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SaaS Interviews with CEOs, Startups, Founders

Pay per car scan model generates $30k MRR helping Insurers decrease fraud

19 Jun 2022

Transcription

Chapter 1: What is the pay-per-car-scan model and how does it work?

0.031 - 6.767 Nathan Latka

I mean, can we take 20,000 inspections last month times $3? You're doing something north of $60,000 USD per month.

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7.248 - 9.754 Reuno Segur

Well, if you make the math, then yes.

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10.896 - 15.467 Nathan Latka

Well, I mean, it's not just the math. I want to make sure I'm calculating that accurately. Are you doing more than $60,000 a month?

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16.69 - 18.073 Reuno Segur

Currently not. It's less.

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20.517 - 61.38 Nathan Latka

The easiest way to do that is to go to getlatka.com and use our filtering tool. It's like a big Excel sheet for all of these podcast interviews. Check it out right now at getlatka.com. Hey folks, my guest today is Reuno Segur. He's the CEO of DriveX, a technology partner for insurers, mobility, leasing, and dealership companies.

61.981 - 76.242 Nathan Latka

DriveX leverages computer vision, offers a quick, easy, trustworthy way to remotely inspect a vehicle. Reuno, are you ready to take us to the top? Oh, yes. All right. So who are you selling directly to the insurers? Are they paying or is it somebody else paying?

77.082 - 87.958 Reuno Segur

That's a great question. Yes, we sell directly to companies and we're also launching a product directly to consumers who would like to get help in pre-inspecting cars.

89.24 - 92.005 Nathan Latka

When you say you sell to companies, name a couple of them specifically.

93.266 - 104.203 Reuno Segur

We're really strong in our home region, which is Central and Eastern Europe. And we work with the largest groups such as Vienna Insurance Group and also Ergo, which is a part of Munich Rep.

Chapter 2: How does DriveX help insurers decrease fraud?

232.503 - 242.732 Reuno Segur

So they can go back in time and compare what was the original condition. Because in the US alone, over $7 billion per year is paid out in fraudulent claims.

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243.293 - 256.905 Nathan Latka

And they can use that technology to... Yeah, but I guess what I'm asking is, you're not installing software on these cars. Because part of it is, what if damage occurs that's non-visible? You can't capture it in a photo. And there's a claim on that. How do you capture that?

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256.885 - 282.743 Reuno Segur

That's a brilliant question again. Thanks. So our vision is to combine different technologies together. So today we're in our roadmap where we're executing the visual inspection, but we also want to incorporate audio diagnostics of the car and also connected car data. we can access over the cloud of the manufacturer, the car manufacturer, to ask fault codes of the car.

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283.264 - 294.699 Reuno Segur

Let's say engine or mileage and so forth. So that brings a 360 view on the vehicle's condition. But of course, there are some damages that really cannot be seen or even through fault codes.

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294.739 - 298.924 Nathan Latka

And I want to know, how many inspections did you do total last month?

300.76 - 307.252 Reuno Segur

We're still in early stages, so we're talking about 10,000, 20,000 inspections per month.

307.933 - 316.288 Nathan Latka

Well, I mean, that's still a ton. So, I mean, if you did 20,000 inspections last month, can we multiply times seven bucks per inspection to get your revenue?

317.348 - 344.301 Reuno Segur

Yes, you could. And we're also updating our pricing right now. So the prices I told you was what we're charging right now. But obviously, we have customers who were early adopters. And then the price, of course, is a little bit the same difference. I mean, cheaper. Because what we're building is really deep tech. And how we are better is that we have customers even before we have the technology.

344.281 - 358.965 Nathan Latka

I think it's great you pre-sold it, but if you had to look at the average price that these insurers paid per inspection last month on the 20,000 inspections, would that be more like four or five bucks, something cheaper?

Chapter 3: What factors influence the pricing of vehicle inspections?

427.059 - 438.484 Nathan Latka

So you're closer to like 30,000 a month right now in revenue with a path to get to 50 or 60 by the end of the year. Yes. I see. I see. And if you were at around 30,000 a month today in revenue, do you remember where you were exactly one year ago?

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438.504 - 444.751 Reuno Segur

I would have to say that we were like four or five times less.

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445.432 - 455.963 Nathan Latka

Okay. Like 7,000 a month or something, something small. Amazing. Now, how did you put this on a timeline for me? When did you guys write the first line of code for this technology? What year?

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457.647 - 471.439 Reuno Segur

We started, we registered the company in 2019, December, but actually we had the first customer in place in April 2020. And that's where we really started to build the code and the product.

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472.12 - 475.909 Nathan Latka

So first customer was 2020. And how many customers are you serving now today?

476.665 - 485.917 Reuno Segur

We're serving 15 customers right now, but we're already signing first letter of intents in the rental industry, which will be the biggest market of our business.

486.558 - 494.689 Nathan Latka

Yeah, that makes a ton of sense. Of the 15 customers, you do 20,000 inspections across all 15. Does one of them make up the majority of those 20,000 inspections?

496.111 - 501.878 Reuno Segur

No, it's actually quite distributed. So yeah, not a big whale there.

502.659 - 505.643 Nathan Latka

What is the biggest one? How many inspections does the biggest one do per month?

Chapter 4: How does the technology facilitate remote vehicle inspections?

581.048 - 581.749 Nathan Latka

Which is what?

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583.214 - 597.014 Reuno Segur

I can't disclose the exact equity amounts, but we had to really dive deeper what is the role of each person and also how much it's worth given the... Give me an example.

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597.054 - 602.603 Nathan Latka

Don't share individual equity amounts, but why might you get more equity than the analyst, for example?

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605.106 - 623.16 Reuno Segur

Well... We analyzed the job description and the CEO really has to overlook everything in the company, including the product area, the development area, and also the sales and business development, plus fundraising. So, yeah, there really are two schools of thought here.

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626.262 - 650.143 Nathan Latka

Do you guys care about valuation right now, specifically your valuation? Do you think you might raise soon or sell a portion of the company? There is no other tool on the internet that you can use to get a better and higher valuation than FounderPath's new valuation tool. We have over 253 deals that went down over the past 30 days, all the revenue numbers, all the valuations, and the multiplier.

650.184 - 660.741 Nathan Latka

That way you can go filter the data, find companies that are your same size, what they sold or raised for or at, and then use those as comparables in your decks to argue and debate and get.

660.721 - 686.577 Nathan Latka

a higher valuation and less dilution which is the name of the game less dilution check it out today at founderpath.com forward slash products that's plural forward slash valuations again both plural founderpath.com forward slash products forward slash valuations so are you the ceo do you own the most equity yes i see and then what the cto is the next most and the third co-founder is the next most

687.113 - 699.089 Nathan Latka

You could put it like that. Yes. All right. Cool. That's helpful because there's folks listening right now thinking about launching their own companies. And just splitting equity equally is rarely the right answer. It's lazy. It just means you didn't have tough conversations.

700.151 - 709.864 Reuno Segur

Yeah. And I recommend to have those tough discussions right in the beginning. And there were several because obviously it needs to be well thought through and argumented.

Chapter 5: What are the benefits of using pre-inspection photos for insurers?

925.667 - 946.617 Reuno Segur

Sure. It all starts doing a bunch of interviews first, really listening. to the customer and doing the mom test. We have to learn that too. Not to sell too early, not to sell your idea, but to learn their processes and their problems and their ideal product that they're looking for. Have they even looked into solving that problem before?

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946.677 - 957.293 Reuno Segur

And then building the mock-up, like the clickable prototype, and combining that together with a live demo of the product and the clickable prototype. That's what we're doing right now.

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957.433 - 960.357 Nathan Latka

What did you use for the mock-up prototype? You're talking like Sigma?

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960.877 - 966.625 Reuno Segur

Yes, Figma is a great tool for that. We use that as well. So, yeah, the clickable prototype is a great tool.

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966.645 - 969.949 Nathan Latka

No engineering yet. You're selling with a clickable Figma file.

970.35 - 971.832 Reuno Segur

Yes, exactly.

971.952 - 980.464 Nathan Latka

And then let me just play devil's advocate. The car company is going, well, wait, guys, I'm not paying for this. You don't have anything built yet. And you're saying, no, you've got to pay us this amount up front. How do you negotiate that?

981.285 - 998.068 Reuno Segur

Mm-hmm. That's where the skill comes in. But I guess the key thing here is how to find and identify the early innovators who really want to develop this with you. And they're ready to maybe just put a small monetary commitment there.

998.548 - 1000.772 Nathan Latka

What is small, Rodney? What's the size of it?

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