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Feb 7, 2020 · 16m · top-founders

1658 Why 142 Production Teams Pay Him $142k/mo For Quicker File Management

Paul Adrian · 9m spoken Nathan Latka · 4m spoken
0:00 / 0:00

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In this interview, SaaS investor Nathan Latka speaks with Paul Adrian, co-founder and CEO of Latakoo, about building a cash-flow-positive video transfer platform that generates $142,000 in monthly recurring revenue from 142 broadcast networks. Adrian explains Latakoo's patented chunk-upload technology, 120% net revenue retention, channel partnership with Avid, and the strategic rationale behind using SBA debt financing.

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 31.9% of the talking time here. How this is scored →

Nathan as informed peer 4.5 Guest teaching 1.7 Guest disagreement 0.7 Nathan pushing back 1.8
05100:0010:000:31–3:38 · Nathan as informed peer 5/10 Introducing Paul Adrian and His Investigative Journalism Background Nathan relates Latiku's value proposition to his own production struggles using Google Drive and probes how Paul solves upload bottlenecking. Paul educates Nathan on Latiku's patented chunking, custom compression, and TCP/UDP selection protocol.3:38–6:09 · Nathan as informed peer 5/10 Pricing Architecture, Company Inception, and Early Traction Nathan rapidly calculates MRR metrics and growth figures from Paul's customer count and average contract value. Paul compliments Nathan, sharing that he and his spouse listen to multiple episodes during morning runs.6:10–8:55 · Nathan as informed peer 6/10 Analyzing Net Negative Revenue Churn and Account Expansion Paul provides detailed unit economics including negative net revenue churn of -1.7% per month and CAC payback periods. Nathan praises Paul's prepared command of SaaS metrics and reinforces the 120% net retention calculation.8:56–13:18 · Nathan as informed peer 8/10 Evaluating Debt Financing and Pursuing SBA Loans for Growth Nathan strongly challenges Paul for putting up personal guarantees on bank SBA loans instead of using non-dilutive venture debt or revenue-based financing. Nathan cites specific repayment multiples for Lighter Capital when Paul claims their payback terms were 3x to 5x.13:18–15:35 · Nathan as informed peer 3/10 The Famous Five: Operational Habits, Family Ties, and Early Career Advice Nathan runs through the standard Famous Five rapid-fire questions covering reading habits, sleep, billing stack, and age. Paul shares personal background details regarding his spouse, co-founder, and daughter.15:35–16:08 · Nathan as informed peer 0/10 Episode Summary and Final Acknowledgments Nathan delivers a solo wrap-up summarizing Latiku's financial profile, customer metrics, and growth trajectory. Host scores are set to zero for this closing summary.0:31–3:38 · Guest teaching 4/10 Introducing Paul Adrian and His Investigative Journalism Background Nathan relates Latiku's value proposition to his own production struggles using Google Drive and probes how Paul solves upload bottlenecking. Paul educates Nathan on Latiku's patented chunking, custom compression, and TCP/UDP selection protocol.3:38–6:09 · Guest teaching 1/10 Pricing Architecture, Company Inception, and Early Traction Nathan rapidly calculates MRR metrics and growth figures from Paul's customer count and average contract value. Paul compliments Nathan, sharing that he and his spouse listen to multiple episodes during morning runs.6:10–8:55 · Guest teaching 2/10 Analyzing Net Negative Revenue Churn and Account Expansion Paul provides detailed unit economics including negative net revenue churn of -1.7% per month and CAC payback periods. Nathan praises Paul's prepared command of SaaS metrics and reinforces the 120% net retention calculation.8:56–13:18 · Guest teaching 3/10 Evaluating Debt Financing and Pursuing SBA Loans for Growth Nathan strongly challenges Paul for putting up personal guarantees on bank SBA loans instead of using non-dilutive venture debt or revenue-based financing. Nathan cites specific repayment multiples for Lighter Capital when Paul claims their payback terms were 3x to 5x.13:18–15:35 · Guest teaching 0/10 The Famous Five: Operational Habits, Family Ties, and Early Career Advice Nathan runs through the standard Famous Five rapid-fire questions covering reading habits, sleep, billing stack, and age. Paul shares personal background details regarding his spouse, co-founder, and daughter.15:35–16:08 · Guest teaching 0/10 Episode Summary and Final Acknowledgments Nathan delivers a solo wrap-up summarizing Latiku's financial profile, customer metrics, and growth trajectory. Host scores are set to zero for this closing summary.0:31–3:38 · Guest disagreement 0/10 Introducing Paul Adrian and His Investigative Journalism Background Nathan relates Latiku's value proposition to his own production struggles using Google Drive and probes how Paul solves upload bottlenecking. Paul educates Nathan on Latiku's patented chunking, custom compression, and TCP/UDP selection protocol.3:38–6:09 · Guest disagreement 0/10 Pricing Architecture, Company Inception, and Early Traction Nathan rapidly calculates MRR metrics and growth figures from Paul's customer count and average contract value. Paul compliments Nathan, sharing that he and his spouse listen to multiple episodes during morning runs.6:10–8:55 · Guest disagreement 0/10 Analyzing Net Negative Revenue Churn and Account Expansion Paul provides detailed unit economics including negative net revenue churn of -1.7% per month and CAC payback periods. Nathan praises Paul's prepared command of SaaS metrics and reinforces the 120% net retention calculation.8:56–13:18 · Guest disagreement 4/10 Evaluating Debt Financing and Pursuing SBA Loans for Growth Nathan strongly challenges Paul for putting up personal guarantees on bank SBA loans instead of using non-dilutive venture debt or revenue-based financing. Nathan cites specific repayment multiples for Lighter Capital when Paul claims their payback terms were 3x to 5x.13:18–15:35 · Guest disagreement 0/10 The Famous Five: Operational Habits, Family Ties, and Early Career Advice Nathan runs through the standard Famous Five rapid-fire questions covering reading habits, sleep, billing stack, and age. Paul shares personal background details regarding his spouse, co-founder, and daughter.15:35–16:08 · Guest disagreement 0/10 Episode Summary and Final Acknowledgments Nathan delivers a solo wrap-up summarizing Latiku's financial profile, customer metrics, and growth trajectory. Host scores are set to zero for this closing summary.0:31–3:38 · Nathan pushing back 2/10 Introducing Paul Adrian and His Investigative Journalism Background Nathan relates Latiku's value proposition to his own production struggles using Google Drive and probes how Paul solves upload bottlenecking. Paul educates Nathan on Latiku's patented chunking, custom compression, and TCP/UDP selection protocol.3:38–6:09 · Nathan pushing back 1/10 Pricing Architecture, Company Inception, and Early Traction Nathan rapidly calculates MRR metrics and growth figures from Paul's customer count and average contract value. Paul compliments Nathan, sharing that he and his spouse listen to multiple episodes during morning runs.6:10–8:55 · Nathan pushing back 1/10 Analyzing Net Negative Revenue Churn and Account Expansion Paul provides detailed unit economics including negative net revenue churn of -1.7% per month and CAC payback periods. Nathan praises Paul's prepared command of SaaS metrics and reinforces the 120% net retention calculation.8:56–13:18 · Nathan pushing back 7/10 Evaluating Debt Financing and Pursuing SBA Loans for Growth Nathan strongly challenges Paul for putting up personal guarantees on bank SBA loans instead of using non-dilutive venture debt or revenue-based financing. Nathan cites specific repayment multiples for Lighter Capital when Paul claims their payback terms were 3x to 5x.13:18–15:35 · Nathan pushing back 0/10 The Famous Five: Operational Habits, Family Ties, and Early Career Advice Nathan runs through the standard Famous Five rapid-fire questions covering reading habits, sleep, billing stack, and age. Paul shares personal background details regarding his spouse, co-founder, and daughter.15:35–16:08 · Nathan pushing back 0/10 Episode Summary and Final Acknowledgments Nathan delivers a solo wrap-up summarizing Latiku's financial profile, customer metrics, and growth trajectory. Host scores are set to zero for this closing summary.

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

0:00 · Nathan 45.4% · guest 54.6%0:00 · Nathan 45.4% · guest 54.6%3:00 · Nathan 27.7% · guest 72.3%3:00 · Nathan 27.7% · guest 72.3%6:00 · Nathan 26.7% · guest 73.3%6:00 · Nathan 26.7% · guest 73.3%9:00 · Nathan 20.9% · guest 79.1%9:00 · Nathan 20.9% · guest 79.1%12:00 · Nathan 27.5% · guest 72.5%12:00 · Nathan 27.5% · guest 72.5%15:00 · Nathan 60.1% · guest 39.9%15:00 · Nathan 60.1% · guest 39.9%
Sharpest disagreement ▶ 13:03 Paul defends personal guarantee risk as core to entrepreneurship

Paul pushes back against Nathan's aversion to personal guarantees, asserting that entrepreneurship is inherently high risk and founders must be willing to take chances.

 Hardest push from Nathan ▶ 11:37 Nathan labels personal guarantees high risk and pushes venture debt

Nathan refuses to accept Paul risking personal assets on an SBA loan and presses him on why he has not looked at non-guaranteed venture debt options.

 Biggest teaching moment ▶ 2:47 Paul details Latiku's compression and edge-network chunking workflow

Paul provides a comprehensive technical breakdown of how Latiku optimizes file transfers across dynamic connection speeds using custom edge server protocols.

 Nathan holds their own ▶ 12:19 Nathan corrects Paul's understanding of revenue-based financing repayment caps

Nathan intervenes when Paul asserts royalty financing costs 3x to 5x, quoting actual industry caps of 1.3x to 1.5x over three years.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Introducing Paul Adrian and His Investigative Journalism Background 5402 Nathan relates Latiku's value proposition to his own production struggles using Google Drive and probes how Paul solves upload bottlenecking. Paul educates Nathan on Latiku's patented chunking, custom compression, and TCP/UDP selection protocol.
Pricing Architecture, Company Inception, and Early Traction 5101 Nathan rapidly calculates MRR metrics and growth figures from Paul's customer count and average contract value. Paul compliments Nathan, sharing that he and his spouse listen to multiple episodes during morning runs.
Analyzing Net Negative Revenue Churn and Account Expansion 6201 Paul provides detailed unit economics including negative net revenue churn of -1.7% per month and CAC payback periods. Nathan praises Paul's prepared command of SaaS metrics and reinforces the 120% net retention calculation.
Evaluating Debt Financing and Pursuing SBA Loans for Growth 8347 Nathan strongly challenges Paul for putting up personal guarantees on bank SBA loans instead of using non-dilutive venture debt or revenue-based financing. Nathan cites specific repayment multiples for Lighter Capital when Paul claims their payback terms were 3x to 5x.
The Famous Five: Operational Habits, Family Ties, and Early Career Advice 3000 Nathan runs through the standard Famous Five rapid-fire questions covering reading habits, sleep, billing stack, and age. Paul shares personal background details regarding his spouse, co-founder, and daughter.
Episode Summary and Final Acknowledgments 0000 Nathan delivers a solo wrap-up summarizing Latiku's financial profile, customer metrics, and growth trajectory. Host scores are set to zero for this closing summary.

Statements from this episode (12)

Assertion Supported
Adrian: Latakoo holds patent for simultaneous compression and upload
“We have a patented simultaneous compression and upload. So I would break the file up, encode a chunk, upload the chunk to a network of edge servers.”
Paul Adrian Feb 7, 2020 ▶ 3:22
Assertion Not checkable as stated
Adrian: Latakoo averages $1,000 monthly per customer for an $11,250 ACV
“So our average customer pays us about a thousand dollars a month. Our annual customer value is about 11,250 today.”
Paul Adrian Feb 7, 2020 ▶ 3:43
Assertion Not checkable as stated
Adrian: Latakoo has 142 paying customers as of early 2020
“142 customers.”
Paul Adrian Feb 7, 2020 ▶ 4:14
Assertion Not checkable as stated
Adrian: Latakoo grew revenue by 25% to 30% year-over-year
“So we've grown this year about. 25, 30%.”
Paul Adrian Feb 7, 2020 ▶ 4:26
Disclosure
Adrian: Latakoo burned early millions pushing sales before product was ready
“Raised a couple of million dollars, primarily from Team members, but also from angels primarily, and we ran through that pretty quickly, you know, because of the development cycles and early, you know, trying to push, push, push, maybe before it was ready to s…”
Paul Adrian Feb 7, 2020 ▶ 5:15
Assertion Not checkable as stated
Adrian: Latakoo achieves 120% net revenue retention with negative monthly churn
“And so we have a negative net revenue churn rate of about 1.7%, -1.7% per month. So on an annual basis, that's about -20%. So what that means in a sense is a buck that we had from a customer a year ago, we now have a buck 20 from that customer.”
Paul Adrian Feb 7, 2020 ▶ 6:41
Assertion Not checkable as stated
Adrian: Latakoo has a $9,000 customer acquisition cost and 9-month payback
“So our CAC is 9000 or just under 9000 dollars today. So that's about a nine month payback period.”
Paul Adrian Feb 7, 2020 ▶ 7:26
Assertion Supported
Adrian: Latakoo is in Avid's price book across 140+ countries
“We're a certified solution, and we're in their price book. So that gives us access to their network of direct sales and resellers that In more than a 140 countries.”
Paul Adrian Feb 7, 2020 ▶ 8:39
Disclosure
Adrian: Latakoo is pursuing SBA loans with 7-8% interest rates
“So now, we're going after SBA money. And that gets us down to like, you know, seven, eight percent and a 10 year payback.”
Paul Adrian Feb 7, 2020 ▶ 10:11
Disclosure
Adrian: Latakoo founders must personally guarantee their SBA bank loan
“Yes. I mean, again, it is attached to the company, but it's also attached to the founders. So there is other stuff we've got to throw into the mix.”
Paul Adrian Feb 7, 2020 ▶ 11:28
Assertion Supported
Latka: Lighter Capital typically requires a 1.3x to 1.5x repayment cap
“The typical rates at lighter that they have a repayment cap of 1.3 to 1.5 X typically, which means if they lend you a hundred grand, you got to pay them 130 grand over three years up to 155 grand.”
Nathan Latka Feb 7, 2020 ▶ 12:20
Disclosure
Adrian: Lighter Capital quoted Latakoo a 2x loan repayment cap
“The terms we saw and we actually spoke to them, it would have been more like a hundred percent payback. So it would have been twice what they gave us, we would have to pay back. And others we've seen have been like in the three X category.”
Paul Adrian Feb 7, 2020 ▶ 12:34
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