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SaaS Interviews with CEOs, Startups, Founders

They Raised $300k on $1m after B2B SaaS Pivot for Job Applicants to Record Videos Easier

20 Jun 2021

Transcription

Chapter 1: What is the background of Mike Beck and his company?

0.031 - 9.551 Mike Beck

So we have three price plans, £35 a month, £99 a month, and £199 a month. So on average, our average selling price is about £106 per month.

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9.571 - 15.063 Nathan Latka

Okay, or about 120 sort of USD. I mean, so you guys are doing about £6,000 a month in MRR right now?

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15.584 - 17.989 Mike Beck

Yeah, well, actually around about £5,000 at the moment.

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20.618 - 33.053 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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33.554 - 55.579 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 Mike Beck.

55.599 - 75.216 Nathan Latka

He's got a background in financial trading and selling complex software before setting up Reliving, a B2C software company focused on helping people preserve their loved one's life stories. The pandemic forced a pivot to what is now Reworking.com, heck of a domain name, a B2B one-way video interview platform for employers. Mike, you ready to take us to the top? Absolutely. What an introduction.

75.736 - 78.098 Nathan Latka

How'd you get Reworking.com? That had to be expensive.

78.382 - 99.949 Mike Beck

Do you know what? It wasn't. There was some people that originally owned the domain. And, you know, when I offered them a price for it, they sent a ridiculous counter offer. But it was probably a month or two later, they drastically dropped the offer. So we ended up getting a great price for it, you know, and it fitted well.

99.989 - 110.102 Mike Beck

We purchased, I think it was Redash Working and a few other various companies. um, takes on the domain, but yeah, reworking ended up landing at, at our feet.

Chapter 2: How did the pandemic influence the pivot to Reworking.com?

231.137 - 263.402 Mike Beck

And I've come from a B2B selling sales roles myself. And I got involved with a fantastic organization called the Alacrity Foundation. And the Alacrity Foundation help entrepreneurs within the UK with guidance, mentorship, and to help give them the skills to build their own software company and realize their dreams. I didn't go through that program, but my co-founders and developers did.

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263.382 - 286.683 Mike Beck

How many co-founders do you have? So there's four of us all together. Did you just split 25, 25, 25? Absolutely. And then we also have investors. So this is, you know, they went through the Alacrity Foundation program, which is a fantastic opportunity for them and any entrepreneur that's looking to get in to become and run their own software company.

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287.444 - 305.265 Mike Beck

And I joined them at the later stage and I was given a task to help grow Alacrity. a software within the family history space. And, you know, it was B2C. And I thought I'll take on the challenge. We had a fantastic board of directors, a really great network.

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305.945 - 316.018 Mike Beck

And we set out building a platform that essentially helps people to record their life stories and preserve them for future generations to learn and develop from.

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316.599 - 321.385 Nathan Latka

So just because we're short on time, fast forward. So when did you launch as reworking? What year?

321.365 - 340.07 Mike Beck

So we launched, well, we launched reworking back in October 2020. Last year. Yeah, absolutely. During the pandemic, we realized that actually a B2C product wasn't working for us. We didn't have the cash flow. We didn't have the, you know, huge user base. We had about a thousand users on the platform.

340.57 - 341.191 Nathan Latka

How many were paying?

341.211 - 347.7 Mike Beck

So we decided, this is it. We had probably about 10 people paying. We were not in a good position.

347.74 - 350.764 Nathan Latka

And how much runway did you guys have in the bank? How much cash?

Chapter 3: What is the unique selling proposition of Reworking's video interview platform?

433.372 - 451.58 Mike Beck

But when we released MVP in October, we released it pretty much to organizations that we knew within our network for free. And it's only been really since February that we've really injected money into our marketing and pushed forward. How much have you guys raised to date? We've raised £502,000.

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451.86 - 464.991 Nathan Latka

Why was it the right decision? Imagine you give up equity to do that. Now the founders are all at under 20%. The investors own something like 20%. Why not just shut the business down last year and relaunch?

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465.646 - 490.669 Mike Beck

I mean, it was more, we just knew that we had the technology already built. The technology was there. We just needed to tweak it in certain areas in terms of the UI and add a few extra core bits of features and functionality. And the business is ready to go. So, and we already, you know, our investment, our current investors are fantastic. So they provide a huge amount of support to us anyway.

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490.689 - 491.831 Mike Beck

So it's just the right decision for us.

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491.851 - 493.392 Nathan Latka

How many folks are full-time on the team right now?

494.03 - 498 Mike Beck

So we have four employees and then we have two contractors.

498.02 - 506.841 Nathan Latka

Does the four employees include you four founders? Correct. Okay. So how are you guys paying yourselves? I mean, there's not enough revenue to pay yourselves.

506.973 - 533.901 Mike Beck

Well, we raised, so this is the great thing, you know, we had our first kind of pre-seed funding for reliving. Which was for how much? Which was for $250,000. And then we had, sorry, so we raised $552,000. So, you know, and then we had, we decided to build reworking. And through the building and reworking, we decided to go for another round of investment. And we got it.

534.081 - 545.856 Mike Beck

So we got it just before... And we raised the $302,000, absolutely. So it's been successful for us. And that's purely because of reworking and the future success of that.

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