SaaS Interviews with CEOs, Startups, Founders
Niche $2m Contractor Management SaaS Raising $7m on $30m Pre
27 Feb 2021
Chapter 1: What is the main topic discussed in this episode?
So you've got again, about 1.6 million in 2020. That came from percentage EMV, you've got another like 500 to a million coming from your SaaS product 33,000 bucks a year 20 customers like bright view pay for that. Have you done this bootstrapped? Yes. 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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My guest today is Ryan Gottfried. He's providing a next-generation platform to service companies to simplify integrated property and subcontractor management. It helps increase visibility, enable work order tracking, process payments, and streamline communication. Ryan, you ready to take us from the top?
Yes, absolutely.
Thanks. All right. So the site is UtilizeCore.com if folks want to follow along. Help us understand what you're selling.
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Chapter 2: How did the company start and what problem did it aim to solve?
The subcontractors will send an invoice that's automatically generated upon work complete.
and right you will pay out their subcontractors and take we'll take a percentage and give me give me a bit about that gmv history so if you look back in 2017 how much total volume went to the platform sure yeah in 2017 we did 300 000 roughly not bad for your first year yeah not bad and um then 2018 sorry 2018 let me just
No, you're good. Take your time. It's a lot of history.
Yeah. So 2020, one six, 2019 was around 700,000. 2018 was roughly 300,000. And then 2017 was around 150,000. 150,000.
That's great. So obviously nice growth here. Now, did you always take a percent of the fee even back in the early days?
Early on the first year, we did not. That model came into play around 2019.
And so $1.6 million going through your platform, you're taking a half percent per transaction. I mean, that's only $8,000 of revenue, right? Am I doing that right?
Half a percent per transaction. So it's, for example, Brightview processed $250 million through our platform.
Just to be clear, sorry, the 2020 1.6 million you did, that's the cut you took, not the total GMV.
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Chapter 3: Who are the primary customers using the platform?
So you want me to bring in my first year $750,000 of new ARR landed?
Yeah. Correct.
And what would you pay me? Like what would my, if I, you know, my base plus my commission, if I hit that quota target, what would I make working for you? Sure. Yeah. Anywhere from 60 to 90,000. Interesting. And that includes commission. So if I hit my quota, I'll make 90 grand.
no if you hit commission you can make over if you hit your quota you'll make over 200 000. okay yeah that's what i was asking so 60 to 90 base but plus quota you'd be over 200k yep super cool yeah that seems right in market to me and where are you finding these reps are they all in the us uh yes we were we're in the industry like i said since 1983 with the first platform launching so other individuals have worked at you know uh
And the other companies that we have in similar SaaS verticals are very interested in working. We've actually brought on two full time now. And then we also are working with people that have specifically sold SaaS before, but not necessarily in FM or service management space. And we're building out a sales engine in Boston.
So the sales engine in Boston will have six SDRs and roughly 10 account executives. I think we already have four or five on board already.
That's great. Ryan, this is good stuff, man. We're rooting for you. We're out of time. Let's wrap up with the famous five. Number one, what's your favorite business book? It is definitely Steve Jobs. Number two, is there a CEO you're following or studying? No. Mark Zuckerberg. Number three, what's your favorite online tool for building the business? Figma. Can I answer for a second?
Yeah, give me another one. Jira as well, Figma and Jira.
Yeah, two good ones. Number four, how many hours of sleep do you get every night?
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Chapter 4: What is the pricing model for the SaaS product?
Last question. What's something you wish you knew when you were 20?
Um... product market fit of our business, we would have went even faster.
Guys, there you have it. Again, great company here, UtilizeCore.com. Looking at raising right now, maybe $7 million on a $30 million pre. We'll see. They've got a great model of SaaS plus percent of GMV. That percent of GMV has grown over $300 million going to the platform in 2020. They take a half percent revenue from that. So they made about $1.6 million via that stream.
And then the other 20 customers, like Brightview, pay them something like $33,000 per year on average, another $500 to a million bucks in ARR there. Fast growing company.
Chapter 5: How does the company generate revenue from transactions?
Ryan, we're rooting for you. Thanks for taking us to the top.
Thanks a lot.