SaaS Interviews with CEOs, Startups, Founders
CoachMePlus raising $2m on $10m post money right now
22 Nov 2020
Chapter 1: What is CoachMePlus and how does it help coaches and athletes?
We see an average of six figures, right? There's hundreds of thousands of users in the application. But the floating usage is dependent on, you know, are you in the off season of a professional sports team? Are you in a training period of a military group? Is your gym going through a fitness challenge? And depending on that cycle, you'll see fluxes in the usage.
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My guest today is Kevin Davidovich. He is the founder and president of a company called Coach Me Plus, built around a simple idea, helping coaches and athletes work together to achieve their fitness-related goals. They serve a range of fitness-minded professionals, from personal trainers to gym owner to professional sports coaches and military human performance specialists.
Kevin, you ready to take us to the top?
Yeah, let's get going.
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Chapter 2: What is the business model of CoachMePlus?
My brother and co-founder is a full-stack developer. Steven Ostro, who's also a co-founder, is more of our integrations kind of guy. And then we've got two other hardcore engineers, one who's a hosting infrastructure engineer and the other one who is our front-end developer. So I haven't been able to touch code in months.
now unfortunately but uh or maybe fortunately but uh you know the development team has been together for quite some time um everybody who's worked together has this is our third startup together uh the other two were when did you launch this one uh 2013 23 and you've done this you haven't bootstrapped you've raised some capital how much have you raised we raised 1. uh 1.85 million
When you raised that first million back in... Well, it was 600K and then a million, but let's talk about the... Sorry, it was backwards, a million and 600,000. But back in 2013, when you raised that initial million, what were you selling? Was it the same product as you are today?
Yeah, it was enterprise software. I mean, at the time, we were at five or six customers on the enterprise level. We had... You know, three teams in the NHL, Philadelphia Eagles in the NFL, Oregon Ducks, you know, in NCAA. And that was like the stack, right? We had proof of concept. We had revenue, you know, which was nice. And we were bootstrapping at that time.
So we're figuring out, OK, like, what do we want to do? We want to grow the pro sports market. And it was sexy. It was attractive. It helps sell the seats. People are really interested in understanding or getting involved in professional sports. But what happened was, again, we didn't realize that the cap was there as much as we had hoped.
So we began to bump to that ceiling of the amount of potential customers that we can acquire. There's a lot of global competition. We see a lot of competition of Australia, out of the UK, some in Canada.
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Chapter 3: Who are CoachMePlus's primary customers?
And they've kind of pulled those markets away where we thought there might have been a blue ocean global approach that didn't quite show up. So we began to figure out ways to pit it. One of those directions was going to be into military, and the other direction was going to be in the gyms and high schools. And both have actually played out.
So we're pretty fortunate that that's actually worked out for us.
So what was your revenue run rate when you raised that million back in 2013? Ooh, $100K?
Yeah.
Okay, got it. So it was really first.
No, it was like 60K. I'm sorry. Yeah, it was really small.
And that was on a convertible note or you raised equity? No, we raised equity. Okay, so it was a price. What equity, what valuation did you get back then?
2013, I think the valuation was around 3 million or so.
Do you feel like you've grown into that? You've grown past that? You're worth more today? Absolutely, yeah. What would you value it at today?
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Chapter 4: How has COVID-19 impacted CoachMePlus's business strategy?
And now that it's matured, we can pump marketing dollars into the system and actually pull back the value and actually see that happen. So now it's poor fuel in the tank.
And where's that money being spent?
Ads?
uh yeah facebook placements uh linkedin placements instagram we do see a lot of junk posts from instagram or junk junk leads from instagram um i think you see more fitness people looking for uh solutions as opposed to the professionals or you might get some you know there's there's there's a lot of uh
variation in where we actually see it but we do have we do have a really fine-tuned profile the profile looks like somebody who is running a um a gym that's also a uh like a high performance center so if you're training kids you're training young athletes you're training not only them but also their mom and dad that's kind of like the profile that we fit into and um we know exactly like where to throw that at and pull that back and our lead conversion ratio just keeps like
And Kevin, sticking to unit economics, what does churn look like in the business?
Revenue-wise, I think we're at about 7% right now.
Monthly or annually?
Monthly.
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Chapter 5: What is the average revenue per customer for gyms using CoachMePlus?
Number three, what's your favorite online tool for building a good business?
Give me one second. Let me pull it up. I'm going to say that we use... I use on a daily basis. I use sweet serum on a daily basis. Like it's a, it's a free CRM tool. It's we just modified the hell out of. Number four, Kevin, how many hours of sleep do you get every night? Sleep at night?
Three, four on a good night. Five. That's not healthy at all.
No, I've got two, I've got two babies under two. So.
Okay. Fair enough. So, so married with two kids. How old are you? I'm 44. 44. Last question. What's something you wish in you when you were 20?
Invest in Bitcoin.
Okay.
Guys, there you have it. Kevin founded Coach Me Plus back in 2013, raised $1 million fairly quickly at a nice $3 million valuation. Today, they're doing $1.6 million in revenue. Going out to raise, call it $2 to $3 million on a $10 million post-money valuation, serving 300 customers.
These are typically enterprise accounts like big sports teams now working down market into newer models like private gyms that also do health and wellness programs, strength programs. They are profitable today. Great place to be. Team of 12 people has looked to scale with four Kevin, thanks for taking us to the top. Thank you, Nathan.
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