Lalamu App Revenue, Valuation & Funding (2023)

[00:00] Lalamu. 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 product launch, 215 upvotes. That's helped people create over a 100,000 videos I'm sorry, a 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 $2,000,000 funding round [00:22] at a 10,000,000 valuation. He's quitting his full time gig to go all in on this. Hey folks, my guest today is Matthias Spitzer. He's the CEO and Founder of lalamu.app. If you wanna follow along, he's got twenty 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 [00:43] and video solutions at app lalamu. All right, Matthias, you ready to take to the top? [00:48] >> Yes, okay. [00:49] All right, so I guess explain to us how a customer would use the application today. [00:55] >> So the customers are B2B or B2C clients and it's like customers be like from creations of video creations or post production videos companies or advertising companies like that and they use the tool for lip syncing their videos in different languages. So they got original languages like German and they want to translate it 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 [01:38] >> from the original speech to a different language, and then [01:46] >> it's about one tip on creating lip sync and the original video takes the audio they create and the movement of the lips creates. About the Spanish talking is about [02:07] >> Japanese speech. [02:08] Understood Matthias, understood. [02:10] >> Makes sense. Tell me, I [02:12] understand the pricing here. What do customers pay on average per month or per year if she uses technology? [02:18] >> We don't have any offer because we are in a demo version right now. So it's for free right now. [02:28] Okay, so just to be clear, you have no customers today. Help me understand when [02:32] >> you No started paying customers, yeah. [02:36] Well, that's what a customer is, right? Someone who's paying you. [02:39] >> Yeah. No paying customers today. [02:41] When did you first start writing code for the platform or for the tool? [02:45] >> The first tool is LipSync app. It's called lalamu app. [02:50] Now Matthias, when? What year did you launch the company? [02:54] >> What? [02:55] When did you launch the business? The time, the year. [02:57] >> We launched 2020. [03:02] Okay. So you funded the business to date pre revenue. I mean, you have to pay yourself salary and have to pay rents and things like that. How do you do that? [03:11] >> Yeah, so the first product is a lalamu app. It's a lip sync app. It's only the app, it's a fun app. And we got small revenues and so we focus on B2B. It's lalamu studio, it's a demo version, and now we are up to create some funding to make some high quality videos. So we are on the funding stage and so the revenue in B2B sector is quite zero. [03:41] Okay, guess, sorry, so you use the earlier version of the app that you built to fund some of your expenses that has some revenue. How much revenue does that have? [03:51] >> It's about €1,000 and that's all. [03:57] Okay, that's great. And do you have a co founder on the business or is it just you? [04:01] >> Yeah, no, no, I got one co founder, it's called Philip Salfo, he's the lead of FX in the side way, a side business for Weeter, it's the greatest post production company worldwide. He has the lead of effects of Guardians of the Galaxy or Transformers, and so he's the CTO and my co founder. [04:25] So Matthias, just to go back to this, so the company has been making since 2020 about $1,000 per month on this first version of the application. You've now launched a B2B version, which is AI enabled, that is free revenue, no customers there. It's really hard to support two people on a thousand dollars a month. So have you and your co founder both kept side jobs or something to pay your bills? [04:44] >> Yes. I get my job as well as a motion designer and Philip is the leader of FX at Weetel and now we are on the farming grounds about €2,000,000 to create the AI developers group. [05:03] You've already closed that round or you're currently raising it? [05:06] >> We are currently raising it, so. [05:08] And what are you learning from the market today, giving you the valuation that you want? [05:12] >> I think we are on the right way. [05:19] You know what that means? [05:21] >> We know that the B2B web solution is quite the right way to make some revenues because we got awesome feedback from users worldwide. They use the free demo version right now, the lalamu studio free demo version. [05:43] Oh, what's going on there YouTube? Good to see you guys. Now imagine this, you love watching these interviews with SaaS founders, but imagine if we took all of the valuation data out from over 2,807 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 Founderpath. Check this out. I'll show you how you can access this in a second, but you log in, you connect [06:06] your Stripe account, you see your valuation real time. You can see what it changed over the past eighty eight days and even set goals for valuation this year. Now the secret evaluation is there's many different ways to value a SaaS business. So the reason you're gonna see three or four different valuations inside of your Founderpath dashboard, this is all free by the way, is because depending on who's doing the buying of your SaaS company, you're gonna [06:31] 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 [06:53] 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 traction, 1,200,000 seed round, 3.7 raise. They sold 22% of their business. Go in here and filter by the event. Maybe you only wanna 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 [07:18] going out right now and you're raising your seed round. We'll 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 dataset of SaaS valuations than what you can get now inside of Founderpath. And we're thrilled to bring it to you. Alright. We're gonna go back to the YouTube video here in a second, but if [07:40] you wanna check this tool out, if you wanna jump in and sign up, you can check it out for free to get your valuation at this link. This link, founderpath.com/products/valuations. 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. Alright. Let's jump back into the [08:07] interview. What behavior are you watching on the free version that gives you confidence that you can charge for this tool? [08:14] >> Because they ask about API, paid API to use it in high quality. [08:21] I see. So when do you plan to launch a pricing plan? [08:25] >> A couple of months, like maximum six months from start right now. [08:31] And how many free users are on the B2B tool right now? [08:34] >> Every day about 1,000 videos are created. Each day 1,000 videos have been created. Since May 14, we launched it on Product Hunt and since then we got over 20,000 created lip sync videos. [08:55] And so the thousand videos that have been created over the past thirty days, how many users created those videos? [09:04] >> The numbers of creators we don't know, but we only know the created videos. It's about 20,000 videos they have created since the last four weeks. [09:22] Sorry, they've created a thousand videos in the past thirty days or 20,000 in the past thirty days? [09:27] >> 20,000. [09:29] Oh, okay, so it's a thousand per day, you said? [09:31] >> Yeah. Yeah. Sorry. Sorry. Okay. [09:34] So 20 ks videos last thirty 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? [09:45] >> So we got Google Analytics quite running and we see about 19 to 100,000 not really users. The 100,000 are all the people that open up the website, but creators'videos are at 20,000 since So [10:13] I guess how emails do you have? User emails? [10:17] >> User emails? [10:19] Yes. Users that have signed up to lalamu. How many emails do you [10:23] >> No, no. You don't have to sign up. It's a free version. It's a demo. So you type in the website and you can begin at the start. You don't have any login, [10:36] >> no emails. [10:37] So then how do you market to these users once you launch your free plan? How do you go find them again? [10:44] >> It's in the future because now we want to have some feedback from the users to what's good, what's [10:53] How do give you feedback though if you don't know who they are, if you don't have their email address? [10:57] >> How do [10:57] you talk to them? [10:58] >> They talk to me, they write to me. [11:01] How? Via email? [11:03] >> No, no, we got no login in the free version. [11:07] So how do they write to you? [11:09] >> They write to me because we got on the website's email address, and so when they have some asks about lalamu studio or the features that we build up, they write to us by themselves. [11:24] So they email you, you put your email on the site, they email you? [11:28] >> Yeah. [11:29] When they email you, then you see their email address, correct? [11:33] >> Yes. But how many emails there are, I don't know. [11:39] I guess what I'm trying to understand is like all these usage metrics on the tool, again, go to lalamu.studio to sign up to use it, you don't have to actually sign up for anything, you just start using it. It's great that you've had 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 launch your pricing page, that new traffic [12:00] that hits that day when you launch it sees it because you have no way to go email market or in any way reach out to people that have used you in the past. No. [12:11] >> Why we choosing this way is to see how many people are using our website or creating videos to tell that numbers to the future investors. That's the only [12:31] What is that? That's what I was asking earlier. What is that number? How many people created videos over the past thirty days? [12:37] >> How many people? We don't know. We only know [12:40] Well, you just told me that Matthias, you just said that you're measuring to show investors, and then when I asked you, well, what's the number? You said you don't know the number. [12:46] >> I don't know the number how many people are using the website. We only know the number how many videos are created since the last four weeks. [12:57] Got it, so it could be one user who's just sitting there running a cron job, launching a thousand videos. [13:06] >> Google Analytics tells us 100,000 users opened the website. [13:13] Over a period of time? [13:15] >> Yeah, but how many users really use their websites to create some videos, I don't know. [13:22] Many of the 100,000 that opened the website, over what period of time? [13:28] >> Last four weeks. [13:30] Last four weeks, okay, that's great. And so you're raising a $2,000,000 pre seed round today, what valuation are you targeting? [13:39] >> Because what valuation? It's like [13:45] >> tell me the [13:47] >> ask me again, please. Sorry. [13:49] Yeah, no problem. So [13:53] if I say I'm going to give you $2,000,000 Matthias, how much equity will you give me in lalamu app? [13:58] >> How many equity? We think about 20%. [14:03] Okay, so that would be effectively two point so that would be a $10,000,000 valuation is what you're asking for? [14:08] >> Yes. [14:09] How do you defend that? I mean, you think someone's going to give you a $10,000,000 valuation today? [14:14] >> We think so because I'm speechless with different investors, [14:21] >> so we got a great stage 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 Envato or else. [14:47] But if I was an investor and you were asking me for $2,000,000 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 investors to give you a million valuation? [15:01] >> Yes. Definitely. Yes. [15:03] So when are you quitting? Why or when? When. When. [15:08] >> Right now. [15:11] That's breaking news on the podcast. You're quitting your full time gig to go all in on lalamu out. [15:15] >> Yes. [15:16] Does your boss know that? [15:21] >> I'm self employed, so I got no boost. [15:24] Ah! [15:24] >> Yes! Okay. [15:27] Got it. I see, I see. All right, very cool. Well, listen, we're certainly wishing you an invest. I guess, Ed, we have about a minute left. Tell us how you had so much success on Product Hunt. What was the key to getting so much traction when you launched? [15:40] >> The key, we think about it's we got no login. That's the first key because people love it to play as soon as possible. They open the sites and they can play. They can create videos at the start, at the beginning, and we think that's the key, and our focus and our target is to build the paid version like it's right now, but when you like to build, create some high quality videos, you must pay per minute [16:18] >> or monthly about ten minutes package or twenty minutes package and so on. [16:24] Got it. Well, you did well, you got two fifteen 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? [16:32] >> Oh my god, oh, it's too fast. My favorite book, oh my god, [16:40] >> it's too fast. Can we take the next? I'll say none. [16:44] Number two: Is there a CEO you're following or studying? [16:49] >> One CEO I'm following. [16:53] >> I'm following by myself. [16:56] Sorry, that's What's very your favorite online tool for building a lalamu app? [17:02] >> My favorite online tool to building a lalamu app. It's building by our own technique. [17:13] Sorry, what's a tool that you use, your favorite online tool besides your own? [17:18] >> Ah, Canva. [17:20] Number four. How many hours of sleep do you get every night? [17:23] >> What? Sorry. [17:24] That was two parts. [17:25] Sorry. How many hours of sleep do you get every night? [17:28] >> Oh my god. Five hours, I think. [17:31] And your situation, Matthias? Married? Single? Do you have kids? [17:36] >> Single. No kids. [17:38] Okay, and how old are you? [17:44] How old are you? [17:46] >> Oh, how old? Thought how I am. I'm 42. Sorry. [17:52] 42, last question. Something you wish you knew when you were 20 years old? [17:59] >> I built the lalamu application at 20, not at 40. [18:07] Build sooner, lalamu. App is using AI to help you sync lip sync video or text to speech multiple languages with a click of a button. Had a successful product launch, two fifteen upvotes. That's helped people create over a 100,000 videos, Sorry, a 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 $2,000,000 funding [18:30] round at a 10,000,000 valuation. He's quitting his full time gig to go all in on this. Matthias, we're rooting for you. Thank you for taking that to the top. [18:37] >> Thank you. Thank you so much. [18:40] One more thing before you go. We have a brand new show every Thursday at 1PM central. It's called Shark Tank for SaaS. 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 one [19:04] p. M. Central. Additionally, remember these recorded founder interviews go live. We release them here on YouTube every day at two 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 miss breaking news in the SaaS world, whether it's [19:26] an acquisition, a big fundraise, a big sale, a big profitability statement or something else. I don't want you to miss it. Additionally, if you wanna take this conversation deeper and further, we have by far the largest private Slack community for B2B SaaS founders. You wanna get in there. We've probably talked about your tool if you're running a company or your firm if you're investing. You can go in there and quickly search and see what people are [19:48] saying. Sign up for that at nathanlatka.com/slack. In the meantime, I'm hanging out with you here on YouTube. I'll be in the comments for the next thirty minutes. Feel free to let me know what you thought about this episode. And if you enjoyed it, click the thumbs up. We get a lot of haters that are mad at how aggressive I am on these shows, I do it so that we can all learn. We have to counter those [20:08] people. We got to push them away. Click the thumbs up below to counter them and know that I appreciate your guys'support. Alright, I'll be in the comments. See you. Hi.