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SaaS Interviews with CEOs, Startups, Founders

$1m in Revenue and $15m Valuation, What GDPR Compliance Tool FixNix Is Building

30 Apr 2021

Transcription

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

0.031 - 3.274 Nathan Latka

Do you think you'll break, hopefully you'll break a million dollar run rate this year?

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4.696 - 14.666 Sean Sankaran

Yes, we are seeing a huge traction post COVID-19. Why is that? Because I think everybody have moved remote.

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Chapter 2: What traction is FixNix seeing post-COVID-19?

15.047 - 28.941 Sean Sankaran

Previously, everybody, when you go ask them, try cybersecurity, they used to say that they don't need it actually at that point of time. But now everybody working from remote, everybody is able to realize the importance of cybersecurity, data loss prevention, etc.

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30.895 - 51.553 Nathan Latka

You are listening to Conversations with Nathan Latka. Now if you're hearing this, it means you're not currently on our subscriber feed. To subscribe, go to getlatka.com. When you subscribe, you won't hear ads like this one. You'll get the full interviews. Right now, you're only hearing partial interviews.

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51.533 - 62.634 Nathan Latka

And you'll get interviews three weeks earlier from founders, thinkers, and people I find interesting. Like Eric Wan, 18 months before he took Zoom public.

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62.835 - 67.163 Sean Sankaran

We got to grow faster. Minimum is 100% over the past several years.

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67.261 - 77.871 Nathan Latka

Or bootstrap founders like Vivek of QuestionPro. When I started the company, it was not cool to raise. Or Looker CEO Frank Behan before Google acquired his company for $2.6 billion.

78.171 - 82.876 Unknown

We want to see a real pervasive data culture, and then the rest flows behind that.

83.677 - 110.608 Nathan Latka

If you'd like to subscribe, go to getlatka.com. There, you'll find a private RSS feed that you can add to your favorite podcast listening tool, along with other subscriber-only content. Now look, I never want money to be the reason you can't listen to episodes. On the checkout page, you'll see an option to request free access. I grant 100% of those requests, no questions asked. Hello, everyone.

110.628 - 128.129 Nathan Latka

My guest today is Sean Sankaran. He is building a tool called FixNix.co. He's the entrepreneur who sold his house. He's bootstrapped the company for eight years and has been mentioned by Gartner, got awarded as a top reg tech and GRC company by Medici and 30 other international entities.

128.149 - 137.059 Nathan Latka

He pivoted to cybersecurity officer platform during COVID to offer people plus businesses plus leadership in cybersecurity rather than a process system. Sean, you ready to take us to the top?

Chapter 3: How did FixNix pivot during the pandemic?

485.599 - 491.409 Sean Sankaran

Actually, interestingly, I sold my house, became the entrepreneur who sold his house to Woodstrap.

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491.429 - 493.052 Nathan Latka

How much did you sell your house for and what year?

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493.913 - 500.143 Sean Sankaran

About $200,000 and I used close to $250,000 in the company throughout this eight years.

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500.724 - 502.487 Nathan Latka

What year was that? So it was 2012?

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502.687 - 525.538 Sean Sankaran

2016. Actually, we did a kind of a rise, semi-rise from our friends, family and extended industry members from Silicon Valley and the US. So we raised close to some $100,000 from the industry and maybe a couple of $100,000 from family. We raised almost less than a million dollars. It was not a real crowdfunding per se, but it was a kind of extended one.

525.518 - 547.965 Nathan Latka

Based off our research, it looks like you raised about $150,000 in 2014, $500,000 in 2016, another $500,000 in 2018, and then another $250,000 last year in 2020. Are those right? Ah, yes. Okay, so you raised about exactly sort of a million dollars, but no traditional VCs, more like angels. That's right. I see. And why did you choose to go that path?

548.722 - 565.633 Sean Sankaran

Because I think we started the business out of India. The engineering was always out of India. And in India, the venture capital's appetite to understand this kind of enterprise proposition, your new SaaS enterprise proposition for a new industry.

Chapter 4: What services do customers pay for at FixNix?

565.613 - 588.674 Sean Sankaran

I think was very less. I think people didn't get enterprise at all in the Indian venture capital community. So particularly at least for a new blue ocean. So I think that may be the reason I thought, okay, let's bootstrap. In fact, I raised a debt from government of India, which is a very unusual source. I raised $150,000 debt. I mortgaged my house to get it.

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588.754 - 592.157 Sean Sankaran

And it was a very interesting journey. That was the seed for the company, actually.

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592.898 - 595.62 Nathan Latka

Interesting. Do you have any debt on the books today or have you paid it all back?

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595.904 - 597.326 Sean Sankaran

No, we paid back.

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598.107 - 600.089 Nathan Latka

Would you look at using debt again to keep growing?

601.131 - 617.112 Sean Sankaran

Yeah, I think now there are a lot of interesting opportunities coming in the U.S. markets. A lot of people are keen to provide based on our traction, so we may be open to it. Maybe I think I'm considering maybe even a crowdfunding through Republic like platform Snathan now.

617.132 - 623.74 Sean Sankaran

So more than going to venture capital, we are looking at putting a rise together, hopefully in another quarter of this quarter.

624.161 - 625.843 Nathan Latka

How much capital would you look to raise?

626.498 - 634.466 Sean Sankaran

Now we are looking at 5 to 10 million, maybe 5 through account funding, 5 maybe through other partners who may be interested in the space.

Chapter 5: How did the guest acquire their first customers?

825.082 - 843.181 Nathan Latka

Well, look, I mean, what you're selling is difficult. I mean, I mentioned the sales cycle is a little bit long, right? Because basically governments will say that you have to have PCI DSS or GDPR or, you know, PADSS. And you're basically saying, hey, companies will help you comply with all these government regulations in a quick, easy way using our SaaS tools.

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843.241 - 850.568 Nathan Latka

So your best friend is the government's imposing new restrictions so that more people have to buy your software to keep up, correct?

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851.037 - 871.02 Sean Sankaran

There was a lot of learning working with government. In fact, we tried partnering with the regulator of India, the Reserve Bank of India. We tried doing a public-private partnership. We tried them in their own cloud to focus on some markets like credit union, community banks. But it was a big dud. I think focusing on Indian markets alone was a big dud.

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871.04 - 879.61 Sean Sankaran

So I think we kind of did that for initial 24 years, focusing on emerging markets like India a lot. I think that was a big learning curve.

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879.893 - 888.392 Nathan Latka

Yep, that makes sense. Well, again, now you're in emerging markets, you have partners in emerging markets. We'll see what happens next. But in the meantime, let's wrap up here with the famous five.

888.552 - 909.561 Sean Sankaran

Number one. I have a small observation. Actually, there's this privacy regulations like GDPR, California Privacy Act, which is kind of impacting the whole industry. It's not just one company, right? Not large corporates alone need to subscribe to these regulations. So that is helping. So we kind of help automate the privacy regulations to not cybersecurity alone.

909.581 - 912.825 Sean Sankaran

So that is helping us get a lot of foothold now.

912.845 - 916.689 Nathan Latka

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

919.211 - 921.593 Sean Sankaran

Kind of the monk who sold his Ferrari.

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