The Exchanges

Q Very cool. So I want to dive into that as well. Talk about the current product though. What are customers currently paying you for?

A Yeah, so, um, we have Living Security's human risk management platform, and the platform is comprised of three separate products. Uh, when COVID hit, we actually brought our team-based training that was, uh, run in person through escape rooms prior, um, into a digital environment, so that's something we call Teams. It's all, um, you know, a team kind of social learning environment, but again, all online through a digital platform. Uh, we also have our Living Security training platform, um, Um, and this is where we're giving, like, high quality, individualized training content out to end users. Um, really high quality, the highest quality in the industry. It's super personalized, and we have risk scoring on the back end for our, um, our admins and our program owners. And then we have Living Security Phish, and that was a new product that we launched this year, um, and that's a phishing simulation tool. So right now we have all the tools and kind of techniques that you need as a program owner. Um, to build a really successful, um, human risk program focused on data.

AI assessment note: “we have Living Security's human risk management platform, and the platform is comprised of three separate products”

Q What are some, like, tease me a little bit. What are some of those behaviors? Like, hey, That employee, Nathan Black, he's always clicking those random emails from external emails coming in and with an IP address and like, I don't know, some weird off, you know, location. He's at a high risk for a phishing attack.

A Yeah. So, I mean, that's a really good example. And right now the data that most companies use are phishing simulation metrics. So they'll send out those phishing emails to their employee base to figure out who's going to click, right? Who's going to report. And then that's the data that they're presenting. But there's a lot of other behaviors that we need to watch out for and that could present risk for the organization. So, um, are you, what, what's your password hygiene like, right? Are you reusing the same passwords across websites? Are you using a password manager, right? Are you connecting and accessing, you know, sensitive information, sensitive applications, leveraging your virtual private network? Are you browsing malicious websites, right? So there's all of these different types of behaviors that we really need to be capturing and measuring, and that we want to fight against as an organization. And ultimately, you want to create, you know, a positive security culture around people making, you know, good risk-based decisions about how they're behaving online.

AI assessment note: “Are you reusing the same passwords across websites? Are you using a password manager”

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A So right now, the way that most companies are, uh, managing their human risk program, um, it's typically been driven on what we call activity metrics, so how many people are, right, engaged with the program, um, are they completing training, right? We're trying to check that box for compliance, and so what Living Security has done is really transitioning the way that we think about success for our program as being outcome driven, and the outcome that we're trying to drive is behavior change, And so in order to do that, we built Unify, which is actually integrating into the existing security technology staff to bring in end user kind of behavioral data and to generate insights for our security leaders. So they can say, you know, who is the most at risk and what are they doing? What are these behaviors that are really causing, you know, risk for the company?

AI assessment note: “built Unify, which is actually integrating into the existing security technology staff”

Q mean, you've raised capital. Um, we met through a mutual connection, Pat Matthews that runs active capital. I'm an LP in the fund. So I know a little bit about the company, but I mean, I imagine VCs must hit you all the time and say, Ashley, Quit this escape room nonsense. It's low margin. It's difficult to scale. Just focus on sass. If that's true, how do you respond?

A Yeah, so I mean, there's a couple things that, um, actually, you know, the escape room has, um, done a lot of really amazing things for us, and so the escape room service, as I mentioned, where living security comes in the door and hosts, um, it has high margins. It also helps us to get our foot in the door and build a relationship with the client, but we're also seeing those clients not only be retained, but also buying more services and product from us, and so there's a positive conversion over them purchasing something that's an annual subscription license after a service. Um, you know, same thing with our escape room platform. It's actually recurring revenue. They're buying a year license revenue for each, you know, each user seat, and we're seeing recurring, um, retention and upsells on that as well. Again, having high margins with both of these. And so, um, it's something that's unique. The market has honestly, like, pulled us in that direction. When we first started, we thought at some point maybe we would drop it, but, um, people just can't get enough of this, you know, really immersive in-person experience. Experience that we're offering.

AI assessment note: “the escape room service... has high margins. It also helps us to get our foot in the door”

Q Amazing. Okay, so now with Zoe in your lap, tell us about, uh, can you tell us the story about a fortune 1000 that used you recently?

A Yeah. Um, so, I mean, a lot of them look very similar. I'm not going to put any names on there. You can look at our website. Um, can we talk about like mass mutual or enterprise with working with us, with our cybersecurity escape room, uh, essentially it's an in-person training experience that we actually enable our clients to run continuously throughout the year with a subscription to the platform that manages it. Um, and then that client, they usually bring, you know, a good portion of their users online. Um, they're getting them trained up throughout the year. They love the experience. They love how immersive it is and the feedback. And then we're able to cross sell them onto our online platform, um, to help them scale that out to more users and remote locations and, you know, with a global audience.

AI assessment note: “talk about like mass mutual or enterprise with working with us”

Q So 15 total there. The CSM thing is unique. Very few people are doing this because if you get the incentive structure wrong with your CSMs, you're, you're going to, they're going to do the wrong thing or try and sell too hard. How are you giving them a quota, but making sure they don't sell too hard?

A So we, we are actually really big around, um, like two main goals for our CSMs, one being empowerment and one being growth. And so what we kind of drive home is from a partnership perspective, you know, if we're giving them the tools that they need to be successful and we have like the best solution on the industry, like why wouldn't they want to do more with us? And so we go in first as a trusted partner and then we set expectations around how do we want to grow and mature your program and And then they are partnering with us to help grow our business so we can continue to innovate and provide more solutions. So today it's been working really well. Um, and I think it's, you know, leading with empathy and value and then being able to drive growth on the back end.

AI assessment note: “leading with empathy and value and then being able to drive growth on the back end”