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Jan 27, 2017 · 18m · top-founders

EP 552: $300k last 12 months To Help Sales People Find Perfect Gifts with CEO Greg Segall

Greg Segall · 9m spoken Nathan Latka · 7m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

Host Nathan Latka interviews Greg Segall, founder and CEO of Alyce, unpacking how the AI-driven corporate gifting platform reached $300,000 in first-year revenue with net profitability and structured a customer-backed convertible note toward a $4.7 million run rate.

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 43% of the talking time here. How this is scored →

Nathan as informed peer 4.0 Guest teaching 2.2 Guest disagreement 1.4 Nathan pushing back 2.2
05100:0010:000:28–5:12 · Nathan as informed peer 5/10 Weekly Cash Winner Announcement and Entry Guidelines Nathan introduces the guest and digs into the business mechanics of Alyce's revenue split. Greg explains the 20 to 35 percent transaction take rate and the credit-based subscription model collaboratively.5:18–9:52 · Nathan as informed peer 7/10 Fast Alpha Launch and First Year Revenue Metrics Nathan demonstrates financial literacy by breaking down gross vs net margin, COGS, and standard convertible note structures. Greg readily provides metrics and explains the company's fundraising runway and Series A timeline.10:00–12:12 · Nathan as informed peer 4/10 Catalog Expansion and Strategic Placement Margin Bidding Nathan misunderstands how merchants interact financially with the platform and tells Greg he needs to be a killer. Greg clarifies the platform economics, explaining how merchants pay margin and how catalog placement bidding will monetize them.12:14–17:10 · Nathan as informed peer 4/10 Sponsor Pitch: The Top Inbox for Sales Professionals Following mid-roll ads, Nathan conducts the Famous Five questionnaire in a conversational, friendly manner. Greg gives thoughtful responses on books, mentors, and habits with zero friction.17:10–17:40 · Nathan as informed peer 0/10 Executive Recap and Alyce Performance Metrics Breakdown Nathan delivers a closing solo summary detailing Alyce's key metrics, financing notes, and growth projections.0:28–5:12 · Guest teaching 2/10 Weekly Cash Winner Announcement and Entry Guidelines Nathan introduces the guest and digs into the business mechanics of Alyce's revenue split. Greg explains the 20 to 35 percent transaction take rate and the credit-based subscription model collaboratively.5:18–9:52 · Guest teaching 3/10 Fast Alpha Launch and First Year Revenue Metrics Nathan demonstrates financial literacy by breaking down gross vs net margin, COGS, and standard convertible note structures. Greg readily provides metrics and explains the company's fundraising runway and Series A timeline.10:00–12:12 · Guest teaching 5/10 Catalog Expansion and Strategic Placement Margin Bidding Nathan misunderstands how merchants interact financially with the platform and tells Greg he needs to be a killer. Greg clarifies the platform economics, explaining how merchants pay margin and how catalog placement bidding will monetize them.12:14–17:10 · Guest teaching 1/10 Sponsor Pitch: The Top Inbox for Sales Professionals Following mid-roll ads, Nathan conducts the Famous Five questionnaire in a conversational, friendly manner. Greg gives thoughtful responses on books, mentors, and habits with zero friction.17:10–17:40 · Guest teaching 0/10 Executive Recap and Alyce Performance Metrics Breakdown Nathan delivers a closing solo summary detailing Alyce's key metrics, financing notes, and growth projections.0:28–5:12 · Guest disagreement 1/10 Weekly Cash Winner Announcement and Entry Guidelines Nathan introduces the guest and digs into the business mechanics of Alyce's revenue split. Greg explains the 20 to 35 percent transaction take rate and the credit-based subscription model collaboratively.5:18–9:52 · Guest disagreement 2/10 Fast Alpha Launch and First Year Revenue Metrics Nathan demonstrates financial literacy by breaking down gross vs net margin, COGS, and standard convertible note structures. Greg readily provides metrics and explains the company's fundraising runway and Series A timeline.10:00–12:12 · Guest disagreement 3/10 Catalog Expansion and Strategic Placement Margin Bidding Nathan misunderstands how merchants interact financially with the platform and tells Greg he needs to be a killer. Greg clarifies the platform economics, explaining how merchants pay margin and how catalog placement bidding will monetize them.12:14–17:10 · Guest disagreement 1/10 Sponsor Pitch: The Top Inbox for Sales Professionals Following mid-roll ads, Nathan conducts the Famous Five questionnaire in a conversational, friendly manner. Greg gives thoughtful responses on books, mentors, and habits with zero friction.17:10–17:40 · Guest disagreement 0/10 Executive Recap and Alyce Performance Metrics Breakdown Nathan delivers a closing solo summary detailing Alyce's key metrics, financing notes, and growth projections.0:28–5:12 · Nathan pushing back 2/10 Weekly Cash Winner Announcement and Entry Guidelines Nathan introduces the guest and digs into the business mechanics of Alyce's revenue split. Greg explains the 20 to 35 percent transaction take rate and the credit-based subscription model collaboratively.5:18–9:52 · Nathan pushing back 4/10 Fast Alpha Launch and First Year Revenue Metrics Nathan demonstrates financial literacy by breaking down gross vs net margin, COGS, and standard convertible note structures. Greg readily provides metrics and explains the company's fundraising runway and Series A timeline.10:00–12:12 · Nathan pushing back 3/10 Catalog Expansion and Strategic Placement Margin Bidding Nathan misunderstands how merchants interact financially with the platform and tells Greg he needs to be a killer. Greg clarifies the platform economics, explaining how merchants pay margin and how catalog placement bidding will monetize them.12:14–17:10 · Nathan pushing back 2/10 Sponsor Pitch: The Top Inbox for Sales Professionals Following mid-roll ads, Nathan conducts the Famous Five questionnaire in a conversational, friendly manner. Greg gives thoughtful responses on books, mentors, and habits with zero friction.17:10–17:40 · Nathan pushing back 0/10 Executive Recap and Alyce Performance Metrics Breakdown Nathan delivers a closing solo summary detailing Alyce's key metrics, financing notes, and growth projections.

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

0:00 · Nathan 76.3% · guest 23.7%0:00 · Nathan 76.3% · guest 23.7%3:00 · Nathan 16.4% · guest 83.6%3:00 · Nathan 16.4% · guest 83.6%6:00 · Nathan 27% · guest 73%6:00 · Nathan 27% · guest 73%9:00 · Nathan 15.4% · guest 84.6%9:00 · Nathan 15.4% · guest 84.6%12:00 · Nathan 62.5% · guest 37.5%12:00 · Nathan 62.5% · guest 37.5%15:00 · Nathan 43.9% · guest 56.1%15:00 · Nathan 43.9% · guest 56.1%18:00 · Nathan 100% · guest 0%18:00 · Nathan 100% · guest 0%
Sharpest disagreement ▶ 10:57 Greg refutes Nathan's assumption on merchant fees

Greg pushes back against Nathan's remark that he needs to take a percentage from merchants, detailing that merchants already give margin and will bid for catalog placement.

 Hardest push from Nathan ▶ 6:25 Nathan drills down on margins and profitability

Nathan challenges the revenue numbers by immediately pressing on gross versus net margins and asking if Alyce is burning cash like other SaaS companies.

 Biggest teaching moment ▶ 10:10 Greg educates Nathan on Alyce's merchant vs gifter economics

Greg corrects Nathan's confusion about who is paying subscriptions versus transactional fees on the platform.

 Nathan holds their own ▶ 7:59 Nathan demonstrates command of convertible debt structures

Nathan accurately predicts and articulates the standard terms, interest rate discounts, and rolling cap mechanics of Greg's convertible note.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Weekly Cash Winner Announcement and Entry Guidelines 5212 Nathan introduces the guest and digs into the business mechanics of Alyce's revenue split. Greg explains the 20 to 35 percent transaction take rate and the credit-based subscription model collaboratively.
Fast Alpha Launch and First Year Revenue Metrics 7324 Nathan demonstrates financial literacy by breaking down gross vs net margin, COGS, and standard convertible note structures. Greg readily provides metrics and explains the company's fundraising runway and Series A timeline.
Catalog Expansion and Strategic Placement Margin Bidding 4533 Nathan misunderstands how merchants interact financially with the platform and tells Greg he needs to be a killer. Greg clarifies the platform economics, explaining how merchants pay margin and how catalog placement bidding will monetize them.
Sponsor Pitch: The Top Inbox for Sales Professionals 4112 Following mid-roll ads, Nathan conducts the Famous Five questionnaire in a conversational, friendly manner. Greg gives thoughtful responses on books, mentors, and habits with zero friction.
Executive Recap and Alyce Performance Metrics Breakdown 0000 Nathan delivers a closing solo summary detailing Alyce's key metrics, financing notes, and growth projections.

Statements from this episode (10)

Disclosure
Alyce takes a 20% to 35% cut from 460 partner merchants
“What we've done is we've partnered with about 460 merchants now that cut us a piece of the transaction, because basically we are getting them inside of the corporate gifting budgets, which they have no no way of getting into otherwise. So they cut us anywhere …”
Greg Segall Jan 27, 2017 ▶ 3:36
Assertion Not checkable as stated
Segall: 20% to 25% of Alyce gift recipients sign up to use the platform
“And we have anywhere between one in four to one in five people signing up and actually using Alice who received a gift.”
Greg Segall Jan 27, 2017 ▶ 5:58
Prediction Not checkable as stated
Segall: Alyce will reach around $300k top-line revenue in year one
“So we're going to be probably around 300 grand this year.”
Greg Segall Jan 27, 2017 ▶ 6:19
Prediction Not checkable as stated
Segall: Alyce expects 25% gross margins and 8% to 12% net margins
“So gross margin will be somewhere on the order of probably 25%, and then net margin will probably be eight to 12%, I guess.”
Greg Segall Jan 27, 2017 ▶ 6:34
Prediction Not checkable as stated
Segall: Alyce on pace to generate $4.7M in 2017
“Cause we're right now just with contracts already, we're on pace to do probably about 4.7 million next year.”
Greg Segall Jan 27, 2017 ▶ 7:54
Disclosure
Segall: Alyce raised convertible note at 6% interest and 20% discount
“Six percent interest and 20% discount.”
Greg Segall Jan 27, 2017 ▶ 8:12
Assertion Not checkable as stated
Segall: Alyce processed $150k in revenue over 20 days
“I think just in the last 20 days, we've put through about a 150 K worth of worth of revenue.”
Greg Segall Jan 27, 2017 ▶ 8:51
Disclosure
CEO Greg Segall retains 90% ownership of Alyce ahead of Series A
“Right now between employees and all of the investors in there, they probably have about 10%. Now, again, it's convertible notes, and obviously it depends on what we end up converting at. So I still own on 90% of the company”
Greg Segall Jan 27, 2017 ▶ 9:33
Assertion Not checkable as stated
Segall: Alyce catalog grew from 3,000 to 15,000 products
“Because when we launched the catalog, it started off at about 3000 products. Now we're at about 15,000.”
Greg Segall Jan 27, 2017 ▶ 11:11
Disclosure
Alyce plans a bid-for-placement merchant directory ranked by margins
“Eventually, we will probably turn this into more of like a bid, bid for play thing... Which one am I going to show first? I'm probably going to end up showing the one that shows more margin, or gives us more margin, so obviously in the end it can end up becomi…”
Greg Segall Jan 27, 2017 ▶ 11:41
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