Prasanna

certain feet above the ground and when you're building your software when you're building your SAS company today you're perhaps at the same point in time and chair was getting built for the first time so therefore it pays for you to think about this in terms of the problem that you're solving and in terms of the like a group of people that you're focusing on and you want to make sure that you are solving a high value problem and you want to make sure that you are deliberately thinking about the group of people to whom you want to target this

And you want to make sure that if you're building SaaS, you're at least thinking about solving a problem which is at least worth $3,000.

The cost of problem is at least $3,000 or more.

Let me illustrate this with an example.

iMocha was part of the first cohort at Ubeka, and they were a skill assessment platform company.

If you're doing hiring, then iMocha is relevant to you.

What they do is they make the entire pre-screening of the hiring process automated.

They send out tests to candidates.

They get evaluated, and the dashboard of that is presented to the hiring manager.

They're being founders.

They were targeting other founders, and they were selling $1,000 ACV in a year.

And they had flat revenue for quite some time.

They were good at sales.

They would complete the sale.

But then three months later, the startup founder that had signed up will churn out.

They changed their approach a little bit.

Instead of focusing on founders, they went to large companies, which have at least about 10,000 people in their organization, at least 200 people in their HR organization, and then they took the same piece of code and then gave it to them.

Now, these folks who are in large organizations, they spend their entire day in sending all these surveys.

So, sending all these skill assessment tests.

Now, for a founder, what happens is, he may do hiring once, twice, maybe thrice a week.