Founder Interview
How Funnel.io Hit $8M Run Rate with 700 Customers (Interview with CEO and Co-Founder Fredrik Skantze)
- Interviewee
- Fredrik SkantzeCEO and Co-Founder
Company Metrics at Interview Time
Run Rate (2019)
$8M
MRR (2019)
$670K
Customers (2019)
700
Team Size (2019)
Just over 100
Historical Snapshot
These numbers were reported by Fredrik Skantze during the interview and are a historical snapshot, not current figures. See Funnel’s current numbers.
Key Takeaways
- 01Funnel.io reached $8M in annualized run rate (about $670K MRR) at the time of the interview.
- 02The company had 700 customers; Nathan recalled about 340 from their previous interview in November 2017.
- 03Average revenue per user was around $450 per month in 2017 and had grown to approximately $1,000 per month by the time of this interview.
- 04Gross revenue churn was between 1.5% and 2% a month, which Fredrik called about half of the roughly 35% annual rate Nathan recalled from their 2017 interview.
- 05The company had just over 100 employees, including 40 to 45 engineers and about 15 salespeople.
- 06Funnel raised about $8M in equity at the back end of 2018, and Fredrik said he usually raises for 18 to 24 months of burn.
- 07CAC payback period was approximately 12 months on a fully loaded basis.
- 08The company had about 30 people in its Boston office and was growing its US presence significantly.
- 09Asked by Nathan whether he would sell for a hypothetical $80M all cash, Fredrik said no: he did not think there was a price right now, and it would be much higher than that.
- 10Funnel was in dialogue with about 1,000 prospects a month, of which Fredrik said only about 100 were really high value.
Company Metrics at Time of Interview
| Metric | Value | Source |
|---|---|---|
| Run Rate (2019) | $8M | Founder interview |
| MRR (2019) | $670K | Founder interview |
| Customers (2019) | 700 | Founder interview |
| ARPU (2017) | Around $450 per month | Founder interview |
| ARPU (2019) | Around $1,000 per month | Founder interview |
| Gross Revenue Churn (2019) | Between 1.5% and 2% a month | Founder interview |
| CAC Payback Period (2019) | 12 months | Founder interview |
| Team Size (2019) | Just over 100 | Founder interview |
| Engineers (2019) | Between 40 and 45 | Founder interview |
| Salespeople (2019) | About 15 | Founder interview |
| Boston Office Headcount (2019) | About 30 | Founder interview |
| Funding Round (Equity) (2018) | About $8M | Founder interview |
| Monthly Prospect Dialogues (2019) | About 1,000 | Founder interview |
| Sales Conversion Rate (Initial Discussion) (2019) | Approximately 10% | Founder interview |
| Runway Targeted (2019) | 18 to 24 months | Founder interview |
Growth Breakdown
Revenue
Funnel.io reached approximately $8M in annualized run rate at the time of the interview, equivalent to about $670K in MRR. Fredrik gave both figures himself, correcting Nathan's estimate of $630K a month upward: "A little bit more. So 670,000."
Customers
Funnel served 700 customers at the time of this interview; Nathan recalled about 340 from their previous interview in November 2017. Average revenue per customer more than doubled over the same period, from around $450 a month to around $1,000 a month. Fredrik put the change down to focusing on the newer customers Funnel was bringing in, as larger companies found it, rather than to churning smaller ones.
Team
Funnel had just over 100 employees at the time of the interview, with 40 to 45 engineers and about 15 salespeople. The company had built out a Boston office of about 30 people to support its growing US presence.
Funding and Burn
Funnel raised about $8M in equity at the back end of 2018, mainly to invest in product. Fredrik said he usually raises for 18 to 24 months of burn, and that Funnel would probably raise another round, although it had not yet decided when.
Growth Strategy
Moving Upmarket
Fredrik said the higher average customer value came from focusing on the newer customers Funnel was bringing in, not from churning smaller ones, and that it was "partly driven by us and partly also driven by the market." As Funnel became more established and its product more capable, "larger and larger companies found us and wanted to do business with us," and the team built the capability to serve them.
Specialized Sales Roles and Geographic Expansion
Funnel split its sales team by customer size and geography, with a Boston team covering the US and South America and a European team covering Europe and the Middle East. Specialization allowed the team to apply the right motion, from fewer people and more automation on smaller leads to a whole team, from an SDR and an account executive to maybe a product specialist, on larger deals.
Digital Advertising and Search Marketing
Fredrik described Funnel as eating its own dog food: it does a lot of its lead generation online and spends on digital advertising. Pressed to pick one channel, he named search marketing as the obvious one, and put conversion there at approximately 10% from the initial discussion. Across the company, Funnel was in dialogue with about 1,000 prospects a month, of which he said only about 100 were really high value.
Product Investment Ahead of the Market
Fredrik said Funnel raised the $8M mainly to invest in product. It had 40 to 45 engineers, a team he said was growing quite a lot, and he described Funnel as "kind of investing ahead of the market a bit there."
Improving Gross Churn
Gross revenue churn was between 1.5% and 2% a month at the time of the interview, which Fredrik called "about half" of the roughly 35% annual rate Nathan recalled from their 2017 interview. Net churn had "just turned negative," by maybe half a percent a month. Fredrik said net retention rises "primarily by having a much higher annual contract value"; Funnel sells the platform as it is, with some feature and usage expansion, rather than adding seats the way a CRM does.
Best Quotes
“So we are a marketing data platform, and we basically help companies aggregate and bring in all their marketing data, put it all together so that they can then analyze it and report on it so they really understand, you know, what's going on.”
“Yeah. Yeah. Absolutely. So average customer value on a monthly basis was around $450 then, and and now it's about... It's more than twice that.”
“Yeah. Not so much churning, but just focusing on when we were bringing in newer customers. And actually, it was partly driven by us and partly also driven by the market. So as we became more established in industry, as our product was more capable, larger and larger companies found us and wanted to do business with us, and then also having the capability of serving them, which has more requirements as you kind of move upmarket.”
“We have about a dialogue with about a thousand prospects every month, but, you know, it's high and low. Some are are are... Just wanna talk. They're not good fit. So you gotta kind of sift us through, and and it's only, you know, say, a 100 that really is high value. But those are really high value.”
“It's between one and a half and 2% a month.”
“Yeah. Yeah. We have negative net churn now.”
“We raised some money at the back end of last year, so about $8,000,000.”
“Yeah. A little bit more. So 670,000. So we're just just $8,000,000 in annualized revenue.”
“I I don't think there's a price right now, but it would but it would be much higher than that.”
“I think getting out of corporate and and doing something smaller where where what you do really, really matters and and sort of becomes more real, a bit earlier. That's probably what I would advise myself.”
What Happened Next
At the time of this interview, Funnel.io was at roughly $8M in annualized revenue on about $670K of MRR, with 700 customers and a team of just over 100 people. Fredrik said Funnel would probably raise another round, although it had not yet decided when, and that he saw an opportunity to build a really large company. These figures are a point-in-time snapshot from the recording; visit the Funnel.io company profile on GetLatka for current numbers.
View Funnel’s current profile and metricsFull Transcript
Chapters
- 0:00Introduction and Company Overview
- 0:51ARPU Growth and Moving Upmarket
- 2:06Customer Count Growth to 700
- 2:24Sales Team Structure and US Expansion
- 2:46Team Size and Engineering Headcount
- 3:04Sales Quota, OTE, and CAC Payback
- 5:17Lead Generation and Search Marketing
- 6:47Prospect Dialogues and Lead Routing
- 8:17Gross Churn and Net Revenue Retention
- 10:43Funding Round and Burn Rate
- 12:00Future Fundraising Plans
- 12:58MRR and Run Rate Confirmation
- 13:45Famous Five: Favorite Book and CEO
- 14:26Hypothetical Buyout, Favorite Tool and Family
- 15:31Advice to Younger Self
Introduction and Company Overview
Nathan Latka
00:00Hello, everyone. My guest is Fredrik Skantze. He is the CEO and co founder of Funnel, which aggregates marketing data for some of the world's leading advertisers. Before Funnel, he led the team that developed out... It Qwaya, Facebook advertising tool and co founder of the online ecommerce retailer, Auto Quake. Fredrik, you're ready to take us to the top?
Fredrik Skantze
00:17Yep.
Nathan Latka
00:18What kind of name is Qwaya? That is a hell of a name to try and remember how to
00:22spell.
Fredrik Skantze
00:23Qwaya, yeah, yeah, yeah.
Nathan Latka
00:26Funnel is much better, by the way. I think funnel.io is much easier.
Fredrik Skantze
00:30Yeah.
Nathan Latka
00:30Alright. What's Funnel do?
Fredrik Skantze
00:33So we are a marketing data platform, and we basically help companies aggregate and bring in all their marketing data, put it all together so that they can then analyze it and report on it so they really understand, you know, what's going on.
ARPU Growth and Moving Upmarket
Nathan Latka
00:51Yep. And then update us update us. Kinda last time you came on, you shared kind of average ACVs. I think you had mentioned that you were trying to go up market. Have you increased kind of the the average amount each customer is paying since twelve months ago?
Fredrik Skantze
01:05Yeah. Yeah. Absolutely. So average customer value on a monthly basis was around $450 then, and and now it's about... It's more than twice that.
Nathan Latka
01:17Okay. So so it's fair to say kinda average customer paying more than $900 a month at this point?
Fredrik Skantze
01:23Yeah. Yeah. Around a thousand dollars.
Nathan Latka
01:25And how did you... So how did you drive that change? Again, it's a significant change. You had to churn probably a lot of logos that were SMB ish. How did you manage that?
Fredrik Skantze
01:35Yeah. Not so much churning, but just focusing on when we were bringing in newer customers.
01:41And actually, it was partly driven by us and partly also driven by the market. So as we became more established in industry, as our product was more capable, larger and larger companies found us and wanted to do business with us, and then also having the capability of serving them, which has more requirements as you kind of move upmarket.
Customer Count Growth to 700
Nathan Latka
02:06Mhmm. Now you were at about three forty customers back in November 2017 when you and I last spoke. What have you scaled to today? How many customers are you serving?
Fredrik Skantze
02:14700.
Nathan Latka
02:15700. Okay. Yeah. That's good growth. Now have you had to change your kind of sales flywheel since then, and if so, how?
Sales Team Structure and US Expansion
Fredrik Skantze
02:24A little bit. So, you know, we have we have substantially more salespeople, so we have specialized the sales roles a little bit. Some some are focusing on smaller customers. Some teams are focusing on larger customers. We've grown our our US presence quite a lot. You know, we're a European company. We have also built out a pretty large office in Boston, so we have about 30 people in Boston.
Team Size and Engineering Headcount
Nathan Latka
02:46How many total people on the team?
Fredrik Skantze
02:49Just north of a 100.
Nathan Latka
02:50Okay. And how many are quota carrying?
Fredrik Skantze
02:54Of those? So about 15 salespeople in general.
Nathan Latka
02:58Okay. And how many engineers of a 100?
Fredrik Skantze
03:03About 40 to 45.
Sales Quota, OTE, and CAC Payback
Nathan Latka
03:04Okay. So how did you I mean, one of the things that as you know, as people go from kind of where you're at and where you were two years ago to where you're at today, getting kind of the salesperson pro forma right is something that's always being edited. So literally, what should quota target be? You know, what should earnings... You know, their full earnings be at OTE relative to the quota, the new booking... ARR bookings
03:23they're bringing in? How did you kinda take a step at that initially and modify it over the past eighteen to twenty four months?
Fredrik Skantze
03:30Well, I guess you experiment and see where you get at and then you try to improve it. And it also depends on whether... I guess we are sort of mid market ish or even at the lower end of mid market. And at that time, we think sort of $5,000 in new MRR per salesperson is pretty good. Per month. Per month. And if you are in the real enterprise, that gives us sort of a payback time of
03:54twelve months. But if you are in the real enterprise space, you probably want more, but you'll have a lot fewer deals and a lot of misses as well.
Nathan Latka
04:04If a salesperson is adding $5,000 per month in new MRR, why is that a twelve month payback?
Fredrik Skantze
04:12Well, so you you basically have... You know, you see how much they bring on in on the year, and then you add the lead costs that you might be paying to generate that. You have an SDR team. You might do, you know, advertising and so on. So if you if you fully load the full the full costs, then that's what it works out.
Nathan Latka
04:33The cost of the salesperson or the cost of the customers they're bringing on?
Fredrik Skantze
04:37No. The... Yeah. Well, the the the fully loaded cost of bringing in the customer.
Nathan Latka
04:41Got it. Got it.
Fredrik Skantze
04:42Yeah. Yeah. That makes sense.
Nathan Latka
04:43So twelve month
Fredrik Skantze
04:43It's
04:44not just it's not just what you pay the salesperson, but you might have lead gen costs. You might have SDR team, all the things around it.
Nathan Latka
04:51Yeah. No. I under... I understand So so a twelve month payback at a thousand bucks a month in terms of ACV that you're saying you're happy to spend $12,000 to get a new customer.
Fredrik Skantze
05:05Yeah.
Nathan Latka
05:06And when you split down where you spend that... When you split up where you spend that $12,000, you obviously have salesperson commission. Where else are you investing to drive that growth?
Lead Generation and Search Marketing
Fredrik Skantze
05:17In lead generation. We do a lot of our lead generation online. You know, basically, what... Eating our our dog food and and spending it on digital advertising, and that helps us drive leads on some of
Nathan Latka
05:30does the best for you?
Fredrik Skantze
05:33The big all the big channels. It's it's not just one. You gotta try
Nathan Latka
05:37Pick one so we can go deep.
Fredrik Skantze
05:40So obvious one is search marketing.
Nathan Latka
05:42Mhmm. Okay. So search marketing. So in the search marketing channel, mean, we talking like you're spending a $100 a month in that channel?
Fredrik Skantze
05:50Something like that. Yeah.
Nathan Latka
05:51Okay. And how do you kind of back into your metrics? So just from that channel, how many leads would you expect to get from that channel?
Fredrik Skantze
06:00Well, you... Yeah. So you gotta kind of... You gotta say, okay. Well, if I wanna close 40 customers, how many do I have to speak to? Well, you probably have to speak to 400 customers in a in a month.
Nathan Latka
06:12You mean you mean 400 trials to get 40 new customers?
Fredrik Skantze
06:16Yeah. Well, maybe not trials, but at least dialogues with customers. You gotta speak to 400 people if you're gonna close forty forty customers if if you have a conversion rate of 10%, which is pretty normal.
Nathan Latka
06:29Yeah. Is is that what you're at right now? About 10%?
Fredrik Skantze
06:32Approximately. Yeah. From the initial discussion.
Nathan Latka
06:35That's good. Now that's obviously just your search marketing channel. But if you look at your, like, your total new discussions or your new demos or your new trials, however you quantified every month total across the company, how many new of those each month are you bringing in?
Prospect Dialogues and Lead Routing
Fredrik Skantze
06:47We have about a dialogue with about a thousand prospects every month, but, you know, it's high and low. Some are are are... Just wanna talk. They're not good fit. So you gotta kind of sift us through, and and it's only, you know, say, a 100 that really is high value. But those are really high value.
Nathan Latka
07:07Yeah. Well, you you said at 10% conversion, that would be about a 100 new customers each month from the thousand dialogues. Right?
Fredrik Skantze
07:14Yeah. That's good.
Nathan Latka
07:15And how do you break down how your SDRs or your AEs kind of attach themselves to those those thousand conversations per month? Is it geography based or something else?
Fredrik Skantze
07:24Yeah. For us, geography absolutely plays in. We
07:29have a Boston team that handles The US and South America, and then we have a European team that handles Europe and The Middle East. We we don't have a big presence in Asia at the moment. And so geography, that's the biggest play, and then also the size of the lead.
Nathan Latka
07:47Measured by what?
Fredrik Skantze
07:50Typically by revenue or number of employees.
Nathan Latka
07:52Okay. I see. So you have different motions, different teams, SDRs, depending on the team size of the lead.
Fredrik Skantze
07:59Yeah. If it's a small lead, you want you want fewer people touching it. You want it to be more automated and more fast. But if it's a larger deal, then you want a whole team on that leads, you know, from an SDR, from an account executive, maybe a product specialist, really kind of staff up to be able to serve them.
Gross Churn and Net Revenue Retention
Nathan Latka
08:17Your annual gross churn, revenue churn back in 2017, you shared was about 35%. What's it today?
Fredrik Skantze
08:25It's between one and a half and 2% a month.
Nathan Latka
08:28Okay, so 24% would be max?
Fredrik Skantze
08:30About half of what what we had done. Yeah.
Nathan Latka
08:33Let's let's assume it is the full 2% per month or 24% in annual gross revenue churn. Does your expansion on the same cohort more than make up for the 24% loss?
Fredrik Skantze
08:43Yeah. Yeah. We have negative net churn now.
Nathan Latka
08:46How negative?
Fredrik Skantze
08:47A little bit negative.
08:48It's just it's just turned negative. So... But maybe half a percent negative
Nathan Latka
08:48Okay.
Fredrik Skantze
08:48Per month.
Nathan Latka
08:53So this is the same...
Fredrik Skantze
08:54Okay. Per month.
Nathan Latka
08:55So this is the same as saying if it's per month point five times 12, obviously, it's 6% or negative 6%. Right? The inverse of this would be to say that your net revenue retention is about 106%.
09:05Correct?
Fredrik Skantze
09:05Yeah, yep.
Nathan Latka
09:06That's great. That's obviously good. How do you get that?
09:10I mean, at your ACV? I mean, 106% is good, but I'd say world class or best in class is like
09:15one thirty, one thirty five ish. How do you get your net revenue retention up to that range?
Fredrik Skantze
09:21Yeah. I think you do it primarily by having a much higher annual contract value. So dealing with larger customers, then you have then you have typically have much higher net retention. Alternatively, you have a model where, for example, like CRM, you sell per seat. You start by selling, you know, five seats, and then you just add, add, add. We don't really have that. We have a model where we sell the platform the way it is. And
09:49then there are some expansions. You might buy some more feature set or buy more usage, but not to the same level.
Nathan Latka
09:57Usage based off what?
Fredrik Skantze
10:00Based on the amount of data that we handle or the amount of marketing activity you do.
Nathan Latka
10:05Measured by dollars of marketing activity?
Fredrik Skantze
10:08Yeah, it might be ad spend or data quantity or a number of data sources and things like that.
Nathan Latka
10:15Okay. Interesting. So you feel like you've not exhausted the pricing axes you can upsell against? Do you feel like you can make improvements there?
Fredrik Skantze
10:23I I I think so. Yeah. We can probably get better at it. Yeah. It it hasn't been our our main focus to try to maximize how much money we make.
Nathan Latka
10:31Yeah. You'd... Well, obviously, when you say it that way, of course, but you could also just counter, hey. If you were adding more value to customers, right, based on these pricing axes, more upgrades would be happening naturally.
Fredrik Skantze
10:41Yeah. Yeah. That's that's fair as well.
Funding Round and Burn Rate
Nathan Latka
10:43You'd raised 13 back in November 2017, 13,000,000. Have you raised any more to date or still at the 13?
Fredrik Skantze
10:52We raised some money at the back end of last year, so about $8,000,000.
Nathan Latka
11:00Okay. So total in the company today is about 21,000,000?
Fredrik Skantze
11:03Yeah. Yeah.
Nathan Latka
11:04Why did you need the 8,000,000? And was it pure equity or debt?
Fredrik Skantze
11:08It was equity.
Nathan Latka
11:10Okay. And and why do you need that extra capital?
Fredrik Skantze
11:13Mainly because we invest a lot in product sale. So we, you know, we have about 40, 45 engineers, and that team is growing quite a lot. So And we're kind of investing ahead of the market a bit there.
Nathan Latka
11:25You've done this before. Right? When you go out and raise 8,000,000 and you have your plans in terms of hiring for engineers and things like that, I mean, how comfortable or or how many months of burn are you usually raising for?
Fredrik Skantze
11:36Eighteen months to twenty four months.
Nathan Latka
11:38Okay. And and and is that just... I mean, you mean, so if we take 8,000,000, obviously, by that amount of time, you can basically say that, hey, this guy wants... He's okay with $400,000 a month in burn.
Fredrik Skantze
11:50Yeah. Yeah. That's a good way to put it. Yeah. Mhmm.
Nathan Latka
11:53And what is your goal at the end of eighteen months? Is it to get back back to breakeven or start raising your next round, you know, twelve months from now?
Future Fundraising Plans
Fredrik Skantze
12:00We will probably raise another round. That's... Yeah. I think we see a opportunity to build a really large company, and we we wanna... We... That's where we wanna go for.
Nathan Latka
12:13When do you think that raise might happen?
Fredrik Skantze
12:17Well, we'll we'll have to see. We we're... We haven't quite decided yet. Yep. But...
Nathan Latka
12:22Why if you did raise additional capital, would you definitely go the equity route, or would you consider using debt so that you don't have to take more dilution?
Fredrik Skantze
12:29I think both are good. Both are good. Yeah. Debt is is... For SaaS companies, when they get to scale, debt is is good. Yeah. It's... You know, SaaS companies tend to be valued as a as a multiple on revenue. So, you know, it's actually the the the calculation around it taking debt in is is a pretty good one.
Nathan Latka
12:50Yeah. Debt works if burn isn't, like, too crazy. It sounds like you're burning right now net about $400,000 a month. Is that right?
Fredrik Skantze
12:57Something like that.
MRR and Run Rate Confirmation
Nathan Latka
12:58Yeah. But you haven't done any debt deals, but it is something you'd be open to.
Fredrik Skantze
12:58Yeah. Yeah.
Nathan Latka
12:58Interesting. Guys, you have it. All you debt providers listening. As long as your terms are good, you got to give them amazing terms. Otherwise, I'm gonna beat the hell out of you. Okay? No covenants, no warrants, no personal guarantees. Give Fredrik a good deal. Alright, Fredrik, good stuff. Last question here. 700 customers at $900 a month kind of average
13:20ARPU puts you at $630,000 a month in terms of MRR. Is that about right?
Fredrik Skantze
13:25Yeah. A little bit more. So 670,000. So we're just just $8,000,000 in annualized revenue.
Nathan Latka
13:31That's great. I mean... And and what is that in terms of grow... I mean, hold on. I have the numbers. So last time you came on, which is a little over a year ago, you were doing only about 2,200,000. So it looks like about four x year over year growth. Does that sound about right?
Fredrik Skantze
13:42Yeah. From from that time. Yeah. Absolutely.
Famous Five: Favorite Book and CEO
Nathan Latka
13:45That's good. Good growth. Alright. Let's wrap up here with the famous five. Number one, what's your favorite business book?
Fredrik Skantze
13:52You know, the one I'm reading right now is I I really like Management 3.0, which is really about taking agile software methodologies to general more business practices. It's pretty dense, but that's a really insightful book.
Nathan Latka
14:06Number two, is there a CEO you're following or studying?
Fredrik Skantze
14:10You know, I like the team from from HubSpot, Brian Halligan and Dharmesh. I think they've built a great company. They've, you know, managed to pivot into CRM and expand their market. They've built a good culture. I I think they're a good good team there in Boston like we are.
Hypothetical Buyout, Favorite Tool and Family
Nathan Latka
14:26If Brian comes to you and says, listen. I like you guys. I wanna I wanna buy the company for $80,000,000 all cash up front. Do you sell?
Fredrik Skantze
14:26No.
Nathan Latka
14:26Oh, come on, Freddie. That's a 10 x multiple. All cash.
Fredrik Skantze
14:39No.
Nathan Latka
14:39You wouldn't.
14:40Interesting. What's the price?
Fredrik Skantze
14:43I I don't think there's a price right now, but it would but it would be much higher than that.
Nathan Latka
14:47Alright. Number three. What's your favorite online tool for building your company besides HubSpot?
Fredrik Skantze
14:52You know, we like a company called... Israeli company called Gong. They do sales sales softwares for recording sales conversation and then I am transcribing them. I I... Really insightful team, a very well executed product.
15:09You'd think you kind of get that from Zoom, but, you know, no. They just do it so so well.
Nathan Latka
15:14Number four. How many hours of sleep do you get every night?
Fredrik Skantze
15:17About eight hours.
Nathan Latka
15:18K. And what's your situation? Married, single, kids?
Fredrik Skantze
15:21Married with two kids.
Nathan Latka
15:23Oh, wow. And how old are you?
Fredrik Skantze
15:25I'm 40... Just turning 48.
Nathan Latka
15:2748.
15:28Last question. What do wish your 20 year old self knew?
Advice to Younger Self
Fredrik Skantze
15:31I think getting out of corporate and and doing something smaller where where what you do really, really matters and and sort of becomes more real, a bit earlier. That's probably what I would advise myself.
Nathan Latka
15:45Guys, funnel.io just hit about an $8,000,000 run rate, up from call it 3,000,000 just about a year ago. So healthy growth, 700 customers paying on average, call it $950 per month. They are spending in a lot of different channels, but one of the ones is search marketing, They're spending call it $100 there per month getting call it 400 trials, 40 new customers from those trials, so 10% conversion rate as they look to continue to scale, burning about $400,000 per
16:09month with 21,000,000 raised. Team size, a 100 people, 45 engineers, 15 quota carrying sales reps, call it 24% gross revenue churn annually, but 30% expansion puts net revenue retention at a 106%. And Fredrik's optimizing CAC right now to be right there around the twelve, thirteen month mark as they look to continue to scale. Fredrik, thank you for taking us to the top.
Fredrik Skantze
16:28Thanks, Nathan.