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Nov 22, 2020 · 16m · top-founders

CoachMePlus raising $2m on $10m post money right now

Kevin Davidovich · 10m spoken Nathan Latka · 4m spoken Frank Bien · 4s spoken Eric Yuan · 4s spoken Vivek Bhaskaran · 2s spoken
0:00 / 0:00

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CoachMePlus founder Kevin Davidovich joins Nathan Latka to discuss scaling the athletic performance platform to $1.6 million in ARR, pivoting from professional sports teams to commercial fitness gyms, and actively raising $2 million to $3 million on a $10 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 28.6% of the talking time here. How this is scored →

Nathan as informed peer 5.6 Guest teaching 2.8 Guest disagreement 1.6 Nathan pushing back 3.6
05100:0010:003:47–6:11 · Nathan as informed peer 5/10 Strategic Expansion from Enterprise to SMB Gyms Nathan attempts to calculate monthly revenue based on SMB gym pricing across all accounts, but Kevin corrects his misunderstanding by pointing out enterprise accounts pay $30k to $40k annually. Kevin then educates Nathan on why market ceilings in professional sports forced their downstream expansion.6:12–9:05 · Nathan as informed peer 6/10 Run Rate Growth, Cash Flow Breakeven, and Team Structure Nathan methodically calculates annual and monthly run rate metrics and drills Kevin on runway management and burn rate history. Kevin openly shares their cash flow breakeven milestone and accordion-like 12 to 24 month runway cycles.9:06–11:24 · Nathan as informed peer 6/10 Funding History, Market Ceilings, and Strategic Pivots Nathan presses Kevin on historical and current valuation expectations when Kevin initially tries to deflect with a generic market answer. Kevin concedes their target post-money valuation is $10 million for the active fundraise.11:25–15:15 · Nathan as informed peer 7/10 Fundraising Target, SaaS Unit Economics, and Capital Allocation Nathan demonstrates strong SaaS expertise by instantly calculating a four-month CAC payback period from Kevin's CAC and ACV figures. He also quickly clarifies Kevin's churn metric when Kevin mistakenly says monthly instead of annually.15:15–16:56 · Nathan as informed peer 4/10 Famous Five Q&A and Episode Conclusion A relaxed Famous Five rapid-fire section where Nathan briefly pushes back on Kevin's sleep habits before summarizing the company's metrics in the outro recap.3:47–6:11 · Guest teaching 6/10 Strategic Expansion from Enterprise to SMB Gyms Nathan attempts to calculate monthly revenue based on SMB gym pricing across all accounts, but Kevin corrects his misunderstanding by pointing out enterprise accounts pay $30k to $40k annually. Kevin then educates Nathan on why market ceilings in professional sports forced their downstream expansion.6:12–9:05 · Guest teaching 2/10 Run Rate Growth, Cash Flow Breakeven, and Team Structure Nathan methodically calculates annual and monthly run rate metrics and drills Kevin on runway management and burn rate history. Kevin openly shares their cash flow breakeven milestone and accordion-like 12 to 24 month runway cycles.9:06–11:24 · Guest teaching 2/10 Funding History, Market Ceilings, and Strategic Pivots Nathan presses Kevin on historical and current valuation expectations when Kevin initially tries to deflect with a generic market answer. Kevin concedes their target post-money valuation is $10 million for the active fundraise.11:25–15:15 · Guest teaching 3/10 Fundraising Target, SaaS Unit Economics, and Capital Allocation Nathan demonstrates strong SaaS expertise by instantly calculating a four-month CAC payback period from Kevin's CAC and ACV figures. He also quickly clarifies Kevin's churn metric when Kevin mistakenly says monthly instead of annually.15:15–16:56 · Guest teaching 1/10 Famous Five Q&A and Episode Conclusion A relaxed Famous Five rapid-fire section where Nathan briefly pushes back on Kevin's sleep habits before summarizing the company's metrics in the outro recap.3:47–6:11 · Guest disagreement 3/10 Strategic Expansion from Enterprise to SMB Gyms Nathan attempts to calculate monthly revenue based on SMB gym pricing across all accounts, but Kevin corrects his misunderstanding by pointing out enterprise accounts pay $30k to $40k annually. Kevin then educates Nathan on why market ceilings in professional sports forced their downstream expansion.6:12–9:05 · Guest disagreement 1/10 Run Rate Growth, Cash Flow Breakeven, and Team Structure Nathan methodically calculates annual and monthly run rate metrics and drills Kevin on runway management and burn rate history. Kevin openly shares their cash flow breakeven milestone and accordion-like 12 to 24 month runway cycles.9:06–11:24 · Guest disagreement 2/10 Funding History, Market Ceilings, and Strategic Pivots Nathan presses Kevin on historical and current valuation expectations when Kevin initially tries to deflect with a generic market answer. Kevin concedes their target post-money valuation is $10 million for the active fundraise.11:25–15:15 · Guest disagreement 1/10 Fundraising Target, SaaS Unit Economics, and Capital Allocation Nathan demonstrates strong SaaS expertise by instantly calculating a four-month CAC payback period from Kevin's CAC and ACV figures. He also quickly clarifies Kevin's churn metric when Kevin mistakenly says monthly instead of annually.15:15–16:56 · Guest disagreement 1/10 Famous Five Q&A and Episode Conclusion A relaxed Famous Five rapid-fire section where Nathan briefly pushes back on Kevin's sleep habits before summarizing the company's metrics in the outro recap.3:47–6:11 · Nathan pushing back 4/10 Strategic Expansion from Enterprise to SMB Gyms Nathan attempts to calculate monthly revenue based on SMB gym pricing across all accounts, but Kevin corrects his misunderstanding by pointing out enterprise accounts pay $30k to $40k annually. Kevin then educates Nathan on why market ceilings in professional sports forced their downstream expansion.6:12–9:05 · Nathan pushing back 3/10 Run Rate Growth, Cash Flow Breakeven, and Team Structure Nathan methodically calculates annual and monthly run rate metrics and drills Kevin on runway management and burn rate history. Kevin openly shares their cash flow breakeven milestone and accordion-like 12 to 24 month runway cycles.9:06–11:24 · Nathan pushing back 5/10 Funding History, Market Ceilings, and Strategic Pivots Nathan presses Kevin on historical and current valuation expectations when Kevin initially tries to deflect with a generic market answer. Kevin concedes their target post-money valuation is $10 million for the active fundraise.11:25–15:15 · Nathan pushing back 4/10 Fundraising Target, SaaS Unit Economics, and Capital Allocation Nathan demonstrates strong SaaS expertise by instantly calculating a four-month CAC payback period from Kevin's CAC and ACV figures. He also quickly clarifies Kevin's churn metric when Kevin mistakenly says monthly instead of annually.15:15–16:56 · Nathan pushing back 2/10 Famous Five Q&A and Episode Conclusion A relaxed Famous Five rapid-fire section where Nathan briefly pushes back on Kevin's sleep habits before summarizing the company's metrics in the outro recap.

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

0:00 · Nathan 56.1% · guest 43.9%0:00 · Nathan 56.1% · guest 43.9%3:00 · Nathan 15.4% · guest 84.6%3:00 · Nathan 15.4% · guest 84.6%6:00 · Nathan 22.4% · guest 77.6%6:00 · Nathan 22.4% · guest 77.6%9:00 · Nathan 21.9% · guest 78.1%9:00 · Nathan 21.9% · guest 78.1%12:00 · Nathan 12.9% · guest 87.1%12:00 · Nathan 12.9% · guest 87.1%15:00 · Nathan 53.6% · guest 46.4%15:00 · Nathan 53.6% · guest 46.4%
Sharpest disagreement ▶ 4:56 Rejecting the uniform revenue assumption

Kevin directly refutes Nathan's calculation that they make $30k a month by distinguishing between their low-cost gym accounts and high-value enterprise sports contracts.

 Hardest push from Nathan ▶ 11:10 Demanding a concrete valuation figure

When Kevin evades naming a valuation by stating 'whatever the market will accept', Nathan immediately rejects the non-answer and demands a best-case estimate.

 Biggest teaching moment ▶ 4:51 Explaining the enterprise tier pricing

Kevin corrects Nathan's assumption that all accounts are paying $100 per month, explaining that the enterprise sports tier commands $30k-$40k annually.

 Nathan holds their own ▶ 12:44 Rapid SaaS unit economics translation

Nathan showcases domain expertise by instantly converting a $700 CAC on annual plans into an exact four-month payback period without hesitation.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Strategic Expansion from Enterprise to SMB Gyms 5634 Nathan attempts to calculate monthly revenue based on SMB gym pricing across all accounts, but Kevin corrects his misunderstanding by pointing out enterprise accounts pay $30k to $40k annually. Kevin then educates Nathan on why market ceilings in professional sports forced their downstream expansion.
Run Rate Growth, Cash Flow Breakeven, and Team Structure 6213 Nathan methodically calculates annual and monthly run rate metrics and drills Kevin on runway management and burn rate history. Kevin openly shares their cash flow breakeven milestone and accordion-like 12 to 24 month runway cycles.
Funding History, Market Ceilings, and Strategic Pivots 6225 Nathan presses Kevin on historical and current valuation expectations when Kevin initially tries to deflect with a generic market answer. Kevin concedes their target post-money valuation is $10 million for the active fundraise.
Fundraising Target, SaaS Unit Economics, and Capital Allocation 7314 Nathan demonstrates strong SaaS expertise by instantly calculating a four-month CAC payback period from Kevin's CAC and ACV figures. He also quickly clarifies Kevin's churn metric when Kevin mistakenly says monthly instead of annually.
Famous Five Q&A and Episode Conclusion 4112 A relaxed Famous Five rapid-fire section where Nathan briefly pushes back on Kevin's sleep habits before summarizing the company's metrics in the outro recap.

Statements from this episode (15)

Assertion Not publicly verifiable
Davidovich: New York Giants were a CoachMePlus customer for several years
“It's actually, it's funny you mentioned the New York football giants. Yeah, they were a customer of ours for a couple of years.”
Kevin Davidovich Nov 22, 2020 ▶ 2:41
Assertion Not checkable as stated
Davidovich: CoachMePlus has over 100 gym clients and 200 lifetime enterprise clients
“The enterprise customers we've worked with about 200 in total on the gym side we're under, no, we're a little bit over a hundred right now.”
Kevin Davidovich Nov 22, 2020 ▶ 3:23
Disclosure
CoachMePlus charges gym owners around $1,400 annually
“So for the gym owners it's about 1400 dollars a year. So you're looking somewhere around a hundred dollars a month or so”
Kevin Davidovich Nov 22, 2020 ▶ 4:31
Disclosure
CoachMePlus enterprise sports contracts range from $30k to $40k annually
“On the pro side, I mean, the average customer size, on the professional sports side enterprise customer is anywhere between 30 and 40,000 dollars a year.”
Kevin Davidovich Nov 22, 2020 ▶ 4:56
Prediction Not checkable as stated
Davidovich: CoachMePlus's long tail will be small gyms and high schools
“The long tail of the business is really going to be in the, you know, in the smaller gyms and high schools and smaller market.”
Kevin Davidovich Nov 22, 2020 ▶ 5:44
Assertion Not checkable as stated
CoachMePlus has reached a $1.6M annualized revenue run rate
“Oh, so our annualized is over 1.6.”
Kevin Davidovich Nov 22, 2020 ▶ 6:20
Assertion Not checkable as stated
Davidovich: CoachMePlus reached cash flow breakeven at $1 million run rate
“Just around a million or so, you know, we got to cash flow break even, which was a huge milestone for us.”
Kevin Davidovich Nov 22, 2020 ▶ 7:21
Assertion Not checkable as stated
CoachMePlus operates with a lean team of 12 people
“We've only got 12 people. We run a very lean organization.”
Kevin Davidovich Nov 22, 2020 ▶ 8:16
Disclosure
Davidovich: CoachMePlus has raised $1.85M in total capital
“We raised one point 1.85 million.”
Kevin Davidovich Nov 22, 2020 ▶ 9:13
Assertion Not checkable as stated
Davidovich: CoachMePlus started with Philadelphia Eagles and Oregon Ducks as customers
“At the time we were at five or six customers on the enterprise level. We had, you know, two, three teams in the NHL Philadelphia Eagles in the NFL, Oregon Ducks you know, in, in NCAA”
Kevin Davidovich Nov 22, 2020 ▶ 9:29
Assertion Not publicly verifiable
Davidovich: CoachMePlus raised its 2013 round at a ~$3M valuation
“2013. I think the valuation was around three million or so.”
Kevin Davidovich Nov 22, 2020 ▶ 11:01
Disclosure
CoachMePlus targets a $10M post-money valuation for its current fundraise
“You know, it's going to be a ten million dollar cost valuation.”
Kevin Davidovich Nov 22, 2020 ▶ 11:20
Opinion
Davidovich: Brick-and-mortar gyms without remote fitness options are 'dead'
“If you have a brick and mortar fitness facility and you're not offering remote fitness right now, you're dead.”
Kevin Davidovich Nov 22, 2020 ▶ 12:21
Assertion Not checkable as stated
Davidovich: CoachMePlus maintains a $700 CAC and 3.6x LTV:CAC ratio
“Right now it's about 700 bucks. So our ratio is like three point six, which is great.”
Kevin Davidovich Nov 22, 2020 ▶ 12:45
Disclosure
Davidovich: CoachMePlus is raising between $2M and $3M
“We're gonna raise between two to three million dollars.”
Kevin Davidovich Nov 22, 2020 ▶ 14:58
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