversion mechanics, pricing tiers, and onboarding retainers in a collaborative manner.3:49–7:32 · Nathan as informed peer 6/10 Founding Origin at Rovio and Equity Allocation Nathan drills into the equity split and methodically calculates conversion from 1,000 signups down to 60 paying accounts and $60k MRR. Jesse transparently shares the founding origin and conversion funnel.7:32–10:10 · Nathan as informed peer 7/10 The Bootstrapping Debate and Scaling Bottlenecks Nathan directly challenges Jesse's assertion that bootstrapping is limiting growth, arguing that hiring headcount does not equal acquiring customers. Jesse pushes back with evidence, noting they had to postpone deals in December because of account manager constraints.10:10–13:43 · Nathan as informed peer 6/10 Customer Segmentation and Hands-On Enterprise Demands Nathan presses Jesse on why a software platform requires human account managers, suggesting it operates like an agency. Jesse defends the segmentation by showing enterprise gaming clients demand strategic onboarding alongside software.13:43–16:08 · Nathan as informed peer 7/10 Valuation Terms, Deal Execution, and Headcount Nathan challenges Jesse's confidence in closing venture funding during a frozen macro market. Jesse reveals they already have signed LOIs and negotiated a $1.5M raise at a $12M valuation.16:08–17:49 · Nathan as informed peer 3/10 The Famous Five Rapid-Fire Questions Nathan runs through his standard rapid-fire questions covering favorite books, CEOs, tools, and sleep habits with no friction.1:26–3:49 · Guest teaching 2/10 GeekLab Product Mechanics and Conversion Optimization Nathan seeks clarification on whether GeekLab operates as software or consulting, drawing comparisons to tools like Pendo. Jesse explains the app-store conversion mechanics, pricing tiers, and onboarding retainers in a collaborative manner.3:49–7:32 · Guest teaching 1/10 Founding Origin at Rovio and Equity Allocation Nathan drills into the equity split and methodically calculates conversion from 1,000 signups down to 60 paying accounts and $60k MRR. Jesse transparently shares the founding origin and conversion funnel.7:32–10:10 · Guest teaching 4/10 The Bootstrapping Debate and Scaling Bottlenecks Nathan directly challenges Jesse's assertion that bootstrapping is limiting growth, arguing that hiring headcount does not equal acquiring customers. Jesse pushes back with evidence, noting they had to postpone deals in December because of account manager constraints.10:10–13:43 · Guest teaching 3/10 Customer Segmentation and Hands-On Enterprise Demands Nathan presses Jesse on why a software platform requires human account managers, suggesting it operates like an agency. Jesse defends the segmentation by showing enterprise gaming clients demand strategic onboarding alongside software.13:43–16:08 · Guest teaching 2/10 Valuation Terms, Deal Execution, and Headcount Nathan challenges Jesse's confidence in closing venture funding during a frozen macro market. Jesse reveals they already have signed LOIs and negotiated a $1.5M raise at a $12M valuation.16:08–17:49 · Guest teaching 1/10 The Famous Five Rapid-Fire Questions Nathan runs through his standard rapid-fire questions covering favorite books, CEOs, tools, and sleep habits with no friction.1:26–3:49 · Guest disagreement 1/10 GeekLab Product Mechanics and Conversion Optimization Nathan seeks clarification on whether GeekLab operates as software or consulting, drawing comparisons to tools like Pendo. Jesse explains the app-store conversion mechanics, pricing tiers, and onboarding retainers in a collaborative manner.3:49–7:32 · Guest disagreement 1/10 Founding Origin at Rovio and Equity Allocation Nathan drills into the equity split and methodically calculates conversion from 1,000 signups down to 60 paying accounts and $60k MRR. Jesse transparently shares the founding origin and conversion funnel.7:32–10:10 · Guest disagreement 4/10 The Bootstrapping Debate and Scaling Bottlenecks Nathan directly challenges Jesse's assertion that bootstrapping is limiting growth, arguing that hiring headcount does not equal acquiring customers. Jesse pushes back with evidence, noting they had to postpone deals in December because of account manager constraints.10:10–13:43 · Guest disagreement 4/10 Customer Segmentation and Hands-On Enterprise Demands Nathan presses Jesse on why a software platform requires human account managers, suggesting it operates like an agency. Jesse defends the segmentation by showing enterprise gaming clients demand strategic onboarding alongside software.13:43–16:08 · Guest disagreement 3/10 Valuation Terms, Deal Execution, and Headcount Nathan challenges Jesse's confidence in closing venture funding during a frozen macro market. Jesse reveals they already have signed LOIs and negotiated a $1.5M raise at a $12M valuation.16:08–17:49 · Guest disagreement 0/10 The Famous Five Rapid-Fire Questions Nathan runs through his standard rapid-fire questions covering favorite books, CEOs, tools, and sleep habits with no friction.1:26–3:49 · Nathan pushing back 2/10 GeekLab Product Mechanics and Conversion Optimization Nathan seeks clarification on whether GeekLab operates as software or consulting, drawing comparisons to tools like Pendo. Jesse explains the app-store conversion mechanics, pricing tiers, and onboarding retainers in a collaborative manner.3:49–7:32 · Nathan pushing back 3/10 Founding Origin at Rovio and Equity Allocation Nathan drills into the equity split and methodically calculates conversion from 1,000 signups down to 60 paying accounts and $60k MRR. Jesse transparently shares the founding origin and conversion funnel.7:32–10:10 · Nathan pushing back 7/10 The Bootstrapping Debate and Scaling Bottlenecks Nathan directly challenges Jesse's assertion that bootstrapping is limiting growth, arguing that hiring headcount does not equal acquiring customers. Jesse pushes back with evidence, noting they had to postpone deals in December because of account manager constraints.10:10–13:43 · Nathan pushing back 7/10 Customer Segmentation and Hands-On Enterprise Demands Nathan presses Jesse on why a software platform requires human account managers, suggesting it operates like an agency. Jesse defends the segmentation by showing enterprise gaming clients demand strategic onboarding alongside software.13:43–16:08 · Nathan pushing back 7/10 Valuation Terms, Deal Execution, and Headcount Nathan challenges Jesse's confidence in closing venture funding during a frozen macro market. Jesse reveals they already have signed LOIs and negotiated a $1.5M raise at a $12M valuation.16:08–17:49 · Nathan pushing back 1/10 The Famous Five Rapid-Fire Questions Nathan runs through his standard rapid-fire questions covering favorite books, CEOs, tools, and sleep habits with no friction.

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

0:00 · Nathan 57.5% · guest 42.5%0:00 · Nathan 57.5% · guest 42.5%3:00 · Nathan 12.6% · guest 87.4%3:00 · Nathan 12.6% · guest 87.4%6:00 · Nathan 24.2% · guest 75.8%6:00 · Nathan 24.2% · guest 75.8%9:00 · Nathan 20.8% · guest 79.2%9:00 · Nathan 20.8% · guest 79.2%12:00 · Nathan 42.1% · guest 57.9%12:00 · Nathan 42.1% · guest 57.9%15:00 · Nathan 39.3% · guest 60.7%15:00 · Nathan 39.3% · guest 60.7%18:00 · Nathan 98.3% · guest 1.7%18:00 · Nathan 98.3% · guest 1.7%
Sharpest disagreement ▶ 13:09 Jesse corrects Nathan regarding multiple term sheets

When Nathan asserts Jesse does not have multiple term sheets in hand, Jesse immediately interrupts and clarifies that they do have multiple term sheets, they just have not signed one yet.

Hardest push from Nathan ▶ 13:43 Nathan rejects Jesse's fundraise framing amidst market downturn

Nathan bluntly tells Jesse his claims do not make sense given macro market shutdowns where even profitable bootstrap founders struggle to raise equity.

Biggest teaching moment ▶ 9:34 Jesse provides concrete proof of customer onboarding bottlenecks

Jesse counters Nathan's skepticism by explaining they literally had to delay signing client contracts in December due to lack of account managers to service them.

Nathan holds their own ▶ 8:44 Nathan deconstructs hiring ahead of customer acquisition

Nathan demonstrates SaaS expertise by dissecting Jesse's reasoning, pointing out that customer success hiring does not generate top-of-funnel customer acquisition.

the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
GeekLab Product Mechanics and Conversion Optimization 5212 Nathan seeks clarification on whether GeekLab operates as software or consulting, drawing comparisons to tools like Pendo. Jesse explains the app-store conversion mechanics, pricing tiers, and onboarding retainers in a collaborative manner.
Founding Origin at Rovio and Equity Allocation 6113 Nathan drills into the equity split and methodically calculates conversion from 1,000 signups down to 60 paying accounts and $60k MRR. Jesse transparently shares the founding origin and conversion funnel.
The Bootstrapping Debate and Scaling Bottlenecks 7447 Nathan directly challenges Jesse's assertion that bootstrapping is limiting growth, arguing that hiring headcount does not equal acquiring customers. Jesse pushes back with evidence, noting they had to postpone deals in December because of account manager constraints.
Customer Segmentation and Hands-On Enterprise Demands 6347 Nathan presses Jesse on why a software platform requires human account managers, suggesting it operates like an agency. Jesse defends the segmentation by showing enterprise gaming clients demand strategic onboarding alongside software.
Valuation Terms, Deal Execution, and Headcount 7237 Nathan challenges Jesse's confidence in closing venture funding during a frozen macro market. Jesse reveals they already have signed LOIs and negotiated a $1.5M raise at a $12M valuation.
The Famous Five Rapid-Fire Questions 3101 Nathan runs through his standard rapid-fire questions covering favorite books, CEOs, tools, and sleep habits with no friction.

Statements from this episode (13)

Assertion Supported
Lempiäinen: Only 20% to 30% of Mobile Ad Clickers Install the App
“So on average, around like 20 to 30% of those people actually only end up installing the app.”
Jesse Lempiäinen Feb 20, 2023 ▶ 1:41
Assertion Not checkable as stated
GeekLab average customer contract is approximately $1,200 monthly
“On average we're a bit over a thousand bucks a month 1200 ish. And it ranges from all the way up from like 300 bucks a month to like 5000 plus.”
Jesse Lempiäinen Feb 20, 2023 ▶ 2:28
Assertion Not checkable as stated
Lempiäinen: Competing app-testing tool cost $60,000 per test in 2019
“I looked at the market. I saw one tool that didn't work and another one that costed like 60,000 bucks for this one test.”
Jesse Lempiäinen Feb 20, 2023 ▶ 4:11
Disclosure
Lempiäinen: GeekLab did not split founding equity evenly
“Not, not really. We've done some shifts after that as well.”
Jesse Lempiäinen Feb 20, 2023 ▶ 4:45
Assertion Not checkable as stated
GeekLab counts around 60 paying customers, mostly game developers
“So, currently today like, we have around 60 paying customers at the moment. So we're talking about, like, game developers mostly sixty-ish.”
Jesse Lempiäinen Feb 20, 2023 ▶ 5:41
Assertion Not checkable as stated
GeekLab grew from nearly $30k to $50k MRR over one year
“One year ago we were a bit over close to 30 K around. MRR, and then we hit, like 50 K MRR by the end of last month last year”
Jesse Lempiäinen Feb 20, 2023 ▶ 7:07
Disclosure
GeekLab delayed December customer onboarding to January due to staffing constraints
“So, so like, honestly, we actually by the end of last year, we didn't take all the agreements in in December that we could have. So we actually put some agreements that we're just going to start them in January where we knew that we were going to get more peop…”
Jesse Lempiäinen Feb 20, 2023 ▶ 9:35
Disclosure
GeekLab serves Rovio and multiple top 10 mobile gaming companies
“Rovio being, being one of the examples, but like then out of the ones that we can't disclose if you take a look at top 10 mobile gaming companies, so we have plenty of those”
Jesse Lempiäinen Feb 20, 2023 ▶ 11:10
Opinion
Latka: The VC market is effectively closed for founders
“The VC market is closed. I mean, effectively closed.”
Nathan Latka Feb 20, 2023 ▶ 12:18
Assertion Contradicted
Lempiäinen: GeekLab is currently a profitable business
“We are profitable business.”
Jesse Lempiäinen Feb 20, 2023 ▶ 12:25
Assertion Not checkable as stated
Lempiäinen: Over 100 investor calls generated multiple term sheets for GeekLab
“I did over a hundred calls last year with phases to kind of get to a point where we have multiple term sheets and we actually have the opportunity to decide where to go.”
Jesse Lempiäinen Feb 20, 2023 ▶ 12:50
Disclosure
Lempiäinen: GeekLab is raising at a $12M post-money valuation
“12, 12 to be exact.”
Jesse Lempiäinen Feb 20, 2023 ▶ 15:34
Assertion Not checkable as stated
Supercell and Ilkka Paananen heavily reinvest in Finnish tech startups
“Whenever we talk with startups, it's either him personally or supercell that's kind of backed them here in Finland. So that's, I think awesome as well that they put the success back to the market.”
Jesse Lempiäinen Feb 20, 2023 ▶ 16:49
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