SaaS Interviews with CEOs, Startups, Founders
Startup Hits $3k MRR by selling through podcasts. $2.5m Valuation on $255k Pre-Seed too expensive?
12 Sep 2023
Chapter 1: What is the startup's current financial status?
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 these podcast interviews. Check it out right now at getlatka.com. They started coding the company back in May in 2022.
Chapter 2: How did the founders come up with the idea for Magnetoo?
Today, they're doing $2,860 per month in revenue with 120-ish cash in the bank, burning $7K a month. The team of eight, as they look to scale, raised $245,000 in their pre-seed around last year at a $2.5 million post-money valuation. They sold 10%. Three co-founders building together, again, trying to help you turn your employees into a marketing arm for the company.
Chapter 3: What niche is the startup currently focusing on?
Right now, focused on the real estate broker, real estate agent relationship niche. Hey folks, my guest today is Rafa Kayi.
Chapter 4: What innovative strategies are used to attract clients?
He was born in Colombia, but moved to Spain when he was 20. Since then, he's worked as a digital market manager for startups and multinational companies. In December of 2021, he decided to quit his job and start Magnetoo, his third startup.
Chapter 5: How does the pricing model work for the service?
It helps transform employees into your best marketing channel. Rafa, you ready to take us to the top?
Yeah.
Sorry, I'm very happy to be here. Tell me a customer story.
Chapter 6: When did the startup officially launch and acquire its first customer?
Who's someone that's using you and how are they using you?
Yeah, okay. So we are mainly focusing on several, on different niches, but just to give you an example, real estate could be one. So real estate agents are needing to attract property owners in order to sell their properties. So what we do is we run them a platform where they can get specific content to share on their social media and to attract these clients.
Chapter 7: What challenges did the founders face during the early stages?
So this content is completely customized to their personality, to their company goals, to their company tone of voice as well. So all what they need is just to access to Magneto, find this content and share it on their social networks. At the same time, the marketing departments can check how many real estate agents are actually sharing content, the traction that this company is generating,
and so on.
Chapter 8: What are the plans for future fundraising and growth?
So we are kind of converting these real estate agents, in this example, into a marketing channel for the real estate companies. So instead of going to Google Ads or to Facebook Ads, they just put the person up front in order to attract clients.
Understood. And what are companies paying on average per month to use this technology?
So we charge by seat and it goes from 24 euro a month. 24 euro. A month per user. Depending on the content that you get and the frequency, then you pay up to 99 a month.
Okay. Again, 24 euro per month, which is 26, 27 United States dollars per month. And what's the average company when they sign up? What's the average number of seats they're buying?
Yeah, we started with 10 seats. Right now, we are closing deals with 25 to 30 seats. Ideally, in one year, we're expecting to close deals with 50 to 100 seats.
So Rafa, is it fair to say your average customer is paying for 10 seats at 26 bucks a month?
Correctly.
Okay, so $260 a month on average. Now that we understand the economics, let's get the backstory here. What year did you launch the business?
Yeah, so I was actually facing the issue. I was working as digital marketing manager for one of the leading real estate companies in Spain. And I was burning a lot of money spent on Google ads, Facebook ads, and it was very expensive to acquire property owners online. So I asked my real estate agents just to share content online in order to get those clients.
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