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Feb 16, 2022 · 17m · top-founders

AI Powered Internal Search Tool Grows 200%, Breaks $1m Run Rate, $15m Valuation in 2020

Suzanne Lauritzen · 7m 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

In this interview, Nathan Latka speaks with raffle.ai CEO Suzanne Lauritzen about how her enterprise AI search company crossed $1 million in ARR across 50 enterprise customers, maintained capital efficiency, and structured its impending Series A funding and European expansion.

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 46.7% of the talking time here. How this is scored →

Nathan as informed peer 5.8 Guest teaching 2.6 Guest disagreement 1.4 Nathan pushing back 2.4
05100:0010:001:51–4:17 · Nathan as informed peer 6/10 Customer Traction, Contract Values, and $1M Run Rate Latka recalls their previous interview data and calculates run rate on the fly based on 50 enterprise customers at an average contract value of $25,000. Lauritzen confirms the math and clarifies that they recently passed the $1M ARR threshold.4:19–6:58 · Nathan as informed peer 5/10 Series A Fundraising and Exit Warrant Program Latka attempts to probe the size of the unannounced Series A round, but Lauritzen holds the line due to timing. Lauritzen explains the structure of their exit-contingent warrant program to Latka, which catches his interest.6:59–9:29 · Nathan as informed peer 5/10 Scaling Velocity, Implementation Efficiency, and Team Size Latka presses Lauritzen on whether the company went through layoffs when comparing past and present headcount numbers. Lauritzen clarifies the distinction between full-time and part-time staff, emphasizing their 305% revenue growth.9:30–13:04 · Nathan as informed peer 7/10 Sales Quotas, Cap Table, and European Expansion Latka demonstrates sharp cap table intuition by calculating the exact remaining equity splits for both co-founders based on prior angel and seed dilution. Lauritzen compliments his calculation as spot-on.13:04–16:46 · Nathan as informed peer 6/10 Unit Economics and Customer Acquisition Cost Analysis Latka translates Lauritzen's 5:1 LTV-to-CAC ratio into dollar figures against her three-year customer horizon. Lauritzen candidly admits she does not know her net dollar retention metric offhand.1:51–4:17 · Guest teaching 2/10 Customer Traction, Contract Values, and $1M Run Rate Latka recalls their previous interview data and calculates run rate on the fly based on 50 enterprise customers at an average contract value of $25,000. Lauritzen confirms the math and clarifies that they recently passed the $1M ARR threshold.4:19–6:58 · Guest teaching 5/10 Series A Fundraising and Exit Warrant Program Latka attempts to probe the size of the unannounced Series A round, but Lauritzen holds the line due to timing. Lauritzen explains the structure of their exit-contingent warrant program to Latka, which catches his interest.6:59–9:29 · Guest teaching 3/10 Scaling Velocity, Implementation Efficiency, and Team Size Latka presses Lauritzen on whether the company went through layoffs when comparing past and present headcount numbers. Lauritzen clarifies the distinction between full-time and part-time staff, emphasizing their 305% revenue growth.9:30–13:04 · Guest teaching 1/10 Sales Quotas, Cap Table, and European Expansion Latka demonstrates sharp cap table intuition by calculating the exact remaining equity splits for both co-founders based on prior angel and seed dilution. Lauritzen compliments his calculation as spot-on.13:04–16:46 · Guest teaching 2/10 Unit Economics and Customer Acquisition Cost Analysis Latka translates Lauritzen's 5:1 LTV-to-CAC ratio into dollar figures against her three-year customer horizon. Lauritzen candidly admits she does not know her net dollar retention metric offhand.1:51–4:17 · Guest disagreement 1/10 Customer Traction, Contract Values, and $1M Run Rate Latka recalls their previous interview data and calculates run rate on the fly based on 50 enterprise customers at an average contract value of $25,000. Lauritzen confirms the math and clarifies that they recently passed the $1M ARR threshold.4:19–6:58 · Guest disagreement 2/10 Series A Fundraising and Exit Warrant Program Latka attempts to probe the size of the unannounced Series A round, but Lauritzen holds the line due to timing. Lauritzen explains the structure of their exit-contingent warrant program to Latka, which catches his interest.6:59–9:29 · Guest disagreement 2/10 Scaling Velocity, Implementation Efficiency, and Team Size Latka presses Lauritzen on whether the company went through layoffs when comparing past and present headcount numbers. Lauritzen clarifies the distinction between full-time and part-time staff, emphasizing their 305% revenue growth.9:30–13:04 · Guest disagreement 1/10 Sales Quotas, Cap Table, and European Expansion Latka demonstrates sharp cap table intuition by calculating the exact remaining equity splits for both co-founders based on prior angel and seed dilution. Lauritzen compliments his calculation as spot-on.13:04–16:46 · Guest disagreement 1/10 Unit Economics and Customer Acquisition Cost Analysis Latka translates Lauritzen's 5:1 LTV-to-CAC ratio into dollar figures against her three-year customer horizon. Lauritzen candidly admits she does not know her net dollar retention metric offhand.1:51–4:17 · Nathan pushing back 2/10 Customer Traction, Contract Values, and $1M Run Rate Latka recalls their previous interview data and calculates run rate on the fly based on 50 enterprise customers at an average contract value of $25,000. Lauritzen confirms the math and clarifies that they recently passed the $1M ARR threshold.4:19–6:58 · Nathan pushing back 3/10 Series A Fundraising and Exit Warrant Program Latka attempts to probe the size of the unannounced Series A round, but Lauritzen holds the line due to timing. Lauritzen explains the structure of their exit-contingent warrant program to Latka, which catches his interest.6:59–9:29 · Nathan pushing back 4/10 Scaling Velocity, Implementation Efficiency, and Team Size Latka presses Lauritzen on whether the company went through layoffs when comparing past and present headcount numbers. Lauritzen clarifies the distinction between full-time and part-time staff, emphasizing their 305% revenue growth.9:30–13:04 · Nathan pushing back 1/10 Sales Quotas, Cap Table, and European Expansion Latka demonstrates sharp cap table intuition by calculating the exact remaining equity splits for both co-founders based on prior angel and seed dilution. Lauritzen compliments his calculation as spot-on.13:04–16:46 · Nathan pushing back 2/10 Unit Economics and Customer Acquisition Cost Analysis Latka translates Lauritzen's 5:1 LTV-to-CAC ratio into dollar figures against her three-year customer horizon. Lauritzen candidly admits she does not know her net dollar retention metric offhand.

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

0:00 · Nathan 61.5% · guest 38.5%0:00 · Nathan 61.5% · guest 38.5%3:00 · Nathan 43.1% · guest 56.9%3:00 · Nathan 43.1% · guest 56.9%6:00 · Nathan 32.1% · guest 67.9%6:00 · Nathan 32.1% · guest 67.9%9:00 · Nathan 43.1% · guest 56.9%9:00 · Nathan 43.1% · guest 56.9%12:00 · Nathan 42.9% · guest 57.1%12:00 · Nathan 42.9% · guest 57.1%15:00 · Nathan 62.8% · guest 37.2%15:00 · Nathan 62.8% · guest 37.2%
Sharpest disagreement ▶ 4:57 Withholding Series A details

Lauritzen firmly resists Latka's attempt to get an early estimate on the size of their upcoming funding round before it closes.

 Hardest push from Nathan ▶ 7:59 Inquiring about potential layoffs

Latka directly questions Lauritzen on whether headcount reduction occurred after comparing previous interview records with her current numbers.

 Biggest teaching moment ▶ 6:02 Explaining exit-based warrants

Lauritzen educates Latka on their specific exit warrant program design requiring staff to stay until an acquisition event of 50%+ equity.

 Nathan holds their own ▶ 12:16 Flawless cap table calculation

Latka computes the precise 22% founder ownership allocations in real time, earning immediate praise from the founder.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Customer Traction, Contract Values, and $1M Run Rate 6212 Latka recalls their previous interview data and calculates run rate on the fly based on 50 enterprise customers at an average contract value of $25,000. Lauritzen confirms the math and clarifies that they recently passed the $1M ARR threshold.
Series A Fundraising and Exit Warrant Program 5523 Latka attempts to probe the size of the unannounced Series A round, but Lauritzen holds the line due to timing. Lauritzen explains the structure of their exit-contingent warrant program to Latka, which catches his interest.
Scaling Velocity, Implementation Efficiency, and Team Size 5324 Latka presses Lauritzen on whether the company went through layoffs when comparing past and present headcount numbers. Lauritzen clarifies the distinction between full-time and part-time staff, emphasizing their 305% revenue growth.
Sales Quotas, Cap Table, and European Expansion 7111 Latka demonstrates sharp cap table intuition by calculating the exact remaining equity splits for both co-founders based on prior angel and seed dilution. Lauritzen compliments his calculation as spot-on.
Unit Economics and Customer Acquisition Cost Analysis 6212 Latka translates Lauritzen's 5:1 LTV-to-CAC ratio into dollar figures against her three-year customer horizon. Lauritzen candidly admits she does not know her net dollar retention metric offhand.

Statements from this episode (11)

Assertion Not checkable as stated
Lauritzen: raffle.ai has 50 paying enterprise customers
“We have around 50 total you know, big corporates. We have more customers than that, but paying customers and big corporates like enterprise cost customers are 50.”
Suzanne Lauritzen Feb 16, 2022 ▶ 2:56
Assertion Not checkable as stated
Lauritzen: raffle.ai's average annual contract value is $25,000
“The contract value today is about 25,000 a year. No. Sorry. Dollars. Dollars. 25 dollars. 25,000 dollars.”
Suzanne Lauritzen Feb 16, 2022 ▶ 3:24
Assertion Not checkable as stated
Lauritzen: raffle.ai has crossed a $1M revenue run rate
“Oh yeah. We have passed a million. Yeah.”
Suzanne Lauritzen Feb 16, 2022 ▶ 4:15
Assertion Supported
Lauritzen: raffle.ai's previous funding round was approximately $3M
“Well, our last funding round was about three million dollars.”
Suzanne Lauritzen Feb 16, 2022 ▶ 4:27
Disclosure
Lauritzen: raffle.ai's Series A is led by a US VC
“First of all, it's actually going to be an American it's a U S venture capital firm.”
Suzanne Lauritzen Feb 16, 2022 ▶ 5:24
Disclosure
Lauritzen: raffle.ai employee warrants only vest upon 50% company exit
“It works the way that you have you have the option to, or you have warrants that will be released the day that we actually exit, which is the day where we sell more than 50% of the company. So you have to stay to the end, so to speak, or to the day that we exi…”
Suzanne Lauritzen Feb 16, 2022 ▶ 6:02
Assertion Not checkable as stated
Lauritzen: raffle.ai cut customer onboarding from two months to two days
“We can now implement the customer within two days which we were maybe two months doing, you know, just one and a half years ago, it would, Take us two months to actually implement the customer.”
Suzanne Lauritzen Feb 16, 2022 ▶ 7:20
Assertion Not checkable as stated
Lauritzen: raffle.ai grew ARR by 305% since October 2020
“But still we have grown 305% in revenue or in ARR since then.”
Suzanne Lauritzen Feb 16, 2022 ▶ 8:24
Disclosure
Lauritzen: raffle.ai reserved 9% equity for employee options pre-Series A
“We have reserved nine percent up until now.”
Suzanne Lauritzen Feb 16, 2022 ▶ 11:59
Disclosure
Lauritzen: raffle.ai plans to delay US expansion until 2023
“But not, I don't think we're going to do it right now. I think we're going to do it in, in, in, in 23. So we are first going to expand in, in Europe.”
Suzanne Lauritzen Feb 16, 2022 ▶ 12:40
Assertion Not checkable as stated
Lauritzen: raffle.ai maintains a 5:1 LTV to CAC ratio
“Our LTV or our customer acquisition cost is five, I think at the moment. And that is only because we have an LTV only on three years that we calculated with. So I've learned that five years is actually normal. So so basically our the formula should be better. …”
Suzanne Lauritzen Feb 16, 2022 ▶ 13:15
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