How Lymb CEO Markoss Kern grew Lymb to $93.3K revenue and 70 customers in 2024.

hey folks my guest today is marcos kearney is a munich-based sports tech company on a mission to make the world more physical physically active using the power of gamification if you want to follow along the website is lim dot io marcos you ready to take us to the top absolutely always ready to be active all right i feel like the most recent version of this was this like ar pokemon go everyone who's usually sitting on their couch is now running around towns capturing pokemon is this sort of what you're building here but at scale um yeah sort of i mean i love the the effect of what happened there because it got people out it's the same approach we obviously like to focus on a much more holistic workout so we really want to make you sweat not just walk around and obviously we want to create a hype that's a little bit more consistent and a little bit more sustainable than just doing for a couple of weeks who's buying this is it consumers or assigned to sports teams or what well right now we're very strong in the business to business uh market so it's sports teams clubs facilities even kindergartens a lot of offices but now we're also launching our b2c console so it's also going to jump into your living room but who's paying for this right now though is it mainly b2b yes mainly b2b because we just launched the new console it's going to come out probably in february because obviously we have a little bit of delay with the whole smd crisis so so far right now we're in 45 countries and it's only b2b about 500 pre-orders for the console okay so wait are you selling a sass tool here or is it a physical piece of hardware it's a hardware connected with a sas ooh okay so i love this model because once they sell the hardware they never turn on the sas so so let's let's talk just to be clear do you have any sas revenue yet or your pre-revenue on that side no no we we have around i think the annual should be around 45 right now okay in euros uh sas revenue but we just started early 2021 to even switch on the sas before that it was just lifetime licenses and yeah just like you said it's it's a hard sell because it's hardware but so far we have a retention rate of 100 so we're happy well okay so let me break all this down real quick so you're doing right now at about four thousand dollars a month in sas revenue which is about 50 000 united states dollar run rate annually correct and you have 500 pre-orders of the hardware no we just started 21 so we have around six and a half k per per month right now actually oh i see of sas revenue exactly because probably around 80 of the systems that we have out there already they went with a lifetime license so we just started switching over to sas how many systems are installed currently around 600 i guess oh wow how much does it cost you to make each of those units uh the production cost is depends the range is pretty good so the retail price is between i think the cheapest one is four and a half grand the biggest one is around 60 grand which is full led uh the production cost is always about 70 of that so we have a 30 margin interesting um that's a massive difference 4 500 to 60 000. what drives that cost up again well the smallest one is just what you would put in in a classroom for example then we have like complete sets that go into squash courts and we also have like massive led walls that you just put outdoors and you let people interact with it you can swipe a card you can play or you can pay with the app and just book it whenever you want i see so what was it like take 600 times all of their retail prices how much total sales of the hardware today a little bit obviously in the beginning we've been selling at quite other prices as you know it was like more like okay get it please um i think right now we're like approaching around the four minute four and a half no it must be close to four and a half million in lifetime revenue which probably we made two and a half last year and that's just on hardware right not lifetime sas stuff it's a very small portion of light of sas but probably 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 going to pay a different valuation private equity firm is different if you're going to 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 traction 1.2 million seed round 3.7 raised they sold 22 to 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 gonna 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 but we can take that 4.5 million of hardware sales multiplied by 70 cost of goods sold to get your margin of the 30 percent yes which would be about 1.3 million on 4.5 of total sales yeah we always have to factor in that in the beginning obviously creating this hardware it's it's it's not as profitable in the beginning we're also now bringing down or bringing up the margin quite much but at the very beginning it was obviously much uh you you sell the first units as added deficit obviously and you did all that this is just you launched in 2020 so your first hardware sale was last year or two years ago no we're actually we're more almost five years old now oh okay it took a very long time to develop the tech before we even started going on the market then it was a very slow start hardware is like to get the first clients took a very long time and now the last year we've grown 2.9 percent at 2.9 times the size that we had before so now it's really starting to show off so when what year was your first hardware sale 2017 i think two you sold two units in 2017. something like that yeah okay got it so between 2017 and today you've done 4.5 million total of hardware sales which is about 600 units does that 4.5 million include the 500 and pre-orders for the 500 new units no it doesn't okay so you've done much more than 4.5 million in revenue if you add the 500 in pre-orders yeah we have a kickstarter campaign so that's where we obviously sold the pre-orders at a quite discounted price and now there's like every week four five six nine ten sometimes coming in i see interesting okay and and what do you sell it for on the kickstarter campaign well the kickstarter campaign we started with around 800 to 900 bucks which is also the retail price that we're aiming for right now we had to go up quite a lot because production is insane so we're now selling it at around 1 400 for the first units at least but if you pre-sold a bunch at 600 a pop let's say just to make the map easy so to all 500 at 600 a pop that's 300 000 bucks in sales with cobit supply chains changing so rapidly couldn't you potentially lose money on every one of those pre-sales to be honest on the kickstarter ones definitely yes absolutely we factored that in already in the beginning and this is also what we're compensating with the new price for but obviously the very first batches when you produce something you always have to estimate that you're like not making any its economy a scale like you're always losing money if we would sell the first 20 units we would have to charge like three grand per...