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Feb 25, 2022 · 20m · top-founders

Popular Identity Verification Tool Raising $60m on $400m Now with $10m in Revenue

Thomas Kedar · 8m spoken Nathan Latka · 8m spoken
0:00 / 0:00

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

SEON co-founder and CEO Thomas Kedar discusses scaling the fraud prevention platform past $10 million in ARR, maintaining a 200% net dollar retention rate, and preparing for a $60M–$80M Series B fundraising round.

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 48% of the talking time here. How this is scored →

Nathan as informed peer 5.3 Guest teaching 1.4 Guest disagreement 0.6 Nathan pushing back 2.7
05100:0010:0020:000:51–2:57 · Nathan as informed peer 5/10 SEON Origin Story and Early Fundraising Milestones Nathan guides the origin story and systematically breaks down early funding milestones. He pushes for precise clarity when clarifying thirteen versus thirty million.2:58–6:27 · Nathan as informed peer 6/10 Fraud Detection Tech, API Volume, and Pricing Nathan drills into technical API metrics and business distribution between direct accounts and indirect payment gateways. He pushes Thomas to clarify whether revenue is concentrated in direct enterprise customers.6:27–9:43 · Nathan as informed peer 7/10 Revenue Growth, Low Churn, and 200% NDR Nathan executes rapid mental math on ARPU, run rate, and SaaS metrics. He instantly translates a 5% gross churn and 200% NDR into a 105% net expansion rate.9:46–13:34 · Nathan as informed peer 7/10 Founderpath SaaS Valuation Tool Announcement Nathan probes deeply into customer success compensation mechanics. Thomas looks up his internal spreadsheet to explain their net expansion commission model, and Nathan constructs a hypothetical scenario to verify payout terms.13:35–17:59 · Nathan as informed peer 8/10 Series B Strategy, Dilution, and Engineering Expansion Nathan rigorously probes the upcoming Series B round size, valuation targets, and implied dilution. He challenges Thomas's assumptions before validating current aggressive market multiples using the Cognism funding comp.18:00–20:05 · Nathan as informed peer 4/10 Scaling Sales Operations and Team Quota Distribution Nathan clarifies sales team quota structures and moves through the Famous Five questionnaire. The dynamic is cooperative with brief conversational clarifications around age.20:06–20:41 · Nathan as informed peer 0/10 Episode Conclusion and Company Performance Summary Nathan delivers an outro monologue summarizing SEON's core metrics, revenue growth, and fundraising targets. Because this is a monologue recap, host-side interactive metrics are zeroed.0:51–2:57 · Guest teaching 1/10 SEON Origin Story and Early Fundraising Milestones Nathan guides the origin story and systematically breaks down early funding milestones. He pushes for precise clarity when clarifying thirteen versus thirty million.2:58–6:27 · Guest teaching 2/10 Fraud Detection Tech, API Volume, and Pricing Nathan drills into technical API metrics and business distribution between direct accounts and indirect payment gateways. He pushes Thomas to clarify whether revenue is concentrated in direct enterprise customers.6:27–9:43 · Guest teaching 1/10 Revenue Growth, Low Churn, and 200% NDR Nathan executes rapid mental math on ARPU, run rate, and SaaS metrics. He instantly translates a 5% gross churn and 200% NDR into a 105% net expansion rate.9:46–13:34 · Guest teaching 3/10 Founderpath SaaS Valuation Tool Announcement Nathan probes deeply into customer success compensation mechanics. Thomas looks up his internal spreadsheet to explain their net expansion commission model, and Nathan constructs a hypothetical scenario to verify payout terms.13:35–17:59 · Guest teaching 2/10 Series B Strategy, Dilution, and Engineering Expansion Nathan rigorously probes the upcoming Series B round size, valuation targets, and implied dilution. He challenges Thomas's assumptions before validating current aggressive market multiples using the Cognism funding comp.18:00–20:05 · Guest teaching 1/10 Scaling Sales Operations and Team Quota Distribution Nathan clarifies sales team quota structures and moves through the Famous Five questionnaire. The dynamic is cooperative with brief conversational clarifications around age.20:06–20:41 · Guest teaching 0/10 Episode Conclusion and Company Performance Summary Nathan delivers an outro monologue summarizing SEON's core metrics, revenue growth, and fundraising targets. Because this is a monologue recap, host-side interactive metrics are zeroed.0:51–2:57 · Guest disagreement 0/10 SEON Origin Story and Early Fundraising Milestones Nathan guides the origin story and systematically breaks down early funding milestones. He pushes for precise clarity when clarifying thirteen versus thirty million.2:58–6:27 · Guest disagreement 1/10 Fraud Detection Tech, API Volume, and Pricing Nathan drills into technical API metrics and business distribution between direct accounts and indirect payment gateways. He pushes Thomas to clarify whether revenue is concentrated in direct enterprise customers.6:27–9:43 · Guest disagreement 0/10 Revenue Growth, Low Churn, and 200% NDR Nathan executes rapid mental math on ARPU, run rate, and SaaS metrics. He instantly translates a 5% gross churn and 200% NDR into a 105% net expansion rate.9:46–13:34 · Guest disagreement 0/10 Founderpath SaaS Valuation Tool Announcement Nathan probes deeply into customer success compensation mechanics. Thomas looks up his internal spreadsheet to explain their net expansion commission model, and Nathan constructs a hypothetical scenario to verify payout terms.13:35–17:59 · Guest disagreement 2/10 Series B Strategy, Dilution, and Engineering Expansion Nathan rigorously probes the upcoming Series B round size, valuation targets, and implied dilution. He challenges Thomas's assumptions before validating current aggressive market multiples using the Cognism funding comp.18:00–20:05 · Guest disagreement 1/10 Scaling Sales Operations and Team Quota Distribution Nathan clarifies sales team quota structures and moves through the Famous Five questionnaire. The dynamic is cooperative with brief conversational clarifications around age.20:06–20:41 · Guest disagreement 0/10 Episode Conclusion and Company Performance Summary Nathan delivers an outro monologue summarizing SEON's core metrics, revenue growth, and fundraising targets. Because this is a monologue recap, host-side interactive metrics are zeroed.0:51–2:57 · Nathan pushing back 2/10 SEON Origin Story and Early Fundraising Milestones Nathan guides the origin story and systematically breaks down early funding milestones. He pushes for precise clarity when clarifying thirteen versus thirty million.2:58–6:27 · Nathan pushing back 3/10 Fraud Detection Tech, API Volume, and Pricing Nathan drills into technical API metrics and business distribution between direct accounts and indirect payment gateways. He pushes Thomas to clarify whether revenue is concentrated in direct enterprise customers.6:27–9:43 · Nathan pushing back 2/10 Revenue Growth, Low Churn, and 200% NDR Nathan executes rapid mental math on ARPU, run rate, and SaaS metrics. He instantly translates a 5% gross churn and 200% NDR into a 105% net expansion rate.9:46–13:34 · Nathan pushing back 3/10 Founderpath SaaS Valuation Tool Announcement Nathan probes deeply into customer success compensation mechanics. Thomas looks up his internal spreadsheet to explain their net expansion commission model, and Nathan constructs a hypothetical scenario to verify payout terms.13:35–17:59 · Nathan pushing back 6/10 Series B Strategy, Dilution, and Engineering Expansion Nathan rigorously probes the upcoming Series B round size, valuation targets, and implied dilution. He challenges Thomas's assumptions before validating current aggressive market multiples using the Cognism funding comp.18:00–20:05 · Nathan pushing back 3/10 Scaling Sales Operations and Team Quota Distribution Nathan clarifies sales team quota structures and moves through the Famous Five questionnaire. The dynamic is cooperative with brief conversational clarifications around age.20:06–20:41 · Nathan pushing back 0/10 Episode Conclusion and Company Performance Summary Nathan delivers an outro monologue summarizing SEON's core metrics, revenue growth, and fundraising targets. Because this is a monologue recap, host-side interactive metrics are zeroed.

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

0:00 · Nathan 51.2% · guest 48.8%0:00 · Nathan 51.2% · guest 48.8%3:00 · Nathan 42.9% · guest 57.1%3:00 · Nathan 42.9% · guest 57.1%6:00 · Nathan 51.2% · guest 48.8%6:00 · Nathan 51.2% · guest 48.8%9:00 · Nathan 56.6% · guest 43.4%9:00 · Nathan 56.6% · guest 43.4%12:00 · Nathan 40.2% · guest 59.8%12:00 · Nathan 40.2% · guest 59.8%15:00 · Nathan 41.4% · guest 58.6%15:00 · Nathan 41.4% · guest 58.6%18:00 · Nathan 53.3% · guest 46.7%18:00 · Nathan 53.3% · guest 46.7%
Sharpest disagreement ▶ 16:24 Thomas rejects Nathan's third-of-company dilution framing

Thomas immediately pushes back against Nathan's suggestion that raising sixty million would require giving up a third of the business, insisting dilution will stay standard at 15 to 20 percent.

 Hardest push from Nathan ▶ 16:18 Nathan challenges Series B dilution and valuation targets

Nathan directly presses Thomas on how he plans to manage dilution if raising sixty to eighty million dollars on prior valuation benchmarks.

 Biggest teaching moment ▶ 12:21 Thomas breaks down specific CSM incentive structure

Thomas pulls up his financial model live to educate Nathan on the exact 2 percent net expansion threshold and recurring commission rules his team implemented.

 Nathan holds their own ▶ 17:06 Nathan cites Cognism comp to benchmark 40x multiple

Nathan demonstrates command of private SaaS valuations by citing Cognism's recent 436 million dollar round on 25 million revenue to contextualize 20 to 80x ARR multiples.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
SEON Origin Story and Early Fundraising Milestones 5102 Nathan guides the origin story and systematically breaks down early funding milestones. He pushes for precise clarity when clarifying thirteen versus thirty million.
Fraud Detection Tech, API Volume, and Pricing 6213 Nathan drills into technical API metrics and business distribution between direct accounts and indirect payment gateways. He pushes Thomas to clarify whether revenue is concentrated in direct enterprise customers.
Revenue Growth, Low Churn, and 200% NDR 7102 Nathan executes rapid mental math on ARPU, run rate, and SaaS metrics. He instantly translates a 5% gross churn and 200% NDR into a 105% net expansion rate.
Founderpath SaaS Valuation Tool Announcement 7303 Nathan probes deeply into customer success compensation mechanics. Thomas looks up his internal spreadsheet to explain their net expansion commission model, and Nathan constructs a hypothetical scenario to verify payout terms.
Series B Strategy, Dilution, and Engineering Expansion 8226 Nathan rigorously probes the upcoming Series B round size, valuation targets, and implied dilution. He challenges Thomas's assumptions before validating current aggressive market multiples using the Cognism funding comp.
Scaling Sales Operations and Team Quota Distribution 4113 Nathan clarifies sales team quota structures and moves through the Famous Five questionnaire. The dynamic is cooperative with brief conversational clarifications around age.
Episode Conclusion and Company Performance Summary 0000 Nathan delivers an outro monologue summarizing SEON's core metrics, revenue growth, and fundraising targets. Because this is a monologue recap, host-side interactive metrics are zeroed.

Statements from this episode (12)

Assertion Supported
SEON has raised $13M in total funding to date
“We have raised so far thirteen million USD.”
Thomas Kedar Feb 25, 2022 ▶ 1:47
Assertion Supported
SEON Serves Revolut, Nubank, Patreon, and Afterpay as Fraud Prevention Clients
“We work with some of the largest now banks such as Revolut, Nubank, Work with subscription services, such as Patreon. we work with online gambling companies, online lending companies, PNPI companies. So like after pay”
Thomas Kedar Feb 25, 2022 ▶ 3:03
Assertion Not checkable as stated
SEON Processed Over 90 Million API Calls in December 2021
“It was more than nine million. Nine or nine zero? Nine zero. Nine zero million. Just in December of last year, 20, 21. That's right.”
Thomas Kedar Feb 25, 2022 ▶ 3:47
Assertion Not checkable as stated
SEON Has Close to 200 Direct Customers and Protects 5,000+ Online Businesses
“Well, we have just close to 200 direct customers, but since we have some payment gateway customers we are protecting more than 5000 online businesses out there.”
Thomas Kedar Feb 25, 2022 ▶ 4:03
Assertion Contradicted
SEON charges four to eight cents per API call
“It's between four to eight cents.”
Thomas Kedar Feb 25, 2022 ▶ 5:46
Assertion Not checkable as stated
SEON Has Never Raised Prices Since Inception
“No, it's always been like that. And we never raised prices since the beginning.”
Thomas Kedar Feb 25, 2022 ▶ 5:55
Assertion Not checkable as stated
SEON's average annual contract value sits at $55,000
“The ACV is Around right now, like, 55,000 US dollars a year. So about 4500 US dollars a month, I would say.”
Thomas Kedar Feb 25, 2022 ▶ 6:40
Assertion Not checkable as stated
SEON boasts an exceptionally high net dollar retention near 200%
“It's very close to 200, actually.”
Thomas Kedar Feb 25, 2022 ▶ 8:52
Assertion Not checkable as stated
SEON maintains a 5% annual gross revenue churn rate
“Not really. It's like five percent a year. We don't see, you know, businesses switching from us to other tools. What you see is they cease to exist, usually due to some You know, business continuity issues such as COVID and so on.”
Thomas Kedar Feb 25, 2022 ▶ 9:05
Disclosure
SEON requires CSMs to reach 2% monthly expansion for commission
“Yeah net expansion yeah, should be at least two percent uplift from previous month the space, and then they earn Also the same amount of commission based on that, but yeah, it's a new scheme.”
Thomas Kedar Feb 25, 2022 ▶ 11:57
Disclosure
SEON aims to raise a $60M to $80M Series B
“So our B will be, yeah, around 60 to 80. That's what we are aiming at, but you know, it's still ongoing.”
Thomas Kedar Feb 25, 2022 ▶ 16:04
Disclosure
SEON anticipates 15% to 20% dilution in its Series B
“No, I mean, valuation would be like, of course you know, we would dilute the same amounts before. So standard dilution, you know, between 15 and 20%.”
Thomas Kedar Feb 25, 2022 ▶ 16:28
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