PROCESIO Revenue, Valuation & Funding (2024)

hey folks my guest today is marion avoicu he's building processio 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 want to integrate applications and process data up to five times faster marianne are you ready to take us to the top yes i am thank you no no code is a hot space tell me who's buying your product yes it is actually we are building a no code and local approach to classic coding but we are for technical mindset so uh processor is used by companies that has uh let's say a technical department or the for the software development companies that build software or and provide outcomes to customers so we are a bit technical as a mindset i see and so what are customers paying you on average to use the technology yes they're paying us but i must say that we just launched and have like uh four clients paying customers and starting to to build our the pipeline of sales that's awesome okay so for customers how much are they paying per month uh in total like four uh like 5k uh and we are having like uh 1000k in pipeline and we are hoping to close this year with 50k so you have five customers paying on average a thousand dollars a month so five thousand and monthly recurring revenue sorry not four months it's uh yeah that we have annually in revenue because we are selling only annual recruiting got it so so you have five customers paying 400 bucks a month and you're doing about five so which is about you know huh like that yes yeah yeah yeah yeah so five customers total pay 400 bucks a month altogether so you're doing about 5 000 in arr yep that's ex that's exciting we're getting you at the perfect stage you just turned on the pay wall so what are you learning is your price point the right price point are you too cheap actually uh 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 customers because they will pay what they will use we do not charge per user the processes it doesn't matter for us matters only what they will use and uh this is really helpful for us because we will understand the value that we provide for them and when did you start writing this platform the first line of code first line of code like at the beginning of 2020 2020 in march 2017. and have you raised capital or are you bootstrapped yes we we have also bootstrapped from our patent company but with this capital we have we had two seed rounds in total of 1.2 million and now we are reaching out for round a when did when was the first pre-seed round how much uh it was uh at the half of 2020 uh like half a million and now a bit above uh half a million okay so 1.2 and then so you just raised another 700 000 this year actually what was uh six uh uh thousand uh uh six and half six and a half six hundred fifty thousand this year and and what what valuation did you raise that at uh twelve million one 12 million yes it was uh it was a safe round with a cap at uh 12 million okay so cap at 12 million and who's the parent company the parent company it's the ringgold company it's a company from the energy space it's a top provider for uh software for the clm and elp for power and gas industry in romania and how much equity did the parent company keep when you spun it out uh actually we didn't spin it out we are still part of the company we have built like a startup inside the company but we are still part of the company so you don't really have any you don't have any equity then uh myself personally yeah i have because i have from the entire company i see how how many employees are at the entire company 53 53 okay is this the biggest product yes it is it's the strategic product of the company we have another uh product for powering its industry it's the crm and elt and we are migrating that product on our processor technology because that process is a technology and we will migrate uh the other product on this technology what's the what's the url for the parent company actually it's uh ringgel uh i will uh spell it just spell it l i n got it very cool okay so um you've got uh you're growing lingo um how many there are i guess why didn'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 hundred percent of it because we want and are boosted from it and uh our parent company uh support us also with capital so we have a better runway uh we will use our the current company uh customers we are upselling it processor to the the other division clients uh 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 got it interesting okay and you mentioned you're raising capital now yep how much we are looking for 4 million so you're raising 4 million now and what valuation are you targeting uh 8 million 18 million 18 18 1 8 million up from 12 million earlier this year do you think do you think you'll get that valuation considering your revenue is just 500 bucks a month uh we hope so we plan to raise at the beginning of the next year while reaching to this evaluation and this uh amount talk to me about how you plan to get more customers well as i said we are the part of the other company and we will ask we will have sell uh procedure to the existing uh uh clients how many existing clients are there like 50 50 55 like this so you're going to upsell to those 55 clients and then how do you get more clients we will get more clients because this is just one track that we are having right now upselling but we are the we built a sales team uh and right now we are outreaching it uh now we are building a sales funnel we have a pipeline of like 1000 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 outcomes to uh to beneficiaries so how many they are today on your team how many 30 23 23. okay so 20 23 on the team and how many of those are engineers 11 11 engineers great and what what's your background myron i mean have you launched a company before i didn't launch a company myself i've been part of another company like in 2015 i closed that that part of that adventure that i have been part of i've tried to build another company some other companies before but fail failed builder 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 uh and i'm building it together with how much equity do you own in the in the parent company uh i cannot disclose that but i have a part i'm i have my skin in the game and i'm also an employee um got it when did you join linga in 2020 at the beginning you joined in 2020 the same that was linga launched in 2020 no ringal was launching 20 2011. 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 now let's wrap up here with the famous five number one what's your favorite book my favorite book i i don't have favorite things but uh right now i can say let's say the fourth uh step to epiphany the fourth step is a good one number two is there a ceo you're following or studying i do not follow no specific ceos but uh i follow some people that i like uh and that is there is a guy that uh recently lived from uh cognizant uh his name is malcolm frank and i really love his way of leadership and his storytelling approach and i love his way of doing things number three what's your favorite online tool for building process seo for billing processio actually uh there are a lot i'm a big fan of tools so we are using a lot of tools um but building procession my favorite tool is micro is processing because we are building to assist you with the system we have no capability you can without naming your own marion a different tool okay okay a different tool um let's say on the design side i really love what we are doing with sigma and uh and the middle and with maze on the usability testing um number four how many hours of sleep to get every night uh let's say enough i can do better but how many between six and seven six and seven very good and what's your situation married single kids i made it with a wonderful woman that support me uh and i have a daughter of three and a half years old married one kid and how old are you i'm 54 34. last question something you wish you knew when you were 20 actually that that is not something like that i cannot think of myself of knowing what i know now because uh i think that what i did that uh when i was younger i did with the knowledge that i have and i did a good job because i'm here right now so that's very hard to think about processio helping you connect more applications faster a low code no code environment five customers today paying 100 bucks per month so 500 and mrr about 5 000 in ar as they look to scale 500 000 precedent round raised last year another 650 000 raised this year at a 12 million valuation now looking to raise uh 4 million out of 18 million valuation we'll see if they can get it done 23 on the team today marion thank you for taking us to the top thank you very much nathan [Music] one more thing before you go we have a brand new show every thursday at 1 pm 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 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 1 pm central additionally remember these recorded founder interviews go live we release them here on youtube every day at 2pm central to make 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