SaaS Interviews with CEOs, Startups, Founders
732: Why AirBnB Is Using Jumio Along With Many Other Unicorns
26 Jul 2017
Chapter 1: What is the main topic discussed in this episode?
Joined Jumio as part of a venture round in 2015. The company was founded in two years prior in 2013.
Chapter 2: What is Jumio and how does it work?
The company has since raised $60 million, helping drive identity verifications across the sharing economy with the biggest public customer you can articulate being Airbnb. They're serving between 350 and 400, paying customers across 40 different countries.
countries their team of 1500 is split between san francisco and india they're growing 46 year over year currently last year in 2016 they did 26 million identity verifications in a good year in 2017 steven says he expects that might pass 30 million This is The Top, where I interview entrepreneurs who are number one or number two in their industry in terms of revenue or customer base.
You'll learn how much revenue they're making, what their marketing funnel looks like, and how many customers they have. I'm now at $20,000 per top. Five and six million.
Chapter 3: Who are Jumio's primary customers and why do they need identity verification?
He is hell-bent on global domination. We just broke our 100,000-unit sole market. And I'm your host, Nathan Latka. This is episode 732. Coming up tomorrow morning, we talk with Zvi. His company has raised $50 million, and he's leading the cargo container software space. But first, here's today's episode.
Chapter 4: What is the background of Jumio's CEO Stephen Stuut?
Hello, everybody. My guest today is Steven Stute. He is the founder of a company called Jumio.com. Now, he brings more than 25 years of experience fueling corporate growth and leading technology businesses. Before Jumio, he served as a CEO of a company called True Position, a leader in location-based services technology.
Prior to that, he was president and CEO of Broadband Innovations, delivering digital interactivity services to cable TV providers.
Chapter 5: How much funding has Jumio raised and what has it achieved?
During his tenure, he raised over $30 million in equity from venture capital firms and strategic investors and ultimately sold the company to Motorola in December of 2005. Stephen, are you ready to take us to the top? I am ready to go. Very good. So tell us what Jumio does and what's the business model? How do you make money? All right. We're a software as a service.
Chapter 6: What technologies does Jumio utilize for identity verification?
Particularly, we do trusted identity as a service. So, we do three things in that. ID verification, identity verification, and document verification. It boils down to, with an ID verification, you take an image of your ID, passport, driver's license, use your laptop, use your phone, upload it. We don't care. We will then validate that it is not fraudulent.
And then if you do identity verification, we do a biometric facial comparison of your selfie with your device and the image of your face on the ID to say that you have a perfectly valid ID. Are you the same human or did you steal it?
Chapter 7: How does Jumio's pricing model work for customers?
Yeah. And then finally, we do a document verification, which for a lot of know-your-customer regulations is things like a utility bill or a bank statement. Do you have something that proves you live there? Interesting. So who's your customer? Is it the government where people are sending their IDs to to validate something or is it the consumer?
Our customers are merchants who need to figure out who you are, whether for their own business model, like Airbnb is a big customer. They don't have to do it, but they do actually need to have a trusted environment of landlords and tenants.
Chapter 8: What are the challenges and opportunities in Jumio's market?
And then we also have airlines. We have airline gaming companies, Bitcoin companies, brick-and-mortar banks. A lot of them have a know-your-customer requirement, an anti-money laundering requirement that they must fulfill, which we do for them. Are a lot of these companies you're seeing spring up right now where they're scaling internationally with a lot of independent contractors?
I'm thinking Uber, Lyft, on-demand food delivery programs, things like that. A lot of the friction with these companies moving into new locations is exactly this. Is the driver actually safe? Are they who they say they are? Do you have a lot of those kinds of customers or no? We have a lot of customers of that nature.
I won't say whether those are specifically customers of ours, but the way I would describe it is the world is moving to the internet online commerce and the idea that you have to walk into some building and flash your ID. is a little inconvenient, especially- It's very inconvenient. Well, it's inconvenient and some places don't even have them, right? They don't have it online.
I mean, a brick and mortar existence. So we fit them beautifully. I have to tell you too, I won't show it on screen here for security reasons, but if you look at my driver's ID, whenever I'm trying to go into like a place that cards people and I show it to them, they look at me twice because it's like cracked halfway and it's old and worn. And my reason is simple.
I don't want to go back to the DMV. It's such a bad experience. I would rather just put up with a cracked, almost unusable license. You know, there's a lot of people like that, or, you know, someone changes their hair, or like in my case, you don't have enough left. And, you know, let's face it, the ID on your driver's license is a crappy, tiny picture. Are you the same human?
And we use the technology in humans and we figure it out. So what is the average? Again, I'm sure you have tons of different cohorts of customers, large and small, but what's the average customer paying you? And is it per month? Is it a SaaS business? It is a SaaS business. Typically, people pay one year's worth of transactions in advance, and then they just burn off their inventory.
And then if they need to buy more, we do another agreement, or we have different mechanisms. So it is pay as you go, but you pay in advance, in a sense. And can you give me an average? Are most of these $100,000 contracts or $10,000 contracts or $1 million annual contracts? What's an average? You know, they range wildly.
There's a minimum that we won't bother with because, to be honest, they're not worth the customer support effort. So, Stephen, yeah, can you give me like an average contract size or is there a minimum you won't touch? And if so, what is that? I'd say the minimum is probably on the order of $30,000. That would just be a let's get you started kind of purchase.
But we have many multimillion dollar customers and a whole range in between. We have anywhere from 350 to 400 customers right now. And they're in 40 countries for zero. So we're quite global. Yep. And what is the, so now that we understand more of the economics and what the company does, take us back to the beginning of this thing. When did you launch it? All right.
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