How Giraffe360 CEO Ulvis Bobrovs grew Giraffe360 to $22.8M revenue and 60 customers in 2024.

this is the top where I interview entrepreneurs who are number one or number two in their industry in terms of Revenue or customer base you'll learn how much revenue they're making what their marketing funnel looks like and how many customers they have I'm now at $20,000 per top 5 and6 million he is help bent on global domination we just broke our 100,000 unit sold Mark and I'm your host Nathan lka okay top tribe this week winner is Charlie dags okay he was a middle manager at a Manufacturing Company he wants to break free and he won the $100 I give out every Monday for your chance to win simply subscribe to the podcast on iTunes right now and then text the word Nathan to 33444 to prove that you did it Nathan laa here this is episode 565 coming up tomorrow morning you'll learn from Lisa who founded scholar after selling her company to Autodesk and now they're making a $99 smart pet collar Nathan ladka here good morning folks Our Guest this morning as mik Opel is the CEO at giraffe 360 and this started almost 7 years ago in February 2010 when he got involved with draft visual which helped and provided interactive visualization service that now has molded and developed into something much much more he's going to take us to the full story in the next 15 minutes mikas are you ready to take us to the top and yes hey Nathan how are you I'm great how are you I'm doing well all right tell us what draft 360 does first and then we'll talk about how you generate Revenue in your business model yes great thanks for having me on the show so in J 360 we build world's best virtual tour technology and we cut them down in a few pieces we have our own camera Hardware that I can give to you and you can go into the any property to capture it and then you have virtual to that works on vual reality headsets on mobile and on web and I'm looking at this right now kind of on your website I mean this this does not look like it's a cheap thing to build have you guys raised a bunch of capital to get to this point or have you put your own money in or what uh like six years ago uh when I just finished high school we started a Service Company um back in L or and in baltics and we were quite successful with that business and so once we reached the point where we had a good profit service business we basically invested all profits we had to build this new technology it took for us 14 months in development developing Hardware software so development areas are really wide and we did all that with our own money from our service business income and how much was that by the way can you quantify that no is like like because at first we thought it will take like two month and we thought like okay let's spend two months hire new engineers and and let's just build hardware and we already were working on software side uh it ended up in 14 months and so how if you had to sum up all the money you put in before you had the software done and your first like piece of Hardware done how much would you say like more than a million uh no no 200,000 okay 200,000 200,000 we invested probably from our own budgets and uh and we pushed away from our service business income and now we just raise a half a million to get our product development further oh congrats was that a was that a convertible node or an equity round convertible node oh great what's it like because you're B where are you based in London right yeah we are right now based in London was it tough to raise that Capital um yes and no uh yes I checked my Des time uh I I spend the most time the most of my work time spent in last 16 months was uh spent on raising this investment but on the other hand no it's just bunch of meetings telling what we believe in what we are doing and why this will be the best property capture technology so nothing nothing that hard so how many meetings did you think you you you went through before you finalized the 500 100 100 wow 100 and how many people invested in the 500,000 two or three well one one company and there was one ad own investor so basically 90% of investment is done by one one company one so but we had like some five okay offers on the table so we had something to choose from and we choose the the partners that we believe we can go like go on a good road good road because they are our partners in business right now so yeah we had an options to choose from that's great well one of the reasons I want to have have you on is one uh I I knew you recently raised Capital so you're on to something but two the product looks amazing like when you go to the website draft 3 60 you see a lot of virtual tours that are like they're pixelly or they're not they're not smooth or they miss parts of the space yours are just very sexy it's smooth it kind of feels like you're there so I can tell A lot's gone into this um walk us through how you generate Revenue so we um give our camera out for free we give to the clients who mostly has large volume of properties so a first group of clients are real estate brokers so and then we charge per property created with our camera uh that's basically it one apartment virtual tour costs only 53s okay or 67 or 67 EUR around Europe and in terms of quality we have developed our technology so it's on the same level as you would hire professional company the Panorama has 250 pixels uh so there's no product in this sort of of quality wrench in the market um but we wanted to build it so it's so easy to use that broker doesn't need a professional he can do it himself so it's about one apartment tour you said cost 67 EUR or about 70 United States dollars y okay and you and I just want to make sure I heard you right you give away the software and the hardware for free yeah minimum but there's only minimum volume that you have to do with a camera per month and that's 20 Apartments okay so so at a minute minimum you've got people spending you know call it uh you 1,400 bucks a month right $7 times 20 yeah yeah yeah in a minimum God as a minimum okay they pay for that up front yeah no only uh at the end of the month for prop properties then because if they do there's not not like fixed like there's companies who do 50 properties there's companies who do 200 properties a month it depends on on how many how many new deal they have closed and how many new properties is coming in their portfolio to rent or to sell so it varies between company how many pieces of your Hardware are out in the market right now you know you have agents and Brokers using them right now we are we are we we have 10 our first cameras out at the market and the big news is that next 50 cameras is coming into the market on the 10th of of February boom baby that's 5x growth nice stuff yeah so and we we were uh we were cautious in the first stage uh when we sent out first 10 cameras we had um on a pre-sale we had like 50 clients already subscribed who wanted to try a camera out and and and and and try to use it in their business but we allowed only 10 cameras out just to manage the flow to to be in control of quality to see that everything works and now we are ready to ship out next uh next 50 subscriptions uh full subscriptions have you have you already sold those 50 subscriptions or you're still trying to sell them more or less we have already sold them because demand demand is big but we are Focus we are business to business so uh so it's it's uh we only focus on a business who has a lot of lot of properties in their portfol so am I doing this math ride I mean if you'll have 60 cameras kind of in the wild you've already sold them all it's a minimum of $1,400 USD per month or about you know 20 Apartment Homes so if I multiply that together what are you guys doing somewhere around 84 Grand per month right now yeah we we'll be doing it when we will have the new cameras so yes got it but you've already pretty much sold those right yeah yeah we were not concerned on the sales at at this point so the next after the first 50 cameras will we will let them work for three months and we will not be uh we will not be available for any other subscriptions but in three months we are launching next next 100 subscriptions that's great and what is it what does it cost you to build one of these pieces of hardware uh it's it's a bit of secret oh it's secret okay well is that is there something are do you do something unique there that that somebody else can't already do yeah we do we do most of this stuff ourselves in our office by by our by our by our own hands by our engineering and Technical team so we it's basically handbuilt cameras so that's that's also one of the reasons why we can what the quality and the stability uh is is is so good and and yes and right now we we we are doing everything more or less ourselves give me a little bit of a range are they more or less than $55,000 it right now it has really depends because the first cameras was more R&D products and now we are but but yeah the range the range is definitely is there where you mentioned okay right around five...