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Jul 23, 2017 · 29m · top-founders

729: Will Edelman Digital Creator Lead New AI Marketing World?

David Dunne · 16m spoken Nathan Latka · 9m spoken
0:00 / 0:00

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In this episode of The Top, host Nathan Latka interviews Velocity CEO David Dunne on how the enterprise marketing intelligence platform scaled to over $3 million in monthly recurring revenue and nearly 500 customers. Dunne details Velocity's data-stream pricing model, institutional capitalization, and strategic expansion into AI-driven analyst automation.

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 36.4% of the talking time here. How this is scored →

Nathan as informed peer 5.5 Guest teaching 2.6 Guest disagreement 2.6 Nathan pushing back 5.0
05100:0010:0020:001:05–4:34 · Nathan as informed peer 6/10 Introducing David Dunne and Velocity's Mission Latka immediately drills into the business model, clarifying SaaS versus managed services and breaking down pricing metrics. Dunne explains why Velocity charges by data stream rather than API calls or seat licenses.4:34–7:17 · Nathan as informed peer 4/10 Founding Velocity After Building Edelman Digital Dunne discusses his transition from running Edelman Digital to founding Velocity, noting how early partnerships inspired him. Latka banters supportively about capturing equity in early tech partners.7:17–11:52 · Nathan as informed peer 5/10 Entrepreneurial Mindset, Age, and Serial Startup Experience Latka pushes Dunne to reveal his age and probes his appetite for personal financial risk. Dunne initially deflects playfully before providing his age and detailing his early capitalization strategy.11:52–16:25 · Nathan as informed peer 6/10 Customer Acquisition Costs Across Agencies and Brands Latka repeatedly presses for specific customer acquisition cost and LTV:CAC ratios. Dunne declines to provide exact unit economics, reframing the discussion toward customer-facing value and product stickiness.16:26–19:08 · Nathan as informed peer 6/10 Expansion Strategy, Self-Service Platform, and Customer Scale Latka inquires about net negative churn and narrows down Dunne's vague customer range to under 500 accounts. Dunne outlines how their self-service platform facilitates scalable customer onboarding.19:08–23:46 · Nathan as informed peer 7/10 Transforming Analyst Workflows with AI Dashboards Latka challenges the competitive moat of marketing AI, arguing that ubiquitous data commoditizes insights and elevates creative directors as the true differentiator. Dunne counters that data-informed creativity always outperforms raw intuition.23:46–26:50 · Nathan as informed peer 6/10 Revenue Trajectory, Enterprise Contracts, and Buyout Inquiry Latka attempts to calculate Dunne's MRR using the earlier $6k ARPU, but Dunne clarifies that large enterprise contracts are an order of magnitude higher. Latka then asks whether Dunne would sell to Edelman for $200M.26:52–28:55 · Nathan as informed peer 4/10 The Famous Five Rapid-Fire Questions During the Famous Five, Latka pushes back on Dunne's admiration for Richard Branson by criticizing Virgin's sale to Alaska Airlines. Dunne takes the banter in stride and wraps up with life advice.1:05–4:34 · Guest teaching 3/10 Introducing David Dunne and Velocity's Mission Latka immediately drills into the business model, clarifying SaaS versus managed services and breaking down pricing metrics. Dunne explains why Velocity charges by data stream rather than API calls or seat licenses.4:34–7:17 · Guest teaching 2/10 Founding Velocity After Building Edelman Digital Dunne discusses his transition from running Edelman Digital to founding Velocity, noting how early partnerships inspired him. Latka banters supportively about capturing equity in early tech partners.7:17–11:52 · Guest teaching 2/10 Entrepreneurial Mindset, Age, and Serial Startup Experience Latka pushes Dunne to reveal his age and probes his appetite for personal financial risk. Dunne initially deflects playfully before providing his age and detailing his early capitalization strategy.11:52–16:25 · Guest teaching 3/10 Customer Acquisition Costs Across Agencies and Brands Latka repeatedly presses for specific customer acquisition cost and LTV:CAC ratios. Dunne declines to provide exact unit economics, reframing the discussion toward customer-facing value and product stickiness.16:26–19:08 · Guest teaching 2/10 Expansion Strategy, Self-Service Platform, and Customer Scale Latka inquires about net negative churn and narrows down Dunne's vague customer range to under 500 accounts. Dunne outlines how their self-service platform facilitates scalable customer onboarding.19:08–23:46 · Guest teaching 4/10 Transforming Analyst Workflows with AI Dashboards Latka challenges the competitive moat of marketing AI, arguing that ubiquitous data commoditizes insights and elevates creative directors as the true differentiator. Dunne counters that data-informed creativity always outperforms raw intuition.23:46–26:50 · Guest teaching 4/10 Revenue Trajectory, Enterprise Contracts, and Buyout Inquiry Latka attempts to calculate Dunne's MRR using the earlier $6k ARPU, but Dunne clarifies that large enterprise contracts are an order of magnitude higher. Latka then asks whether Dunne would sell to Edelman for $200M.26:52–28:55 · Guest teaching 1/10 The Famous Five Rapid-Fire Questions During the Famous Five, Latka pushes back on Dunne's admiration for Richard Branson by criticizing Virgin's sale to Alaska Airlines. Dunne takes the banter in stride and wraps up with life advice.1:05–4:34 · Guest disagreement 2/10 Introducing David Dunne and Velocity's Mission Latka immediately drills into the business model, clarifying SaaS versus managed services and breaking down pricing metrics. Dunne explains why Velocity charges by data stream rather than API calls or seat licenses.4:34–7:17 · Guest disagreement 1/10 Founding Velocity After Building Edelman Digital Dunne discusses his transition from running Edelman Digital to founding Velocity, noting how early partnerships inspired him. Latka banters supportively about capturing equity in early tech partners.7:17–11:52 · Guest disagreement 3/10 Entrepreneurial Mindset, Age, and Serial Startup Experience Latka pushes Dunne to reveal his age and probes his appetite for personal financial risk. Dunne initially deflects playfully before providing his age and detailing his early capitalization strategy.11:52–16:25 · Guest disagreement 4/10 Customer Acquisition Costs Across Agencies and Brands Latka repeatedly presses for specific customer acquisition cost and LTV:CAC ratios. Dunne declines to provide exact unit economics, reframing the discussion toward customer-facing value and product stickiness.16:26–19:08 · Guest disagreement 2/10 Expansion Strategy, Self-Service Platform, and Customer Scale Latka inquires about net negative churn and narrows down Dunne's vague customer range to under 500 accounts. Dunne outlines how their self-service platform facilitates scalable customer onboarding.19:08–23:46 · Guest disagreement 4/10 Transforming Analyst Workflows with AI Dashboards Latka challenges the competitive moat of marketing AI, arguing that ubiquitous data commoditizes insights and elevates creative directors as the true differentiator. Dunne counters that data-informed creativity always outperforms raw intuition.23:46–26:50 · Guest disagreement 3/10 Revenue Trajectory, Enterprise Contracts, and Buyout Inquiry Latka attempts to calculate Dunne's MRR using the earlier $6k ARPU, but Dunne clarifies that large enterprise contracts are an order of magnitude higher. Latka then asks whether Dunne would sell to Edelman for $200M.26:52–28:55 · Guest disagreement 2/10 The Famous Five Rapid-Fire Questions During the Famous Five, Latka pushes back on Dunne's admiration for Richard Branson by criticizing Virgin's sale to Alaska Airlines. Dunne takes the banter in stride and wraps up with life advice.1:05–4:34 · Nathan pushing back 4/10 Introducing David Dunne and Velocity's Mission Latka immediately drills into the business model, clarifying SaaS versus managed services and breaking down pricing metrics. Dunne explains why Velocity charges by data stream rather than API calls or seat licenses.4:34–7:17 · Nathan pushing back 2/10 Founding Velocity After Building Edelman Digital Dunne discusses his transition from running Edelman Digital to founding Velocity, noting how early partnerships inspired him. Latka banters supportively about capturing equity in early tech partners.7:17–11:52 · Nathan pushing back 5/10 Entrepreneurial Mindset, Age, and Serial Startup Experience Latka pushes Dunne to reveal his age and probes his appetite for personal financial risk. Dunne initially deflects playfully before providing his age and detailing his early capitalization strategy.11:52–16:25 · Nathan pushing back 7/10 Customer Acquisition Costs Across Agencies and Brands Latka repeatedly presses for specific customer acquisition cost and LTV:CAC ratios. Dunne declines to provide exact unit economics, reframing the discussion toward customer-facing value and product stickiness.16:26–19:08 · Nathan pushing back 5/10 Expansion Strategy, Self-Service Platform, and Customer Scale Latka inquires about net negative churn and narrows down Dunne's vague customer range to under 500 accounts. Dunne outlines how their self-service platform facilitates scalable customer onboarding.19:08–23:46 · Nathan pushing back 7/10 Transforming Analyst Workflows with AI Dashboards Latka challenges the competitive moat of marketing AI, arguing that ubiquitous data commoditizes insights and elevates creative directors as the true differentiator. Dunne counters that data-informed creativity always outperforms raw intuition.23:46–26:50 · Nathan pushing back 6/10 Revenue Trajectory, Enterprise Contracts, and Buyout Inquiry Latka attempts to calculate Dunne's MRR using the earlier $6k ARPU, but Dunne clarifies that large enterprise contracts are an order of magnitude higher. Latka then asks whether Dunne would sell to Edelman for $200M.26:52–28:55 · Nathan pushing back 4/10 The Famous Five Rapid-Fire Questions During the Famous Five, Latka pushes back on Dunne's admiration for Richard Branson by criticizing Virgin's sale to Alaska Airlines. Dunne takes the banter in stride and wraps up with life advice.

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

0:00 · Nathan 65.3% · guest 34.7%0:00 · Nathan 65.3% · guest 34.7%3:00 · Nathan 25.2% · guest 74.8%3:00 · Nathan 25.2% · guest 74.8%6:00 · Nathan 21.9% · guest 78.1%6:00 · Nathan 21.9% · guest 78.1%9:00 · Nathan 25.7% · guest 74.3%9:00 · Nathan 25.7% · guest 74.3%12:00 · Nathan 30.8% · guest 69.2%12:00 · Nathan 30.8% · guest 69.2%15:00 · Nathan 11.4% · guest 88.6%15:00 · Nathan 11.4% · guest 88.6%18:00 · Nathan 11% · guest 89%18:00 · Nathan 11% · guest 89%21:00 · Nathan 55.4% · guest 44.6%21:00 · Nathan 55.4% · guest 44.6%24:00 · Nathan 61.8% · guest 38.2%24:00 · Nathan 61.8% · guest 38.2%27:00 · Nathan 59.2% · guest 40.8%27:00 · Nathan 59.2% · guest 40.8%
Sharpest disagreement ▶ 13:43 Dunne rejects standard CAC/LTV ratio framing

Dunne explicitly pushes back against Latka's demand for standard SaaS unit metrics, arguing that Velocity's bespoke enterprise sales cycles do not fit conventional cohort modeling.

 Hardest push from Nathan ▶ 21:48 Latka challenges the defensibility of AI platforms

Latka refuses to accept that AI analytics alone provide an edge, arguing that if all competitors access identical data, the differentiator becomes unautomatable creative talent.

 Biggest teaching moment ▶ 24:01 Dunne corrects Latka's revenue math

Dunne educates Latka that applying the $6,000 ARPU across all 500 customers understates revenue because global enterprise clients pay orders of magnitude more.

 Nathan holds their own ▶ 21:48 Latka articulates macro thesis on AI vs creatives

Latka demonstrates sharp strategic insight by articulating why perfect data parity inevitably shifts competitive advantage to creative execution.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Introducing David Dunne and Velocity's Mission 6324 Latka immediately drills into the business model, clarifying SaaS versus managed services and breaking down pricing metrics. Dunne explains why Velocity charges by data stream rather than API calls or seat licenses.
Founding Velocity After Building Edelman Digital 4212 Dunne discusses his transition from running Edelman Digital to founding Velocity, noting how early partnerships inspired him. Latka banters supportively about capturing equity in early tech partners.
Entrepreneurial Mindset, Age, and Serial Startup Experience 5235 Latka pushes Dunne to reveal his age and probes his appetite for personal financial risk. Dunne initially deflects playfully before providing his age and detailing his early capitalization strategy.
Customer Acquisition Costs Across Agencies and Brands 6347 Latka repeatedly presses for specific customer acquisition cost and LTV:CAC ratios. Dunne declines to provide exact unit economics, reframing the discussion toward customer-facing value and product stickiness.
Expansion Strategy, Self-Service Platform, and Customer Scale 6225 Latka inquires about net negative churn and narrows down Dunne's vague customer range to under 500 accounts. Dunne outlines how their self-service platform facilitates scalable customer onboarding.
Transforming Analyst Workflows with AI Dashboards 7447 Latka challenges the competitive moat of marketing AI, arguing that ubiquitous data commoditizes insights and elevates creative directors as the true differentiator. Dunne counters that data-informed creativity always outperforms raw intuition.
Revenue Trajectory, Enterprise Contracts, and Buyout Inquiry 6436 Latka attempts to calculate Dunne's MRR using the earlier $6k ARPU, but Dunne clarifies that large enterprise contracts are an order of magnitude higher. Latka then asks whether Dunne would sell to Edelman for $200M.
The Famous Five Rapid-Fire Questions 4124 During the Famous Five, Latka pushes back on Dunne's admiration for Richard Branson by criticizing Virgin's sale to Alaska Airlines. Dunne takes the banter in stride and wraps up with life advice.

Statements from this episode (11)

Disclosure
Velocity pricing starts at $3,000 per month for base customers
“Customers start at about 3000 a month, and it varies greatly depending on if the customer has a global footprint.”
David Dunne Jul 23, 2017 ▶ 3:01
Assertion Not checkable as stated
Velocity's average monthly revenue per user is about $6,000
“I would probably say it's about 6000 a month.”
David Dunne Jul 23, 2017 ▶ 3:24
Disclosure
Velocity charges by data streams rather than by seats or lines
“So, so unlike a lot of the folks in the industry who charge by the line of data or by seats, we choose not to do either of those things. Instead, we charge by the data stream.”
David Dunne Jul 23, 2017 ▶ 3:41
Assertion Supported
Edelman Digital was among the first customers for Radian6 and Buddy Media
“Companies like Buzz Metrics Radiant Six, Buddy Media, others, we were literally among their first customers.”
David Dunne Jul 23, 2017 ▶ 6:26
Assertion Partly supported
Velocity raised $3M from friends and family before closing $12M institutionally
“We, friends and family probably put in about three million into the business in the early years, and then we just closed an institutional round for about twelve million at the end of last year, beginning of this year.”
David Dunne Jul 23, 2017 ▶ 10:53
Assertion Not checkable as stated
Acquiring a global agency client costs Velocity hundreds of thousands of dollars
“If I want to acquire a new global agency client that could take a year, and it could cost, you know, a couple 100,000 dollars to go through that process.”
David Dunne Jul 23, 2017 ▶ 12:56
Assertion Not checkable as stated
Velocity serves fewer than 500 customers as of July 2017
“Less than 500.”
David Dunne Jul 23, 2017 ▶ 18:43
Disclosure
Velocity refuses to work with direct brand competitors simultaneously
“We're not ever going to be working with those two brands side by side.”
David Dunne Jul 23, 2017 ▶ 21:27
Prediction Not checkable as stated
Nathan Latka: AI data commoditization means creatives will soon rule business
“This comes back down to why I believe creatives are actually going to rule the world very soon because it's going to be people that do creative things with The perfect data that everybody else has. It's going to ultimately determine who wins, and you can't aut…”
Nathan Latka Jul 23, 2017 ▶ 22:06
Disclosure
Velocity's top enterprise advertisers spend an order of magnitude over $6K monthly
“For a lot of the brands that we work with, the, especially with those who are on our self-serve platform, they tend to be smaller brands, mid-sized brands but we work with some of the largest advertisers in the world, and those customers spend an order of magn…”
David Dunne Jul 23, 2017 ▶ 24:13
Opinion
Nathan Latka calls Alaska Airlines a 'shit aircraft carrier'
“So why has he let Virgin go to Alaska Airlines, a shit aircraft carrier?”
Nathan Latka Jul 23, 2017 ▶ 27:33
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