Answered produced feed
D 5 · C 5 · P 5 · Cm 4 4.85
Q So what was your first year revenue? Do you remember?
A It was none, actually. We were very focused on building the product. It took some time to gather all this tremendous amount of information that we have today about companies and their employees. So it took about a year to build the first database or the initial database and the interface. And then we had a beta version, a pilot for about four months with just a couple of tens of companies. Uh, so in the first year we didn't make any revenue. Also in the second year, uh, we started with a freemium model, which wasn't very successful for us. And only this year, about 11 months ago, we completely changed the business model and switched into annual subscription in, uh, with, um, an inside sales team and more of an enterprise sales approach.
AI assessment note: “It was none, actually. We were very focused on building the product.”
Answered produced feed
D 5 · C 5 · P 4 · Cm 4 4.60
Q Well tell, that's why I said talk about it in generalities if you need to. How do you, like, what should other SaaS CEOs listening that are about your size, how should they think about raising capital in terms of valuation?
A To be honest, it's really hard to tell because when we, when you meet investors, some investors will tell you just let's look at your ARR and multiply it by eight, by 10, by 12, by 12, whatever that makes sense to them. Another way to approach it is just to look at other, uh, rounds of similar companies in similar stages, stages, and use them as a benchmark. And sometimes you'll, you'll come up with a different conclusion. And then just to use the ERR and some, uh, multiply. So, and I think that in every round, regardless of it's a serious, if it's a seed round, series A, series B, founders should be expecting to, to lose anywhere between, I would say, 25 to 35% of their company, including some options for, for the ESOP.
AI assessment note: “look at your ARR and multiply it by eight, by 10, by 12”
