The Exchanges

Q Unique folks. Number three, besides your own, what's your favorite online tool for building QuoraLogix?

A My favorite online tool for building CoreLogic. That's interesting. So actually it's relatively new in our tool set. Um, I don't know why we waited so long, but we just, uh, uh, started using Monday heavily. And the great thing about it is that it's so versatile. So I, we, you know, there was always like tools for managing R and D tasks and tools for sales and tools for marketing. Suddenly there's one from CS through marketing and it's so flexible the way that you can use it. A thousand different ways that, that we found it to be super useful and helpful for the company to collaborate. So this is just like I said about companies wanting their data in the same place, you know, the, the logs, metric, security, tracing, and, and other events, and they want to correlate it. Suddenly when you can look at tasks end to end, and you can see a task in R and D and when our CS writing the tutorial, when marketing or publishing it, when our sales getting enabled, this is, this is really helpful. And, um, one of the best products that I've used lately.

AI assessment note: “we just, uh, uh, started using Monday heavily.”

Q What were they, by the way? High level.

A Back then it was like, 1.4 million a year, maybe, or so. That's, that's mid 2019. So like, after the acquisition offer, it took a few months to get to the SBA. And then, um, what happens is that he tells me, you know what, I think I'll, we'll make an offer. And I said, okay, so when, when can you make it? He said, oh, you know, I'm coming back to Israel next week. Let's meet my partners. I said, listen, man, there's, there's a meeting Monday. It's Tuesday now. I need to, to get it. So he arranges his, uh, uh, partners in this room in New York. We barely hear each other. 30 minutes we speak. And then he says, you know what? I'm going to send you an offer. And he sends the offer again on WhatsApp, like this one, two, three, four, five. And I said, can I bring this to the board? Because, you know, they're going to turn off an offer that that's going to make like a nice Income for everyone, even though, even the ones that got in in ten million, will they make, they're still three, four X, right?

AI assessment note: “Back then it was like, 1.4 million a year, maybe, or so.”

Q Wait, Ara, tell me more about that. Most VCs would hate the, the word consulting, but I know some of the highest net dollar retention founders tie on consulting to their, to their stickiest customers. How are you structuring that?

A So the thing, the thing is that, that it goes with the product, you know, just like CrowdStrike has, uh, uh, consulting and, and PS, but we're not talking about a service that will go to customers outside the CoreLogic's, uh, uh, ecosystem. A customer that buys, uh, A certain amount of, of, of data and CoreLogix will get without paying per hour, but he will get an expert helping him on board, helping them, uh, define the, the right, uh, criterias for, for security alerting, uh, help them build their incident response strategy. Those are things that we're seeing that are a huge gap in the market. Just companies really, you know, one of the questions. So one of our advisory boards is, is Yuval Cohen. He used to be the CISO at, uh, at ServiceNow. For a few years. And he's asked a question on his LinkedIn that I really connected to before we started this, and the answers were remarkable. So he said, Um, how much did you increase your spend in the past two years on security products? And it ranges between four to 10 X. And then how much more secure do you feel, uh, in your organization? Like how, how, how did you improve your security posture as an organization? And most answers are not like none to a bit more because these tools, they produce a lot of insights. I don't know what to do with them. I don't know how to defend myself. There's, there's a huge gap of information and there…

AI assessment note: “A customer that buys a certain amount of data... will get without paying per hour”

Q Seven engineers. Interesting. Okay, so what's the next move? I mean, again, it sounds like you almost doubled over the past, like, four months in terms of revenue. You know, it is a fast-growing company. Obviously, Salesforce failed to get the Datadog deal done. Are you in Acquisition Talks right now with Salesforce?

A I am not. I actually mentioned that Salesforce, I think, will get in our space some way, somehow, and I think I'm fluent. We'll also step into the observability space. I think also Snowflake will get there because it's just that makes no sense for companies that control a lot of data and charge data to not get into the space that produces the, the, the largest amount of data and the users have the biggest checks in the organizations now, which is the R and D and platform teams. I, we are not thinking acquisition now. We already rejected an acquisition. So, uh, our, our goal now is just to grow the company. We have, like mentioned, uh, a pretty decent runway. And a lot of freedom to grow and expand and build more products and more offerings. And, you know, with the valuations currently in, in, in the VC market, uh, there's no real urge to go ahead and, and, and, um, sell the company. Um, and by the way, to your question regarding what have we done creatively with the money in this round, we actually cleaned up a lot of the cap table from the older investors.

AI assessment note: “I am not. I actually mentioned that Salesforce, I think, will get in our space”

Q That's amazing. All right, so let's jump into CoreLogix. What are folks paying you for today?

A Yeah. Um, so the, the thing is, if I take a little step backwards, um, the observability space, logging, metrics, security, uh, tracing, it started about almost 20 years ago, or it really started to explode almost 20 years ago when Splunk took it from the appliance, um, sort of approach to actual software and then, uh, software as a service, uh, with the, the concept of, uh, let us ingest all your data, we'll index it, we'll store it, we'll become some sort of Google For your organization or for your operations or for your security. And it worked great. Uh, because the, the amount of data 20 years ago was, was something that can be handled like that. And with time, we're seeing data growing exponentially. What we tell our customers and our investors in the previous round was data grows faster than revenue. So you'll see any company you're covering, you'll notice, like you'll ask them and they'll give you the, the most, uh, uh, uh, insane KPI of growth. If you ask them how much did their data grow during that time, their observability data, it'll be like five, 10 X.

AI assessment note: “if I take a little step backwards, um, the observability space”

Q How much equity did you own at that point?

A Um, it was, you know, we just had a couple rounds, so it was, it was still fine. And then, um, the CTO that was an employee left after him because, you know, the company kind of fell apart. So he went to manage a group, this big company and, uh, Yoni, uh, uh, a good friend of mine who also led a group invariant, uh, basically became the CTO became my co-founder and we restructured the company entirely. Um, and we started running from that point onwards. Um, and within the four or five months, we got to like 20, 25,000, uh, of monthly recurring. So the board was, uh, um, very surprised because they thought they're going to shut down. And they gave us 2.5 million dollars more, like an extension, like a, uh, uh, um, CLA.

AI assessment note: “we just had a couple rounds, so it was, it was still fine.”