Nathan Latka

And why, I mean, now is a terrible time to be raising.

Why did you decide that you need to go raise equity right now?

Most folks in their seat are selling something like 20% of their company.

Were you around there?

Okay, got it.

So, I mean, is it fair to say between 15 and 20 or were you under 15?

I would say under.

Okay, great.

Well, if you raised $3 million and you sold between 10% and 15% to your company, that would put you somewhere between a $30 and a $45 million valuation, right?

Yeah, the reason I bring up the timing is because by all, I mean, for a seed round, you have 4 million of ARR, right?

30 million valuation represents a 7.5x multiple.

Okay, so my point is the same, though.

You raise it under a 7x multiple when folks in your same position in 2021 are raising at 40x multiples.

Yes.

This is very dilutive for you.

I mean, why couldn't you keep bootstrapping to preserve your equity?

Why didn't you want to do that?

Where would you put the money?

Because when I asked you about growth channels, all you told me was, well, it's word of mouth, which is hard to fuel that with paid marketing.

Why?