The Exchanges

Q imagine when you close books in 2021 and you do 2.2 million revenue and then 2022, it's going to go down, you know, significantly down to 600. But the story is, hey guys, we're moving to higher margin SAS. That's a hard storyline to manage. I mean, any employee looking at the books is going, oh my gosh, we just declined by a lot. How do you manage that storyline?

A Yeah, so I'm transparent and honest, right? So I've just told every employee kind of what we're doing, right? The same story I'm telling you right now. So I'm, I'm, we're raising, we're raising around, uh, 3.25 million. That'll take us through the end of next year. Uh, we'll be about two million dollars in ARR by the end of next year, and it'll all be SAS. And so, um, actually we have more excitement from our staff than we do, uh, than we did. And we've also, um, it wasn't like I had to sell that to, To all 17 people that work with us now, right? At that point in time, we were only about six people. So it was just me and a few other people at that time. So we, um, we tripled in size here in the last 18 months now that we made that transition overseas.

AI assessment note: “I'm transparent and honest, right? So I've just told every employee kind of what we're doing”

Q Interesting. Okay. So tell me how you help them. Like what's a big, maybe what's a big mistake that a bunch of my listeners right now, maybe they made a million bucks real quick. What's a mistake they might make with that million that you can help them with?

A Yeah. So, so I think where, where we're helping people out is on all of the things that are non-financial. So they buy homes, they buy cars, they start to accumulate a lot of things, right? The more money that you make, the more things that you have the ability to buy. And a lot of times people start to accumulate very rapidly. And what ends up happening is Is that, um, they're reacting to managing those things, right? So we help people proactively manage those things where they're saving time. They're saving money. Uh, they actually know what they have and where it is at all times. Um, I know what bank accounts I have. I know where all my financial stuff is. I've got a team of people managing it a lot of times with all of my physical assets. And that's where we really step in to help. Um, you know, it's, it's, you're, you're managing your home in a reactive way. I have a water leak. So now I fix it. Whereas Uh, we're helping you productively prevent that water leak and ultimately helping you kind of enjoy, you know, things you should be able to come home and enjoy, not things that you should be worrying about.

AI assessment note: “we're helping people out is on all of the things that are non-financial”

Q Now, where did you, like, when did you launch this and where did you get the idea? Did you have it before you were doing work at the family office or did you see problems at the family office that gave you the idea?

A Yeah. So, so this actually came from my, my previous, uh, venture as, uh, work, working with alternate work families as a general contractor. And we finished a very large project. It took us about six years. Uh, there was tens of thousands of page of documents and I knew no one would ever look at them, read them. It was very difficult to consume. And so the idea for estate space came about five years ago when we, we found it impossible to transition, uh, a multi-ten million dollar project Uh, to the client because there was just so much information. And so what ended up happening is, um, we realized that we were now sucked into like the facilities management role. And that's not really what our company did, but obviously we adapted, uh, we took care of the client. And so, uh, that was kind of the Genesis. And then the, the maturation has really been, uh, moving from like the physical asset portfolio to property management, really now to, uh, communications and an end to end operational, um, platform that will allow You know, workflows, business intelligence, and again, giving all members of your estate space the right information, um, at any given time so that we're cutting down on a lot of the administration, administrative inefficiencies that go on, uh, especially in private residences.

AI assessment note: “the idea for estate space came about five years ago when we, we found it impossible”

Q What was going through your head the year end closeout? Were you exciting or were you bummed or what?

A No, I think we were, we were psyched, right? So we, we, we, that was kind of like our proof of concept launch. So we kind of thought, saw that as like our beta launch. Uh, we got 13, uh, clients and they were a spread across I'll try network families, family offices, and then, um, supporting service providers. So property management company, uh, we also had an estate management company. And so we got all of the flavors that we were looking for, and then we were able to get a ton of feedback. Um, and then we were in that led to our two point O release, which was, so we were on September of 1902 one came in June of 2020. And now, um, this October is three point O that's probably what I'm most excited about. Again, you know, we, we try to listen really well. And then apply that feedback in a way that benefits all of our customers.

AI assessment note: “No, I think we were, we were psyched, right?”

Q imagine when you close books in 2021 and you do 2.2 million revenue and then 2022, it's going to go down, you know, significantly down to 600. But the story is, hey guys, we're moving to higher margin SAS. That's a hard storyline to manage. I mean, any employee looking at the books is going, oh my gosh, we just declined by a lot. How do you manage that storyline?

A Yeah, so I'm transparent and honest, right? So I've just told every employee kind of what we're doing, right? The same story I'm telling you right now. So I'm, I'm, we're raising, we're raising around, uh, 3.25 million. That'll take us through the end of next year. Uh, we'll be about two million dollars in ARR by the end of next year, and it'll all be SAS. And so, um, actually we have more excitement from our staff than we do, uh, than we did. And we've also, um, it wasn't like I had to sell that to, To all 17 people that work with us now, right? At that point in time, we were only about six people. So it was just me and a few other people at that time. So we, um, we tripled in size here in the last 18 months now that we made that transition overseas.

AI assessment note: “I'm transparent and honest, right? So I've just told every employee kind of what we're doing”

Q Yep. Okay. Interesting. So is that sort of the right tack? You're willing to spend about three grand to get a new customer?

A No. Um, so right, right now, because we're sunsetting two point O and releasing three point O, uh, we're, we're starting to pivot our marketing, uh, and our messaging. Our website will be turning over next month. So, uh, we have, uh, I'd say a handful of referrals that are coming on to the two point, but for the two point O release, which was mobile centric mobile first, uh, with a, with a very simple web supporting application. Um, and so not to confuse, uh, our upcoming buyers and a lot of the people that are in our pipeline. Uh, we're going to be pivoting all of that. So I'm kind of okay with that, but typically on average about three to 5000 dollars is going to get us like three to five million eyeballs. And then from there, we're looking at about 500, um, leads that, that probably end up somewhere around a 150 of sales qualified leads that typically, you know, from there we start working down about, you know, anywhere from like 30, 20 to 50% by the time that you get down to it.

AI assessment note: “No. Um, so right, right now, because we're sunsetting two point O”

Q Interesting. What am I going to pay you on average per month to use this technology?

A So if you're a single person, you're paying 45 dollars a month. Um, if you have a team of 200, then, uh, your, your per user cost is going to go down based on the number of people that you have. Um, so, you know, whether you're a small business, you know, I'm a three-time founder, so I've always wanted a platform that I could buy that might cost me a couple hundred dollars for a five, six person team to be able to manage my business, manage my clients, and ultimately, Not have to do a bunch of rework because I have a system that's intelligent enough to allow me to do all those things, capture that information in a database driven experience, uh, to ultimately, uh, uh, give people what they need when they want based on their role, based on their permissions.

AI assessment note: “if you're a single person, you're paying 45 dollars a month.”

Q 2017. Okay, and now how many customers are you serving today?

A Yeah, so we have over 50 families. Uh, we have multiple billionaires on the platform. Uh, we just started scaling a couple of months ago, so it's been a really exciting year, so we've exceeded our, our sales numbers from last year and the first month of this year, and we're really taking off. Uh, we've, uh, over the last, so, you know, from the year of the idea, we had our, our first release in 19. Uh, our, our two point O release was in 2020, uh, and then, uh, three point O is coming out, uh, middle of October of 20 21. And that's what we're really excited for because we'll have end to end capabilities. Again, we've got workflows. We have a marketplace, um, for service providers to help our clients on things that we don't do, uh, as well as business intelligence. So those are kind of the three things when you think about a state space. And now we'll have a web of both mobile, Android, Apple. So we'll be able to be anywhere that our clients need us to be.

AI assessment note: “we have over 50 families. Uh, we have multiple billionaires on the platform.”

Q did do a revenue multiple, right? Seventeen million, right? On a 2200 thousand dollar company, it's a 68 X multiple, which isn't, I mean, You know, again, I wouldn't say that that's important. What's important is a story you're telling. So, but point being, there's a lot of people listening that are at your stage that are trying to raise this kind of round. How did you get it done?

A You know, I think it was, um, it was kind of what you just said, right? I mean, people aren't investing in my multiple right now. They're investing in the company. They're investing in the vision. They're investing in Jonathan, um, and when, and where we are, right. We have traction. Uh, so we were able to leverage our traction. Uh, we were able to leverage, uh, the, uh, the space that we're in and we've kind of created a marketplace. So, um, I would say some of my advice is, you know, again, we've been successful by staying, you know, two inches wide and two miles deep. Right. So we're not saying that we're property management simplified. Like we have a very specific goal with the company. Um, and so with that, that story and that transparency, it resonates with, um, our investors and shareholders. It also resonates with, um, our buyers, right? Like they get that we are purpose-built. So, um, you know, when it comes to some of, when we start to look inside the numbers, I've been able to raise capital because we have over a 90%, uh, retention rate for paying clients. Right. We have some issues prior to that, um, on activation that we are, that there are things that we can solve for, but from a, um, you know, from a, from a raise perspective, uh, you know, we started this raise on September sixth and, uh, it's been, you know, and then the market kind of turns down and, um, you k…

AI assessment note: “I've been able to raise capital because we have over a 90%, uh, retention rate”