Mar 11, 2022 · 15m · top-founders

SaaS Startup Raises at $3m Valuation Helping Precious Metal Dealers Verify Buyers and Sellers

Giancarlo DeLeo · 8m spoken Nathan Latka · 5m spoken
0:00 / 0:00

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Giancarlo DeLeo, co-founder of TrustChain Global, explains how his startup secured a $350,000 pre-seed round at a $3.5 million valuation to modernize physical commodity transactions through Web3 verification and escrow tools. Host Nathan Latka analyzes the company's customer acquisition economics, debating the relationship between low-cost SaaS subscriptions and lucrative commodity transaction fees.

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 36.8% of the talking time here. How this is scored →

Nathan as informed peer 5.8 Guest teaching 3.0 Guest disagreement 1.4 Nathan pushing back 4.6
05100:0010:000:44–3:28 · Nathan as informed peer 5/10 Introducing Giancarlo DeLeo and TrustChain Global Latka probes the swift transition from SaaS to Web3 and questions why blockchain is necessary when SaaS can handle transactional services. DeLeo explains the structural fraud, title ownership challenges, and broker proxy issues in physical commodity markets.3:29–5:59 · Nathan as informed peer 5/10 Initial Customers and Onboarding Verification Workflow Latka presses to distinguish booked revenue from realized cash flow and breaks down the exact pricing tiers. DeLeo details the customer workflow involving AML/KYC checks and bespoke deal standard operating procedures.5:59–8:08 · Nathan as informed peer 7/10 Sales Acquisition Strategy and Monetization Dynamics Latka challenges the unit economics of conducting outbound enterprise prospecting for a product charging only $200 per month. DeLeo clarifies that SaaS subscriptions are merely a wedge for high-margin escrow and paymaster transaction fees.8:11–13:30 · Nathan as informed peer 8/10 Founderpath Valuation Tool Advertisement Latka interrogates the cap table, calculating the implied pre-seed valuation above $3M and questioning whether a $200 SaaS fee is a distracting hedge against closing $200k commodity transactions. DeLeo defends the subscription fee as essential revenue for software diligence when deal timelines stretch.13:30–15:28 · Nathan as informed peer 4/10 The Famous Five and Episode Conclusion Latka runs through the Famous Five rapid-fire questions and summarizes the business metrics in an outro recap. The exchange is lighthearted and conversational.0:44–3:28 · Guest teaching 5/10 Introducing Giancarlo DeLeo and TrustChain Global Latka probes the swift transition from SaaS to Web3 and questions why blockchain is necessary when SaaS can handle transactional services. DeLeo explains the structural fraud, title ownership challenges, and broker proxy issues in physical commodity markets.3:29–5:59 · Guest teaching 3/10 Initial Customers and Onboarding Verification Workflow Latka presses to distinguish booked revenue from realized cash flow and breaks down the exact pricing tiers. DeLeo details the customer workflow involving AML/KYC checks and bespoke deal standard operating procedures.5:59–8:08 · Guest teaching 3/10 Sales Acquisition Strategy and Monetization Dynamics Latka challenges the unit economics of conducting outbound enterprise prospecting for a product charging only $200 per month. DeLeo clarifies that SaaS subscriptions are merely a wedge for high-margin escrow and paymaster transaction fees.8:11–13:30 · Guest teaching 4/10 Founderpath Valuation Tool Advertisement Latka interrogates the cap table, calculating the implied pre-seed valuation above $3M and questioning whether a $200 SaaS fee is a distracting hedge against closing $200k commodity transactions. DeLeo defends the subscription fee as essential revenue for software diligence when deal timelines stretch.13:30–15:28 · Guest teaching 0/10 The Famous Five and Episode Conclusion Latka runs through the Famous Five rapid-fire questions and summarizes the business metrics in an outro recap. The exchange is lighthearted and conversational.0:44–3:28 · Guest disagreement 1/10 Introducing Giancarlo DeLeo and TrustChain Global Latka probes the swift transition from SaaS to Web3 and questions why blockchain is necessary when SaaS can handle transactional services. DeLeo explains the structural fraud, title ownership challenges, and broker proxy issues in physical commodity markets.3:29–5:59 · Guest disagreement 1/10 Initial Customers and Onboarding Verification Workflow Latka presses to distinguish booked revenue from realized cash flow and breaks down the exact pricing tiers. DeLeo details the customer workflow involving AML/KYC checks and bespoke deal standard operating procedures.5:59–8:08 · Guest disagreement 2/10 Sales Acquisition Strategy and Monetization Dynamics Latka challenges the unit economics of conducting outbound enterprise prospecting for a product charging only $200 per month. DeLeo clarifies that SaaS subscriptions are merely a wedge for high-margin escrow and paymaster transaction fees.8:11–13:30 · Guest disagreement 3/10 Founderpath Valuation Tool Advertisement Latka interrogates the cap table, calculating the implied pre-seed valuation above $3M and questioning whether a $200 SaaS fee is a distracting hedge against closing $200k commodity transactions. DeLeo defends the subscription fee as essential revenue for software diligence when deal timelines stretch.13:30–15:28 · Guest disagreement 0/10 The Famous Five and Episode Conclusion Latka runs through the Famous Five rapid-fire questions and summarizes the business metrics in an outro recap. The exchange is lighthearted and conversational.0:44–3:28 · Nathan pushing back 3/10 Introducing Giancarlo DeLeo and TrustChain Global Latka probes the swift transition from SaaS to Web3 and questions why blockchain is necessary when SaaS can handle transactional services. DeLeo explains the structural fraud, title ownership challenges, and broker proxy issues in physical commodity markets.3:29–5:59 · Nathan pushing back 4/10 Initial Customers and Onboarding Verification Workflow Latka presses to distinguish booked revenue from realized cash flow and breaks down the exact pricing tiers. DeLeo details the customer workflow involving AML/KYC checks and bespoke deal standard operating procedures.5:59–8:08 · Nathan pushing back 7/10 Sales Acquisition Strategy and Monetization Dynamics Latka challenges the unit economics of conducting outbound enterprise prospecting for a product charging only $200 per month. DeLeo clarifies that SaaS subscriptions are merely a wedge for high-margin escrow and paymaster transaction fees.8:11–13:30 · Nathan pushing back 8/10 Founderpath Valuation Tool Advertisement Latka interrogates the cap table, calculating the implied pre-seed valuation above $3M and questioning whether a $200 SaaS fee is a distracting hedge against closing $200k commodity transactions. DeLeo defends the subscription fee as essential revenue for software diligence when deal timelines stretch.13:30–15:28 · Nathan pushing back 1/10 The Famous Five and Episode Conclusion Latka runs through the Famous Five rapid-fire questions and summarizes the business metrics in an outro recap. The exchange is lighthearted and conversational.

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

0:00 · Nathan 45.2% · guest 54.8%0:00 · Nathan 45.2% · guest 54.8%3:00 · Nathan 17.3% · guest 82.7%3:00 · Nathan 17.3% · guest 82.7%6:00 · Nathan 43.4% · guest 56.6%6:00 · Nathan 43.4% · guest 56.6%9:00 · Nathan 29.3% · guest 70.7%9:00 · Nathan 29.3% · guest 70.7%12:00 · Nathan 39.7% · guest 60.3%12:00 · Nathan 39.7% · guest 60.3%15:00 · Nathan 94.2% · guest 5.8%15:00 · Nathan 94.2% · guest 5.8%
Sharpest disagreement ▶ 12:33 Defending SaaS fee as monetization for due diligence tire-kickers

DeLeo pushes back against Latka's premise that the SaaS fee is a distraction, arguing firmly that platform diligence tools provide standalone value when users do not complete transactions.

Hardest push from Nathan ▶ 7:00 Challenging outbound sales playbook for sub-$3k ACV

Latka bluntly tells DeLeo that running an outbound sales process for a $200 per month product is economically unviable and demands to know whether pricing or sales strategy must change.

Biggest teaching moment ▶ 2:17 Explaining title ownership and proxy broker problems in commodities

DeLeo provides a concrete breakdown of PPE commodity supply chains, educating Latka on how lack of transparent title ownership enables reseller fraud.

Nathan holds their own ▶ 10:04 Instant mathematical deduction of pre-seed valuation from dilution

Latka instantly computes that selling under 10% on a $350k raise translates to a post-money valuation exceeding $3.5M for a pre-revenue startup, putting the founder on the spot.

the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Introducing Giancarlo DeLeo and TrustChain Global 5513 Latka probes the swift transition from SaaS to Web3 and questions why blockchain is necessary when SaaS can handle transactional services. DeLeo explains the structural fraud, title ownership challenges, and broker proxy issues in physical commodity markets.
Initial Customers and Onboarding Verification Workflow 5314 Latka presses to distinguish booked revenue from realized cash flow and breaks down the exact pricing tiers. DeLeo details the customer workflow involving AML/KYC checks and bespoke deal standard operating procedures.
Sales Acquisition Strategy and Monetization Dynamics 7327 Latka challenges the unit economics of conducting outbound enterprise prospecting for a product charging only $200 per month. DeLeo clarifies that SaaS subscriptions are merely a wedge for high-margin escrow and paymaster transaction fees.
Founderpath Valuation Tool Advertisement 8438 Latka interrogates the cap table, calculating the implied pre-seed valuation above $3M and questioning whether a $200 SaaS fee is a distracting hedge against closing $200k commodity transactions. DeLeo defends the subscription fee as essential revenue for software diligence when deal timelines stretch.
The Famous Five and Episode Conclusion 4001 Latka runs through the Famous Five rapid-fire questions and summarizes the business metrics in an outro recap. The exchange is lighthearted and conversational.

Statements from this episode (8)

Disclosure
DeLeo: TrustChain expanded from KYC SaaS into an escrow platform
“We started off as a SaaS play thinking that, you know, we're going to do a bunch of services that would be great for people in the commodities industry and realizing that it needs to grow into that and it needs to change the platform really quickly after custo…”
Giancarlo DeLeo Mar 11, 2022 ▶ 1:35
Opinion
DeLeo: Web3 blockchain enables seamless digital tracking of commodity ownership
“Moving into a web three point O blockchain kind of model, then the ownership and the title will move very easily over that. And it'd be tracked properly and it will be done in a digital manner versus the way that happens now.”
Giancarlo DeLeo Mar 11, 2022 ▶ 3:13
Disclosure
DeLeo: TrustChain charges $199 per month for platform access
“So right now that's 199 dollars a month that they used to do that.”
Giancarlo DeLeo Mar 11, 2022 ▶ 5:34
Disclosure
DeLeo: TrustChain has exactly five total paying customers
“We have five customers in total right now.”
Giancarlo DeLeo Mar 11, 2022 ▶ 5:57
Insight
Latka: Outbound sales playbooks are unsustainable at $200 per month
“I mean, you can't run an outbound sales playbook at 200 bucks a month. There's not enough margin to play with the cover sales expenses.”
Nathan Latka Mar 11, 2022 ▶ 7:02
Disclosure
DeLeo: TrustChain's main revenue will come from escrow and paymaster fees
“Because our main, our business, our main business model is them using our escrow and pay master services. That's where we are a bank where we're modeling on. That's where our main revenue is going to be coming from, where they're at. We're actually acting as t…”
Giancarlo DeLeo Mar 11, 2022 ▶ 7:14
Disclosure
DeLeo: TrustChain raised $350k in its pre-seed round
“Right there, we raised 350,000 U.S.”
Giancarlo DeLeo Mar 11, 2022 ▶ 9:56
Assertion Not checkable as stated
DeLeo: TrustChain is onboarding a copper deal worth $200k in fees
“So like the copper deal that we're bringing on board, the services fee that we're charging them, not just the monthly, but the other fees of like the escrow and the other pieces like that. And the procurement fee that we're doing that though, that one deal is …”
Giancarlo DeLeo Mar 11, 2022 ▶ 10:32
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