SaaS Interviews with CEOs, Startups, Founders
Nailted HR Tool Hits 4,000 Paid Seats, $122k ARR
22 Oct 2020
Chapter 1: What is the main topic discussed in this episode?
I guess our absolute number in churn is now seven companies that have churned. But I think five of them wasn't a great fit for us. Most of them comes from the early steps trying to reach companies that doesn't fit on our product. You are listening to Conversations with Nathan Latka. Now, if you're hearing this, it means you're not currently on our subscriber feed.
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Chapter 2: What is Nailted and how does it improve company culture?
Like Eric Wan, 18 months before he took Zoom public. We got to grow faster. Minimum is 100% over the past several years. Or bootstrap founders like Vivek of QuestionPro. When I started the company, it was not cool to raise. Or Looker CEO Frank Bean before Google acquired his company for $2.6 billion. We want to see a real pervasive data culture, and then the rest flows behind that.
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My guest today is Jose Andres. He's building a great company called Nailted.com, which is in helping guiding companies to improve their culture. Jose, you ready to take us to the top? Yeah. Okay. So the website is N-A-I-L-T-E-D dot com. What's the product do? Yeah. And it is employee engagement software. We help companies to improve their cultures so we get a better environment for the people.
So the people are happier. So they are more motivated and they stay longer in their companies. So the idea is that, to help companies to get a better employee engagement. And how do you monetize? Is it pure SaaS? Yeah, we charge four euros per month per employee. Okay, that feels super cheap to me.
Yeah, it's maybe here in Spain, you know, considering the environment here, I guess that we are going to raise money to raise the prices because we are only for a few months here in the market. We are eight months now, so we are standing with our very first customers. And later on, when we move to another country, we may raise our pricing. Okay, how many customers do you have today? 50.
Okay, 5-0. Is that 50 seats? Sorry? You charge per seat. So do you have 50 seats or 50 brands, companies? 50 companies. How many seats? Yeah, around 4,000. 4,000. Okay, 4,000 seats and you're charging about sort of 4 euros per month. So people can do the math. You're doing about $16,000 per month in revenue.
Yeah, a little bit less because we have a few enterprise companies which we made custom pricing for them. So it will be a little lower MRR, but more or less like that. Okay, got it. So how do you do your enterprise discounts? If someone says, hey, Jose, I want to put 500 people on this, what sorts of discount could I get?
Yeah, it depends on the company for sure, but our conversation mostly are about how are they going to use the product.
and uh the the thing is that not every company we have used the whole product so maybe we can uh you know do some discounts by set on how many main modules or main features are they using and also depending on how long the contract of the of the subscription it will be for example if We have companies that have the annual plan.
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Chapter 3: How does Nailted monetize its employee engagement software?
The three of us and another three. Okay, so six. That's great. So six total, three engineers. Laura has just joined. Churn is critical in a SaaS company. Have you lost any seats across customers? Yeah, we lost a bit. I guess our absolute number in churn is now seven companies that have churned. But, you know, I think... Five of them wasn't a great fit for us.
Most of them comes from the early, the early steps trying to reach companies that doesn't fit on our product. And then the other two was more like, I was still trying to figure out why they leave us. Yeah. But I don't know because they were like great fits, but they told us that they are looking for something like
bigger more that do like a lot of things and we want to do like a lot of things we want to do feedback and very very good A lot of you guys will ping me out of the blue asking for help selling your software companies, but I'm not a broker and I'm really focused on founder path right now, not helping folks sell their company.
So I'm always looking for great tools to recommend for you guys to quickly figure out what you could potentially sell your company for and how much cash you could get. That's where Flippa comes in. Now, here's my thing about brokerages, especially for selling your company.
You guys should not have to pay a 10% brokerage fee when you put your blood, sweat, and tears into building your company for years out of a sale. All smart founders know, though, that the best way to maximize price is to have multiple options. So how do you get multiple options, multiple bids on your company without paying a broker 10% or more?
Well, I recommend Flippa because they have the largest list of buyers for these sorts of digital assets, which almost always guarantees a bidding war. I tell my founder friends all the time to try Flippa's valuation calculator to see what their company is worth. And I encourage you guys to do it today.
Go to NathanLacke.com forward slash Flippa right now to test out the valuation calculator for free. That's NathanLacke.com forward slash F-L-I-P-P-A. So with that sort of team and the customer base today and the churn in your economics, are you profitable today every each month or are you burning capital? We are burning capital, but this is a conscious decision. We want to grow faster.
And for example, right now we have started doing marketing, but we can keep growing organically as we did before. How much are you burning per month? I guess around, I'm telling you in euros is like 9,000 euros per month, more or less. So it's about 12,000 US dollars, something like that. Yeah. Yeah. Okay. Got it. And you mentioned you might raise additional capital.
If so, how much would you raise and when? This is a good question because we haven't decided it yet. We always had the idea of raising more money at the end of this year or maybe at the beginning of the next one, but we haven't decided yet because we want to find first the levels we need to touch to grow faster because right now we are testing channels.
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Chapter 4: What is the current customer base and revenue of Nailted?
Guys, there you have it. Nailted.com has about 4,000 seats, paid seats on their platform across 50 logos. They're doing $12,000 a month in revenue. They've raised $200,000, burning $12,000 net per month. Team of six, three engineers as they look to scale about 14%. gross churn annually. Seven out of 50 customers have churns so far. They're less than or about a year old.
Might raise here in Q4 of 2020 or Q1 of 2021. We'll see. Helping, again, teams drive engagement among their employees so that the whole company can move forward faster. Jose, thanks for taking us to the top. Thank you.