PROCESIO Revenue, Valuation & Funding (2024)

[00:00] Hey, folks. My guest today is Marian Voicu. He's building procesio, an integration platform that provides a fast and scalable alternative to classic coding by using a low slash no code approach. Their technology is for organizations and individuals that wanna integrate applications and process data up to five times faster. Marian, are you ready to take us to the top? [00:18] >> Yes. I am. Thank you. [00:19] No no code is a hot space. Tell me who's buying your product. [00:24] >> Yes. Is. Actually, we are building a no code and low code approach to classic coding, but we are for technical mindset. So procesio is used by companies that has, let's say, a technical department or for the software development companies that build software and provide outcomes to customers. We are a bit technical as a mindset. [00:49] I see. And so what are customers paying you on average to use the technology? [00:55] >> Yes, they're paying us, but I must say that we just launched and have four clients paying customers and starting to build our pipeline of sales. [01:06] That's awesome. Okay. So four customers, how much are they paying per month? [01:11] >> In total, like 5 ks And we are having like 1,000 in pipeline. And we are hoping to close this year with 50 k. [01:21] So you have five customers paying on average $1,000 a month. So 5,000 in monthly recurring revenue? [01:27] >> Sorry. Not four months. It's ARR. We are annual recurring revenue because we are selling only annual recurring. [01:34] Got it. So you have five customers paying $400 a month and you're doing about five so which is about, you know, Like that. [01:42] >> Like that. Yes. [01:44] Yeah. So five customers total pay $400 a month altogether. You're doing about 5,000 in ARR. That's exciting. We're getting you at the stage. You just turned on the paywall. So what are you learning? Is your price point the right price point? Are you too cheap? [02:00] >> Actually, nobody complains about the price. So I'm assuming that we are a bit too cheap, But I think we are on the right spot because we are selling the value that we offer to our customer because they will pay what they will use. We do not charge per user, per processes. It doesn't matter for us. Matters only what they will use. And this is really helpful for us because we will understand the value that we provide [02:28] >> for them. [02:29] And when did you start writing this platform? The first line of code? [02:33] >> First line of code, like at the beginning of 2020, 2020, in March 20 And [02:40] have you raised capital or are you bootstrapped? [02:43] >> Yes. We are also bootstrapped from our parent company, But with this capital, we have we had two seed rounds in total of 1,200,000. And now we are reaching out for round a. [02:58] When did when was the first pre seed round? How much? [03:02] >> It was, at the half of 2020, like 500,000 and now a bit above, 500,000. [03:10] Okay. So point two. [03:13] And then you so you just raised another 700,000 this year? [03:16] >> Actually, was 6,000, 6.5. [03:23] 6.5, 650,000 this And what valuation did you raise that at? [03:29] >> 12,000,000. [03:30] $12,000,000? [03:32] >> Yes. It was a it it was a SAFE round with a cap at, 12,000,000. [03:37] Okay. So cap at 12,000,000. And who's the parent company? [03:41] >> The parent company is the Lingal company. It's a company from the energy space. It's a top provider for software for CRM and ERP for power and gas industry in Romania. [03:53] And how much equity did the parent company keep when you spun it out? [03:57] >> Actually, we didn't spin it out. We are still part of the company. We are build like a startup inside the company, but we are still part of the company. [04:05] So you don't really have any, you don't have any equity then? [04:09] >> Myself personally? Yeah. I have because I have from the entire company. [04:14] I see. How many employees are at the entire company? [04:17] >> 53. [04:19] 53. Okay. Is this the biggest product? [04:22] >> Yes, it is. It's the strategic product of the company. We have one other product for powering this industry, the CRM and ERP, and we are migrating that product on our, Procesio technology because that Procesio technology, and we will, migrate the other product on this technology. [04:40] What's the what's the URL for the parent company? [04:44] >> Actually, it's Lingal. I will [04:50] >> spell it. [04:51] So just spell it. [04:52] >> L I n g a l. [04:59] Lingal. [05:00] >> Lingal. [05:02] Lingal. Got it. Very cool. Okay. So you've got you're growing Lingal. How many are I guess, why don't you just I guess I don't understand. Why don't you just leave the business and launch this from scratch so that you have a 100% of it? [05:16] >> Because we were and are boosted from it and our parent company support us also with capital. So we have a better runway. We will use our current company customers. We are upselling it, Procesio to the other division clients. We do not see that will not spin off, but at this point, it makes sense for us to still be part of the company. [05:46] Got it. Interesting. Okay. And you mentioned you're raising capital now? [05:51] >> Yep. [05:51] How much? [05:52] >> We are looking for 4,000,000. [05:56] So you're raising 4,000,000 now. And what valuation are you targeting? [06:00] >> 8,000,000. [06:01] 18,000,000. 18. [06:03] 18. $18,000,000. Up from 12,000,000 earlier this year. [06:09] >> Yep. [06:10] Do you think do you think you'll get that valuation considering your revenue is just $500 a [06:14] >> We hope so. We plan to raise at the beginning of the next year while reaching to this valuation and this amount. [06:26] Talk to me about how you plan to get more customers. [06:30] >> Well, as I said, we are the part of the other company and we will upsell procesio to the existing clients. [06:40] How many existing clients are there? [06:43] >> Like fifty, fifty five like this. [06:48] So you're gonna upsell to those 55 clients. And then how do you get more clients? [06:53] >> We will get more clients because this is just one track that we are having right now, upselling. But we have built a sales team and right now we are outreaching it. Now we are building a sales funnel. We have a pipeline of like 1,000 k and the pipeline is going with prospects and discussion that we have. And also we are building a partnership. We have a partnership program and start to build partnership with, companies that provide [07:26] >> outcomes to, to beneficiaries. [07:28] So How many total are on the team today? On the procesio team? [07:34] Your team, how many? [07:35] >> 33. [07:36] >> 23. [07:37] Okay. So twenty twenty three on the team. And how many of those are engineers? [07:41] >> 11. [07:42] 11 engineers. Great. And what's your background, Marian? I mean, you launched a company before? [07:48] >> I didn't launch a company myself. I've been part of another company like in, 2015. I closed that, [07:59] >> part of [08:02] >> that venture that I've been part of. I've tried to build another company, some other companies before, but failed. Failed to build one in 2015. And now I'm part of this new venture alongside our founder. And I'm part of it. I do not own it. I'm not the founder, but I'm part of it. And I'm building it together with [08:27] How much equity do you own in the parent company? [08:31] >> I cannot disclose that, but I I have a part. I'm I have my skin in the game, and I'm also an employee. [08:42] Got it. When did you join Lingal? [08:45] >> In 2020 at the beginning. [08:47] You joined in 2020. The same was Lingal launched in 2020? [08:51] >> No. Lingal was launched in 2011. [08:55] I see. Very cool. We're rooting for you. We hope it grows great. We hope you're able to raise the valuation you want. In the meantime, though, let's wrap up here with the famous five. Number one, what's your favorite book? [09:04] >> My favorite book. I don't have favorite things, but right now I can say, let's say The Four Steps to the Epiphany. [09:13] >> The Four Steps to the Epiphany is a good one. [09:15] Number two, is there a CEO you're following or studying? [09:19] >> I do not follow specific CEOs, but I follow some people that I like. And there is a guy that recently from Cognizant. His name is Malcolm Frank, and I really love his way of leadership and his storytelling approach, and I love his way of of doing things. [09:41] Number three, what's your favorite online tool for building procesio? [09:45] >> For building procesio? Actually, there are a lot. I'm a big fan of tools. So we are using a lot of tools, but building procesio, my favorite tool is procesio because we are building procesio with procesio. We have a capability. [10:02] Without naming your own, Marian, a different tool. [10:04] >> Okay. Okay. A different tool. Let's say on the design side, I really love what we are doing with Figma and the Miro and with Maze on the usability testing. [10:20] It's great Number for the four, how many hours of sleep do you get every night? [10:26] >> Let's take enough. I can do better, but How many? Between six and seven. [10:32] Six and seven. Very good. And what's your situation? Married, single, kids? [10:36] >> I married with a wonderful woman that support me, and I have a daughter of 3.5 years old. [10:44] Married, one kid. And how old are you? [10:46] >> I'm 34. [10:48] >> 34. [10:49] Last question. Something you wish you knew when you were 20. [10:52] >> Actually, that is not something like that. I cannot think of myself of knowing what I know now because I think that what I did when I was younger, I did with the knowledge that I have and I did a good job because I'm here right now. [11:08] So to think about this. Procesio, helping you connect more applications faster, a low code, no code environment. Five customers today paying a $100 per month. So 500 in MRR, about 5,000 in ARR as they look to scale. $500,000 pre seed round raised last year. Another 650,000 raised this year at a 12,000,000 valuation. Now looking to raise 4,000,000 out of 18,000,000 valuation. We'll see if they can get it done. 23 on the team today. Marian, thank you [11:32] for taking us to the top. [11:34] >> Thank you very much, Nathan. [11:37] 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, 1PM [12:02] Central. Additionally, remember these recorded Founder interviews go live. We release them here on YouTube every day at 2PM 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 an acquisition, a big [12:24] 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 want to 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 saying. Sign up [12:46] 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, but I do it so that we can all learn. We have to counter those people. We [13:06] got to push them away. Click the thumbs up below to counter them and know that I appreciate your guys'support. All right. [13:11] >> I'll [13:11] be in the comments. See you.