SaaS Interviews with CEOs, Startups, Founders
Britech SaaS For Financial Firms Hits $10m ARR, up 70%, on just $3m Raised
29 Sep 2021
Chapter 1: What is the annual contract value (ACV) of Britech's software?
Our ACV is $28,000 a year.
Okay. And how many customers are you working with?
Over 350.
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.
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He's a successful entrepreneur with a 20-year track record, was previously CEO and founder of YMF, a leading financial software company with 300 employees that was later sold to TOTVS. He's well-respected authority in the Brazilian technology sector and is often called upon to advise firms and individuals on IT best practices and solutions.
Before founding YMF, Yuri spent eight years in investment bank Garantia as a trader and portfolio manager, now building Brytech.com. Global, a B2B SaaS platform for investment managers. Yuri, are you ready to take us to the top? Yes, let's do it. All right. So what kind of investment managers are paying you?
So we are a provider, a software provider for the investment management players, right? We are not the investment manager as ourselves, but we provide technology for almost all the chains of the investment management ecosystem.
That makes sense. And give me a sense of what these investment managers are paying you each month to use your software.
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Chapter 2: How many customers does Britech serve and what is their growth rate?
And what are you upselling? Is it number of seats, a feature set, a utility-based upsell? What is it?
In our SaaS platform, we have over 30 features or 30 use cases. What we do is constantly sell new use cases. We are not driven by the number of users or sites. We are driven by the number of use cases and the number of investment portfolios our clients control with our technology.
Okay. That makes sense. Now, do you ever consider, since you are so close to their AUM or their assets under management, would you ever take a percent of the AUM or no?
We do it, but only for new entrants, just to make it easier for them to use us. So it's like five beeps. And because they are new entrants, the AUM is not big. So it allows them to start using our technology. And of course, after time, we grow organically with them.
So Yuri, you'll let new investment managers avoid paying you a $30,000 a year fee and instead pay 0.05% of their AUM.
Yeah, that's 5B. So 0.05% of a year of their AUM.
Yep. And how much AUM do these new entrants have on your platform right now?
It's like a... 10, 20 million. Um, so in dollars, it's like a two, uh, three, $5 million in AUM, the new entrance. Got it. So I told you we have like $28,000 as our ACV on average, but, but of course we have guys paying us like, um, like what I have the numbers in Brazilian race. So, um, like, uh, $5,000 per year up to what? Let me see. Like to $300,000 per year.
So your highest ACVA count is $300,000 a year?
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Chapter 3: What pricing model does Britech use for new investment managers?
And any sales reps that carry a quota?
Yeah. So the biggest part of our investment is in growth. So we have like 40% of the revenues being invested in growth.
How many sales reps do you have on the team that carry a quota?
It's like around 30, 35 sales guys, sales force, including inbound, outbound, marketing, everyone.
How many total? Sorry. 35. 35. Okay. But of that sales team, how many actually carry a quota that they have to hit? 20 guys. 20. Okay. What is their quota? A lot of people struggle with launching their sales plans like this. How do you structure it?
So they have a combination of a fixed salary plus a very, very aggressive sales commission. So that's how we are growing like 70% a year with that aggressive commission, sales commission.
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Chapter 4: What is Britech's strategy for upselling existing customers?
What's aggressive? It can be like three times their fixed salary.
Which is what?
Which is like $2,000 a month.
So you pay them $24,000 per year fixed, and then they have to go sell about $72,000 a new ARR per year to hit quota.
That's it.
So payback is less than eight months. If they hit their quota, do you pay them more? What's the commission?
It's just a little bit more. It's like a 20% more. It's a premium, a 20% premium over the sales commission.
Got it. So if they hit their target quota of $72,000 of new ARR in a year, in addition to their $24,000 base, you'll pay them an additional 20% or approximately $4,000. So their full on-target earnings is about $30,000. Right. That's it. Okay. Is that model working? Can you hire another 20 sales reps on that same quota and keep growing?
It's working. It's working. Yeah. By the way, we have sales guys everywhere, not only in Brazil. Oh, where are they based? Everywhere. We have sales guys in Brazil. We have in the rest of Latam. We have in the US. And we have in other countries in Europe.
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