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SaaS Interviews with CEOs, Startups, Founders

Sqrl Spent $146k on MVP, Now Launching to Heads of HR for Employee Health

02 Jul 2020

Transcription

Chapter 1: What journey did the guest undertake to develop their app?

0.132 - 14.075 Am Suthar

We started this journey 10 months ago and it was just an app. And then in the beginning of January this year, we launched our workplace program with three pilot companies, all different sizes, all different domains to learn more. And they actually paid us to build this.

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Chapter 2: How did the guest validate their product with pilot companies?

14.696 - 15.718 Unknown

That's great. What'd they pay?

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15.738 - 18.883 Am Suthar

1200 a month per employer.

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20.855 - 40.96 Nathan Latka

You are listening to Conversations with Nathan Latka. Now, if you're hearing this, it means you're not currently on our subscriber feed. To subscribe, go to getlatka.com. When you subscribe, you won't hear ads like this one. You'll get the full interviews. Right now, you're only hearing partial interviews.

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41.762 - 54.223 Nathan Latka

And you'll get interviews three weeks earlier from founders, thinkers, and people I find interesting. Like Eric Wan, 18 months before he took Zoom public. We got to grow faster.

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Chapter 3: What pricing model does the guest use for their service?

54.383 - 68.273 Nathan Latka

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.

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68.833 - 72.817 Unknown

We want to see a real pervasive data culture, and then the rest flows behind that.

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73.618 - 100.655 Nathan Latka

If you'd like to subscribe, go to getlatka.com. There, you'll find a private RSS feed that you can add to your favorite podcast listening tool, along with other subscriber-only content. 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.

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100.675 - 118.654 Nathan Latka

My guest today is Am Suthar. He is a first-generation immigrant and second-generation entrepreneur. He studied, taught, and practiced design in three continents and five nations in the span of 10 years. He's published over 10 patents and continued to innovate himself beyond the traditional archetype of designer, now building a company called Squirrel, abundance for your body, mind, and wallet.

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118.815 - 119.776 Nathan Latka

Am, you ready to take us to the top?

120.676 - 120.897

I am.

121.177 - 126.883 Nathan Latka

All right. So what does Squirrel do? And the domain name is sqrl.me if you guys want to follow along.

127.268 - 132.836 Am Suthar

That's right. Um, we help organizations get to know and grow the wellbeing of their workforce.

133.597 - 136.361 Nathan Latka

Okay. So who are you selling into typically? It kind of heads of HR.

Chapter 4: What is the target market for the guest's company?

154.792 - 183.229 Am Suthar

seat rate of six dollars per month per active seat just kind of like slack okay and what's like your sweet spot so so i guess when companies sign up are they typically signing up for one seat or a thousand seats or so they're typically our sweet spot seems to be um small to medium-sized businesses around 200 employees um we signed um three total pilots to date uh and we just launched our waitlist site so we can launch this to the public because our vision is for this to be a um a quick

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183.631 - 189.718 Am Suthar

self service checkout, where we automate everything that's important and give you give the employer control of everything that matters.

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190.079 - 195.866 Nathan Latka

Okay, so pre revenue today? Yeah. Okay, pre revenue. So when did you launch? When did you write the first line of code?

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197.588 - 211.505 Am Suthar

We started this journey 10 months ago, and it was just an app. And then in the beginning of January this year, we launched our workplace program with three pilot companies, all different sizes, all different domains, to learn more, and they actually paid us to build this.

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212.126 - 213.267 Unknown

That's great. What'd they pay?

214.057 - 216.08 Am Suthar

$1,200 a month per employer.

216.62 - 226.433 Nathan Latka

Okay, so you had three paying $1,200 a month, so $3,600 a month in revenue? Yep. Okay, that's great. And how many employees did that span? Or was it just one per company, basically?

227.154 - 232.881 Am Suthar

It was 50 employees at one, 80 at another, 20 at another, so a batch of 150 total.

232.901 - 241.752 Nathan Latka

Okay, plus 20. So has 150 times six come out to $3,600 a month? In other words, if you add up the 160 total seats...

Chapter 5: What challenges did the guest face in funding their MVP?

443.082 - 454.013 Nathan Latka

Okay. I mean, so these six developers must be like super Ukraine, Kiev, Argentina. India. India. Okay. So what's the connection? Do you have connections there or how'd you find them?

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455.854 - 470.63 Am Suthar

Well, it's kind of ironic. One of my advisors connected us and I realized that they work in the building next to the building. I used to work in India when I was designing an electric scooter for inner city women about seven years ago. So I was like, this, this works out great.

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471.21 - 477.376 Nathan Latka

That's pretty cool. Okay. Do you, do you have any sense on where you're going to find, like, how are you, what's the waitlist saying? How are you going to grow it? How are you going to get traffic?

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478.397 - 497.374 Am Suthar

Yeah. So I, you know, one of the areas that, um, we're trying to tackle and why we're trying to do this so differently is, um, typically wellness programs are sold, uh, as an add on to your health insurance or payroll or something like that, because they know that it's value can't really stand on its own.

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498.113 - 520.017 Am Suthar

What we're trying to do is build a direct to buyer sales model where we really put control of the health data as well as the parameters of which milestones you want to reward and how much you want to pay out in cash. And we automate all that. So giving that control really allows us to onboard and launch a wellness program in minutes and clicks, which takes our competitors days or weeks.

520.418 - 534.656 Am Suthar

So really by building this flywheel and then partnering with with like our local chamber of commerce, small business administrations, because I'm here in DC, I'm able to make the right connections to kind of get this out to the right audience.

534.716 - 548.151 Am Suthar

And what we've learned is there's a lot of small businesses, even labor intensive environments like construction workers that would love to have benefits, but they've just always been no clear ROI and out of budget.

548.401 - 561.844 Nathan Latka

Yeah. Well, I mean, the thing I always wonder about this is like, do people care enough, right? Does an HR team care enough about dedicating budget to this kind of problem? Or is it really just a made up problem that we know would feel good to solve, but people won't actually put money behind?

562.926 - 582.384 Am Suthar

Yeah, that's a great question. Traditionally, it's an ambiguous problem and it doesn't seem clearly valuable, like what's my bottom line, right? But what we're trying to build is currently... your personal health data is collected by health insurance companies. And then they use that to factor and augment the cost of your deductible and making care even out of reach.

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