How Otamiser CEO Bart-Jan Leyts grew Otamiser to $3.3M revenue and 290 customers in 2024.

guys lareca.be helps hotel chains make more money with their algorithm they did about 250 000 in Revenue last year hoping for a million this year they served 290 customers paying on average 250-ish bucks a month that would be a million dollar run rate they're building this around with a team of seven and bartjen owns 100 totally bootstrapped today launched it as a student Now 23 years old we'll see what he does next hey folks my guest today is Bart Johny yes he's a 23 year old entrepreneur who founded Loretta Loretta is an Innovative startup who it boasts the revenue of hotels by an average of 24 by giving visibility optimization for rental properties all right part January tickets to the top hi hello everyone hello thanks for holding here so just to be clear kick us off here you're selling software to Hotel owners so they can make more money um something like that we're selling algorithms so it's not really software it's more like an algorithm but at the end of the right they make more money okay and help me understand what your average customer might look like can you talk about a customer can you name one of them yeah we have uh so right now we have 290 customers all around Western Europe so it goes from hotels from 20 rooms to hotels with 60 70 rooms uh most of the time they are like hotels who really suffered due to the pandemic due to their recent crisis in Europe and they really need some way out to help them the other part of our customers are really that's like owners who like try to maximize everything they have and they then they use our algorithm to maximize their what does that mean someone with an extra bedroom will use your algorithm to figure out how they can rent their bedroom um so we have some of them um some of those like uh people who are like uh trying to make some extra money like from the beginning days where we were testing our algorithm on different kind of short-term rentals but nowadays our focus is really to the hotels really the bigger and on average like on average where these hotels paying you per month to use your algorithm uh it's around 2000 uh but it depends as we work with the no cure no base so we take cuts on everything we earn more okay so people are paying two thousand dollars US dollars per month on average yeah something like that it all depends on the you know the region the the number of rooms all these things okay well well help us understand that right so what do you price per room so like our pricing models look look like this so um we like calculate Based on data the probability that they will obtain like the same Revenue as a given year and then we like um we put it equal like it calls discounting and we put it like equal with market demand inflation all these things and with this we um like to distribute how much money we make extra I promise extra money um we take cut but this cut is like it all depends on what cut do you take uh it's most of the time 25 percent okay so if someone without Loretta is going to make a hundred thousand a year but somebody with Loretta is going to make 200 000 a year you'll take the Delta of a hundred thousand dollars and take 25 percent of The Upside you helped create or twenty five thousand dollars yes but um important side note there is like when someone would make 100 and now 200 we have to like deduct inflation market demand so like it's never like an absolute number of 100 it's always like 80 or 17 and from the 70 we take a cut oh what's going on there YouTube good to see you guys now imagine this you love watching these interviews with SAS Founders but imagine if we took all of the valuation data out from over 2807 interviews I've done manually saves you a lot of time well we've done this we've built the into the beautiful interface inside of founder path check this out I'll show you how you can access this in a second but you log in you connect your stripe account you see your valuation real time you can see what it changed over the 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all that valuation data live right inside the platform I hope to see you there all right let's jump back into the interview when you look at um how much revenue the 290 hotels on your platform today how much revenue do you think they'll all do together in 2023 oh that's a very hard question as you have why is it hard I thought that's what your algorithm calculates you just told me that's what it calculates yeah exactly but um we have some of them who like are on board it's um in in July last year meaning that they have like a different time span so it's hard but I think um it's around 22 million that we earn extra um last year so this year will be hard with uh to predict with last year's 22. okay just to be clear that 220 to 290 hotels you're working with today the ones that were you working with last year you helped them earn 22 million more than what their base was right exactly and you take 25 of that exactly so 25 of 22 million is you guys about 5.5 million in Revenue last year no that's a very good question and we we had a very long um proof of work where we like we were working at very low margins just like um so we could like build a proper business case to go to uh these bigger hotels um and ask for like the the revenue model we used today so it's like not even that long like I think three months that we work with this model but okay I don't want to lose my audience here because like this is a little bit confusing right so you told me you make 25 but then you don't make 25 and you told me you charge two thousand dollars per hotel with 290 hotels which would mean you're doing 580 000 per month in Revenue it sounds like neither of those numbers are accurate so how do you price what do you charge it's 25 but important to know is that from all of our hotels like um there's a big range due to our early days we still have like little clients um bed and breakfast from tree rooms but we also have the biggest so it's very hard to put like an absolute number but the first number I saw when I popped up my screen was a 22. so it's very hard to like really determine them what do you think you will do this year in total revenue uh we hope um to be 1 million certainly this is like for like least least that we should have okay and and what does that mean you did 200 000 last year or 300 000 last year yeah okay this is great well I guess give me the back story here now that we understand the financial model when did you launch the company what year um July 2021 as a student it's like an extra holiday Merit okay and now are you still in score did you drop out to build the company I graduated a couple of months later and now I have a full-time team who is um building the company with me how many folks are on the team today we are um seven in total seven people and are you the only founder yes okay so your sole founder you own 100 no co-founder I'm sick and are you bootstrapped today or have you raised capital we have good scripts we are a raising capital is still on the plans but uh it's something we have to decide why do you need Capital to build this business why not keep 100 in bootstrap exactly that's the thing we need to uh decide if we are going the way we are...