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SaaS Interviews with CEOs, Startups, Founders

This Developer Tool Doubled To $240k ARR And Raised at a $14m Post Money Valuation

08 Mar 2022

Transcription

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

0.031 - 6.744 Nathan Latka

Now, can I back into your revenue, 350 customers, 20 bucks a month, you're doing about seven can MRR today? Yeah, something like that.

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9.548 - 21.94 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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22.421 - 45.087 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 Luke Feeney.

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45.107 - 64.294 Nathan Latka

He's the co-founder of TerminusDB, the leading open source graph database. Before joining the business, Luke worked in the Irish foreign ministry for a number of years. He was Ireland's acting ambassador to Greece from 2016 to 2017. Luke, you ready to take us to the top? Born ready. Your cool factor went up a ton over the past decade. You went from politician to SaaS founder.

64.493 - 68.357 Luke Feeney

Well, that depends on your perspective, Matt.

68.377 - 71.641 Nathan Latka

That's an accurate statement. All right, tell us about Terminus. Where did you get the idea?

73.163 - 90.282 Luke Feeney

So Terminus has been out from university. My brother was a researcher, a PhD researcher in computer science in Trinity, and they had an idea around building a very collaborative sort of data structure database and spun out from there.

90.262 - 111.35 Luke Feeney

It kind of came from this very big project called the Global History Data Bank, which is trying to record all of the social and political data sets from all of human history and then provide them in a machine readable format so people can do kind of predictive analytics on history. And so trying to look at the past and then get long jury trends into the future.

Chapter 2: What is TerminusDB and how did it originate?

177.127 - 189.927 Luke Feeney

We talk about our link to them. We run events on Trinity. They're a big center of innovation. They help us in some international business development as well, a little bit here and there. So I think it's a good deal all around.

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190.568 - 198.501 Nathan Latka

Interesting. Okay. That sounds like a great mix. So the university is on the cap table on day one. You're on the cap table on day one, I think. Who else? Your brother?

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198.903 - 224.358 Luke Feeney

Yeah, so there's three founders, my brother and another PhD researcher who spun out a guy called Gavin Mendel Gleeson. He's the CTO. We took a seed round directly out of university at a bridge from a bridge fund. So it's specifically designed for softer terms. What year was that? It's called the University Bridge Fund. No, what year was that? Oh, that year was 2018. Sorry. Yeah, 2018.

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224.899 - 243.169 Luke Feeney

So yeah, it's like softer terms to try and get companies to spin out. So the Irish government backs it with a bunch of other institutions. It's professionally managed by a VC called Atlantic Bridge. And they look for companies mostly, I'd say, in the med tech world, but also- So how much did you raise in that round? We raised 1.25%.

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243.318 - 250.945 Nathan Latka

Got it. Okay. And when you say like fluffy terms, so 1.25 seed in the US, usually you're going to sit at like a six to 10 million cap on a convertible note. Is that kind of what you got?

251.466 - 259.873 Luke Feeney

No, no, no. I mean, fluffy for Ireland. I'm afraid our VCs aren't as enlightened as yours. I see.

259.953 - 263.136 Nathan Latka

I see. Okay. So what were the just generic high level terms and 1.25 on what?

263.637 - 268.421 Luke Feeney

So it's about like, it's about evaluation by 3.5 of that, or maybe a little bit more than that.

268.862 - 270.203 Nathan Latka

Post money or pre?

Chapter 3: How did the academic spinout process work for TerminusDB?

476.345 - 477.727 Luke Feeney

I see. Interesting.

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477.827 - 478.148 Nathan Latka

Okay.

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478.508 - 481.031 Luke Feeney

It's like a little bit of a Slack model there.

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481.552 - 492.567 Nathan Latka

Yeah. Okay. So just to repeat, you said you've got 700,000 downloads of the open source platform, 700 folks using you actively, of which 350 are paying.

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493.048 - 493.288 Luke Feeney

Yeah.

493.308 - 493.408

Okay.

493.777 - 504.821 Nathan Latka

Wow. How did you, this whole model, I mean, you look at SID at GitLab and there's a couple other companies right now that started on top of open source projects and commercialize, you know, they contribute back to the open source project to keep the community healthy and robust.

505.302 - 510.553 Nathan Latka

Do you have to spend a lot of time thinking about not pissing off the community as you commercialize and charge for stuff?

511.715 - 532.244 Luke Feeney

Not really. I mean, we're fully open source now. So basically, we sell a hosted version of the open source software. We don't have enterprise features that aren't available in the open source right now. So really, it's a matter of convenience for software developers. So it's usually like, hey, I'm already working for a big company. They're willing to pay for software.

Chapter 4: What strategies does TerminusDB use to acquire customers?

980.016 - 980.477 Nathan Latka

Software.

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980.817 - 985.544 Luke Feeney

Because I started to read about everybody's obsession with sleep and realized that I should be getting more.

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986.044 - 986.705 Nathan Latka

That's hysterical.

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986.745 - 990.09 Luke Feeney

I have four kids as well, Nathan. So eight hours is amazing.

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990.43 - 1000.384 Nathan Latka

Wow. Okay. That's what I was going to ask you. So you're married with four kids? Yeah. And how old are you? I'm 42. Wow. Okay. Last question. Something you wish you knew when you were 20.

1002.119 - 1006.003 Luke Feeney

Something I wish I knew is 20. Jesus, so much to share price of Apple.

1007.738 - 1026.915 Nathan Latka

Guys, there you have it. Luke Feeney with TerminusDB. Politician turned SaaS founder. They launched back in call 2018 with a $1.25 million seed round of 3.5 pre-money valuation. They've since grown revenue from $10,000 a month about a year ago to $20,000 a month today. A combination of bottoms-up approach plus some enterprise deals. Over 700,000 downloads of their open source protocol.

1026.935 - 1038.944 Nathan Latka

700 actively using it. 350 are paying $20 a month on average. Just raised a 3.5 seed round at a 10.5 pre-money valuation. 13 on the team over there in Dublin as they look to continue to scale. Luke, thanks for taking us to the top. Cheers.

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