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SaaS Interviews with CEOs, Startups, Founders

1480 Social Listening Tool Raising $6m on $22M Pre Money (10x Valuation)

13 Aug 2019

Transcription

Chapter 1: What is the background of Camille Bargel and SentiOne?

0.031 - 20.783 Nathan Latka

Guys, my new book, How to Be a Capitalist Without Any Capital, just hit the Wall Street Journal bestseller list. It's ranking extremely high on Kindle and Audible. And I want to thank you guys for grabbing it. If you haven't bought it yet, here's what James Y. said in an Amazon review on March 8th. He said, literally, a step-by-step blueprint for conquering the world and building your own empire.

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20.864 - 35.343 Nathan Latka

Five stars. It's a verified purchase. He goes on to say, if you like doing things the hard way, don't read this book. for everyone else who appreciates someone showing you what to do and why it works step by step so you can rinse and repeat and accomplish the same results. Read this book now in all caps.

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35.863 - 52.124 Nathan Latka

He then says, pro tip, stock up on highlighters while you're adding this to your Amazon cart, you'll be using them. This book should be required reading for every entrepreneur, startup or founder, business person, and human. Seriously, Nathan isn't in a kind of class that cuts through all the bull crap, he used a different word, to show you what you need to do and how to do it.

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52.505 - 71.719 Nathan Latka

If success came with an instruction manual, this book would be it. We'll be stocking up and handing these out as Christmas gifts to all my friends and colleagues. If I could give this book a six-star review, I would. From James, James, thank you. All you that listen to the podcast, thank you so much. SaaS founders are loving the book. Go grab an Audible version right now at capitalistbook.com.

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72.56 - 89.456 Nathan Latka

Founded back a couple of years ago, a call at 2011. Now 65 people doing about 157 grand per month in revenue. They've raised $5 million. They've got 450 customers paying for their tool, which essentially allows you to be more effective on social, social listening, customer engagement platform.

89.476 - 107.438 Nathan Latka

They're currently raising caught between six and 7 million, hopefully on a $22 million pre-money valuation. Looking maybe at using a European investment bank for some venture debt at great interest. They're growing about 30 to 40% year over year. So Good growth there. Not crazy growth, but good growth. $2,000 CAC, eight-month payback period. Obviously, both averages.

108.24 - 128.357 Nathan Latka

This is the Top Entrepreneurs Podcast, where founders share how they started their companies and got filthy rich or crash and burn. Each episode features revenue numbers, customer counts, and other insider information that creates business news headlines.

128.517 - 131.623 Camille Bargel

We went from a couple of hundred thousand dollars to 2.7 million.

131.884 - 133.567 Unknown

I had no money when I started the company.

Chapter 2: How does SentiOne's social listening tool work?

624.912 - 655 Nathan Latka

There'll be over 400 people, the biggest and brightest minds in B2B SaaS, investors, entrepreneurs, and founders. Be sure you get a ticket today before prices increase. Go to SaaSstock.com forward slash West Coast. That's SaaS, S-A-A-S, stock, T-O-C-K.com forward slash West Coast. So if I tweet BB&T, like your site's not working, transfer 10 grand from what?

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655.02 - 659.125 Nathan Latka

First off, I don't know that I'd ever tweet that. But if someone did, would that you could process that?

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660.327 - 673.743 Camille Bargel

You probably couldn't do that via Twitter, but you can do it via messenger of that bank. Or you can go to their mobile app or website and use that included or embedded chat. You can do it via their chat where you can authenticate.

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673.763 - 677.768 Nathan Latka

Do you own that chat or you're tying into the API of the firms you sell to?

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679.047 - 681.83 Camille Bargel

Well, it's both. We can do both.

681.85 - 690.62 Nathan Latka

So you own, you have a chat product yourself. They install it with JavaScript or something? We have a chat product. Interesting. Churns critical in a SaaS company. What's your revenue churn per year?

692.402 - 702.853 Camille Bargel

So the revenue churn is quite good, I think. Last year it was 4.5%. This year it's less than 4%. It would be 3.5%. It's like a 12-month average churn.

703.974 - 710.371 Nathan Latka

So just to be clear, that's 3.5% churned over a year or each month? Over a year. Okay, so 3.5.

Chapter 3: What is the average revenue per customer for SentiOne?

710.471 - 715.117 Camille Bargel

I mean, each month on average from the last year, it will be 3.5%.

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715.337 - 723.607 Nathan Latka

Sure, sure, sure. Yeah, so 3.5 annual revenue churn. And is that a gross number or a net number? Are you adding back expansion? It's net.

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723.927 - 732.877 Camille Bargel

We are adding, actually we are adding expansions, but it's new MRR minus downgrades and the lost MRR plus expansion.

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732.897 - 738.484 Nathan Latka

Yeah, so just to be clear, give me the actual gross number. Just how much revenue do you lose? It's obviously higher than 3.5%.

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739.358 - 744.929 Camille Bargel

Yeah. So probably that would be, uh, let me count it. And I had five to 6%.

745.21 - 757.013 Nathan Latka

Okay. So five to 6% gross, which means you're expanding two to 3% of the same accounts. And that's how you get net net 3.5. Yeah. Okay, good. And then talk to me about customer acquisition. How are you, how are you signing up these new customers?

757.313 - 779.255 Camille Bargel

So we have the, of course, inbound and outbound sales. The outbound sales team works with big accounts and enterprise customers. The outbound sales is located in a couple of remote locations in Europe. We are starting with UK this year as well. It's less that we just are scheduling the meetings, doing the stuff like that.

779.415 - 797.749 Camille Bargel

But in the inbound scenario, we are doing a lot of online activities, SEO, influencers, some remarketing and stuff like that. And we have a team located in Poland, which is delivering online demos to all people that sign up for our trial.

799.096 - 800.597 Nathan Latka

Got it. And what's your breakdown?

Chapter 4: What funding has SentiOne raised and what are their future plans?

953.858 - 959.226 Nathan Latka

Those guys are pushing about 100 million bucks in ARR, so they're growing quickly. Number four, how many hours of sleep do you get every night?

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960.657 - 986.968 Nathan Latka

uh i sleep like quite quite healthy it's seven seven hours per day and what's your situation married single kiddos married with two kids two kids very good and how old are you uh me it's 32 30 32 okay camille last question what do you wish your 20 year old self knew uh i wish actually i'm happy that i didn't know a lot of things that i know today because i wouldn't probably start a business in the first place

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988.13 - 991.874 Nathan Latka

Just give me something that you wish you knew back then, a lesson you learned, something like that.

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994.977 - 1005.467 Camille Bargel

The lesson I learned is that you have to be patient in many things. And as a young person, you're not. So I would love to know that in many cases, you need to be patient to see the result.

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1005.847 - 1014.576 Nathan Latka

Guys, there you have it. Camille sent to one founded back a couple of years ago, a call at 2011. Now 65 people doing about 157 grand projects.

1014.556 - 1044.563 Nathan Latka

per month in revenue they've raised five million dollars uh they've got 450 customers paying for their tool which essentially allows you to be more effective on social social listening customer engagement platform they're currently raising caught between six and seven million hopefully on a 22 million dollar pre-money valuation looking maybe at using a european investment bank for some venture debt at great interest they're growing about 30 to 40 percent year over year so uh good growth there not crazy growth but good growth two thousand dollar cac eight month payback period obviously both averages camille thanks for taking

1044.543 - 1046.816 Nathan Latka

taking us to the top.

1046.837 - 1047.567 Camille Bargel

Thanks a lot, Nathan.

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