Dec 1, 2021 · 21m · top-founders
Myr POS SaaS For SMB's hits $1.2m ARR, Raised at $7.5m Valuation with 400 Customers
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gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions
MYR POS founder David Nadirzdin joins Nathan Latka to discuss how his company evolved from a digital agency project into a specialized point-of-sale SaaS generating over $1.2M in ARR across 1,200 quick-service restaurant locations. He details their unit economics, multi-unit franchise expansion, and capital strategy combining equity fundraising, low-interest debt, and R&D subsidies.
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 34% of the talking time here. How this is scored →
Nathan as informed peer 6.0 Guest teaching 3.2 Guest disagreement 1.5 Nathan pushing back 4.2
speaking balance: gold is Nathan, purple is the guest (3 minute bins)
Sharpest disagreement ▶ 3:06 Pushing back against big POS competitors
David directly counters Nathan's question about Toast and Square by categorizing Square purely as a payments company and Toast as mismatched full-service tech.
Hardest push from Nathan ▶ 14:01 Questioning heavy equity dilutionNathan directly challenges David's valuation math, confronting him on why he would willingly dilute his ownership from 70% down to under 58%.
Biggest teaching moment ▶ 1:13 Explaining limited service unit economicsDavid educates Nathan on the fundamental operational difference between full-service upselling and limited-service throughput speed.
Nathan holds their own ▶ 18:45 Calling out Canadian SR&ED financing metricsNathan immediately identifies the Canadian R&D subsidy as SR&ED, quoting exact subsidy percentages and low BDC interest rates from previous deal experience.
the scores for every segment, with the reasoning behind each
| Chapter | Topic | Nathan as informed peer | Guest teaching | Guest disagreement | Nathan pushing back | Why |
|---|---|---|---|---|---|---|
| Defining Limited Service Restaurants and Market Opportunity | 4 | 4 | 1 | 2 | Nathan asks for a definition of limited service restaurants, testing if it aligns with airport kiosks he encounters. David explains the key distinction between full-service upselling and rapid turnaround order maximization. | |
| Competing Against Legacy POS and Company Origins | 5 | 5 | 2 | 4 | Nathan challenges David on why massive players like Toast, Square, and Par cannot handle this use case. David clarifies that legacy POS systems were built for full-service table dining rather than McDonald's-style throughput. | |
| Subscription Pricing, GMV, and Payment Processing | 6 | 2 | 1 | 5 | Nathan presses on pricing specifics and pushes for precise figures on GMV flowing through devices. He also interrogates the decision to shut down a profitable $2.5M agency to pursue SaaS. | |
| Fundraising History, Cap Table, and Franchise Expansion | 7 | 3 | 2 | 6 | Nathan digs into the cap table, funding history, and monthly revenues. When David speaks about raising a Series A at a $20M pre-money valuation, Nathan pushes him on whether he really thinks he will achieve it. | |
| Founderpath Valuation Tool Sponsor Break | 7 | 2 | 2 | 5 | Following the Founderpath sponsor break, Nathan challenges David on taking significant dilution by raising $5M on a $20M valuation. David justifies the move based on market timing and untapped franchise demand. | |
| Device Financing and Canadian Government R&D Subsidies | 7 | 3 | 1 | 3 | Nathan demonstrates domain knowledge of Canadian SR&ED tax credits and BDC debt interest rates, matching David's operational context seamlessly before closing with the Famous Five. |
Statements from this episode (19)
Nadirzdin: Many Limited-Service Restaurants Still Rely on Legacy Enterprise POS
“What we're starting to see is that there's a huge niche in a huge segment of limited service restaurant that are simply not being catered to. They're still being catered to with old, they're not antiquated, but enterprise based solutions, you know, much like N…”
Nadirzdin: Toast and Lightspeed Tech Stacks Fail Limited-Service Restaurants
“If you're looking at actual POS like toast, like light speed, like a touch bistro, for example, they were built and inherently servicing a full service market industry. So naturally their technology stack didn't grow and evolve. For what the actual limited ser…”
Nadirzdin: MYR POS processes over $100 million in annual GMV
“I wasn't prepared for that, but I would say north of a hundred million right now.”
Nadirzdin: MYR POS is deployed across 1,200 restaurant locations
“We have 1200 locations that are launched and in terms of devices, most locations are averaging now two point of sale terminals in general.”
Nadirzdin: MYR aims to partner with acquirers rather than rival Square
“We're, we don't have delusions of grandeur. We're not looking to go after square or toast or any of that. What we're trying to do is become an ISV that a payment acquirer is going to want to work with.”
Nadirzdin: MYR POS raised $1.25M at $7.5M valuation in 2020
“We did it at 7.5 pre money, and we've exponentially grown since then.”
Nadirzdin: MYR projects $1.25M ARR and $2M revenue in 2021
“We're going to be ending this year with a top line revenue over two million. And our ARR is going to be sitting at about 1.25, based on our prediction of what's going to happen by the end of this year.”
Nadirzdin: MYR POS annual net churn is under 2%
“Most fascinating number that we have, and this is during COVID and during the pandemic is that our net churn is less than two percent annually.”
Nadirzdin: MYR POS reached positive EBITDA during COVID-19
“During that raise, we actually got to positive IVIDDA during COVID.”
Nadirzdin: MYR POS closed 2020 at $48K in MRR
“We ended the year at 48,000 actually in monthly recurring revenue.”
Nadirzdin: MYR POS will secure a $20M Series A valuation
“Yeah, absolutely. We actually have two, two partner acquirers in the United States that are looking at our file carefully right now. We already have two VCs that want to follow, not as leads because they finish all of their rounds as leads this year.”
Nadirzdin: Competitors are ignoring restaurant franchises at trade shows
“What we started to leverage is, look, we started to go to franchise shows with our sales team and no one's there. No, no one's approaching these franchises. No one has, no one seems to have the offering that we have, which is, you know, it's interesting and un…”
Nadirzdin: MYR outsources all POS installations to enterprise contractor
“All of our installations are not done by us. There's a third party company that handles KFC pizza hut and Burger King across North America. So They do all of our installations.”
Nadirzdin: Restaurant clients swap POS hardware every 3-4 years
“And they usually do a hardware swap every like three to four years.”