Hyperhuman Revenue, Valuation & Funding (2024)

hey folks my guest today is bogdan producka he is the ceo in front of a company called hyperhuman.cc tech entrepreneur passionate about building innovative products and great teams he has over 18 years in tech ranging from startups to global enterprises he's been part of multiple high-profile mergers and acquisitions and he's nurturing nurtured a growth and solutions oriented mindset and diverse multicultural teams again now building hyperhuman.cc which is a smart content production platform for the health and fitness industry bogdan you ready to take the top nathan that was a long intro but uh yes exciting and exciting things uh exciting times for this industry so who are you selling to directly is it a gym is it a fitness trainer a yoga instructor who is it so we started from the need the need was the the digitalization of the uh health and fitness video content so our mission is to make world's health and fitness videos universally accessible and usable that was our goal that was our challenge to be solved by technology by our ai and who's the service who's the client of course content creators professionals in this industry trainers yoga instructors coaches but you also have the businesses on the other end the traditional businesses the brick and mortar the gyms the studios and the 100 k plus fitness apps nutrition apps wellness platforms that need a constant feed of quality consistent quality content in this new world of digital or hybrid uh training so bogdan we're gonna i wanna make sure we don't lose people so just be like really specific here it's like brave fitness is a screenshot you use on your website their youtube channel they are your ideal customer is that accurate exactly exactly okay so so that is that's a fitness gym uh an in it's a physical location not a virtual yoga instructor that's training on peloton or something like that right so do you only set up physical locations no no that's for the physical locations it's a new type of service they can provide to clients of course being flexible training in the location and at home or wherever you want so you need a content for that and on the other end the digital uh platforms that need a constant feed of content so we are the platform for content so let's say that this gym has 10 trainers that the gym pays full time is the gym going to say hey trainers you can purchase this app and upload your own workouts here to get new clients to train at the gym or will the gym buy it and make the trainers upload videos so that more people sign up for gym memberships the last one okay so basically it's a very simple any type of a team's concept the team pays for their members their members create content for their clients acquire new new clients retain new clients throughout this digital services that they i see and how many gyms or people like gym groups like gyms are paying for the platform today so we imagine we just added the teams layer early this year and we are have i think we know 111 so 111 111 is the latest number of businesses that we are now serving and they are creating and their team is creating uh this new type of smart video content i imagine this is kind of like someone buying salesforce for their sales team and then having to convince the sales reps to actually use salesforce how many of these 111 gyms have actually had at least you know one video uploaded by one of their trainers everyone every single one is willing and eager to transform their existing recordings because many already have videos i see so how many total videos are on the platform today across the 111 customers so just to give you an insight a total number we have transformed about 30 or 50 40 now hours of raw recordings into 400 milli 400 hours of quality video workouts so it's a 10x from raw recordings to new content created from a very let's see 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 it 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 valuation this year now the secret evaluation is there's many different ways to value a sas business so the reason you're going to see three or four different valuations inside of your frowner 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 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 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 attraction 1.2 million seed round 3.7 raised they sold 22 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 valuations than what you can get now inside of founder path and we're thrilled to bring it to you all right we're going to 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 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 all right let's jump back into the interview so today across 111 customers there's 400 hours of video workouts on the platform exactly okay so about four hours counting also the of course the professionals that they uh that uploaded the videos yes got it so so about four hours per customer today yes imagine starting from 40 minutes or 30 minutes of recording shootings they already have super interesting and and so how much do one of these gyms pay for the platform per month or per year so it's a basic software as a service subscription based on different uh tiers basically it's one three or three 12-month subscription uh it's starting at the 149.99 and so what does the average one pay today 150 bucks a month uh i we see a trend between three months so going into the three months because that's the most let's say the sweet spot where you can see how it works and also create a digital strategy around it uh but it's too early to tell what's the winner in terms of uh duration yeah but bogdan sorry if you just look at your paying customers today and look at the most common that price point they're paying per month that's what i'm asking is it 150 bucks a month well the the business is that's the price point that they are paying at this point uh individuals it's a much let's say cheaper subscription for individual professionals so i thought you said you were selling to the gyms you weren't asking the trainers to pay we already have that delivered last that was our mvp if you want last year we launched it for individual professionals and this year we added the teams layer on top of it okay so there's 111 teams currently paying about 150 bucks a month and then how many individuals are on the platform that are paying we now uh have i think 3 000 uh individuals for so professionals on the platform not everyone in spain because we have a free new model we can create up until a certain level of content completely free uh all the time so uh we have about i think five to ten percent paying on the product okay and what are the what are the professionals pay per month on average uh we see a distributed let's say um price point between three month subscriptions to one year subscription the the starting point is i think at this point we have a discounted uh for five five to nine fifty nine ninety nine dollars from uh for uh three months okay so so 20 bucks a month is your average okay so 20 bucks a month times you know 300 which would be 10 of your 3 000 individuals right so 20 bucks times 300 you're doing like six grand a month from individuals in revenue something like that yes so it's okay it's still it's still early in terms of revenue of course we are i think now 15 months old so we launched the product in august last year the mvp the commercial version by the end of the the year and we now iterated and added the teams layer so it's a very fast paced let's say no makes sense uh now can i take 111 teams using you at 150 bucks a piece you're doing about 16 000 a month of revenue on the team's product just to add a comment here many are in the the trial phase so basically they have a trial a free trial before their subscription is activated so how many paying customers do you have on the team side right now i think uh we have about five to eight percent converted to paying customers okay so there's about ten that are paying on the team side all the remaining one are now in the tribe that ends in a few weeks from now got it so you've got 6 000 of monthly recurring revenue from individuals and another 1500 from teams but you're focused on teams moving forward and have about another hundred that haven't converted yet in a trial exactly that's the goal and that's the the how how are you converting people you know it's very difficult some people really struggle with this how are you converting the trials to paid accounts what's the playbook it's a very simple thing it's if you transform and create value for them if you transform their existing videos with no pain points like video editing skills needed tech skills needed marketing skills needed they get it it's easy they can use it in multiple channels for multiple purposes so you're doing this for them you're saying give us your old videos we'll do all the work for you we'll cut them up into little segments we'll edit them all that yes how do you pay for that we we have a video ai that identifies the the exercises we give them their exercise library back they can use it to create new content that creates that new content is possible productive produced on our ends you have full-time editors though bogdan on your team technology that's that's the the the the secret if you want so how many folks are on your team today full-time we have two people on the content moderation side how many how many of their total are on your whole team uh we have 16 people now one sex one six on three continents okay so you raised some money them to pay to pay them because you're not doing enough revenue we raised the one early seed and one late seed so the first uh round was closed in december 2020 uh 550k euros that's about 600 something dollars um and just about two months ago we raised a late of uh the same uh amount about 50 500 000 euros so in total we raised in about one year and a half 1.2 million dollars i think and what you sold about 20 of the business uh it's usually around that across both rounds are all together you sold 20 to investors you should not do that so you should not do 20 per round then in three rounds you are not even the majority of one no so it's around that percentage for the for both per total total yeah so we look at your cap table today 20 percent is going to be owned by these two investors that put in capital twice seed actually we have four tech investment uh funds so i think i see that's a very nice thing to have only no no business angels just funds that i experience in this industry why did you need to raise capital to do this you know you're now you've raised which means you have to grow and if you don't you're screwed right so you're gonna dilute it there's gonna be a down round it's not gonna be pretty so why do you need money yeah that's the most challenging part and people just don't see this uh this other part of the racing game uh we we raised money to uh be able to develop the technology to be able to grow and to able to be able to to uh have the marketing budget if you see now what's happening in the industry you compete against products platforms competitors that throw in millions of dollars in marketing business development activities awareness activities you need some capital to be able to go into the b2b site so for the team site you need to be there where your clients are events and all other activities that are cache intensive the the software the product development the design part is the most or the least uh cash intensive part understood understood okay so and just to be clear the last one did 600k seed it sounds like you did you sold 10 twice so 20 total so that was like a 5 million valuation something like that yes that's that's very uh we are very grateful for having this let's say deployment of capital stages okay so you're scaling you're rolling out your team's product we'll see what happens we're certainly rooting for you but for today we're out of time let's wrap up with the famous five uh bogda number one last book that you read uh i i didn't get the question yeah yeah yeah yeah no problem what's the last book that you read i'm reading right now a very good book for for scaling peak performance that's the performance number two is there a ceo you're following or studying uh yes a few including my former boss at fitbit what my former boss at fitbit i'm also i'm still following you number three what's your favorite online tool for building the business uh spreadsheet and google doc and uh number four how many hours i sleep to get every night nine to eight to nine it's very very important and bogdan what's your situation married single kids uh i mean any relationship no kids no it's very and how old are you 36 36 last question something you wishing you knew when you were 20. to do this uh earlier start earlier guys hyperhuman.cc they raised 600 000 seed last year another 600k this year sold about 20 of the business to investors they're helping those gyms take old video content and put them into a beautiful app with segmented videos beautifully edited they have over 400 hours of content on their platform today they're doing about seven thousand bucks a month right now in revenue looking to scale with this new capital team of 16. we'll see what happens next bogdan thanks for taking us to the top anyway thanks a pleasure 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 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