The Exchanges

Q Okay, fair enough. And, and, and is there, are there any power laws across the products? In other words, one, one of these products makes it more than 80% of the revenue?

A Yeah, the trust makes up a considerable amount of our revenue, considering that our base products, the guardian is at 50 dollars and our trust product is at 500. It is a 10 X jump to the trust. I think with estate planning, most attorneys want you to set up a trust. It is the best option if you want to protect your assets, avoid probate and avoid those fees that are associated with it. But for the first time parent who maybe doesn't own any homes, I think of like the younger millennial parent, like mid to late twenties, Who just had their first kid doesn't own any home or any property or assets. The peace of mind of knowing that your kids are protected is the single most important thing that we're trying to hit on, which is why forty five million parents with minor kids in this country don't have any estate plan. Let's start them with the guardian product and then work them up towards a will package or a trust package when the time is right. Never forcing them into something that they're not quite ready for.

AI assessment note: “the trust makes up a considerable amount of our revenue”

Q Okay, and I always like to give this question, if you remember, can you quantify what you spent all in on your MVP before that first dollar of revenue? How creative were you?

A Yeah, probably a couple 100,000. I mean, we had, for context, I have been a serial entrepreneur. It's my third startup, second venture backed. My two co-founders, Daniel and Brian, they come from a custom software development background. Daniel was running biz dev. Brian was running product at the agency. And then we had a fourth developer, fourth person on the team, uh, who's developing the full system for our MVP. So between the four of us, upon incorporation, we raised about, I think like a quarter million going into the start of That's including tech stars. And then by the time we finished tech stars, I think we wrapped up like you could call it pre-seed funding, but we had collected about half a million dollars at that point, but we had invested a couple 100,000 to get the product to where it needed to be. Considering the sensitivity of the documents and how important when they function once you pass, we wanted to make sure they were right before trying to rush us, you know, kind of stick together MVP to product market.

AI assessment note: “probably a couple 100,000.”

Q are like this, right? Some private companies share all this as well. It all comes down to execution, right? And so you're executing. It sounds like it really, part of the secret sauce here is you've built great channel partnerships to get six to 5000 free signups. Walk me through some of those. I mean, can you name a channel partner and why do they promote you versus someone else?

A Yeah, yeah, absolutely. So one of our longest partnerships is with Haven Life Insurance. Haven Life Insurance is a subsidiary of Mass Mutual. They're targeting young families with term life policies up to a couple million dollars. Life insurance and estate planning go hand in hand. They're so complimentary. Most people start to think about life insurance because they got married or started a family. It's very complimentary to why people start to think about a will is generally what most people think to do versus a trust, which takes a little more kind of financial knowledge and savvy to understand. So we have Haven Life where they have a benefits package called Haven Life Plus. They've wrapped in our will as a free will for their life insurance policyholders. And we have a phenomenal conversion from a Haven Life policyholder to a trust in will, will customer.

AI assessment note: “So one of our longest partnerships is with Haven Life Insurance.”

Q And now your price point is not one that lends itself to field sales, right? It's, it's more of a no touch partner kind of model. So do you have any quota carrying sales reps or no?

A Not yet. No, it's, uh, it's an area that we're exploring. One of the interesting channels that we'll be evolving this year is financial advisors. So one of the roles that we're hiring for right now is a channel sales rep. We want to tap into the 300,000 financial advisors, wealth managers, CFPs in the country that often talk to their clients about estate planning from day one. It's part of the onboarding conversation. Do you have an estate plan? If not, can I recommend you to someone in my network? We feel there's a massive opportunity to grow our network through the financial advisor space. And to onboard their clients into the trustable ecosystem. Um, so basically building out a tool set for clients, but also to help be a part of the estate plan over time, which we're really excited to kind of announce more formally in the coming months.

AI assessment note: “Not yet. No, it's, uh, it's an area that we're exploring.”

Q like the setup fees typically in SaaS companies are usually to recoup CAC, right, instantly. That allows your economics to be healthier. But now that you've raised Capital. You can afford to have a 12 or 24 month payback, and you can afford to get people on a recurring plan with longer LTVs versus the one-time upfront stuff. So I mean, will you eliminate the one-time upfront stuff this year?

A It's possible on our entry level documents. So the guardian document potentially, because the document for guardian is really top of the funnel for us. If you're a parent with minor children and you at least want that peace of mind, let's get you into the funnel with that product here. But very quickly, you might realize, like I was saying earlier, if you have assets, you own a home, you have investments, you have a life insurance policy. You want to make sure those are cataloged correctly. We bump you up into the will tier or from the will tier, we bump into the trust. So we have flexibility to work with our pricing since our margins are fantastic, but we want to be really smart in terms of how do we communicate trust with a paid product? Because we felt that a free product within estate planning can actually communicate distrust. Well, what's the catch if I'm making these sensitive decisions, right? What's the catch of a free estate planning document? So that's why we like the paid product. It's priced competitively, but we also want to make sure that we have an opportunity to adjust and evolve our business model.

AI assessment note: “It's possible on our entry level documents. So the guardian document potentially”

Q You have a kid on the way burn cannot, you know, they can keep you up at night. Uh, burn can also keep you up at night. I mean, how comfortable, how much are you comfortable burning per month where you can still sleep well at night?

A Yeah. Well, we factor in the fundraise for two years of, you know, full operation. So that's assuming that we made no money, stayed flat. We have two full years to go operate. The goal would be to drive our revenue goals, our product goals and partnership goals for 20 20 and then look at a series B fundraise in early 21. And at that point, we would be looking to raise sufficient amount of capital to like really position trustable to be the category leader in modern estate planning. So We're playing the game of venture. It's part of the process. We're very fortunate that we've brought on incredible investors, but it's always about working towards that next fundraise and then working back from the milestones we need to hit in order to justify what could be for us like a 15 to twenty five million dollar fundraise in 14 to 16 months.

AI assessment note: “we factor in the fundraise for two years of, you know, full operation.”

Q So what are those conversion rates? I mean, if you just, the total customer account you're serving now today, ignore the one-time stuff, just the ones that are paying you recurring and manage all this stuff for peace of mind. What does that add? You're talking like 10 or 20,000?

A So our recurring subscription will kick in starting this year. So when we launched our trust product in January of last year, it was just California, Texas. We launched the will nationwide in January cause we're still a young company, right? Like we've only had two years really of, of operating history, but we've only had a product in market for about a year and a half. So our first round of subscriptions will formally kick in starting this month. But what's been interesting is that since we launched the will in April, 2018, over the course of that last year, Or since then, we've had people come back that set it up because they got married. They wanted to update it because they had kids, or they wanted to update it because they moved states, bought a new home. So we're seeing about one in a hundred folks come back to make that initial update without any marketing around the fact that, hey, you should come back and update if you've had any of these life events as triggers. So as we move forward into 20, 20 and beyond, we're not just manually reaching out to our members to say, hey, if you had one of these things happen, Here's why you should update your documents, but we want to also encourage with our development team leveraging technology to know or predict when these events happen. We know that you got married or you had a kid, you moved states, you bought a new home to trigg…

AI assessment note: “our recurring subscription will kick in starting this year”