Assertion Not checkable as stated
MarketFactory was likely the first to bring a SaaS model to FX
“We actually brought the SAS model. We're probably the first ones to bring the SAS model to foreign exchange. So we are strictly, you know, MRR, ARR based.”
Insight
Jer: Deep vertical software companies can reach 80% to 90% market share
“And also because of the deep vertical nature, you know, I think you read the S ones for various deep vertical companies and they, you know, the, really it's, you know, as you grow, you can approach 80, 90%, you know, market share.”
Assertion Supported
The minimum trade size in institutional FX is $1 million
“Minimum trade size is one million US dollars, right?”
Disclosure
MarketFactory charges ARR per module, offering unlimited API calls
“We actually just charge it by functionality module. So let's say a bank typically needs, you know 20 exchanges to start to trade with to begin, but they'll scale up to 35, 40 exchanges. So we'll charge an ARR per exchange per module. Right. And it's unlimited …”
Assertion Not checkable as stated
Jer: MarketFactory customers are 45% banks, 45% funds, 10% brokers
“We're probably like 45% banks, 45% funds, you know, the buy side. And then about 10% brokers.”
Assertion Not checkable as stated
MarketFactory's 30 enterprise customers average a massive $400k ARR
“Our average revenue per account is 400,000 ARR. Dollars. Our range of, we have about 30 enterprise customers who pay us between a hundred K and over a million dollars a year.”
Disclosure
MarketFactory achieves elite 125% to 138% annual net revenue retention
“Yeah, net, net, it's like one 25 to one 38.”
Disclosure
MarketFactory's CAC payback period is an efficient four to six months
“Our cap, okay, our customer, our cap is probably four to six months.”
Disclosure
MarketFactory lands $400k ACV enterprise contracts with only three salespeople
“Company is 36 people between New York and London, mostly engineers. We actually only have three salespeople, three, three salespeople who also do some account management.”
Disclosure
MarketFactory's enterprise customer lifetime averages eight years
“So our LTV is about is about eight years. Okay. We have one customer that's at nine years.”
Disclosure
Jer: $5.7M of MarketFactory's $7M Series A came from angel investors
“Our entire series A was seven million, right? And 1.3 million is from a great venture partner first mark capital in New York. But the remainder of 5.7 is all from individuals.”
Disclosure
MarketFactory used a $500k loan from Lighter Capital to bridge cash crunches
“Found a great partner in lighter capital based in Seattle. You know, they gave us like a 500 K AR 500 K loan.”
Assertion Not checkable as stated
Jer: MarketFactory operates at roughly EBITDA break-even
“No, we're pretty much like EBITDA break even. So, you know, 50 grand, 200 grand plus, you know, maybe like 600 K minus depending on the last couple of years.”
Assertion Supported
FX operates like Napster: a decentralized, 24/7 global trading network
“If you trade stocks, there's probably three major exchanges, New York Stock Exchange, NASDAQ, and some others in the US. But if you trade currencies, it's a very global market, right? It's almost like Napster for trading, which is every single bank, every sing…”
Disclosure
MarketFactory provides a single API to connect institutional FX traders
“So what Market Factory does is provide a single platform, a single API that connects all these different B to B institutions to one another to trade all these foreign currencies, and it's very much an institutional market.”
