SaaS Interviews with CEOs, Startups, Founders
3 co-founders own 33% each of new recruiting marketplace and SaaS tool
01 Jun 2022
Chapter 1: What is the current growth rate of Hireport?
If you look at our growth right now, it's between 30-50% quarter on quarter. If you keep doing this, those numbers per month will go up massively.
You are listening to Conversations with Nathan Latka, where I sit down and interview the top SaaS founders, like Eric Wan from Zoom. If you'd like to subscribe, go to getlatka.com.
We've published thousands of these interviews, and if you want to sort through them quickly by revenue or churn, CAC, valuation, or other metrics, the easiest way to do that is to go to getlatka.com and use our filtering tool. It's like a big Excel sheet for all these podcast interviews. Check it out right now at getlatka.com. Hey folks, my guest today is Bram Medina.
Chapter 2: Who are the primary users of Hireport and how do they benefit?
He's the CEO at Hireport, a platform that brings back speed, scale, and simplicity to external recruitment. He's an industrial engineer, former VC and private equity investor, and serial startup founder. Now living in Amsterdam with his wife, Tanya, and two-year-old Marcus. All right, Bram, you ready to take us to the top?
Chapter 3: What SaaS solutions does Hireport offer to companies?
Absolutely, Nathan. Okay, let's jump in here. So who's paying for Hireport today and how are they using you?
Yes, it's a mix of companies, I would say. It's startups, scale-ups, and also smaller corporates today. The model is very simple. It's 100% no cure, no pay. That's what most companies know in the external recruitment business. So we decided to offer them something they understand already. On top of that, there will be layers with SaaS solutions.
Chapter 4: How does Hireport charge for successful candidate placements?
So there's additional services that have a monthly subscription.
So let's talk about the SaaS first. What are people paying per month? What's the fee they're paying per month? What do they get?
Yeah, it depends on the kind of integrations that they want. We have applicant tracking system integrations today for mid-sized companies and smaller startups that would be about 99 euros a month. And for larger companies that would, for example, use Workday or SAP SuccessFactors, those are applicant tracking systems for enterprises, they would pay around 500 euros a month.
So the SaaS fee is dependent on the level of integrations they want, whether it's a startup tool or an enterprise tool? 100%, that's it. I see. Okay, very cool. And if you split down your total revenue, what percent would you say is coming from SaaS versus other, we'll just call it other revenue?
Yeah. Currently, it's a small percentage from SaaS. It's about 10%.
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Chapter 5: What challenges did the founders face before launching Hireport?
But we expect that to grow really rapidly. The biggest part of the recurring business is actual placements taking place on the platform.
Now, let's talk about that, the success. So how do you charge when you successfully place a candidate?
Yeah, there's a fixed fee that we charge. So when there's, for example, a senior candidate It is placed at one of our companies in the platform. There's a fee that's around 16,000 euros. And a small part of that lands with us, transaction fee. And most of that fee goes to the actual recruiter who made that placement. The recruiters are the heroes on our platform.
And I think today, maybe there's not a lot of people who really love the external recruiters anymore. We do. We filter out the best ones and we give them a podium to be able to deliver at the best companies in Europe right now.
Chapter 6: How did the agency model influence the creation of Hireport?
16,000 euros, about 20,000 USD. What percent of that 20,000 success fee will the recruiter typically get?
Over 80%.
Eight zero or one eight? Eight zero. 80. Wow. Okay. So, so I mean, we're talking like 16, 16,000, something like that. So is the rest of the other 20% goes directly to you?
The other percentage goes to us. That's what we live from. So that's the most important revenue driver right now, which is supported by the SaaS subscriptions.
I see. Interesting model. So basically every candidate you place, you're going to make 4,000 USD or something like 3,000 euros per placement. Yeah. Okay.
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Chapter 7: What metrics are important for Hireport's growth and success?
Give me some sort of history here. When did you launch the business? What year?
Yeah, we launched it 2020, really a few months after COVID hit.
so this is something that we always wanted to do i've been active in many industries but i rolled into recruitment by accident years ago we had our own agency so we have four years five actually actually years of experience in this business but we always operated in a model that didn't scale so it was high quality what we did but you just had to put more people on a payroll to scale
It doesn't work anymore. These days, you see in the platform economy that people need an exponential solution to the problems, not a linear one. So we decided to bundle all the forces of all these small independent players that are there everywhere and put it all together, give them a platform to be able to deliver to the most interesting companies. Then you have something that scales instantly.
So what you're saying is you had troubles recruiting at your agency, and you said there needs to be a solution for this, and then you're scratching your own itch effectively.
Exactly. The amount of people on your payroll just limits how scalable your solution is. And most companies would call us and say, listen, I need a team of 10 engineers and I need them within two months. That is not something that any agency can easily can do. That's only something that you can do when you bundle all the forces of a lot of players and you instantly make that available.
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Chapter 8: What are the future plans for Hireport's expansion and funding?
Talk to me a bit about the agency. So what was the agency doing?
Yeah, the agency was helping companies find tech talent for permanent employment.
Oh, it was also doing recruiting. Okay, so you weren't recruiting for yourself, but you were having problems recruiting for other people in an agency model.
Yes, exactly. Exactly that. And then we ran into this ceiling that made us see that the only way to do this is to use technology to unlock all that power and take away all the pains. So when did you launch the agency? The agency we launched in 2008.
And up right until 2019, so the year before you launched Hyreport, how much total revenue did the agency do? How big were you able to grow it?
There was a number of millions of euros.
Okay, millions. And I guess translate that to number of candidates placed in 2019 via the agency.
In 19, that's a good one. Or your best year. How many did you place in your best year? Yeah, I think it would look at about 70 placements a year.
70 placements. Okay. So if you're doing millions of euros of revenue off 70 placements, you're not making only 4K per placement. You were really a traditional recruiter back then charging big placement fees.
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