The Exchanges

Q Okay. Interesting. Why raise capital? Why do you need capital to build this?

A Um, it's technically difficult to build. So something like, um, what we're building today was not possible, like even let's say five or six years ago, because of the state of the browsers and like, like the technical limitations. Um, so that's one thing. Uh, it just requires like more manpower and, um, also like more, you know, good developers, um, which is not cheap to get. Um, and secondly, I believe it's going to be like the right strategy would be a combination of bottoms up, like what we have right now and also top down, um, approaches. So like we would need to have like sales to, in order to cater to bigger organizations, which is, I guess, the more, um, interesting market for, you know, a company like ours.

AI assessment note: “requires like more manpower and, um, also like more, you know, good developers”

Q I see. Okay, cool. So tell me more about that. Obviously product hunt, which is an initial strategy to get a bunch of these signups. What else did you do in the early days to get your first sort of 10,000 signups?

A Um, Like, once we launched on Product Hunt, um, most of it was, like, SEO and, and direct traffic, uh, and, like, we listed on a few platforms, like Capterra, for example, or GetApp, uh, and at the moment, we're, like, essentially trying, like, every single channel that we, uh, can get our hands on, um, in terms of the most successful, like, in terms of signups, I would say it was Google Ads, um, and we're, like, advertising, you know, for general screen recording, um, I guess, categories, um, and other than that, um, it's, uh, like, it's interesting, like, because you have Capterra and GetApp, And software advice. And that's like one umbrella. Um, but like we get more leads via get app, uh, although like we were originally kind of like betting on Capterra. Uh, and, uh, what also works for us, um, is newsletters. Uh, I can, I can recommend that I was not expecting this. And also we, uh, we have an onboarding video and we just tried to like, uh, put it on YouTube and see how it would perform. And, uh, like that performed surprisingly well. So like, Even for an ad, like, 75% watch time we're getting, like, on average watch time is 75%.

AI assessment note: “most of it was, like, SEO and, and direct traffic, uh, and, like, we listed”

Q um, let's talk about get app. You know, everyone always asks me, Nathan, should I go on G two first or cap Tara get up? I would say is like an underdog in this category, but it's performing well for you. You rank number five under the category bug tracking. So you rank fairly high with 29 reviews, 4.7. Do you pay for placement here or is this all organic?

A Um, so I think on get up, like you have to pay, like if you want to track clicks. Um, so like we're paying in some regions, Uh, I think mostly like the US and like Europe and North America. Um, I don't, No. How much like the cost per click? Um, I'm not that sure about like the, the thing with get up is that like you have high purchase intent. So that's great. Um, and like, if you have a good retention customer lifetime value, I think that's, uh, that's also great. I think the challenge that we find with get up, um, is that we are essentially creating our new, um, our own category. So like, we're not, um, something that's been, that's existed before. And like, we're not technically bug tracking.

AI assessment note: “so like we're paying in some regions, Uh, I think mostly like the US”

Q Three people, obviously the tough conversation when you get going to decide how to split equity. How'd you guys have that tough conversation and a third, a third, a third?

A Exactly. Uh, like what we have, uh, exactly the same stake. Um, and like we, we have the, the regular panel, like cliff and so on. Um, so I, I think that conversation was, um, like pretty easy, like also because regular cliff, you mean one year cliff for your vesting. Uh, one year clip for the vesting and like four year vesting period. Um, um, yeah, like I think, and, and not just me that it gets really tough. Like if the, uh, split is not equal because then it's kind of like, like who's putting in like more, you know, hours or like more nerves, um, and so on. And that's, uh, like not a very stable, I believe a combination, like long-term. So like, especially if, like, especially if, um, you're starting at the same time and not like somebody is joining later and so on.

AI assessment note: “we have, uh, exactly the same stake... that conversation was, um, like pretty easy”

Q Okay. Interesting. So let's, let's go back to like, again, how you're currently building. So bug tracking tool, uh, over 10,000 free signups, which is great. You're converting six percent, which is high for freemium tools. So congratulations on that. What are they paying on average per month?

A Um, it, it really depends on the, uh, on the, um, on the size. So sometimes like we have like a single bug reporter, for example, and they're paying like eight bucks. Like sometimes it goes, uh, over like 200 a month, like for slightly bigger companies. Um, and the, uh, interesting thing that we found is that like a few bigger companies, um, reached out to us, uh, like with thousands of people and, uh, we couldn't cater to them because all of them wanted Uh, things like single sign on, for example, self-hosted solution, and also SOC two and ISO 2001 certifications. Uh, and, uh, we will get those for sure, but like they take months to get and like their, um, purchasing departments are like really ruthless, uh, about these certifications.

AI assessment note: “single bug reporter... paying like eight bucks. Like sometimes it goes over like 200”

Q I see. Okay. So how many paying customers do you have today?

A Uh, we have about, uh, six percent, um, and that's, um, like the target, like it's kind of an interesting story. So we took Dropbox, um, as an example, and because they have like a, a free tier as well, and they have a lot of word of mouth. And in our case, we have. 40% of, uh, signups coming through word of mouth, which is like crazy. Um, and, uh, we decided not to make, uh, the, the free plan too restrictive to keep the word of mouth going on. Um, but also like we want to know that we're, uh, you know, spending, uh, time on something worthwhile that companies are willing to pay for. And I think Dropbox is at about four percent and then we're like targeting roughly, um, that amount to, um, to stay happy.

AI assessment note: “we have about, uh, six percent”

Q How much revenue do you want to hit before you go out and do your next fundraise?

A Um, that's a good question. I think we're not, uh, this round, like, um, for the revenue game, like, we're mostly, like, looking at the usage numbers, and, like, at the growth, and, like, if we can hit consistent growth, um, and I think we're on the path to do this, um, and that's gonna mostly depend on A, like, if we find good advertising channels, um, and B, if we're able to build a solid product, um, and there are a couple of, like, big things that we're working on, like, for example, Um, at the moment we're working on something called instant replay. So for example, right now you need to record, uh, like you need to reproduce your steps to report a bug, um, and you will be able to go back in time, um, instead of reproducing and then just export last, let's say a minute of your actions, uh, with technical logs so that the engineer can know like 100% of the, of the time, like what actually happened. Um, and that's like basically a game changer that, um, uh, can I don't want to say the word, the word revolutionized, but that can, um, really change the, the way that, uh, software development teams operate. And I think that's our biggest, uh, like one of our biggest bets.

AI assessment note: “we're not, uh, this round, like, um, for the revenue game”