SaaS Interviews with CEOs, Startups, Founders
Should you launch a new SaaS when your current one is doing $5m in ARR?
10 Sep 2022
Chapter 1: What is the significance of launching a new SaaS while having a successful existing one?
10 times $2,140 ARPU, that would be two seats. I mean, you're doing like 2,000, 3,000 a month already. Yeah, about. You are listening to Conversations with Nathan Latka, where I sit down and interview the top SaaS founders, like Eric Wan from Zoom. If you'd like to subscribe, go to getlatka.com.
We've published thousands of these interviews, and if you want to sort through them quickly by revenue or churn, CAC, valuation, or other metrics, 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 Jonathan Koch.
He's a founding member of Talent Genie and Talent Scraper, along with ClipDrop.io. His latest venture aims to turn the one-way video interview software industry on its head by exploring multiple ways to use video in the talent acquisition space. Jonathan, you ready to take us to the top?
Absolutely.
All right. So just to be clear, you've got three companies. Which one has the most revenue? Is it ClipDrop?
At the moment, no. ClipDrop is probably the most promising project that we've worked on. Talent Genie is probably the one with the greatest revenue at this point in time globally.
So what is Talent Genie? How do you make money there?
Talent Genie is an applicant tracking system. It's a system designed basically to track your recruitment process. We integrated 2,500 job boards around the world. So Monster, for instance, would be a job board. and effectively integrate into the likes of social media like LinkedIn, Pinterest, Twitter, et cetera, all for talent acquisition purposes to attract talent.
And then we use AI to try and process the applications as they're coming in and effectively screen the candidates as they're coming in.
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Chapter 2: How does Talent Genie operate in the recruitment space?
A seat or a user.
Ah, so you have 1500, not customers, you have 1500 seats on your platform.
Yeah, currently, yeah.
Across how many brands or companies?
There's probably a total of about 400 different companies using it at the moment.
I see. I see. Okay. So we can take 1500 seats there times 100 per month. You're doing 150 grand a month over there in revenue.
Yeah, well, it depends. So in some cases, if you look at the, I mean, so I'm based in South Africa. In the South African context, the South African market is a very small chunk of what we actually control. On a global basis, I think the business probably turns over about $5 million.
Okay, got it. So it's down a $5 million run rate today, which means it does about $500,000 a month in revenue?
More or less, about $400,000 a month in revenue. Wow. It all depends on where you're looking. The reason we got involved with ClipDrop is because we believe that it's far more promising.
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Chapter 3: What is the business model for Talent Genie and how does it generate revenue?
But you don't want to force a business model on your customers. So for your customers, why do they care more about storage than they do hiring people?
The reality of the matter is that when you're looking at the recruitment industry side, just to give you some background, I've been in the industry for about 22 years. Volumes do fluctuate, but we are basically charging the same price that a competitor might charge for a single vacancy.
If you're working anywhere from 5 to 10 vacancies a month, it makes a lot more sense to use a product like ours at the same price as a single vacancy. And we understand what you're getting at, where you're saying that, well, you've got a whole lot of additional recruitment needs that are available.
Sure, you can buy additional space from us, but we've got a very, very simple streamlined model that just makes a lot of sense for the end user. They're getting greater value for a lower price point as it goes on with a better quality system as well.
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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. Yeah, I mean, so just for context, like we've had Colin Sims on with iSims. We've had K1 and Pete Lampson on with Jazz HR who've bought many companies in this space. I'm pretty darn familiar with the space.
I don't, I mean, you could have someone that's paying you for storage, but it's terrible at hiring. They never hire anyone, right? But they're paying you a crap ton for storage because they turn through so many candidates. And that's what I'm trying to understand.
Why have you made a decision that it's better to price against storage than the true like value thing of an ATS, which is the candidate was successfully hired?
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Chapter 4: Why did the guest decide to focus on ClipDrop despite existing success?
And he said, you know what? I want to spin out and build another software tool. They've launched ClipDrop.io, which is effectively an applicant tracking system on steroids, but they allow you to do video and use video in different ways during that process.
They charge based off storage, have beta customers now signing up, doing $3,000 a month in revenue as they look to keep scaling it, totally bootstrapped, which we love. Jonathan, thanks for taking us to the top.
Thank you very much. All right.