StarZero All shows Try the podcast clipper →

Apr 13, 2020 · 22m · top-founders

1724 He's Raising $100m Now Despite COVID, $20m in Revenues, 101% YoY Growth Serving Online Retailers

Peter Arachofsky · 10m 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

Nathan Latka interviews Peter Irikovsky, CEO of Exponea, examining the company's growth from $3M to $20M in ARR at a 101% YoY clip serving e-commerce brands. They explore Exponea's unit economics, pandemic response, and plans for a $100M growth equity secondary recapitalization.

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 44.7% of the talking time here. How this is scored →

Nathan as informed peer 4.5 Guest teaching 1.2 Guest disagreement 0.8 Nathan pushing back 2.0
05100:0010:0020:000:00–3:23 · Nathan as informed peer 3/10 Podcast Schedule Update and iTunes Review Request Nathan begins with a solo plea for positive podcast reviews before introducing Peter and establishing Exponea's positioning within the customer data platform space.3:23–6:47 · Nathan as informed peer 6/10 Capital History, Headcount, and Unit Economics Nathan drills into capital raised, team sizing across geography, and rapidly calculates net retention metrics from Peter's reported gross churn and expansion figures.6:47–12:44 · Nathan as informed peer 6/10 Exploring Growth Equity and Secondary Buyout Strategy Nathan presses Peter on the mechanics of pursuing a majority growth equity deal to buy out an early investor who disagrees on international expansion strategy.12:46–17:45 · Nathan as informed peer 5/10 Sponsor Break: HostGator Website Services Following a sponsor read, Nathan probes runway and burn rate, where Peter gently corrects Nathan's assumption by noting monthly burn exceeds 500k.17:45–20:36 · Nathan as informed peer 6/10 Top-Line Trajectory and Target Valuation Deal Dynamics Nathan breaks down valuation targets and models what an equity round would look like in terms of pre-money valuation, dilution, and deal size.20:37–21:32 · Nathan as informed peer 1/10 Famous Five Rapid-Fire Questions The interview concludes smoothly with standard rapid-fire questions covering personal habits and reflection.0:00–3:23 · Guest teaching 1/10 Podcast Schedule Update and iTunes Review Request Nathan begins with a solo plea for positive podcast reviews before introducing Peter and establishing Exponea's positioning within the customer data platform space.3:23–6:47 · Guest teaching 1/10 Capital History, Headcount, and Unit Economics Nathan drills into capital raised, team sizing across geography, and rapidly calculates net retention metrics from Peter's reported gross churn and expansion figures.6:47–12:44 · Guest teaching 2/10 Exploring Growth Equity and Secondary Buyout Strategy Nathan presses Peter on the mechanics of pursuing a majority growth equity deal to buy out an early investor who disagrees on international expansion strategy.12:46–17:45 · Guest teaching 2/10 Sponsor Break: HostGator Website Services Following a sponsor read, Nathan probes runway and burn rate, where Peter gently corrects Nathan's assumption by noting monthly burn exceeds 500k.17:45–20:36 · Guest teaching 1/10 Top-Line Trajectory and Target Valuation Deal Dynamics Nathan breaks down valuation targets and models what an equity round would look like in terms of pre-money valuation, dilution, and deal size.20:37–21:32 · Guest teaching 0/10 Famous Five Rapid-Fire Questions The interview concludes smoothly with standard rapid-fire questions covering personal habits and reflection.0:00–3:23 · Guest disagreement 0/10 Podcast Schedule Update and iTunes Review Request Nathan begins with a solo plea for positive podcast reviews before introducing Peter and establishing Exponea's positioning within the customer data platform space.3:23–6:47 · Guest disagreement 1/10 Capital History, Headcount, and Unit Economics Nathan drills into capital raised, team sizing across geography, and rapidly calculates net retention metrics from Peter's reported gross churn and expansion figures.6:47–12:44 · Guest disagreement 1/10 Exploring Growth Equity and Secondary Buyout Strategy Nathan presses Peter on the mechanics of pursuing a majority growth equity deal to buy out an early investor who disagrees on international expansion strategy.12:46–17:45 · Guest disagreement 2/10 Sponsor Break: HostGator Website Services Following a sponsor read, Nathan probes runway and burn rate, where Peter gently corrects Nathan's assumption by noting monthly burn exceeds 500k.17:45–20:36 · Guest disagreement 1/10 Top-Line Trajectory and Target Valuation Deal Dynamics Nathan breaks down valuation targets and models what an equity round would look like in terms of pre-money valuation, dilution, and deal size.20:37–21:32 · Guest disagreement 0/10 Famous Five Rapid-Fire Questions The interview concludes smoothly with standard rapid-fire questions covering personal habits and reflection.0:00–3:23 · Nathan pushing back 1/10 Podcast Schedule Update and iTunes Review Request Nathan begins with a solo plea for positive podcast reviews before introducing Peter and establishing Exponea's positioning within the customer data platform space.3:23–6:47 · Nathan pushing back 2/10 Capital History, Headcount, and Unit Economics Nathan drills into capital raised, team sizing across geography, and rapidly calculates net retention metrics from Peter's reported gross churn and expansion figures.6:47–12:44 · Nathan pushing back 4/10 Exploring Growth Equity and Secondary Buyout Strategy Nathan presses Peter on the mechanics of pursuing a majority growth equity deal to buy out an early investor who disagrees on international expansion strategy.12:46–17:45 · Nathan pushing back 3/10 Sponsor Break: HostGator Website Services Following a sponsor read, Nathan probes runway and burn rate, where Peter gently corrects Nathan's assumption by noting monthly burn exceeds 500k.17:45–20:36 · Nathan pushing back 2/10 Top-Line Trajectory and Target Valuation Deal Dynamics Nathan breaks down valuation targets and models what an equity round would look like in terms of pre-money valuation, dilution, and deal size.20:37–21:32 · Nathan pushing back 0/10 Famous Five Rapid-Fire Questions The interview concludes smoothly with standard rapid-fire questions covering personal habits and reflection.

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

0:00 · Nathan 79.7% · guest 20.3%0:00 · Nathan 79.7% · guest 20.3%3:00 · Nathan 45.4% · guest 54.6%3:00 · Nathan 45.4% · guest 54.6%6:00 · Nathan 36.3% · guest 63.7%6:00 · Nathan 36.3% · guest 63.7%9:00 · Nathan 21.9% · guest 78.1%9:00 · Nathan 21.9% · guest 78.1%12:00 · Nathan 51.3% · guest 48.7%12:00 · Nathan 51.3% · guest 48.7%15:00 · Nathan 33.8% · guest 66.2%15:00 · Nathan 33.8% · guest 66.2%18:00 · Nathan 32.1% · guest 67.9%18:00 · Nathan 32.1% · guest 67.9%21:00 · Nathan 75.9% · guest 24.1%21:00 · Nathan 75.9% · guest 24.1%
Sharpest disagreement ▶ 10:37 Peter rejects Nathan's lower fundraising range estimate

When Nathan estimates the round will need to be between $40M and $70M, Peter directly rejects the premise, asserting the target is north of $100M.

 Hardest push from Nathan ▶ 10:54 Nathan demands clarity on operational capital

Nathan cuts through the secondary buyout numbers to force Peter to specify exactly how much fresh primary capital is needed on the balance sheet.

 Biggest teaching moment ▶ 9:43 Peter details the strategic deadlock with early investor

Peter educates Nathan on why selling a majority stake via secondary is necessary to remove an early investor who opposes expansion into the US market.

 Nathan holds their own ▶ 20:16 Nathan synthesizes the math behind the $100M valuation and dilution

Nathan instantly models the deal mechanics, calculating how a $100M injection on a $100M pre-money valuation yields a $200M post-money structure at 50% dilution.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Podcast Schedule Update and iTunes Review Request 3101 Nathan begins with a solo plea for positive podcast reviews before introducing Peter and establishing Exponea's positioning within the customer data platform space.
Capital History, Headcount, and Unit Economics 6112 Nathan drills into capital raised, team sizing across geography, and rapidly calculates net retention metrics from Peter's reported gross churn and expansion figures.
Exploring Growth Equity and Secondary Buyout Strategy 6214 Nathan presses Peter on the mechanics of pursuing a majority growth equity deal to buy out an early investor who disagrees on international expansion strategy.
Sponsor Break: HostGator Website Services 5223 Following a sponsor read, Nathan probes runway and burn rate, where Peter gently corrects Nathan's assumption by noting monthly burn exceeds 500k.
Top-Line Trajectory and Target Valuation Deal Dynamics 6112 Nathan breaks down valuation targets and models what an equity round would look like in terms of pre-money valuation, dilution, and deal size.
Famous Five Rapid-Fire Questions 1000 The interview concludes smoothly with standard rapid-fire questions covering personal habits and reflection.

Statements from this episode (17)

Assertion Supported
Exponea has raised over $35 million in total capital
“So we, we've raised over thirty five million.”
Peter Arachofsky Apr 13, 2020 ▶ 3:43
Assertion Not checkable as stated
Exponea's average contract value sits at $96,000 to $97,000 annually
“Hundred K. Just like 96, 97 is currently the average.”
Peter Arachofsky Apr 13, 2020 ▶ 5:19
Assertion Not checkable as stated
Exponea maintains 121% net retention, historically above 130%
“So our net retention, Has been long over 130. Now it's like 121%. And like we have a few contracts, expansion contracts that can drive it to 140% again.”
Peter Arachofsky Apr 13, 2020 ▶ 5:59
Assertion Not checkable as stated
Exponea reports a 12% annual gross revenue churn rate
“12% is the annual gross revenue churn.”
Peter Arachofsky Apr 13, 2020 ▶ 6:14
Assertion Not checkable as stated
Exponea reaches $19M contracted ARR across roughly 195 customers
“So I, so we're at the nineteen million in CRR. So that gives you something like 195 customers, something like that.”
Peter Arachofsky Apr 13, 2020 ▶ 6:36
Prediction Not publicly verifiable
Irikovsky believes Exponea can reach over $200M revenue in 5-7 years
“We believe we can drive the company to over two hundred million in revenue in like five to seven years, because also the crisis is structurally playing strongly in our favor.”
Peter Arachofsky Apr 13, 2020 ▶ 7:14
Disclosure
Exponea negotiates a majority deal to buy out an early investor
“We're talking about majority deal because we believe that through this, we will onboard our original investor.”
Peter Arachofsky Apr 13, 2020 ▶ 9:17
Disclosure
Exponea targets over $100M in upcoming growth equity recapitalization
“Ah, actually, I think it's going to be even more. It's, we believe it's going to be north of a hundred.”
Peter Arachofsky Apr 13, 2020 ▶ 10:39
Disclosure
Irikovsky: Exponea is not profitable and would cut costs if fundraising fails
“So we're not profitable, but as our backup option is, we know that if we don't raise by the summer, we will have to take some cost cutting measures to make us profitable, but it wouldn't have to be very aggressive.”
Peter Arachofsky Apr 13, 2020 ▶ 12:32
Disclosure
Irikovsky promised Exponea staff no cost-cutting during the COVID-19 crisis
“We currently are burning money, and we, you know, gave everyone in the company a promise that we are not gonna do cost cutting. We're focused on ensuring that we pay the salaries to people.”
Peter Arachofsky Apr 13, 2020 ▶ 14:08
Assertion Not checkable as stated
Exponea Has Over $5 Million Cash Remaining in Accounts
“We, we've got, if I remember correctly, we have got something over five.”
Peter Arachofsky Apr 13, 2020 ▶ 15:55
Assertion Not checkable as stated
Irikovsky: Exponea Burns Slightly Over $500K Per Month
“We are burning slightly more than 500 K per month.”
Peter Arachofsky Apr 13, 2020 ▶ 16:13
Assertion Not checkable as stated
Irikovsky: Exponea CAC Payback Is 21 Months Blended
“The return on CAG is on the blended average is 21 months. But if you look at some of the regions that are already well performing, we were just slightly over 12, which is what we want to achieve in all the markets once we, you know, go through the ramp up peri…”
Peter Arachofsky Apr 13, 2020 ▶ 16:49
Assertion Not checkable as stated
Exponea achieved 101% YoY revenue growth in 2019
“Year on over year growth for 2019 was 101%.”
Peter Arachofsky Apr 13, 2020 ▶ 17:52
Disclosure
COVID-19 caused enterprise buyers to postpone Exponea March deals
“Before COVID hit, we were expecting about 1.5 million. So that shows you that a lot of deals, they're not lost, but many are postponing the decision to see what's going to be happening.”
Peter Arachofsky Apr 13, 2020 ▶ 18:32
Disclosure
Exponea receives $200M preliminary valuation indications for its equity raise
“We're early on in the process and we only got some indications. The, and the indications were saying something around 200.”
Peter Arachofsky Apr 13, 2020 ▶ 19:25
Assertion Not checkable as stated
Exponea saw investor interest at a $300M valuation in 2019
“We were able to get much higher valuations like, you know, a year back. We had several investors who were willing to pay, you know, 300.”
Peter Arachofsky Apr 13, 2020 ▶ 19:42
Made with StarZero

Turn any episode into a week of clips.

This entire site, over 2,600 episodes transcribed, diarized, checked and made playable, runs on the StarZero media pipeline. Drop in your own episode and the podcast clipper finds the moments worth sharing, cuts them, captions them, and reframes them for every feed.

Try the podcast clipper Learn more