EstateSpace Revenue, Valuation & Funding (2025)

[00:00] Family offices pay estatespace to manage hundreds of properties. He charges per seat. His biggest customer pays $7,000 a month. He's up to $20,000 a month in total revenue or $250,000 run rate. Just closed a 3,200,000 seed round at a 17,000,000 pre money valuation, But it's really because of the traction he had before that with his agency doing millions and millions a year in revenue, doing custom solutions for the same customers he's now serving today. That's why [00:22] he's now scaling so quickly, and that's what allowed him to get the seed round done in a market that's crazy where no one can get deals done. Team of 17 as he looks to scale, new version coming out here shortly. Hey, folks. My guest today is Jonathan Fischbeck. He is building estatespace.com. It's estate management simplified. Jonathan, you ready to take us to the top? [00:40] >> Always. Thank you, Nathan, for having me. [00:42] No one thinks about estate planning. How do you make them think about this so they pay you? [00:46] >> Yeah. So I think from an estate planning perspective, where estatespace really is is is setting the bar is when we're dealing with real property assets. So we're talking about managing your property, maintaining your property, managing your assets and maintaining those assets, ultimately coming back to where we started as fintech, right? We want to help appreciate the value of the things that you own and help you manage them better. We want to add depth to your general [01:12] >> ledger and your balance sheet where it might just be a single line item. And then from there, we also want to help you slow down the depreciation of assets that might lose value over time and helping you extend the life of things that you own. So ultimately, you know, the way that we when we started the company, we saw, you know, I've got marketable securities. I have real estate and alternative investments, but who's really managing all [01:36] >> my stuff? And and that's how we that's how we really started. That was a genesis in the idea for estatespace. Mhmm. [01:42] How you know, for me, when I think about managing my own sort of stuff, like, want somebody, a person that I can call focused on it. How do you get people to sort of trust this using soft like, to invest in software to run this process versus someone, a wealth manager, for example? [01:58] >> Right. So it's an emerging space, right? In the last ten years, family offices specifically have started getting into the fulfillment of the lifestyle of the individual that they're serving, whether it's a single or multifamily. And so we saw an opportunity to really help them with the things that they struggled on, like finding the right person to do the thing that they're looking for, the request being that they need to fulfill. So we've actually had a lot [02:23] >> of excitement around helping these families and family offices scale automatically through estatespace. [02:29] So are they paying you directly versus versus individual consumers paying you directly to manage estates? [02:35] >> Yeah. So we're b to c to b. So we yeah. Exactly. So so it may [02:39] be B b to c. [02:41] >> Yes. Exactly. [02:42] Yeah. Interesting. So how many family offices pay you something today? [02:47] >> Right now, we've got about 65 family offices on the platform in the last when we launched what was it? April thirtieth of this year. [02:54] And and wait. Why do I have that your launch date was 2017? [02:58] >> Well, that's when we started the company, but we launched our commercial prod product. We we so we did an alpha to a beta. We went through that process with with our clients in in order to get to a commercial ready product for both web and mobile, this last April. [03:13] You had, though, revenue before this year. Right? [03:17] >> Absolutely. Yeah. So we we were, you know, as part of my, under 500 story, right? We were doing services, so we were doing a lot of things. It was hard for me to break that service mindset, and we were able to really pivot to complete SaaS here in the last eighteen months. So we've now kind of sunset our services and now we're we're changing all of our revenue over from what was non subscriptions to all subscription [03:42] >> based. [03:43] I see. So, when we spoke in 2021, you said you had about 50 customers and they were paying, I guess, services here as well, but you did about 2,200,000 in total revenue that year. Is that accurate? [03:53] >> That is accurate. Yes. [03:55] I see. And but no 0% of that was SaaS? [03:58] >> Yeah. It was it was it was yeah. It was like, no. Not 0%, but maybe 5% of that revenue was SaaS revenue. And so now flipping the script. So we pivoted to pure SaaS. We do no services at this point in time. [04:13] Oh, what's going on there, YouTube? Good to see you guys. Now imagine this. You love watching these interviews with SaaS founders, but imagine if we took all of the valuation data out from over 2,807 interviews I've done manually. Saves you a lot of time. Well, we've done this. We've built it into the beautiful interface inside of Founderpath. Check this out. I'll show you how you can access this in a second. But you log in, you connect [04:36] your Stripe account, you see your valuation real time. You can see what it changed over the past eighty eight days and even set goals for valuation this year. Now the secret evaluation is there's many different ways to value a SaaS business. So the reason you're gonna see three or four different valuations inside of your Founderpath dashboard, this is all free by the way, is because depending on who's doing the buying of your SaaS company, you're gonna [05:00] get a different valuation. A VC is gonna pay a different valuation, Private equity firm is different. If you're gonna 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. 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 [05:22] not built off random data. Again, you guys hear these interviews on YouTube. All these datas are built from real time valuation data points founder share with us on the show. So traction 1,200,000 seed round 3.7 raise. They sold 22% of their business. Go in here and filter by the event. Maybe you only wanna 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 [05:48] going out right now and you're raising your seed round. We'll 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 dataset of SaaS valuations than what you can get now inside of Founderpath. 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 [06:10] if you wanna check this tool out, if you wanna jump in and sign up, you can check it out for free to get your valuation at this link, this link, founderpath.com/products/valuations. Or if you go to founderpath.com and hover over products, click on get your valuation 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. Alright. Let's jump back into [06:36] So will revenue decline this year because you shut off all that service revenue while you're scaling your SaaS? [06:42] >> Yeah. So we're we're actually doing a, a a seed round funding right now. So we're, we're we're raising capital. I put in more capital. We're still bootstrapped. So we're doing this through friends, family, partners, our closed network, and our board. And then we'll, we're we're scaling back up. So we're probably we just crossed 250,000 in in recurring revenue in ARR in this in the past five months since we launched our [07:09] So you're doing so you're doing 20,000 a month in MRR, which is a $250,000 run rate, and that that'll that's your revenue for this year? [07:15] >> No. Our revenue by the end of the year should probably some be somewhere around 600,000. So Okay. [07:20] So you still have 400 of services or something? 400? Yep. I see. I see. Okay. [07:26] >> Yep. So that's the exactly. We we've we've still got, like, annual legacy, just under a $500,000 in ARR coming from services. [07:34] How do you manage that storyline, especially if you're raising now? Even just with employees? I mean, imagine when you close books in 2021 and you do 2,200,000 revenue and then 2022, it's gonna go down, you know, significantly down to 600. But the story is, hey, guys, we're moving to higher margin SaaS. That's a hard storyline to manage. I mean, any employee looking at the books is going, oh my gosh, we just declined by a lot. How [07:52] do you manage that storyline? [07:53] >> Yeah. So I'm transparent and honest, right? So I've just told every employee kind of what we're doing, right? The same story I'm telling you right now. So I'm I'm we're raising we're raising around 3,250,000 that'll take us through the end of next year. We'll be about $2,000,000 in ARR by the end of next year, and it'll all be SaaS. And so actually, have more excitement from our staff than we did. And we've also it wasn't like [08:18] >> I had to sell that to all 17 people that work with us now, right? At that point in time, we were only about six people. So it was just me and a few other people at that time. So we tripled in size here in the last eighteen months now that we made that transition over to us. [08:33] Interesting. How much equity do you think you'll have to sell at your current size to raise 3,200,000? [08:39] >> So I've already raised 2.4. Okay. [08:42] And what does that mean? That's committed, signed, wired? [08:45] >> Yep. So it's, so closed closed and signed, closed off. We're at just under 2.1 and then we've got another 350 k of, commit of soft commit at this point. [08:56] Okay. And when's the first close? When are you gonna take the first wires you think? [08:59] >> Already started doing it. So I've already got $2,000,000 in the bank. [09:02] So then I don't have we don't have to speculate. Right? So so what valuation did you set or cap if it's a note? [09:08] >> Yeah. So we did we did we're just we're doing pure equity sell common stocks and we set $17,000,000 pre money. [09:15] Mhmm. Yep. [09:17] >> And that's gonna be somewhere around $2,121.07 post by the time this is all said and done. And then we'll, we're positioning the company right now, to put, you know, we we feel that based on the the market comps, the business model of cash that we've already raised, we support that and that we're we're gonna be adding significant value over the course of the next twelve to eighteen months here as we potentially look to to either do [09:42] >> another round or, you know, as we talked last week, potentially doing something here with Founderpath. [09:48] Yeah. How how do you get, I mean, look. At your stage, the revenue is almost meaningless. It's really about do they believe in you and your story. Right? Which clearly they do because you're raising this amount of money in a time when, like, no one can raise. Right? Now if you did do a revenue multiple, right, 17,000,000, right, on a $250,000 company, it's a 68 x multiple, which isn't I mean, you know, again, I wouldn't say [10:10] that that's important. What's important is a story you're telling. So but point being, there's lot people listening that are at your stage that are trying to raise this kind of round. How did you get it done? [10:19] >> You know, I think it was it was kind of what you just said. Right? I mean, people aren't investing in my multiple right now. They're investing in the company. They're investing in the vision. They're investing in Jonathan and and where we are. Right? We have traction. So we were able to leverage our traction. We were able to leverage the space that we're in and we've kind of created a marketplace. So I would say some of my [10:42] >> advice is, again, we've been successful by staying two inches wide and two miles deep. So we're not saying that we're property management simplified. We have a very specific goal with the company. And so with that story and that transparency, it resonates with our investors and shareholders. It also resonates with our buyers, right? Like they get that we are purpose built. So when it comes to some of when we start to look inside the numbers, I've been [11:10] >> able to raise capital because we have over a 90% retention rate for paying clients, right? We have some issues prior to that on activation that we are that there are things that we can solve for but from a you know, from a from a raise perspective, you know, we started this raise on September 6 and it's been, you know, and then the market kind of turns down and, you know, we were just we just stayed honest [11:35] >> and we just, you know, stuck to what it is that we do and what we know. And ultimately, you know, we've we've had success raising capital, Nathan. [11:42] Yeah. No. It's good. I mean, it is interesting to compare, though. I mean, I I believe I remember when we talked in 2021, you said you turned down a $20,000,000 acquisition offer. Right? Yep. So so you're now raising at a at a valuation that's equal to or slightly below that. Right? How do you think about that? [11:59] >> I don't. You know, I mean, I think that I look Should [12:02] you have sold for 20,000,000? [12:05] >> No. No. I mean, I I I I see this company being much more valuable than $20,000,000, and I was not in a position [12:12] But then why are you raising right now at a 17,000,000 valuation? If you think it's gonna be if it it's gonna be worth way more. [12:18] >> Just because that was what I was able to get. Right? So, I mean, working with some of our primary investors and myself, I mean, we felt like that was the that was an appropriate number that we were able to get kind of that first initial one and a half through a primary investor of ours. So that was, you know, that was just where we ended up with this deal. [12:34] Fair fair enough. Fair enough. Okay. Very cool. So 65, customers doing 20,000 a month in revenue. So they're each paying about $300 per month on average. Do you have any of the 65 customers that are paying, you know, a grand per month or $2,000 per month? Like, why what are the big customers? What are they paying you for? [12:50] >> Yeah. So our largest client is about 7,000 of that a month. Oh, wow. We have yep. And so with with where we are right now, we have a release coming out end of this month. So it's our 3.5. 3.0 is our April release. So now we're on our fifth release since our primary. And with that, we're reaching a maturity level on our platform of a three out of five. And with that, what that means for us [13:16] >> is that why if people come and we have like a 52% closed win, why isn't it higher? Because we're missing feature functionality. We got something out there, right? So I think the story in SaaS, it's always just put some put yourself out there, right? Get a product out there, get feedback. [13:30] But what's the seven k customer paying for? I I wanna know that. Are they paying for more seats? Is there a specific feature they you upgraded them against? What are they why are they paying so much more? [13:39] >> Property maintenance and project management feature sets. We've opened yep. And they're they're a large b two b. So they're they see estatespace. It's gonna be fuel [13:49] Large, no measure by what? Is is it number of employees at their company, number of properties they manage directly? What's the utility numb the number? [13:57] >> Yep. So they they have about, just under 200 employees. They're doing between 50 and $100,000,000 in revenues annually, and they're managing over a 100 properties. [14:07] So that's why they'll pay you 7 k because you charge per property. Right? Or and or something like that? [14:12] >> We charge per we're just per per user per month. [14:15] So it's against the 200 employees? Yep. I see. I see. Okay. Interesting. Very interesting. [14:21] >> Estatespace isn't designed just for your company or the people that are in it. [14:27] >> Like when we talk about an inclusive mindset, right? We have created a platform with very specific and very flexible roles and permissions to allow for our clients to involve their entire ecosystem. So we might have a family that has 15 properties, and each one of those properties has vendors that are helping them maintain it on a daily, weekly, monthly basis. Those individuals could be a vendor, could be a member of their estatespace, and they're actually communicating [14:57] >> and tasking and doing all of those transactions with that vendor through estatespace. So they're paying for that vendor to be someone that they're able to then securely manage and protect their interests. [15:09] Understood. Love the story, Jonathan. We're out of time, though. Let's wrap up here with the famous five. Number one, favorite book. [15:15] >> It would be, The E-Myth Revisited. [15:18] You're consistent. That was your favorite two years ago as well. Number oh, no. [15:21] >> The revisited version. [15:22] There you go. It's the update. [15:23] >> Yeah. Revisited and Traction. Those were the two that kinda got me kicked off into becoming a serial entrepreneur here. [15:28] Number two, is there a CEO you're following or studying? [15:31] >> Yeah. I mean, it's still gonna be, Bezos. It's still gonna be, Apple. It's those are gonna be my top two that I follow. [15:37] Number number three, what's your favorite online tool for building, the business? [15:42] >> I mean, I'd say that, you know, from a peer development perspective, we're using Atlassian. I do love it. It works. Leave it at that. [15:50] Fair. Number four, how many hours of sleep to get every night? [15:53] >> Seven. [15:54] Okay. And what's your situation? Married, single, kids? [15:57] >> Happily married, three kids, two dogs, four birds, and a partridge in a pear tree. [16:02] That's amazing. What? You're 40 now? 41? [16:05] >> I just turned 40. Yeah. [16:06] Just turned 40. Yeah. Very cool. Last question. Something you wish you knew when you were 20. [16:12] >> To get good advice before starting a company. Find somebody that's already done it. Right? That's what I I always wish I I would have known that it took me about eighteen years in business to actually learn that one. So that's my always my number one advice. [16:28] Guys, family offices pay estatespace to manage hundreds of properties. He charges per seat. His biggest customer pays $7,000 a month. He's up to $20,000 a month in total revenue or $250,000 run rate. Just closed a 3,200,000 seed round at a 17,000,000 pre money valuation. But it's really because of the traction he had before that with his agency, doing millions and millions a year in revenue, doing custom solutions for the same customers he's now serving today. That's [16:50] why he's now scaling so quickly, and that's what allowed him to get the seed round done in a market that's crazy where no one can get deals done. Team of seventeen, as he looks to scale, new version coming out here shortly. Jonathan, thanks for taking us to the top. [17:00] >> Thanks, Nathan. Appreciate it. See you soon. [17:03] One more thing before you go. We have a brand new show every Thursday at 1PM central. It's called Shark Tank for SaaS. We call it deal or bust. One founder comes on, three hungry buyers, they try and do a deal live and the founder shares back end dashboards, their expenses, their revenue, ARPU, CAC, LTV, you name it, they share it and the buyers try and make a deal live. It is fun to watch every Thursday, 1PM [17:28] Central. Additionally, remember these recorded founder interviews go live. We release them here on YouTube every day at 2PM Central. To make sure you don't miss any of that, make sure you click the subscribe button below here on YouTube, the big red button, and then click the little bell notification to make sure you get notifications when we do go live. I wouldn't want you to miss breaking news in the SaaS world, whether it's an acquisition, a big [17:51] fundraise, a big sale, a big profitability statement or something else. I don't want you to miss it. Additionally, if you want to take this conversation deeper and further, we have by far the largest private Slack community for B2B SaaS founders. You want to get in there. We've probably talked about your tool if you're running a company or your firm if you're investing. You can go in there and quickly search and see what people are saying. Sign [18:12] up for that at nathanlatka.com/slack. In the meantime, I'm hanging out with you here on YouTube. I'll be in the comments for the next thirty minutes. Feel free to let me know what you thought about this episode and if you enjoyed it, click the thumbs up. We get a lot of haters that are mad at how aggressive I am on these shows, but I do it so that we can all learn. We have to counter those people. [18:32] We got to push them away. Click the thumbs up below to counter them and know that I appreciate your guys'support. Alright, I'll be in the comments. See you.

Introduction hey guys my guest today is jonathan fischbeck he's the founder and ceo of estate space a technology platform that simplifies lifestyle management service and operations to maintain real property assets to help reduce risk and protection and protect wealth succession he was previously the founder and ceo at a design build firm whose focus was advising designing constructing and operationalizing sizeable estate uh properties for families and family offices jonathan you ready to get to the top oh absolutely thank you thank you nathan who's thinking about this like an 80 year old with 10 million in real estate assets and three nephews and they don't know how to divide it amongst the nephews no so our clients are going to be typically between the age of like 35 and 55 um so uh we we spent a lot of our time working with ceos technology founders entrepreneurs that ended up accumulating a lot of assets uh very quickly and and the level of complexity started to grow uh very rapidly interesting okay so tell me how you help them like what's a big maybe what's a big mistake that i'm a bunch of my listeners right now maybe they made a million bucks real quick what's the mistake they might make with that million that you can help them with yeah so so i think where we're helping people out is on all of the things that are non-financial so they buy homes they buy cars they start to accumulate a lot of things right the more money that you make the more things that you have the ability to buy and a lot of times people start to accumulate very rapidly and what ends up happening is that um they're reacting to managing those things right so we help people proactively manage those things where they're saving time they're saving money they actually know what they have and where it is at all times um i know what bank accounts i have i know where all my financial stuff is i've got a team of people managing it a lot of times with all of my physical assets and that's where we really step in to help um you know it's you're managing your home in a reactive way i have a water leak so now i fix it whereas we're helping you productively prevent that water leak and ultimately helping you kind of enjoy it you know you things should you should be able to come home and enjoy not things that you should be worrying about okay interesting what am i going to pay you on average per month to use this technology so if you're a single person you're paying 45 a month um if you have a team of 200 then uh your your per user cost is going to go down based on the number of people that you have um so you know whether you're a small business you know i'm a three-time founder so i've always wanted a platform that i could buy that might cost me a couple hundred dollars for a five six person team to be able to manage my business manage my clients and ultimately not have to do a bunch of rework because i have a system that's intelligent enough to allow me to do all those things capture that information in a database driven experience uh to ultimately uh give people what they need when they want based on their role based on their permissions now where did you like when did you launch this and where'd you get the idea did you have it before you were doing work at the family office or did you see problems at the family office i gave you the idea yeah so so this actually came from my my previous uh venture as uh work working with ultra network families as a general contractor and we finished a very large project it took us about six years uh there was tens of thousands of page of documents and i knew no one would ever look at them read them it was very difficult to consume and so the idea for estate space came about five years ago when we we found it impossible to transition a multi-10 million dollar project to the client because there was just so much information and so what ended up happening is um we realized that we were now sucked into like the facilities management role one that's not really what our company did but obviously we adapted we took care of the client and so that was kind of the genesis and then the the maturation has really been moving from like the physical asset portfolio to property management really now to uh communications and an end-to-end operational um platform that will allow you know workflows business intelligence and again giving all members of your estate space the right information um at any given time so that we're cutting down on a lot of the administration administrative inefficiencies that go on uh especially in private residences okay so 2016 was when you launched the company uh 2017 2017. okay now how many customers are you serving today yeah so Currently serving 50 customers we have over 50 families we have multiple billionaires on the platform we just started scaling a couple of months ago so it's been a really exciting year so we've exceeded our sales numbers from last year in the first month of this year and we're really taking off uh we've uh over the last so you know from the year of the idea we had our our first release in 19 our 2.0 release was in 2020 uh and then uh 3.0 is coming out uh middle of october of 2021 and that's what we're really excited for because we'll have end to end capabilities again we've got workflows we have a marketplace um for service providers to help our clients on things that we don't do as well as business intelligence so those are kind of the three things when you think about estate space and now we'll have a web of both mobile android apple so we'll be able to be anywhere that our clients need us to be let's talk more about that in a second but first taking back to that beautiful sort of year one 2019 to get that release out do you remember revenue that year total revenue uh yeah that total revenue that year was probably about 150 thousand dollars what was going through your head that year and close out was it were you exciting or were you bummed or what no i think we were we were psyched right so we we that was kind of like our proof of concept launch so we kind of saw that as like our beta launch uh we got 13 uh clients and they were spread across ultra high net worth families family offices and then um supporting service providers so property management company uh we also had an estate management company and so we got all of the flavors that we were looking for and then we were able to get a ton of feedback um and then we were and that led to our 2.0 release which was so we were on september of 19 second one came in june of 2020 and now um this october is 3.0 that's probably what i'm most excited about again you know we try to listen really well and then uh apply that feedback in a way that benefits all of our customers Monthly recurring revenue so 150 grand in 2019 what did you scale up to in 2020 so we did a million in 2020 and we did 1.4 in january of this year and continue to scale that number up this year and is that 1.4 cash collected like you pulled a bunch of annual payments in that first first month uh no though so that was just a contracts one and then that was aggregated over uh a 12-month period i see so like i guess the way to ask this would be like last month what was your monthly recurring revenue would you say uh about 175 000. wow okay got it so so got it so you're you're uh i guess you just broke essentially two million dollar run rate so you know what do you think you'll finish the year at uh so i'm hoping to throw about another 750 to 1.1 on top of it that's what i'm projecting where's the growth coming from isn't more seats across the same 50 customers or adding brand new families all together yeah no it's it's adding bit it's now that we're now that we have our our web application uh coming out uh we're able to start onboarding businesses so we're able to so a lot of our families are gonna be anywhere from about five to ten users nathan but businesses can be anywhere from uh up like 50 to a couple thousand because estate space is built for everyone in your ecosystem so if you think about a business right you might have um employees you have vendors you have suppliers you have clients all of those people are part are members of your estate space and yeah yeah i just saw nathan's right i want i want to make sure my audience doesn't miss this you're really playing in like the physical asset management space for example if you are a ceo and you buy 30 and max for 30 team members i could manage those macs on your platform is that accurate it is yeah so it's not just like you own a mansion and you need to do like tax planning it's it's you're really again if this is an asset class it's growing very quick there are a lot of sas companies in this space growing quickly that you're in this space yes interesting okay how are you finding customers uh so so it's it's kind of three-fold so we uh we're campaigning for very specific um people uh so we're finding people like through linkedin we have an extensive network so part of the the beauty about estate spaces uh myself my partner we were able to roll up about 18 years of human capital into this company so our whole network was really applicable um and then uh we have a you know we have a team that's that's out doing outreach uh we have you know digital inbound funnel as well so we're advertising we're marketing but we're targeting the people that we feel that we can really have the biggest impact on and so that's you know that's that's type the high net worth individuals executive uh family offices and then the supporting service providers and when i say that we're focusing on um uh more of a luxury market as our go-to market so like the like a luxury contract management company or a consultant that's helping with um you know something to do with more in the estate management or property management side uh those are kind of the main targets that we're going after from uh from a b2b perspective last month how much did you spend on just paid ads uh probably about three grand so now and how many that's not a ton yeah how many new customers did you have last month uh one uh advertisements yeah okay interesting so is that sort of the right cat you're willing to spend about three grand or get a new customer no um so right right now because we're sun setting 2.0 and releasing 3.0 uh we're starting to pivot our marketing in our messaging our website will be turning over next month so we have uh i'd say a handful of referrals that are coming on to the two points for the 2.0 release which was mobile centric mobile first uh with a with a very simple web supporting application um and so not to confuse our upcoming buyers and a lot of the people that are in our pipeline uh we're gonna be pivoting all of that so i'm kind of okay with that but typically on average about three to five thousand dollars is going to get us like three to five million eyeballs and then from there we're looking at about 500 um leads that that probably end up somewhere around 150 of sales qualified leads that typically you know from there we start working down about you know anywhere from like 30 20 to 50 percent by the time that you get down to it so that 5 000 should really lead to about 10 10 customers in a month i see now Bootstrapped have you bootstrapped all this or did you guys raise family owned and operated built in the united states i love that so do you own 100 uh so myself uh then my my my family and and then i'd say there's we have eight stakeholders but myself and my family we own 88 of the company in year five that's very cool now any plans to raise or do you want to stay bootstrapped so we we were gonna have plans to raise but we ended up um really getting uh the right clients and the right people in the company and then we're scaling now so there's uh there's no i've taken that off the table given how exhausting it was to raise some of the money just internally right now so um so no point no plans of like a formal series a at this point what do you mean by that raising money internally just mean working with myself and my direct family to you know figure out what capital we wanted to allocate uh to this to this venture right so um that that ended up um you know it's just all very time consuming i was i was looking to raise with family and friends i'd say i think we raised somewhere around a million dollars um and then we've you know we've also had um you know a great uh we had a client that came on that's also what year was that sorry when you raised a million uh well that was uh 2019. okay so you did sort of raise but it was all family and friends yeah well it was like three and three three three family and friends and then we we've to date we've invested uh just over seven million dollars uh across the company and that's about a million of that was was not my direct family i see i see what would you value the company at today so uh we keep it really simple so we're just 10x arr so at the end of this year uh you know my goal is to get us somewhere to that 20 million mark um and that's just that's a a kind of a middle-of-the-line conservative sas model because we are pure sas yep i mean i personally would argue you're worth more than if you're already at 175 000 per month in revenue right so that's about a 2.2 million dollar run rate i'd say like minimum 60. although you all you investors listening are going to like that i'm building jonathan up like this but i would say at least 66 70 million yeah i mean i i like you right you can pay me the commission after the call all right no just kidding jonathan what's a team size today how many folks uh so we just uh scaled the company so we were at six about six months ago and now we're at 13 going to 15. uh that's mainly consists uh first we we tripled our development team um and then from there we how many developers uh we have eight total developers and now we're starting to add sales uh sales people and then from there we'll backfill customer success um and that'll be a great problem to have how many quota carrying sales reps do you have uh three and what's the quota uh so they're just coming on right now as we're scouting so they just are actually that team's growing monday of next week so um uh but their quotas to come out of the gate is gonna be to get acclimated and then as the 3.0 uh as 3.0 hits you know we'll expect to see you know anywhere from five to ten sales per person per month got it what does that mean in terms of new arr in the first 12 months you want them to drive so i mean if you're just going kind of on average deal flow size i mean each one of them should be bringing in anywhere from you know 10 to 25 000 at best i would say to start yep yep yep to call like a 300 000 first year quota on the high side 25 000 a month right and new mrr yep yeah interesting that's always that's always the hardest part is when you're starting making those first three hires like what quota do you give them but also give them time to ramp up they want to overwhelm them on day one and then they get demotivated yeah so it's kind of one of those things where we're just super transparent nathan right so we just tell them kind of where they are they know they're coming in on the ground level um you know gave them the opportunity to sell what we have now but you know it's kind of maybe counterproductive to their long-term goals so you know they're they're coming all in on on 3.0 release and and that's really great right because um ultimately they're going to be uh they're going to know the company they're going to know the client they're going to know the product and they're going to be able to make sure that everyone's a great fit now one of the great things about where we're going with 3.0 everything's user driven everything's you know we've integrated stripe right into the platform uh we're you know in the process of getting you know stock compliance and really taking our company to the next level and and all of that for our clients means easy buying so you're able to just click to sign up page click to sign in and go and then you know from there it's software as a service and we're supporting all your technology needs but we've built an affiliate partner program to help someone that has any size house do all of the catalog digital cataloging right we have partners to help you uh with advice you know being in the space is a consultant and an owner rep for about a decade now you know the hardest thing for most of our families most of our clients is getting good advice at the right time and finding really great people to help them and so you know we try to not only unblock the road from an intuitive technology platform perspective but also surround them with a marketplace of service providers that can help them accelerate and maximize the things that a state space can do for them yeah now you mentioned obviously you're Profits bootstrapping this right you put seven million in yourself and then a million from sort of outsiders but are you as profitable today or burning capital uh we're we're we're still burning a little bit our profitability is we're probably about well not probably we're 350 k of recurring or right away from break even a manual referring of annual recurring yeah so like that basically means 175 000 a month last year in revenue you spend like maybe a total of 220 grand or something on all expenses yeah so our our expenses are less than what we're bringing in but um but it's but from a from where we're going to grow this year i want i need another 350 of annual recurring to support the scale and the growth that i have coming on i see so okay but if we just look last month right so so last month last month we made more than we spent by about 15 000 yep oh great that's great so profitable last month but again you're you're about to keep reinvesting in growth so you'll need to keep adding so yeah it's it's not it's not a perfect model when it comes to like profitability so you know we just need to continue to keep building keep growing keep selling yep now i like that all right that should be the model for every size founder jonathan let's wrap up here with the famous five number one what's your favorite book uh i'd say my my favorite book of all time is gonna have to be um uh the emf uh revisited number two is there a ceo you're following or studying uh absolutely so um i mean i follow uh i i like uh basos i like i like amazon i like to follow apple i like to follow netflix i'm a huge fan of um of those three for for a number of different reasons um but yeah i'd say those are probably the top three that i follow number three what's your favorite online tool for building a state space uh i would say my favorite online tool for building a state space um besides your own okay um yeah i would probably have to say i would put envision up there from a design to development perspective it does a lot um so i'd say envision number uh four here how many hours i sleep to get every night something so it's pretty good what's your situation married single kids i i'm i'm i'm happily married uh to my wife vanessa i have three kids a daughter 15 a son who's four and another son who's two i've got two two beautiful dogs and five birds so that's amazing how old are you uh josh jonathan i just turned 39 uh june 3rd wow okay last question here what's something you wish you knew when you were 20 um i wish i would have told myself to get good advice um before i started a company so um and not just good good advice right i got that i think it was getting getting good advice from somebody that was in the space that i was going into so i was actually just uh asked a question of like if i had a thousand dollars what would i spend it on and um and i've watched that same question get asked but my answer was simple i would i would pay for really really good advice because it's it's it's it's intrinsic right it's going to carry on value with me forever so um so that's that's what i wish i knew and that's kind of what i i as i mentor and help other uh young ceos and entrepreneurs it's you know get good advice from somebody that's been in the space that you want to go into that's already done it um because you know the mistakes early are the ones that cost the most guys at statespace.com if you're buying 50 max for your team they'll help you track all those macs real time call it in physical asset management right 150 000 a year in revenue back in 2019 grew to a million last year and this year they're already at a 2.2 million dollar run rate they've done all this bootstrap using their own internal capital they have over 50 customers up and average 3 500 per year for the platform they were profitable last month 15 000 bucks as they look to continue to scale with their team of 13 today six and eight engineers and their first three sales reps coming on board with 300 000 quota we'll see what happens next jonathan thanks for taking us to the top awesome nathan appreciate your time one more thing before you go we have a brand new show every thursday at 1 pm central it's called shark tank for sas we call it deal or bust one founder comes on three hungry buyers they try and do a deal live and the founder shares back end dashboards their expenses their revenue arpu cac ltv you name it they share it and the buyers try and make a deal live it is fun to watch every thursday 1 pm central additionally remember these recorded founder interviews go live we release them here on youtube every day at 2 p.m central to make sure you don't miss any of that make sure you click the subscribe button below here on youtube the big red button and then click the little bell notification to make sure you get notifications when we do go live i wouldn't want you to miss breaking news in the sas world whether it's an acquisition a big fundraise a big sale a big profitability statement or something else i don't want you to miss it additionally if you want to take this conversation deeper and further we have by far the largest private slack community for b2b sas founders you want to get in there we've probably talked about your tool if you're running a company or your firm if you're investing you can go in there and quickly search and see what people are saying sign up for that at nathan lacka dot com forward slash slack in the meantime i'm hanging out with you here on youtube i'll be in the comments for the next 30 minutes feel free to let me know what you thought about this episode if you enjoyed it click the thumbs up we get a lot of haters that are mad at how aggressive i am on these shows but i do it so that we can all learn we have to counter those people we got to push them away click the thumbs up below to counter them and know that i appreciate your guys's support all right i'll be in the comments see ya