How Lalamu App CEO Matthias Spitzer grew to $12K revenue and 100 customers in 2023.

app is using AI to help you sync lip sync video or text-to-speech multiple languages with a click of a button they had a successful products that launched 215 upvotes that's helped people create over 100 000 videos on sorry 100 000 website visits over the past four months they've created over 20 000 videos now averaging a thousand new videos created per day they're trying to use those metrics to go out and raise a two million dollar funding round at a 10 million valuation he's quitting his full-time gig to go all in on this hey folks my guest today is Mateus Spitzer he's the CEO and founder of alalamu dot app if you want to follow along he's got 20 years of experience in advertising primarily as the art director and motion designers gained deep insights into the world of visual communication today he helps AI lip sync and uh it does AI lip sync and video Solutions at appalala moo all right Mathias you ready to take to the top yes okay all right so so I guess explain to us how a customer would use the application today so the customers uh p2b or p2c clients and it's like um they customers be like uh from creations of video Creations or uh post-production videos uh companies uh or uh advertising companies like that and they use the tool for lip sync their videos in different languages so they got a real original languages like on German and they want to translate in on any different language like Japan or Japanese or Spanish or whatever so they can translate the original speech like from text to speech or from the original speech to a different language and then um it's it's it's about it's about one one tip on create lip sync and the original uh video um takes the audio they create and the movement of the lips creates um it's about that the Spanish talking is about the Japanese uh Speech so yes we understand the pricing here what are customers pay on average per month or per year she uses technology we we don't have any offer like uh because we and uh demo version right now so it's uh for free right now you have no customers today um help me understand no paying customers yeah well that's what a customer is Right someone who's paying you yeah nope no paying customers say when did you first start writing code for the platform or for the tool uh the first tool was uh is uh lip sync app it's called win uh like 20 what year did you launch the company what when did you launch the business the time the year uh we launched uh 2020 to date free Revenue I mean that you have to pay yourself salary and have to pay rents and things like that how do you do that yeah we uh so the first product is a lot of move app it's a lip sync app it's only the app it's a fun app and we got a small uh small revenues um and so we focus on b2p it's lalamu Studio it's a demo version and now we are up to um create some funding uh to make some high quality um videos so uh we on funding stage and so the revenue in p2b sector is quite zero okay I guess all right so so you used the earlier version of the app that you built to fund some of your expenses that has some Revenue how much revenue does that come like does that have it's about it's a it's about above uh uh a thousand Euros and that's that's all so okay that's great and do you have a do you have a co-founder on the business or is it just you yeah no no I got one co-founder it's called Philip Southfield it's a he's a lead of FX in the sideway a side business for wheat it's the uh greatest uh post-production company worldwide uh he has the leads of effects of uh Guardians of the Galaxy or Transformers and so he's the CTO and my co-founder Mrs just to go back there so the company has been making since 2020 about a thousand dollars per month on this first version of the application you've now launched a B2B version which is AI enabled and that is free Revenue no customers there it's really hard to support two people on a thousand dollars a month so if you and your co-founder both kept side jobs or something to pay your bills yes so I'm I'm I get my my job as as well as motion designer and Philip is uh the lead of FX at wita and lovely on the farming grounds uh about uh 2 million euros to create the AI de available you've already closed that round or you're currently raising it we are country raisins so yeah and what are you learning from the market today giving you the valuation that you want uh it's uh I think we are on the right way so uh no we we uh we know that uh that uh the b2p uh web solution is quite right away to make some revenues uh because we got uh awesome feedback from users worldwide they use the free uh demo version uh right now the label Studio free demo version 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 the into the beautiful 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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 evaluation 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 what Behavior are you watching on the free version that gives you confidence that you can charge for this tool uh because uh they ask about API paid API to use it in high quality I see so when do you plan to launch a pricing plan a couple of months like maximum six months from start right now and how many free users are on the B2B tool right now every day about 1000 videos are created um each day one thousand videos being created since 14th of May we uh launch it on product hunt and since then we got over 20 000 created videos lip sync videos and so the Thousand videos that have been created over the past 30 days how many users created those videos uh uh the the numbers of the video of the creators we don't know about we not only know the uh um created videos at at it's about 20 000 videos they are created since the last uh four weeks sorry they've created a thousand videos in the past 30 days or 20 000 in the past 30 days 20 000. oh okay so it's a thousand per day you said yeah yeah sorry uh sorry ah okay so 20K videos last 30 days but just to be clear sorry you're not tracking the user's email address that created the video you have no way to know how many actual individual users are using the tool so so we got we got uh um Google analytics but uh running and uh we see uh we about 19 200 000 um not really users um the hundred thousands uh are all the the people they um open up the the website but um created uh videos are at twenty thousand since uh so I guess how many how many emails do you have user emails user emails yes customers that have signed users that have signed up to lalamu how many emails yeah you you don't have to sign up it's a free version It's a demo so you um you type in the uh the website and you can begin at the start you don't have any login uh no no emails so then how do you Market to these users once you launch your free plan how do you go find them again um it's in the future because now we uh want to to have some feedback from the users so what what what's good what's uh let me give you feedback though if you don't know who they are if you don't have their email address how do you talk to them uh they talk to me they write to me House email no no I we got no login and the free version so how do they write to you they write to me because we got all the websites uh email address and so when they have some asks about Salado Studio or the features that we build up um they write To Us by themselves so they so they email you you put your email on the site to email you yeah when they email you then you see their email address correct yes about how many about how many evils there are I don't know I guess what I'm trying to understand is like all these usage metrics on the tool again you go to alumu.studio to sign up to use it you don't have to you don't have to actually sign up for it and you just start using it so it's great that you've had you know a thousand videos created per day but again how do you I guess you have to keep getting new traffic every single day so that when you do want your pricing page that new traffic that hits that day when you launch it sees it because you have no way to go email Market or and in any way reach out to people that have used you in the past no the the only um why we why are we uh choosing this way is uh to um to see how many people uh using our website or creating videos so that that numbers to the Future investors that's the only yeah what is that that's what I was asking earlier what is that number how many people created videos over the past 30 days how many people we don't know we don't we only know you just told me that Matthias you just said that's what you're measuring to show investors and then when I ask you what's the number you said you don't know the number I don't know how number how many people are using the website we only know the number how many videos are created since the last four weeks got it so it could be one user who's just sitting there running a Cron job watching a thousand videos so um so a Google analytics tell us 100 000 um users opened the website yeah about how many users are really use their website to create some videos I don't know how many of the hundred thousand I opened it open the website what period of time uh for uh last four weeks last four weeks okay that's great and so you're you're raising a two million dollar pre-seed round today or what valuation are you targeting uh because uh what what it is um it's like tell me the tell me the the ask me again please sorry yeah no problem no problem um how much so if I say I'm gonna give you two million dollars Mateus how much Equity will you give me and la la luau um homemade Equity um we think about 20 percent okay so that would be effectively two four so that would be a 10 million evaluation is what you're asking for yes how do you defend that I mean do you think someone's gonna give you a 10 million evaluation today uh with being so because I'm speech with different investors and um so we got uh create uh stage because um about our future plans it's about the API because our focus is not on b2c clients it's only on B2B clients and we want to sell our API to different B2B clients like canva or Shutterstock or in water or else but if I if you were asking if I was an investor and you're asking me for 2 million bucks and you told me that you weren't full-time on your project I'd say I'm not interested you're not serious about the company you still have a side project don't you have to quit your full-time job before you go out and invest invest evaluation definitely yes so when are you quitting news on the podcast you're quitting your full-time gig to go all in a lullaby yes does your employ does your boss know that um I'm at home uh so so I'm self-employed so I got mobiles yes okay got it I see I see all right very cool well listen we're certainly wishing you the best I guess we have about a minute left tell us how you have so much success on product time what was the key to getting so much traction when you launched um the key uh we think about it's we got no login that's the first key because people love it to play play as soon as possible they open the sides and they can play they can create videos at the start at the beginning and then we think that's the key and um our focus and our Target is to build the the paid version like it's right now but um when you like to build create some high quality videos you must pay per minute or monthly about 10 minutes package or 20 minutes package and so on got it well you did well you got 215 upvotes congrats on that we're out of time though for today so let's wrap up with the famous five number one what's your favorite book oh my god oh it's too fast um my favorite book um oh my God I it's too fast can we take the the next election number two is there a CEO you're following or studying um one CEO I'm following oh I'm falling by myself sorry what's your favorite online tool for building lab my favorite online tool to peeling to build in a lot of my app it's it's been exciting by our own technique sorry what's a tool that you use your favorite online tool besides your own oh canva okay number three or four how many hours of sleep do you get every night what sorry that was two sorry sorry how many hours of sleep sleep do you get every night oh my God five five hours is nothing [Music] your situation married single do you have kids single no kids okay and how old are you uh good [Laughter] how old are you oh how old I thought uh how I uh I'm um 40 42 sorry 42 last last question something you wish you knew when you were 20 years old I built the lalamu um application uh it's 20 not at 40. build sooner lalama dot app is using AI to help you sync lip sync video or text-to-speech multiple languages with a click of a button at a successful products that launched 215 upvotes that's helped people create over 100 000 videos on sorry 100 000 website visits over the past four months they've created over 20 000 videos now averaging a thousand new videos created per day they're trying to use those metrics to go out and raise a two million dollar funding round at a 10 million valuation he's quitting his full-time gig to go all in on this Mateus we're rooting for you thank you for taking that to the top thank you thank you so much one more thing before you go we have a brand new show every Thursday at 1pm 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 our poo CAC LTV you name 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