How Avestor CEO Badri Malynur grew Avestor to $1.3M revenue and 100 customers in 2024.

folks he launched investor Inc back four years ago in 2019 they've got 100 paying customers today minimum 400 bucks a month these are all GPS managing their own funds LPS can sign up pick individual deals these GPS have brought to Market he also makes money by taking 30 to 50 bips on total AUM today that total AUM is about 60 million bucks on the platform across 30 active GPS that have raised at least a dollar and are doing deals he's looking to grow that again making money on the bip model also making money on a minimum fee for a membership if you want to learn from other GPS and do Cross Steel promotion Etc so we'll see what happens next hey folks my guest today is Audrey millinar he's a co-founder and VP at a company called avesta a technology platform focused on the end-to-end solution for sponsors to build customizable private funds Audrey ready to take us to the top absolutely let's go what is a customer private fund so let me step back a little bit today the private fund industry is almost overtaken the public markets that are truly my audience doesn't know what private funds are give me an example of a private fund today the well-known one a well-known one you know there are BlackRock I mean a lot of there are several private Equity Funds but to get your question very quickly a customizable fund is a private fund where you can pick and choose your Investments think of it as if you go to Fidelity and say I like this mutual fund but I don't like this 20 stocks I want this other 10 stocks so you pick and choose your Investments within a private Equity Fund or a private real estate fund and that's what a customizable fund is why would a GP of a fund like BlackRock or a little small Reit in Dallas Texas why would the gpa.fund want to give individual LPS the ability to opt in or opt out of individual pieces of real estate they're buying doesn't the GP want Soul discretion or all that to move quickly great question there are different classes of GPS there are there are two answers to that question one is passive investors prefer to have the choice so if you want to let it be driven by passive investors so what we have found is 95 of our investors really prefer to pick and choose which deals you want which asset classes you want which time frame you want um and uh so for example just very quickly in our fund and the company owned fund we let investors pick and choose between Self Storage retail Hospitality multi-family uh student housing RV parks so different people prefer different asset classes so it starts from the passive investor and as far as the GP is concerned if you're a BlackRock is perhaps not the best example you ask me for the best known you know fund uh but if you're somebody starting out investors feel uncomfortable giving you the choice of uh saying okay whatever deal you're investing in I'm in investors want to see the deal and then pick and choose the deal so that's a somewhat long answer to your question I like that you're eating your own dog food what's the size of the company run fund you know the company run fund is less than 5 million about five million dollars it's less than the intent of that fund was never to grow the fund uh it was purely to test out large volumes of transactions the allow people to invest do micro investments in that yeah so how many individual LPS are in that fund uh there are about uh I have to check the numbers about 60 in that fund 6-0 6-0 yeah okay and then I guess what's your revenue revenue model how does investor make money okay let's let's get to that so the way what we have done is we built that fund and now we offer that same platform for people to create their own funds it could be in real estate it could be judgment leans music streaming rights we have a wide range of asset classes and then what we charge is based on the assets under management we have more than 100 funds now and based on the assets under management we charge a AUM fee which ranges from 30 basis points to 50 basis points of the Au so I don't know what paid out pay that one on a monthly quarterly bi-annual annual basis uh it's paid out monthly it's calculated uh daily but compared out monthly so okay and you said 30 to 60 bips 30 to 50 views 30 to 50 bips okay what's the average fund size on the platform today so be opened to other funds just a little over less than two years back and so many of the funds are growing they have funds are between one to five million some are 10 million but there are several funds which are growing pretty rapidly so okay so the largest fund is about 10 million uh 13 yeah 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 past 88 days and even set goals for evaluation this year now the secret valuation is there's many different ways to value a SAS business so the reason you're going to see three or four different evaluations inside of your founder path dashboard this is all free by the way is because depending on who's doing the buying of your SAS company you're going to get a different valuation a VC is going to pay a different valuation private Equity Firm is different if you're going to do a minority sale that's different and if you sell the whole business that's a different valuation you can see all those when I hover over here here right so the teal is what a VC would pay yellow is what private equity and red is if you sold the whole thing outright now what's cool about this is this is not built off random data again you guys hear these interviews on YouTube all these datas are built from real-time valuation data points Founders share with us on the show so traction 1.2 million seed round 3.7 raise they sold 22 percent of their business go in here and filter by the event maybe you only want to see companies that have sold the whole business well here are a bunch that have been acquired the valuation and the multiple maybe you're going out right now and you're raising your seed round well go in here and look at all this recent seed deals that went down what they raised what valuation they raised at and what percent that they sold there's never been a larger data set of SAS valuation than what you can get now inside of founder path and we're thrilled to bring it to you all right we're gonna go back to the YouTube video here in a second but if you want to check this tool out if you want to jump in and sign up you can check it out for free to get your valuation at this link this link founderpath.com forward slash products forward slash evaluations or if you go to founderpath.com and hover over products click on get your evaluation here and go ahead and sign up to give it a whirl again all that valuation data live right inside the platform I hope to see you there all right let's jump back into the interview do you have like a naturally built-in churn problem and what I mean by that is this if you help an individual GP get their first fund under their belt to build confidence with investors eventually they're not going to want to give investors the ability to pick and choose deals they're going to go raise their own private fund where them as a sole GP have full discretion over every deal which by Nature makes the investor platform I think useless then they churn in fact it's strange that you've mentioned that we have probably the lowest uh amounts of churn less than five percent for a SAS business I'll tell you why once you've got uh what's that five percent on what basis less than five percent of the people have suspended their funds they're not getting canceled it they've just suspended their lifetime monthly quarter annually lifetime lifetime uh so uh and let me tell you the reason we are the only platform in the world which offers a customizable Farm under customizable fund is an evergreen fund so what you don't many people don't realize is each time you do a fun daughter each time you do a deal going through the private uh the PPM process can be very expensive here you create one PPM and you can add new deals within minutes so very naturally the barrier to add new deals is very very low and once you add a deal typically these deals are three to seven years so you have to be you can't really get out until uh the deal exerts and let's say in year two you add another deal then you have another seven years so these are very it's a very very sticky business model which might be of interest to many of you or SAS co-founders so I see okay um and I guess so what's the total AUM today under management across all customers on investor it's still low growing it's about 60 million okay about 60 million you mentioned you have a hundred funds on a platform correct yeah a lot of the funds are about to be in the launch stage so how many actually have closed a fund and done their first deal so about 30 funds have done their first day oh 30 funds are launched still waiting for their first deal the market has become a little more challenging the real estate market because of high interest rates...