Disclosure certainty 4/5 debate potential 1/5

Aaron Rubin self-funded ShipHero with $1.2M from a previous exit

Aaron Rubin · Shiphero Raised $50m last week, inside their metrics · Jul 7, 2021 · at 8:25

Aaron Rubin, founder and CEO of ShipHero, explains the company's early capital structure to Nathan Latka.

0:00 / 0:08exact quote · 8.3s
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“So I put in the first cash from my previous company once we hit, which was a 1.2 million that I put in my own money.”

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More from Aaron Rubin

Insight
Rubin: Debt is always cheaper than equity for successful startups
“That's always cheaper than equity. If you think you're going to be successful, that is always cheaper.”
Aaron Rubin Jul 7, 2021 ▶ 13:03 Shiphero Raised $50m last week, inside their metrics
Disclosure
ShipHero generates approximately $5M in annual recurring revenue
“We don't disclose exactly, but in like the five million ARR bull book.”
Aaron Rubin Jul 7, 2021 ▶ 5:45 Shiphero Raised $50m last week, inside their metrics
Assertion Not checkable as stated
ShipHero reached $5M ARR with no marketing team or SDRs
“We hired a first salesperson in September. So whatever that was like eight months ago. And but it's not, we have no SDRs. And we didn't, we don't actually have a marketing team.”
Aaron Rubin Jul 7, 2021 ▶ 14:42 Shiphero Raised $50m last week, inside their metrics
Disclosure
ShipHero refuses VC until they prove a reliable customer acquisition formula
“Cause I don't have a formula for growth where X dollars equals Y customers. I need to figure that out before I take any more serious money.”
Aaron Rubin Jul 7, 2021 ▶ 18:46 Shiphero Raised $50m last week, inside their metrics
Disclosure
ShipHero averages $1,500 monthly per customer, with 3PLs paying up to $10K
“Average customer pays us. About 1500 a month. But our three PLs generally are paying us between five and 10,000 a month because they have a lot of More shipments, they're shipping for a lot of merchants versus if someone was shipping on their own in their own …”
Aaron Rubin Jul 7, 2021 ▶ 1:41 Shiphero Raised $50m last week, inside their metrics
Disclosure
Rubin: ShipHero has around 300 direct-paying customers
“People that pay us directly, so not counting the merchants on the three PL around 300.”
Aaron Rubin Jul 7, 2021 ▶ 5:22 Shiphero Raised $50m last week, inside their metrics
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