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SaaS Interviews with CEOs, Startups, Founders

1482 He's Raising $6m on a $40m Pre For B2B FinTech Tool

15 Aug 2019

Transcription

Chapter 1: What is the main topic discussed in this episode?

0.031 - 17.584 Nathan Latka

My new book, How to Be a Capitalist Without Any Capital, is out. You can get it at capitalistbook.com. Here's what Nicholas said on March 6th on Amazon. Incredibly incisive, useful, and sensible. The author is not greedy and is in fact extremely generous and does not hold back on the knowledge he imparts.

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17.564 - 31.844 Nathan Latka

I've barely made it halfway to the book, and I'm already gushing over the book because it's an absolute gem. Nathan gets to the point quick, shows proof, and best of all, shows you not just what to do, but how to do it in explicit detail. To say the book is actionable is an understatement.

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32.304 - 52.565 Nathan Latka

Now, you guys that listen to the podcast know I'm detail-oriented, so that review might not surprise you, but I hope you grab the book. It's now a Wall Street Journal Instant National Bestseller. Grab it at capitalistbook.com. Audible version is available too. Financial company, B2B, founded 2012, went to market, now doing about 450 grand per month in revenue.

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52.585 - 72.916 Nathan Latka

They've raised $4 million, serving 150 clients in the financial space. They then use the Brytek technology to sell through directly to consumers and investors. They're growing 100% year over year, so healthy growth rate there. Again, customers paying about three grand per month. Less than 1% gross revenue churn per year, 10% expansion. So net expansion there, net revenue retention is about 109%.

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73.597 - 95.31 Nathan Latka

Really healthy. Economics in terms of payback are about seven months. So willing to spend 21 grand to acquire a $3,000 a month customer. A team of 20 people in Brazil and other remote locations. This is the Top Entrepreneurs Podcast, where founders share how they started their companies and got filthy rich or crash and burn.

96.539 - 108.635 Nathan Latka

Each episode features revenue numbers, customer counts, and other insider information that creates business news headlines. We went from a couple hundred thousand dollars to 2.7 million.

108.875 - 110.577 Yuri Ferber

I had no money when I started the company.

110.878 - 134.82 Nathan Latka

It was $160 million, which is the size of many IPOs. We're a bit strapped. We have like 22,000 customers. With over 5 million downloads in a very short amount of time, major outlets like Inc. are calling us the fastest growing business show on iTunes. I'm your host, Nathan Latka, and here's today's episode. Hello, everyone. My guest today is Yuri Ferber.

134.84 - 149.894 Nathan Latka

He's a serial entrepreneur with a 20-year track record and was previously CEO and founder of a company called YMF, a leading financial software company with 300 employees that was later sold to a big tech company. Today, he's focused on Britech down there in Sao Paulo. Take us to the top.

Chapter 2: How does Britech serve the investment management ecosystem?

470.692 - 479.365 Yuri Ferber

No, basically most of them, of course, there's one guy in Mexico, another in Chile, but most part of the guys are in Sao Paulo.

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479.685 - 480.646 Nathan Latka

Sao Paulo, very good.

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481.167 - 484.632 Yuri Ferber

And of course, from Sao Paulo, we serve the entire country.

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484.953 - 494.286 Nathan Latka

That's pretty good. I was telling you before the thing, there's a lot happening in Sao Paulo, a lot of technology. Now, have you figured out how to handle like boletos and paper payments and things like that?

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494.823 - 512.922 Yuri Ferber

We are trying to do something like that, but for another different segment, not the brokers and not the asset managers, but for another kind of financial advisor. But it's still on a paper plan.

513.162 - 516.585 Nathan Latka

So which I'm curious, being in Brazil, what billing system do you use?

518.367 - 525.129 Yuri Ferber

Basically, we send like the guys pay us using transfers. Wire transfers.

525.149 - 529.374 Nathan Latka

Oh, so you don't use like Stripe or any kind of billing system. It's just manual invoices.

530.035 - 555.368 Yuri Ferber

Yes, yes. Because we talk about 150 customers. It's not so much. But so we can do it. Our ERP can support and send invoice automatically every month. Which ERP do you use? We use a local ERP called OMI. OMI. And it's a good ERP for SaaS companies like us.

Chapter 3: What pricing model does Britech use for its services?

671.251 - 671.932 Yuri Ferber

Yeah, exactly.

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672.333 - 675.158 Nathan Latka

Would you ever do venture debt? Are there venture debt firms in Brazil?

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676.059 - 679.826 Yuri Ferber

Not in Brazil. It's very expensive in Brazil, the venture debt.

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680.186 - 685.075 Nathan Latka

You're talking like 14%, 15% interest? Much more than that. Really?

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685.215 - 692.007 Yuri Ferber

It's like 30% to 35%. Yuri, that's stealing. It's impossible.

692.087 - 694.491 Nathan Latka

That's stealing. We're in the wrong business.

696.8 - 698.783 Yuri Ferber

Yes, I think they are.

698.803 - 702.729 Nathan Latka

Interesting. Okay, good. That's helpful to understand. And where will you spend that money?

704.531 - 728.608 Yuri Ferber

We are planning to do some acquisitions and part of the money also to expand our sales team because we are planning to keep this pace of growing for the next five, three to five years. So keep the business growing 100% every year. We have to expand our marketing and sales team.

Chapter 4: When did Britech launch and how did it initially get funded?

738.581 - 741.785 Nathan Latka

Let's wrap up here with the famous five. Number one, what's your favorite business book?

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743.768 - 753.08 Yuri Ferber

Um, I love a lot of business books, but I love this book from John Doerr, which is Measure What Matters.

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753.581 - 757.911 Nathan Latka

Good one. Number two, is there an under-the-radar CEO that you're following in Sao Paulo?

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759.394 - 772.72 Yuri Ferber

Under-the-radar? No, but I... I like the CEO from Netflix, Reed Hastings, and I think he's doing great, great job there in Netflix.

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773.121 - 775.343 Nathan Latka

Number three, what is your favorite online tool?

776.284 - 794.813 Yuri Ferber

Online tool? I have some, to grow the business, I like, I love, we use a lot of online tools like HubSpot, Pipedrive, Zendesk for the customer success team. So, Those three. They are great tools, yeah.

794.953 - 796.775 Nathan Latka

Number four, how many hours of sleep do you get every night?

798.918 - 801.501 Yuri Ferber

Depends on six, seven, eight hours.

801.921 - 809.049 Nathan Latka

Okay, and what's your situation? You're married, single, kids? I'm married with three kids. Three kids. Wow, you're a busy guy.

Chapter 5: How much capital has Britech raised to date?

809.069 - 815.777 Nathan Latka

And how old are you? I'm 55. 55. Last question. What do you wish your 20-year-old self knew?

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817.679 - 832.717 Yuri Ferber

At that age, I would love to know Of course, it was not a business model at that time, but I'd love to know more about SaaS companies and SaaS business models.

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833.118 - 853.329 Nathan Latka

Yeah, learn more about SaaS earlier. There you guys have it from Britek Financial Company, B2B, founded 2012, went to market, now doing about $450,000. per month in revenue. They've raised $4 million, serving 150 clients in the financial space. They then use the Britech technology to sell through directly to consumers and investors. They're growing 100% year over year.

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853.349 - 875.454 Nathan Latka

So healthy growth rate there. Again, customers paying about three grand per month, less than 1% gross revenue churn per year, 10% expansion. So net expansion there. Net revenue retention is about 109%. Really healthy. Economics in terms of payback are about seven months. So willing to spend 21 grand to acquire a $3,000 a month customer. A team of 20 people in Brazil and other remote locations.

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875.514 - 878.46 Nathan Latka

Yuri, thank you for taking us to the top.

878.48 - 879.222 Yuri Ferber

Thank you, Nathan.

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