The Exchanges

Q Mark, by the way, I get the value of the product. I'm just trying to understand the economics behind it. So who is, who is paying the flat fee per month, which is the SAS model?

A So the SAS model flat fee are other fundraising companies. So if you are a nursery and you do about a million dollars a year in fundraising, it's going to take you three to four people to run that business, but you can run it on our platform with one person and a distribution center. So we move all of the logistics out of your fundraising business onto our platform and all you have to do is fulfillment. So all your fundraising business turns into a giant wholesale account. The, or a series of accounts that you do fulfillment for and all the other parts of the fundraising come to farm raiser and we manage it for you using our technology.

AI assessment note: “So the SAS model flat fee are other fundraising companies.”

Q And Mark, what, so what, when you say selling EOS, what does that mean? Is the EOS a website? Is it a template? Is it a playbook?

A Yeah, so EOS is a book, and it describes the six key components of a business, and it teaches you how to master those six key components. So getting everybody on the same page in terms of the vision. Getting right people, right seats. Getting really good with data. Getting really good at problem solving. Getting really good at building out your processes. Remember one of the slides just a bit earlier, right? Getting everybody on the same page with regard to who does what. I call it agreement based leadership. And then ultimately getting the title of the book, EOS. Traction. We call it getting smart shit done, right? But just getting traction. So it explains how to get strong at all six of those key components. Cool. So, here is the slide that shows you the number of coaches, and as you can see, just in the EOS community, it went flat, grew, went flat, but then you can see the number of coach companies, and these are companies that all the coaches have coached. There's over 12.5000 companies out there, and if you saw the slide earlier, we've got 5200 running on our software right now. Now, the reality is, is for every coach company that's out there, there's about nine times as many companies that can't afford a coach, Because coaches cost like 25 to 30,000 dollars a year. And our software makes it almost easy to master the tools without hiring a coach. And we're only 14 bucks a …

AI assessment note: “EOS is a book, and it describes the six key components of a business”

Q Wait, wait, go back real quick because this is the first time you showed a screenshot of your actual product interface. This gives you guys an idea of sort of what he's, you know, what 90 is selling there on the right. Mark, do you want to talk anything a little bit about that maybe?

A You know, um, it's funny, um, I'm going to be really just, you know, this is what we do here, right? We talk real honestly. So, um, we've got a new tool we're working on right now, and I reached out to Meta Labs, and they came back and said, you know, can we, can we, can we help you with your user interface? And I'm like, you know, we just went through a whole process to update it. And they're like, yeah, but, you know, we think it could even be better. And I'm like, fuck. Right? So we tried to make it super easy, super intuitive, super, super, super navigatable. We hear this from 95% of our clients. Every now and then there's someone out there who's, like, really critical, and we love that, right? We want to get better and better and better, but, uh, yeah, it's, the UI is really super simple. People can get up and running on it, and we start doing demos like, oh, I get it. It's just all right there. Boom. You look, click on it, and it's obvious. It's a meeting tool. It's an accountability chart. It's all obvious stuff.

AI assessment note: “the UI is really super simple. People can get up and running on it”

Q Interesting. And why use debt over equity? Is it really just a control thing?

A It dilution, control, um, got a very clear sort of vision as to where we want to take this thing, and, um, you know, so, so it's, it's, it's all about just, uh, staying focused, and, and frankly, you know, I, There's a lot of time needs to go into if you want to go raise equity. And right now we're, you know, we're running nine, eight, a 120 miles per hour, just doing what we need to do. And so as far as, uh, you know, just allocating my scarce time, that's not something I really want to put a lot of effort into right now and back to being control. We're going to do it. We're going to do it.

AI assessment note: “It dilution, control... There's a lot of time needs to go into if you want to go raise equity.”

Q dilution, which is the name of the game, less dilution. Check it out today at founderpath.com forward slash products. That's plural forward slash valuations. Again, both plural founderpath.com forward slash products forward slash valuations. Yeah, so you're, you're up now to like four million in revenue, and the next side you're gonna talk about when Insight reached out, like, what did they think about? So take us through that journey.

A Yep, cool. Alright, so going up, went the wrong direction. So, There are somewhere, but just in the United States alone, um, and it depends on whose data you look at, so if the Zoom Info guys were here, right? But it's at least, our target target market is companies with 10 to 250 employees, and, um, and somewhere between one and three million small, mid-sized businesses fall in that category in the United States. It depends on whose, whose numbers you're looking at. And my, my research suggests that on average it's 40 people. Right? And I think that the U.S. represents approximately a third of the, sort of, the, the world that's gonna be interested in our product, and so you take that number times three. So let's just go in the middle and we'll say two million times forties, eighty million times three, two hundred and forty million people times 14. You guys can get the size of the market from that math, probably. Right? So it's a big market. Um, we've been growing at five to eight percent month over month revenue. Um, To be, uh, direct with you on the, the, the data you saw earlier, we put our first price increase in last month, February, so we never increased prices, so we were 12 bucks up until, up until last month, so that's part of the reason our numbers are growing, um, have grown as much as they have in the last couple weeks, um, but we've been doing five to eight percen…

AI assessment note: “our target target market is companies with 10 to 250 employees”

Q And so wait, why is that? So to me, what I heard was super resourceful, found the talent you needed to get, contract model, very similar to John Darbyshire and how he's doing SmartSuite, but now you want to move and, and basically increase your FTEs from 50 to a hundred. Why not say, like, super rational, conservative, you know, milky of what you can and use contractors?

A Um, well, because we think that we can grow, well, first of all, um, contractors aren't cheap, and so what happens is we know that we're going from medium two days to three days to four days, right? And so right now I've got two senior guys in marketing, and together they're costing me over half a million. Does that make sense? So, and data, we've got, there's, we, part of what we want to do is make data a superpower for all of our clients, and so we need a full-time head of data, like ASAP. There's so much opportunity for us on the data world, and so, and then talent, right, with growing, and then, and then, so you just start to, all of a sudden, and you just, and then as the team gets more and more full-time, they want their colleagues who are supporting them To become more and more full-time, because we're all running as fast as we can run. Does that make some sense? Alright. Um, pursued by a long list of VCs. I mentioned that earlier. Didn't raise, talked about that. Um, Insight gave us forward credit, um, given the consistency of our growth in paying companies, paying users, MRR and churn. Um, I've already mentioned, uh, these things. Uh, and, uh, this is, we're proud of this. Can't, can't lie. Uh, Jeff Horings, who the managing partner of Insight, said we had the best KPIs he's ever seen in SMB. That's a cool thing. That's a cool thing. Thanks. Um, what they didn't see wa…

AI assessment note: “contractors aren't cheap, and so what happens is we know that we're going”