How INCRMNTAL CEO Maor Sadra grew INCRMNTAL to $3.1M revenue and 36 customers in 2024.

hey folks my guest today is mayor sadra he's got 20 years experience in digital advertising and can summarize his entire life in an excel spreadsheet today he's the ceo and co-founder of incremental founded during 2020 in lockdown mode which helps with incrementality measurement using causal models mayor are you ready to take us to the top yeah happy too thanks for watching you bet okay so tell us what the company's doing and can you name one or two customers and how they're using the technology yeah sure so uh basically incrementality was founded during corona and what the company is doing is incrementality measurement which is basically all about measuring the value from marketing spend uh we're working with advertisers who could be either app developers or websites across e-commerce fintech gaming and so on some companies that i can name is trainline the uk train tickets seller um fastik which is uh intermittent fasting and we're also working with etoro fairly large fintech company out of israel so how does etoro use you so basically what they're doing is they're streaming their media spend and conversions data or marketing results and basically the system allows them with a hit of the button to measure the value of their marketing spend means when they increase spend on a channel did it actually create incremental value or is it just taking value from somewhere else which is a common um unfortunate side effect of marketing interesting yeah this is obviously a hard problem everyone's always fighting over attribution it sounds like you're trying to solve that exactly very cool okay and so what are customers paying on average per month to use this technology you've built yeah so we are pure sas monthly subscription we really wanted to keep it flat so basically our pricing is lying anywhere between a thousand bucks a month to 5k a month depending on the size and features the customers want it was really important for us to not have a variable component you know pricing because we didn't want to have a bias we didn't want the platform to prove itself to customers and hence build them based on how much you're using spending and so on so four packages starting from free to enterprise package okay but sweet spot you'd say is what 2000 bucks a month something like that roughly yeah i would say actually the majority of customers right now is enterprise so bigger okay so maybe closer to 5k instead of 2k um got it very cool tell me about your first customer so you launched in 2020 how did you go to market how did you get that first person signed up yeah so actually we were fortunate so me and my co-founder were both i would say not first-timers so we've been around for a while and when we started we reached out to design customers so instead of going directly and developing a product and then offering to market we reached out to people in the industry hey we are developing this if you believe in the vision be a design a partner and so we were fortunate again i would say thanks to corona and zoom and doing everything remote we had design customers from three different continents we had 10 design customers actually big and small gaming companies from finland and then health tech companies from germany and then of course israeli ones as well what does that mean those design customers like what's the title of the people you were reaching out to and were using linkedin or how are you reaching out to them so most of them i would say came through our past network because i previously i was ceo for an ad network called app lift it was 250 people 100 million dollars revenue is 15 offices around the world so i had the network to actually reach out to people people used to be well are typically anywhere from ceo to cmo but now we see that the persona we're dealing with typically is either marketing persona or data science persona interesting so got it so you reached out to people who are using app lift to say hey i'm working on this new thing you want to test it out no actually just reach out to people from my network again 20 years in the industry it's a lot of network what did you learn at app lift i mean when you say 100 million bucks in revenue was that gmv through the platform or your cut that you were taking no no i would say so aptly was a media company so um 100 million dollars was gross revenue running through the system cut was roughly 30 that's the media world yeah yeah and i guess finish that story out for us so i think you raised what 10 20 million bucks there you did you sell that or what happened yeah we sold it in 2019 actually so i became ceo end of 2018 and i would say oh you weren't a founder no no i joined it as a vp strategic development got promoted to cro five months later and ended up taking the ceo role where my only job was sell this company as fast as possible that was some hard times that's a different and a longer story yep yep okay got it uh did investors at least get their 20 million dollars back most of them okay interesting so so it was more like sort of a flash sale get it done move on to the next thing sort of deal very much okay all right so so back back to current business incremental so you bring your first customers on from your past network uh you have a co-founder it sounds like how many customers are now working with today i'd rather not name it because we're not to the point to actually name the any figures do you have paying customers today yes yes we do have paying customers okay are we talking though like i mean give me a range that you're comfortable sharing we're doing like five or 500 or 5 000 no so again we just launched open beta a couple of months ago i would say we are a few dozens live on the platform i see god and live on the platform that's paying customers and and if not how do you move people that are okay those are our paying god so a few dozen paying so call maybe 24 36 um when people use it for free because you mentioned a free plan what do you know they have to do on the free plan to activate to increase likely they convert to paid yeah so actually right now we are not offering the free so right now in beta what we did is we offered customers that they can join for business or enterprise package luckily for us so last year when we founded the company they something happened apple made an announcement that was incredible for us apple basically deprecated what is called a device identifier that many companies use for marketing tracking this killed the ability to actually do attribution properly and our solution became de facto this solution companies have been waiting for so again even though we've been out in open paying beta only for a couple of months now we're onboarding three four customers a week okay got it that makes good sense so uh beta launched recently um you're now adding customers now did you guys decide to bootstrap this or did you raise no we raised we did a basically a seat round um on a safe one one was last summer one was kind of like beginning of this year to kind of allow additional investors to come in and yeah now the question is when or if do we do another fundraising how much was the safe this year 2.2 total 2.2 total to date yeah yeah but how much how much just this year and then how much last year yeah we did a million and then 1.2 i see interesting and did you just you know it's very common now to sort of let these things roll did you basically just sort of let one roll same paper no no so we did a safe one and save two and save two had a higher valuation okay got it but but still no no no one has come in and put an equity value on the business actually price the business they both have caps exactly exactly we use valuation caps tell me about how you think about funding moving forward you mentioned maybe raising now uh so again i think now is interesting time so like when we started the company we did speak with vcs to think that maybe we can fundraise on a deck before we have a product or attraction or anything that was obviously a big fail so and we ended up raising form angels um now it's interesting but a lot of these vc's have been you know um in contact with us continuously kind of asking how we are and what we are and many of them like the story and they for sure liked us because we are experienced yeah so now it's a question do we fundraise from who do we fundraise where do we want to fundraise do we want to be in the states do we want to be in europe do we want to be in israel um yeah so it's like the questions that occupy our minds i mean my co-founder is something we're discussing with our board and we'll probably make a decision somewhere in the next couple of weeks do you think you have to wait to break a million dollars in revenue or at least a run rate before you go out and do that raise to avoid like crazy delusion or you think you can get a good valuation today i think given what we have in terms of all the fundamentals of the company means it's technological story it's a crazy inbound pipeline that we have it's diversity of customers it's breadth and depth it's a high high subscription costs very high margins no i don't really think it's about necessarily that gold and one million are i think it's trajectory that people care about i mean you can sort of back into 36 customers at a 2 000 average rp i mean that would put you at like 70 grand ish a month right now in revenue is that...