SaaS Interviews with CEOs, Startups, Founders
GlobeChain Lists Waste Products, Does $1.6m in ARR in SaaS Enabled Marketplace Model
12 Jan 2021
Chapter 1: What is the main topic discussed in this episode?
So really interesting. I actually bootstrapped for four years because there was no market cap in the industry. So I only got VC funding late 2018 and we got 750,000 from VC and we've been running off that since actually. So we were due for a fundraiser last year in COVID, but that stopped everything in the works, especially in the UK. So we'll probably start it up this year again.
Chapter 2: How did May Al-Kharouni fund Globechain initially?
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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, my guest today is May Al-Kharouni. She's building a very cool marketplace to reuse ESG, based off ESG data. We're going to jump into globechain.com today.
May, you ready to take us to the top?
Absolutely.
Okay. So first off, is this a SaaS play or is this more of a marketplace?
Yeah, it's a bit different. It's actually a SaaS enabled marketplace. So we charge a subscription fee to use the service, but our interface or face is basically like a marketplace. So imagine like a free eBay with data on social impact.
Fascinating. Okay. So explain to me on average, what are customers paying just on the SaaS side per month to use you?
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Chapter 3: What is the business model of Globechain?
How many customers do you have on the platform today?
We have around 34 customers in the UK. We've got 10,000 members. So they're the taking members, the people that take the items. And we're in UK, Spain. We actually just launched in New York last month, just before Christmas. And we're in the UAE. We have a partnership with the Royal Family in Abu Dhabi and Dubai.
Very cool. I mean, so can I multiply $50,000 ACV times 34? You're at like 1.7 million.
Exactly. Not quite that because there was some earlier ones, obviously, but yeah, getting close in the dollar stage, yeah.
That's great. And so if you have just sort of passed 1.5 million in AR, where were you a year ago so we can get growth rate?
Yeah, we actually, so really interesting. I actually bootstrapped for four years because there was no market cap in the industry. So I only got VC funding late 2018 and we got 750,000 from VC and we've been running off that since actually. So we were due for a fundraiser last year in COVID, but that stopped everything in the works, especially in the UK.
So we'll probably start it up this year again.
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Chapter 4: How much do customers typically pay for Globechain's services?
But what did you finish the end of 2019 with in terms of revenue?
Oh, sorry, beg your pardon. That was only 200,000 because I just got the money in the VC side and growing the team to around eight people.
That's great. So eight people in 2019?
At the end of 2019, yes, eight people.
And how many folks today?
Today, actually, we've got five.
Five.
Because, yeah, just because of COVID and we just basically lost a couple to the US, actually. They moved back. So we're recruiting again. And hopefully we'll be eight soon.
Of those five, how many are engineers?
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Chapter 5: What inspired May to start Globechain?
They're taking the items for free. So we work with network network network effects, obviously, from a marketplace perspective. However, there are options to obviously put premium, special alerts, that type of thing in there. But what we do get them to charge for is the logistics. And we're just in the middle of building an API logistics in the system.
So we're able to offer courier services, which the taking members will pay for. So the taking member always pays for the transportation and delivery of the goods. And that way we have almost no shows turn up.
And how do you quantify the 10,000? Like, is that ever that's taken at least one thing from you over five years? Or is that just last month? They all took at least one thing.
Yeah, no. Usually it's around, obviously we've got the 80-20 rule, right? 80% of the clients, usually 20% of the network at any one time. So it's usually around 20% of the network.
And what usually happens is... What is 20% of the network?
It's a couple of thousand, basically, for the UK.
Yeah, but what does that mean, though, is what I'm trying to get at. 20% do what on a time basis?
Sorry, they take per month.
Per month, okay.
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Chapter 6: How has Globechain's customer base evolved over time?
The problem is there's not enough of that channel for you to like go get.
No, I mean, you know, every corporate disposes of waste and spends a million. I mean, in the future, for sure, we'd have to start spending money and increase that cap to bring on board the clients. But, you know, it's a Ā£4.3 trillion industry now. It's called circular economy. And we're just scratching the base of it, if you like, on the reuse side.
Yeah, so you haven't tried then to really aggressively go after new customers because that CAC, if that channel and those economics hold, you'd put a billion dollars in that channel. 600 bucks to get 50,000 a year. I'd do that every day.
Yeah, no, exactly. Yeah, no, we would definitely be ramping up and I think we could ramp up significantly on the next rounds as well.
Okay, May, good stuff. Let's wrap up with the famous five. Number one, favorite business book.
Oh my gosh, I like Malcolm Gladwell, Tipping Point.
Number two, is there a CEO you're following or studying?
Um, gosh, that's a hard one. I follow a lot of CEOs because I like the variety to be honest. So top of my head, can't think of one immediate, but, um, I, there's a few out there that I just follow.
Number three, what's a tool that you really enjoy in terms of what you use to build globe chain?
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