Justin McGill, founder and CEO of LeadFuze, explains why the company structured its $150k raise as an equity round instead of a convertible note.
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LeadFuze CTO exited due to family strain and technical scaling limits
“So a couple of reasons, I think you know, certainly family issues we're a big part of that. You know, he was needing to be involved quite a bit on, on the product, obviously as a startup early stage, you're hustling. Right. And so when you have a wife and kids…”
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LeadFuze suffers shockingly high 20% monthly customer and revenue churn
“So we're at about 20, just under 20% which is way too high. And I've got a whole story for that, but and then revenue churn is right about 20% again, way too high.”
Disclosure
McGill bought out LeadFuze's departing CTO to recover equity
“So we, I bought him out essentially. So he's no longer, you know, he no longer has a stake.”
Disclosure
LeadFuze raised $150k from Rob Walling, David Hauser, and Adam Gustafson
“We just recently raised some money, like a small round, a 150,000. We may end up adding another a 100,000 or so, but we raised a 150,000. We've got some awesome investors like Rob Walling of drip, who I know you've talked about their product. They just recentl…”
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LeadFuze avoids paid ads, estimating a $300 CAC via founder salaries
“We're not doing any paid advertising, right? So I guess to Calculate our CAC here. We're kind of looking at more our salaries to be honest. So between Damien and myself kind of on the sales and marketing side, what was like where we spend time? Like I'm obviou…”
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LeadFuze converts 11% of visitors to trial and 8.5% to paid
“And so, you know, right now from website, like new website visitor to free trial, we're at about like 11%. And then from free trial to paid, it's about eight and a half percent on that conversion.”