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SaaS Interviews with CEOs, Startups, Founders

SunRoof Helps Banks Manage Loans, Founder Owns 100%, Invested $250k

20 Oct 2021

Transcription

Chapter 1: What is the main topic discussed in this episode?

0.031 - 15.711 Travis Tillotson

So the market's just sitting there for the taking. And, you know, one thing that I will say is that if you're always raising capital, it is a big distraction and doing a safe allows us to hire the right team and attack the market and get market share in a very like position of comfort.

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17.8 - 30.254 Nathan Latka

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.

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30.755 - 53.564 Nathan Latka

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 Travis Tillotson.

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53.584 - 68.967 Nathan Latka

He is building a tool called Sunroof.us. He's a Louisiana native Tulane grad, MIT OCW, then New York City, where he founded his last tech company in 2011 from a closet, truly a closet, and grew to $10 million in sales before exiting. We're going to jump into all of it today. Travis, you ready to take us to the top?

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69.949 - 70.489 Travis Tillotson

I am indeed.

70.91 - 74.115 Nathan Latka

All right. Tell us about that first company. When did you launch that business? What year?

74.247 - 75.43 Travis Tillotson

Launched in 2011.

75.45 - 79.922 Nathan Latka

And that was the actual launch or first line of code or LLC filing or what?

80.523 - 81.646 Travis Tillotson

That's LLC filing.

Chapter 2: How did Travis Tillotson grow his first tech company?

195.176 - 204.144 Travis Tillotson

And we ended up selling our research and data and getting paid for it no matter what the outcome was. So we weren't being paid just to paint rosy pictures.

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204.164 - 213.553 Nathan Latka

We're also being paid to- So Travis, sorry, just because I want to focus on Sunroof. So I'm just trying to get the equity story of Sergo, right? So when you guys sold, I guess, how much equity do you still own?

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214.495 - 217.868 Travis Tillotson

Um, I'd sold the equity that I'd owned was 33%.

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219.776 - 225.197 Nathan Latka

Okay. So would you do the same thing? Like you raised some capital, you brought in some co-founders. Is there anything you'd change about how you manage the cap table there?

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226.291 - 244.72 Travis Tillotson

I think that I've learned a lot of things in the past and I will say that make sure you find the right partners. Like I want to make sure that I find the right financing partners. I want to make sure that ultimately, you know, you work with people that you like to work with and ensure good and clear communication.

244.74 - 257.036 Travis Tillotson

I mean, from my perspective, you know, it was really just a lot of lessons learned from a real first time founder. So probably talk about every day and or every week of founders who've been through an exit, raised capital.

259.219 - 268.87 Travis Tillotson

So yeah, I would treat it as don't go after those lofty valuations a little too early just because people are willing to give them to you because then your expectations are much higher afterwards.

268.89 - 271.674 Nathan Latka

So what was your valuation in 2018 when you raised the $7 million?

272.434 - 273.776 Travis Tillotson

My valuation was $30.

Chapter 3: What challenges did Travis face while raising capital?

638.57 - 639.652 Nathan Latka

How much of your own money have you put in?

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639.672 - 641.655 Travis Tillotson

A good amount.

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641.675 - 645.182 Nathan Latka

I will say a good amount. More than a quarter million?

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646.242 - 654.099 Travis Tillotson

Um, you could say, yeah, I mean, you know, yeah, I'm looking at not a, not like a fun amount. Like, okay.

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654.119 - 657.085 Nathan Latka

So it's more than 250 grand. I won't push harder, but more than 250.

657.386 - 658.167 Travis Tillotson

Yeah.

658.248 - 665.483 Nathan Latka

Okay. Fair. So you put in your own money, but you hopefully own about a hundred percent of the business, right? Yeah. Yeah. I mean, yeah. So no co-founders, no investors.

666.053 - 686.613 Travis Tillotson

Right. And basically we are, you know, right now looking at an instrument that didn't even exist, a safe note, didn't even exist when I founded my last company. So safe note financing, you know, people who were, you know, aware and or invested in me before were interested in or involved. And then looking at, you know, accomplishing certain core metrics and goals.

687.554 - 703.632 Travis Tillotson

And basically over the next like three to six months. And then from there, you know, really already starting that series A pipeline to make sure that we're properly capitalized, but with the right vision and the right, you know, team members in place. So I've got, you know, kick-ass team across.

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