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Aug 29, 2018 · 18m · top-founders

1131 We do $70m Annually in Buyer Data Space, 50% Gross Margin

Jay Habegger · 10m spoken Nathan Latka · 5m spoken
0:00 / 0:00

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In this episode of The Top Entrepreneurs Podcast, host Nathan Latka interviews Jay Habegger, Co-Founder and CEO of OwnerIQ, to explore how his second-party data platform scaled to $70 million in gross revenue with 50% to 60% gross margins. The conversation covers OwnerIQ's unique data-sharing ecosystem, monetization mechanics, venture fundraising history, and Habegger's entrepreneurial philosophy following his previous $40 million exit.

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 33.9% of the talking time here. How this is scored →

Nathan as informed peer 4.6 Guest teaching 3.4 Guest disagreement 1.7 Nathan pushing back 2.9
05100:0010:001:14–4:34 · Nathan as informed peer 6/10 Welcoming Jay Habegger and Post-Exit Entrepreneurial Drive Latka demonstrates solid domain grasp by breaking down Owner IQ's second-party data platform into a clear consumer example with Ugg and Target. Habegger enthusiastically validates the example and explains the bidirectional data sharing mechanism.4:35–7:39 · Nathan as informed peer 5/10 Platform Monetization and Campaign vs. Subscription Revenue Latka attempts to fit Owner IQ into a conventional recurring SaaS mold. Habegger clarifies that while the software architecture is SaaS, monetization in digital media remains predominantly campaign-driven and spot execution.7:39–9:50 · Nathan as informed peer 5/10 Venture Capital Strategy and Valuation Philosophy Latka posits that non-SaaS campaign revenue suffers in valuation multiples. Habegger pushes back on the simplistic SaaS multiple dogma, educating on how private valuations balance strategic acquirer interest, growth, and market reality.9:50–12:02 · Nathan as informed peer 6/10 Financial Scale, Profitability, and Cost of Goods Sold Latka probes the financial breakdown of Owner IQ's $70M top-line revenue, inquiring about non-software gross margins. Habegger details their 55-60% margin structure driven by taking principal positions on media buys.12:02–15:08 · Nathan as informed peer 7/10 Active Fundraising, Cap Table Risks, and Liquidation Terms Latka insightfully deduces that the late 2016 round timing means Habegger is currently fundraising, and presses on liquidation preference traps. Habegger acknowledges the fundraising insight but reframes cap table risk around non-linear setbacks and down rounds rather than deal terms.15:08–17:51 · Nathan as informed peer 3/10 The Famous Five Rapid-Fire Questions Latka runs through the standard rapid-fire questions, gently pushing when Habegger sidesteps naming a specific Boston CEO. The conversation remains light and cordial.17:51–18:22 · Nathan as informed peer 0/10 Episode Conclusion and Performance Summary Latka provides an outro summary of Owner IQ's numbers, metrics, and background with no interactive dynamic.1:14–4:34 · Guest teaching 3/10 Welcoming Jay Habegger and Post-Exit Entrepreneurial Drive Latka demonstrates solid domain grasp by breaking down Owner IQ's second-party data platform into a clear consumer example with Ugg and Target. Habegger enthusiastically validates the example and explains the bidirectional data sharing mechanism.4:35–7:39 · Guest teaching 4/10 Platform Monetization and Campaign vs. Subscription Revenue Latka attempts to fit Owner IQ into a conventional recurring SaaS mold. Habegger clarifies that while the software architecture is SaaS, monetization in digital media remains predominantly campaign-driven and spot execution.7:39–9:50 · Guest teaching 6/10 Venture Capital Strategy and Valuation Philosophy Latka posits that non-SaaS campaign revenue suffers in valuation multiples. Habegger pushes back on the simplistic SaaS multiple dogma, educating on how private valuations balance strategic acquirer interest, growth, and market reality.9:50–12:02 · Guest teaching 4/10 Financial Scale, Profitability, and Cost of Goods Sold Latka probes the financial breakdown of Owner IQ's $70M top-line revenue, inquiring about non-software gross margins. Habegger details their 55-60% margin structure driven by taking principal positions on media buys.12:02–15:08 · Guest teaching 5/10 Active Fundraising, Cap Table Risks, and Liquidation Terms Latka insightfully deduces that the late 2016 round timing means Habegger is currently fundraising, and presses on liquidation preference traps. Habegger acknowledges the fundraising insight but reframes cap table risk around non-linear setbacks and down rounds rather than deal terms.15:08–17:51 · Guest teaching 2/10 The Famous Five Rapid-Fire Questions Latka runs through the standard rapid-fire questions, gently pushing when Habegger sidesteps naming a specific Boston CEO. The conversation remains light and cordial.17:51–18:22 · Guest teaching 0/10 Episode Conclusion and Performance Summary Latka provides an outro summary of Owner IQ's numbers, metrics, and background with no interactive dynamic.1:14–4:34 · Guest disagreement 1/10 Welcoming Jay Habegger and Post-Exit Entrepreneurial Drive Latka demonstrates solid domain grasp by breaking down Owner IQ's second-party data platform into a clear consumer example with Ugg and Target. Habegger enthusiastically validates the example and explains the bidirectional data sharing mechanism.4:35–7:39 · Guest disagreement 2/10 Platform Monetization and Campaign vs. Subscription Revenue Latka attempts to fit Owner IQ into a conventional recurring SaaS mold. Habegger clarifies that while the software architecture is SaaS, monetization in digital media remains predominantly campaign-driven and spot execution.7:39–9:50 · Guest disagreement 4/10 Venture Capital Strategy and Valuation Philosophy Latka posits that non-SaaS campaign revenue suffers in valuation multiples. Habegger pushes back on the simplistic SaaS multiple dogma, educating on how private valuations balance strategic acquirer interest, growth, and market reality.9:50–12:02 · Guest disagreement 2/10 Financial Scale, Profitability, and Cost of Goods Sold Latka probes the financial breakdown of Owner IQ's $70M top-line revenue, inquiring about non-software gross margins. Habegger details their 55-60% margin structure driven by taking principal positions on media buys.12:02–15:08 · Guest disagreement 2/10 Active Fundraising, Cap Table Risks, and Liquidation Terms Latka insightfully deduces that the late 2016 round timing means Habegger is currently fundraising, and presses on liquidation preference traps. Habegger acknowledges the fundraising insight but reframes cap table risk around non-linear setbacks and down rounds rather than deal terms.15:08–17:51 · Guest disagreement 1/10 The Famous Five Rapid-Fire Questions Latka runs through the standard rapid-fire questions, gently pushing when Habegger sidesteps naming a specific Boston CEO. The conversation remains light and cordial.17:51–18:22 · Guest disagreement 0/10 Episode Conclusion and Performance Summary Latka provides an outro summary of Owner IQ's numbers, metrics, and background with no interactive dynamic.1:14–4:34 · Nathan pushing back 2/10 Welcoming Jay Habegger and Post-Exit Entrepreneurial Drive Latka demonstrates solid domain grasp by breaking down Owner IQ's second-party data platform into a clear consumer example with Ugg and Target. Habegger enthusiastically validates the example and explains the bidirectional data sharing mechanism.4:35–7:39 · Nathan pushing back 4/10 Platform Monetization and Campaign vs. Subscription Revenue Latka attempts to fit Owner IQ into a conventional recurring SaaS mold. Habegger clarifies that while the software architecture is SaaS, monetization in digital media remains predominantly campaign-driven and spot execution.7:39–9:50 · Nathan pushing back 4/10 Venture Capital Strategy and Valuation Philosophy Latka posits that non-SaaS campaign revenue suffers in valuation multiples. Habegger pushes back on the simplistic SaaS multiple dogma, educating on how private valuations balance strategic acquirer interest, growth, and market reality.9:50–12:02 · Nathan pushing back 3/10 Financial Scale, Profitability, and Cost of Goods Sold Latka probes the financial breakdown of Owner IQ's $70M top-line revenue, inquiring about non-software gross margins. Habegger details their 55-60% margin structure driven by taking principal positions on media buys.12:02–15:08 · Nathan pushing back 5/10 Active Fundraising, Cap Table Risks, and Liquidation Terms Latka insightfully deduces that the late 2016 round timing means Habegger is currently fundraising, and presses on liquidation preference traps. Habegger acknowledges the fundraising insight but reframes cap table risk around non-linear setbacks and down rounds rather than deal terms.15:08–17:51 · Nathan pushing back 2/10 The Famous Five Rapid-Fire Questions Latka runs through the standard rapid-fire questions, gently pushing when Habegger sidesteps naming a specific Boston CEO. The conversation remains light and cordial.17:51–18:22 · Nathan pushing back 0/10 Episode Conclusion and Performance Summary Latka provides an outro summary of Owner IQ's numbers, metrics, and background with no interactive dynamic.

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

0:00 · Nathan 65.6% · guest 34.4%0:00 · Nathan 65.6% · guest 34.4%3:00 · Nathan 22.1% · guest 77.9%3:00 · Nathan 22.1% · guest 77.9%6:00 · Nathan 27.9% · guest 72.1%6:00 · Nathan 27.9% · guest 72.1%9:00 · Nathan 19.8% · guest 80.2%9:00 · Nathan 19.8% · guest 80.2%12:00 · Nathan 38.6% · guest 61.4%12:00 · Nathan 38.6% · guest 61.4%15:00 · Nathan 21.5% · guest 78.5%15:00 · Nathan 21.5% · guest 78.5%18:00 · Nathan 96.1% · guest 3.9%18:00 · Nathan 96.1% · guest 3.9%
Sharpest disagreement ▶ 8:50 Habegger rejects Latka's SaaS valuation narrative

Habegger directly counters Latka's claim about SaaS multiples dictating value, asserting that the notion that predictable SaaS revenue universally commands top multiples is contrary to real market behavior.

 Hardest push from Nathan ▶ 12:19 Latka corners Habegger on current capital raise status

Latka refuses to leave the timing of the 2016 round vague, directly stating that Habegger must be either selling or actively fundraising, which forces Habegger to concede he is in market.

 Biggest teaching moment ▶ 14:12 Habegger explains down-round cap table devastation over liquidation preferences

When Latka warns about aggressive liquidation preference multiples, Habegger educates that the true threat to founders is non-linear execution leading to down rounds rather than initial term sheet features.

 Nathan holds their own ▶ 12:19 Latka deduces active fundraising from capital timing

Latka demonstrates deep venture familiarity by calculating capital runway elapsed since late 2016 to accurately call out Habegger's unannounced ongoing fundraising effort.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Welcoming Jay Habegger and Post-Exit Entrepreneurial Drive 6312 Latka demonstrates solid domain grasp by breaking down Owner IQ's second-party data platform into a clear consumer example with Ugg and Target. Habegger enthusiastically validates the example and explains the bidirectional data sharing mechanism.
Platform Monetization and Campaign vs. Subscription Revenue 5424 Latka attempts to fit Owner IQ into a conventional recurring SaaS mold. Habegger clarifies that while the software architecture is SaaS, monetization in digital media remains predominantly campaign-driven and spot execution.
Venture Capital Strategy and Valuation Philosophy 5644 Latka posits that non-SaaS campaign revenue suffers in valuation multiples. Habegger pushes back on the simplistic SaaS multiple dogma, educating on how private valuations balance strategic acquirer interest, growth, and market reality.
Financial Scale, Profitability, and Cost of Goods Sold 6423 Latka probes the financial breakdown of Owner IQ's $70M top-line revenue, inquiring about non-software gross margins. Habegger details their 55-60% margin structure driven by taking principal positions on media buys.
Active Fundraising, Cap Table Risks, and Liquidation Terms 7525 Latka insightfully deduces that the late 2016 round timing means Habegger is currently fundraising, and presses on liquidation preference traps. Habegger acknowledges the fundraising insight but reframes cap table risk around non-linear setbacks and down rounds rather than deal terms.
The Famous Five Rapid-Fire Questions 3212 Latka runs through the standard rapid-fire questions, gently pushing when Habegger sidesteps naming a specific Boston CEO. The conversation remains light and cordial.
Episode Conclusion and Performance Summary 0000 Latka provides an outro summary of Owner IQ's numbers, metrics, and background with no interactive dynamic.

Statements from this episode (10)

Insight
Digital advertising's top innovation is decoupling media from targeting data
“And one of the big innovations the last few years, or I should say the last five years, is to decouple where the media, where the ad shows up from the data that's used to decide to put the ad there.”
Jay Habegger Aug 29, 2018 ▶ 2:46
Prediction Not checkable as stated
Campaign spot execution will remain the largest source of ad revenue
“Well, most of the advertising, you know, the many billions of dollars, hundreds of billions of dollars in advertising revenue is basically tied to Campaigns and what we would call spot execution. So that's the largest and going to remain the largest, but the g…”
Jay Habegger Aug 29, 2018 ▶ 6:47
Assertion Not checkable as stated
OwnerIQ hosts 1,000 brands with 600 actively sharing data monthly
“Let's see, we have about a thousand brands that are on our platform right now today, and about at any given moment, about 600 of those are active in a given month sharing data back and forth.”
Jay Habegger Aug 29, 2018 ▶ 7:23
Disclosure
OwnerIQ has raised approximately $40 million in capital to date
“We're about forty million in, in terms of capital we've raised so far.”
Jay Habegger Aug 29, 2018 ▶ 8:27
Insight
SaaS revenue predictability and high market multiples are significantly overstated
“Valuation is an art more than a science, and this notion that SaaS revenue is the it's all predictable, and therefore a command site, that's actually not what I've seen in the markets.”
Jay Habegger Aug 29, 2018 ▶ 8:57
Assertion Not checkable as stated
OwnerIQ currently generates $70 million in top-line annual revenue
“So we're about a seventy million dollar top line company right now.”
Jay Habegger Aug 29, 2018 ▶ 10:40
Assertion Not checkable as stated
OwnerIQ operates at 55% to 60% gross margins on top-line revenue
“So our margins from that top line are about a gross, are about 55, 60%.”
Jay Habegger Aug 29, 2018 ▶ 10:57
Disclosure
OwnerIQ is currently in the market raising additional capital
“We are actually raising more capital. So very perceptive of you. We are, we actually don't have a round going today, but yes, I am in market for that.”
Jay Habegger Aug 29, 2018 ▶ 12:29
Insight
Down rounds hurt founder equity significantly more than aggressive liquidation terms
“It's not so much the features that usually get in the entrepreneur's way. It's usually the fact that things are not linear. So you start, the company grows, maybe at some point it has a setback, and then you end up doing a down round, and that becomes a real p…”
Jay Habegger Aug 29, 2018 ▶ 14:34
Disclosure
Habegger meticulously tracks every single hour of his daily activities
“Well, I actually track every single hour that I spend on everything, and I can tell you exactly last night was six hours and 17 minutes.”
Jay Habegger Aug 29, 2018 ▶ 16:50
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