How Magnettu CEO Rafael Calle grew Magnettu to $48.4K revenue and 11 customers in 2024.

they started coding the company back in May in 2022 today they're doing 2 860 per month in Revenue with 120-ish cash in the bank burning 7K a month with a team of eight as they look to scale raised 255 000 in their precede around last year at a 2.5 million post money evaluation they sold 10 three co-founders building together again trying to help you turn your employees into a marketing arm for the company right now focus on the real estate broker real estate agent uh relationship niche hey folks my guest today is Rafa Kai he was born in Colombia but moved to Spain when he was 20. since then he's worked as a digital marketing manager for startups and multinational companies in December of 2021 he decided to quit his job and start Magna to his third startup it helps transform employees into your best marketing channel Rapha you ready to take us to the top yeah all right tell me to here tell me tell me a customer story who's someone that's using you and how are they using you yeah okay so we we you are mainly focusing on on several on on different uh niches but just to give you an example real estate could be one so we all state agents are needing to attract property owners in order to sell their properties so what we do is we wonder ground then run them a platform where they can get specific content to share on their social media and to attract these clients so this content is completely customized to your personality to their company goals to your company ton of boys as well so all what they need is to access to Magneto find this content and share it on their social networks at the same time the marketing departments can check how many uh real estate agents are actually sharing content the traction that this company is generating and so on so we are kind of converting this uh real estate agents in this example into our marketing channel for the real estate company so instead of going to Google ads or to Facebook ads they just put the person up front in order to attract clients because understood and what are companies paying on average per month to use this technology so we we charge by C and it goes from 24 uh Euro a month a month per user depending on the on the on the on the content that you get on on the the frequency then you pay up to 99 a month okay again 24 euro per month which is 26 27 United States dollars per month and what's the average company when they sign up what's the average number of seats they're buying yeah we we started with 10 seats right now we are closing deals with 25 to 30 seats ideally uh in one year we're expecting to close deals with 50 to 100 seats so Rafa is it fair to say your average customer is paying for 10 seats at 26 bucks a month correctly okay so 260 a month on average now that we understand the economics let's get the back story here what year did you launch the business yeah so I was actually facing the the issue I was working as digital marketing manager for one of the leading real estate companies in Spain um and I was burning a lot of money spending spent on Google ads Facebook ads and it was very expensive to to acquire Property Owners online so I asked my my real estate agents just to share content online in order to get those clients but they were telling me Rafa I don't want to share boring content if you share specific content and personalized content then I will do it so I ran a pilot and I asked my team to create manually this content for them it was kind of a hustle because it was written manually so it was not scalable but we did it and we selected some some of our real estate agents and it really worked it worked really well so what year though did you write the first line of code for magnitude so I we grow the very first line of code back in 2022 it was like in May it was up pretty pretty lean um let us say it was like our MVP was yeah May last year okay and when it was your first paying customer it was when when we officially launched the product was October last year and the very first month we got the first uh paying client which was really cool before that we were we were just running uh Pilots so so it was for free and we were just testing the concept when we launched the product officially the first client came in like the second day which was really encouraging for our team 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 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 evaluation this year now the secret valuation is there's many different ways to value a SAS business so the reason you're 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the first line of code May 2022 and the first customer on October 2022 how much did you spend in that time frame on the MVP barely two hundred dollars was very very lean and actually we got well what did you spend the 200 on it was a paying webflow which was no code terraform to start building the the NDP um buying some design stuff online fiber on this kind of uh stuff so that it was pretty lean I I just crafted everything with my uh co-founder so the rest was just you and your co-founder putting in Sweat Equity yeah did you guys split Equity evenly at the start 50 50. yeah then another co-founder came in later on and and we we were in Nepal at that time because he he joined once we got our first uh investment round so so we then we didn't feel like a equally with him so when was the equity round how much did you raise we raised 255 uh K that's zero and that was in October last year so everything came at the same time the very first client the first investment round uh was such a nice amount for us and how much of the company did you sell for the 255 000 dollars 10 percent did that make you nervous at the time no not at all not at all to to to be honest I was kind of expecting it uh and the the Spanish Market is kind of tough when it comes to valuation and I I thought it was fair and it was like Smooth for us that's great so what is a split now 10 investor is what 40 you 40 your first co-founder and maybe 10 for the late co-founder something like that no it's it's around 30 something for the very first two co-founders 20 something for the third co-founder and and ten percent for for for our uh investor any plans to raise more capital or you're good for a while we we were actually raising more and we we have committed uh 70k it's just an extension round in order to to to speed up the process so we will we will be facing actually a seat ground by the beginning of next year that's like the the idea about to refer our Runway right now is better than we thought it would be so we are not kind of uh needing to raise money now but we are kind of acting in advance in order to go uh faster so we raised 70k from from friends and family we don't wanna we we just wanna be close at this uh...