Founder Interview
How Productfy Raised a $16M Series A to Let Any Organization Launch a Credit-Union-Like Product in Under a Week (Interview with Founder Duy Vo)
- Interview Date
- December 8, 2021
- Interviewee
- Duy VoFounder
Company Metrics at Interview Time
Series A Raised (2021)
$16M
Total Funding
$18.63M
Team Size (2021)
30
Engineers (2021)
17
Year Founded
2018
Historical Snapshot
These numbers were reported by Duy Vo during the interview recorded in December 2021 and are a historical snapshot, not current figures. See Productfy’s current numbers.

Key Takeaways
- 01Productfy raised a $16M Series A in April 2021, eight months before this interview
- 02Total funding across all rounds reached $18.63M, including a $2.35M seed in August 2020 and a $280K pre-seed
- 03The team stood at 30 people in December 2021, with 17 of them in engineering
- 04Duy Vo is the sole founder, having started writing code in 2018
- 05The platform launched its current version in 2021, with the first scaling customers onboarded that year
- 06150,000 production users were added to the system between January and August 2021, as reported in a TechCrunch article
- 07Debit card transaction volume grew between 2.5x and 4x from October to November 2021, though the founder did not disclose the October base
- 08Productfy charges a flat fee of roughly 10 cents per ACH transaction at entry-level volume
- 09First-level KYC is priced at roughly 60 to 70 cents per check
- 10The company planned to launch a January 2022 product letting organizations with no engineering, compliance or servicing team stand up a credit-union-like financial product in under a week
Company Metrics at Time of Interview
| Metric | Value | Source |
|---|---|---|
| Pre-Seed Raised | $280K | Founder interview, Dec 2021 |
| Seed Round Raised (2020-08) | $2.35M | Founder interview, Dec 2021 |
| Series A Raised (2021) | $16M | Founder interview, Dec 2021 |
| Total Funding | $18.63M | Founder interview, Dec 2021 |
| Team Size (2021) | 30 | Founder interview, Dec 2021 |
| Engineers (2021) | 17 | Founder interview, Dec 2021 |
| Year Founded | 2018 | Founder interview, Dec 2021 |
| Production Users Added (Jan to Aug 2021) | 150,000 | Founder interview, Dec 2021 |
| Debit Card Transaction Volume Growth, Oct to Nov 2021 (no base disclosed) | 2.5x to 4x | Founder interview, Dec 2021 |
| ACH Fee (entry-level) (2021) | 10 cents per transaction | Founder interview, Dec 2021 |
| First-Level KYC Fee (2021) | 60 to 70 cents per check | Founder interview, Dec 2021 |
| Average Revenue per Customer per Month (ARPU), 2021 | $1,000 to $5,000 | Founder interview, Dec 2021 |
Growth Breakdown
Revenue
Duy Vo declined to share revenue at any point in this interview. He refused a monthly figure, declined to say what year Productfy crossed a $1M run rate, and deflected a revenue goal for the following year. The only revenue-shaped figure he confirmed is per-customer: roughly $1,000 to $5,000 per month, per customer. He did say the business had seen multiples of growth month over month, without giving a base.
Customers
The platform launched its current version in 2021. Duy declined to give a customer count, saying only that it was more than five and not in the hundreds, and bounding it as somewhere between five and 100 by December 2021. All of them were fintechs at that point, and he said the plan was to expand beyond fintechs into clients that are not solely financial services.
Team
Productfy had 30 people on the team in December 2021, with 17 in engineering. Two additional hires were planned for January 2022, reflecting continued investment in technical capacity.
Funding
The company raised a $280K pre-seed on a KISS note, followed by a $2.35M priced seed round in August 2020. Duy chose a priced round to work with a firm whose partner, Dave Matter, is now a board member and whose standard at seed stage is priced rounds. A $16M Series A closed in April 2021, bringing total funding to $18.63M. A Series B was being planned for sometime in 2022.
Growth Strategy
Usage-Based Pricing to Lower Barriers
Productfy priced its platform to be startup-friendly, charging minimal program management fees in the hundreds of dollars until a client goes live, then low thousands per month. Transactional fees on ACH, KYC, wires, and interchange rev share scale with usage, letting early-stage clients get started at very low cost.
Card Issuance as a Revenue Accelerator
The launch of a debit card program in July 2021 gave the company its clearest traction story. Duy said debit card transaction volume grew between 2.5x and 4x from October to November 2021, with a further 3x projected from November to December, but he did not disclose the October base the multiple was measured from. Planned additions of secured credit cards in Q1 2022 and unsecured credit cards in Q3 2022 were expected to significantly increase interchange revenue.
Expanding Beyond Fintechs
Productfy started with fintech clients using its APIs but was actively pivoting toward non-fintech organizations such as universities and community groups. The January 2022 flagship product was designed to let any organization without engineering, compliance, or servicing teams launch a full financial product in under a week.
Early Traction to Unlock Institutional Capital
For the Series A, Duy says the pitch leaned on the number of accounts linked on the platform, the ACHs executed on it, and the card-issuance roadmap that began with the July 2021 debit card launch. He declined to give the underlying numbers, offering only the already-public figure of 150,000 production users added between January and August 2021.
Strategic Investor Relationships
Duy chose to do a priced seed round rather than a SAFE specifically to work with board member Dave Matter, whose firm required priced rounds at the seed stage.
Best Quotes
“We realized that we needed to create a marketplace for companies who aren't into banking, who aren't into financial services to better serve their end users. Imagine the power of a university that can offer a secure checking, a secure credit card, checking, savings account to its student.”
“Our early customers are all fintechs at this point. They basically have integrated with our APIs. But what we wanna do is we wanna expand beyond the world of fintechs and move into clients that are not solely financial services.”
“We try to be very, very startup friendly. So, we're talking very, very minimal program management fees in the hundreds of dollars until you go live and into the low thousands per month. And then we charge on ACH, on KYC, on wires, and then we split the interchange on revenue. We split the interchange rev share.”
“I think our first level KYC is I think something like 60 to 70 cents or something like that.”
“We raised $280,000 of pre seed fund, and we were just doing small projects, getting paid for certain integrations, and just trying to get by in the first two years.”
“I think the number we shared was between on the TechCrunch article was, I think, between January and August, I think it was like 150,000 production users got added to our system.”
“I think it's probably safe to say that our debit card transaction volume grew by, I think, somewhere between 2.5x to 4x between October and November, and we're probably going to 3x that from November to December.”
“What we're looking for is to enable any organisation without an engineering team, without a compliance team, without a servicing team, to launch a financial credit union like experience in less than a week.”
“For me, you know, first generation immigrant. I was homeless in high school, didn't know how to access financial services. Yeah, I mean, I that's probably my experience.”
What Happened Next
This interview captures Productfy in December 2021, eight months after its $16M Series A closed in April 2021 and a month before the January 2022 launch of a product meant to let organizations with no engineering, compliance or servicing team stand up a financial product. Duy Vo declined to disclose revenue, ARR or a customer count on this tape, so the figures here are limited to funding, team and pricing as he reported them at the time and should not be read as current. Visit the Productfy company profile on GetLatka for the latest available data.
View Productfy’s current profile and metricsFull Transcript
Chapters
- 0:00Introduction and Company Mission
- 0:33Who Productfy Sells To
- 1:34Early Customers and Use Cases
- 3:27Pricing Model: Program Fees and Transactional Charges
- 5:10KYC Waterfall Pricing, Wires and Interchange
- 7:59Average Revenue per Customer and Moving Upmarket
- 9:18Founding Story: First Line of Code in 2018
- 9:35Funding the First Two Years on a $280K Pre-Seed
- 11:09Personal Backstory and Team Composition
- 12:31The $2.35M Priced Seed and $16M Series A
- 18:05Production Users and Debit Card Traction
- 19:41Debit Card Volume Growth
- 21:03January 2022 Flagship Product Launch
- 21:45Sole Founder and Investor Alignment
- 22:32Famous Five
Introduction and Company Mission
Nathan Latka
00:00Hey folks, my guest today is Duy Vo. He started productfy with the thesis that financial services is moving to the edge where the user experience is. He's a product leader having spent much of his career at FinTechs and Insurtechs and is deeply passionate about financial services because he believes that the sector is both huge, massive opportunity, and a tremendous moral obligation to do societal good. And it's largely failed our most vulnerable populations. He believes the democratization
00:23of financial products and is committed to changing the way financial products are built for good. Duy, you ready to take us to top?
Duy Vo
00:30>> Yes, sir. Really appreciate the opportunity to be here, Nathan.
Who Productfy Sells To
Nathan Latka
00:33You bet. Okay, so tell us about the product. Describe your customer. Who are you selling to?
Duy Vo
00:37>> Yeah, so maybe I can give a little bit of a context before that about the fundamental problem that we're trying to solve for. It's that right now financial services is a zero sum game. I take money from you, I lend it to your neighbor, I make as much money as I can in between, that's how I earn my living. What we fundamentally have to ask ourselves is that if we wanted to engender a kinder, more compassionate,
01:01>> more empathetic, more socially just financial ecosystem, there has to be a change in how people view financial services. So we realized that we needed to create a marketplace for companies who aren't into banking, who aren't into financial services to better serve their end users. Imagine the power of a university that can offer a secure checking, a secure credit card, checking, savings account to its student. They'll them build credit.
Nathan Latka
01:27So, you would just be clear, I'd love to talk about this through your customers. Is that one of your early customers or university?
Early Customers and Use Cases
Duy Vo
01:34>> No, no, no. Our early customers are all fintechs at this point. They basically have integrated with our APIs. But what we wanna do is we wanna expand beyond the world of fintechs and move into clients that are not solely financial services.
Nathan Latka
01:52Okay. So I guess just let's talk about where you are first, then we can go talk about sort of where you're going. So can you maybe name a customer that's paying you today and sort of explain how they're using you?
Duy Vo
02:01>> Yeah. So
02:04>> actually, Nathan, I actually, I need to double check with our commercial teams on like where we can name clients yet. I'm not sure if we can name specific clients, but I'm happy to talk about use cases if that Yeah.
Nathan Latka
02:19Only talk about what you can talk about. I mean, everyone under NDA? Or mean, sometimes obviously you have case studies and things. Is there a real customer you can name?
Duy Vo
02:27>> Yeah. I mean, again, I want to make sure I align with our commercial team on what our broader messaging is. We just historically haven't named specific clients on these calls, and we just talk about use cases that we try to solve for them.
Nathan Latka
02:39Okay, cool. Yeah, it's way more effective to talk about an actual customer using it than sort of general high level use cases, which is why I'm digging there. So if you can't talk about a specific customer, that's fine. We can talk about more of the backstory.
Duy Vo
02:50>> Yeah, mean, we like, I can tell one of our customers, they're creating a card that's optimized for people who travel a lot, right? Creating the right travel experience. And so they're using us, they're basically using our card rails, launching first with debit card, and then eventually in Q1 they're going be launching with a secured credit card and eventually unsecured credit card. So right now they're live transacting in our system. We offer wires, deposit accounts, ACH, and
03:20>> debit cards.
Nathan Latka
03:22Okay, got it. Very interesting. And so, what does a customer like that pay you to use the technology?
Pricing Model: Program Fees and Transactional Charges
Duy Vo
03:27>> Yeah. So, we try to be very, very startup friendly. So, we're talking very, very minimal program management fees in the hundreds of dollars until you go live and into the low thousands per month. And then we charge on ACH, on KYC,
03:44>> on wires, and then we split the interchange on revenue. We split the interchange rev share.
Nathan Latka
03:51Okay. So again, usually like all this, you know, fintech, you know, there's like generally 300 bps up for grabs, really anytime money moves hands and everyone sort of approaches it a different way. Right? So when you say you make money on ACH, you explain to me how that might work.
Duy Vo
04:03>> Yeah. So so on ACH, we we charge a flat fee.
Nathan Latka
04:06Okay. Of how much?
Duy Vo
04:08>> It it varies by volume.
Nathan Latka
04:10Oh, I see. Okay. If I'm just getting started with you, if someone listening right now wants to sign up for your platform, what are they gonna pay you on ACH?
Duy Vo
04:14>> Just starting. I think it's like 10¢ per ACH.
Nathan Latka
04:17Oh, interesting. Okay. So super small. And then obviously, scales down with volume. Which one of these is your is your most used tool, by way? ACH, KYC, Wires, and Airchange?
Duy Vo
04:26>> So,
04:29>> think when you say most used, right? Like, I wanna make sure that we're talking about the same thing. Because if you think about it, you cannot open a card until you do KYC. Right? So technically, KYC is the gateway to everything.
Nathan Latka
04:44So nothing is possible without KYC.
Duy Vo
04:46>> But
Nathan Latka
04:46obviously So how do you make money there since that's the first step?
Duy Vo
04:50>> Right. So, you know, we offer, you know, we have a BSAML department that does checks, but then we have the full suite of automation around KBA questionnaires and around document verification. So, every time you use one of those tools, you know, we charge you a small fee.
KYC Waterfall Pricing, Wires and Interchange
Nathan Latka
05:10Flat fee, one time.
Duy Vo
05:11>> Flat fee, one time. Yes. A dollar
Nathan Latka
05:13or under a dollar?
Duy Vo
05:15>> It depends on where in the water flow you end up, right? If you right off the bat, we have very clear indication if we know who you are, you don't have to go down further steps. But if like, hey, maybe
05:30>> there's not sufficient information here, we have to go pull additional data, we have to have you upload your driver license, then that's additional steps in the waterfall.
Nathan Latka
05:39Assume the cheapest one. So let's say I'm a really easy customer. My information is out there, you can find me, you don't need me to do extra steps.
Duy Vo
05:45>> Yeah. I think our first level KYC is I think something like 60 to 70 cents or something like that.
Nathan Latka
05:52Oh, super convenient. Okay. Got it.
Duy Vo
05:54>> Cool. Cool.
Nathan Latka
05:54Cool. Alright. Great. And then obviously you get into wires and interchange and what is that? We're talking like ten, twenty bps there?
Duy Vo
05:59>> Yeah. So wires, flat fees as well. No, no, no interchange on wires. Like we try to be really, really friendly with startups.
Nathan Latka
06:08Okay. Got it. So flat, meaning you're talking like under a dollar per wire?
Duy Vo
06:12>> I don't remember that number off the top. Okay.
Nathan Latka
06:15Okay. Do you make are any of these structured as a percent or is it all flat fee?
Duy Vo
06:20>> So interchange off of card spend is BPS. Everything else is structured as a flat fee.
Nathan Latka
06:26Okay. What were you able to carve out for yourself? I'm always interested folks trying to carve out of the there's only 300 BPS up for grabs. Right? So what'd you carve out?
Duy Vo
06:33>> I think that depends on the use case. Commercial is very different than personal, and credit is very different than debit. I think what we look at is we look at a per customer usage, and then we try to figure out what makes sense because we want to ultimately help our clients be successful. So a lot of that is looking around their use cases and figuring out the bips you make when you go to a restaurant is
06:57>> very different than the bips you make when you're shopping at a grocery store. There are certain requirements if you're going to do a signature bin versus a non signature bin. And then, obviously, and personal are two very different bin types. Secure versus debit are two very different BIN types. So, it really, really does depend on our clients'use cases.
Nathan Latka
07:20Okay. I want to get off of pricing and capture more of your story, sort of product vision, your back backstory here. So let's just take an average here, right? The average customer looking at all the product lines that you offer them are going to pay you what? Like a thousand bucks per month once they're onboarded?
Duy Vo
07:33>> I mean, terms of flat fees or in terms of like, because obviously
Nathan Latka
07:37Recurring monthly.
Duy Vo
07:39>> Right. So that, like what they pay us also, if they're doing more ACH volumes, they're gonna pay us more.
Nathan Latka
07:44I understand that. More KYC's, I understand that. That's what I'm asking. So you would then have to do the calculation in your head. What is the average customer? How many new KYC's are they processing every month? Or how much interchange BPS am I earning from it? Like, what's sum it all up together? It's like a sweet spot sort of one to five ks per month per customer?
Average Revenue per Customer and Moving Upmarket
Duy Vo
07:59>> Yeah. I think it's probably safe to say one to five ks is probably the right number. Yeah.
Nathan Latka
08:05And do you wanna stay and sort of limit and, you know, do like high volume of customers but low ARPU? Or do you anticipate moving upstream and only working with people doing a million KYC's per month?
Duy Vo
08:15>> What we actually want to move more towards is to enable organizations that don't have engineering teams, that don't have compliance teams, that don't have servicing teams, to be able to launch a financial product. And so that's the model that we are now exploring going into Q1 of next year. Because fundamentally, we're going to take on a lot more program management responsibilities, right? We're going to make more on the transactional fees rather than on program fees because
08:44>> a lot of these clients aren't set up to know how to run these programs. So we're going to set up to basically set them up to be almost zero cost for them to get up and running, and really just make money as they scale. Because we're the program management and we actually run the entire program. We're targeting non fintechs. And so, it's a different business model that
Nathan Latka
09:06But you're starting with fin it's kinda weird, right? You're starting with fintechs, but you're telling me you're targeting non fintechs.
Duy Vo
09:12>> Well, we're starting with fintechs because that's what we started out building as APIs. Right? If you look at like
Founding Story: First Line of Code in 2018
Nathan Latka
09:18In what year? What year?
Duy Vo
09:20>> This year.
Nathan Latka
09:21You just launched in 2021?
Duy Vo
09:23>> We we we we launched our our products. That that has taken off in 2021.
Nathan Latka
09:27When did you write your first line of code for the business?
Duy Vo
09:30>> 2018.
Nathan Latka
09:32Okay. Got it. How did you fund yourself for the past two years?
Funding the First Two Years on a $280K Pre-Seed
Duy Vo
09:35>> We raised $280,000 of pre seed fund, and we were just doing small projects, getting paid for certain integrations, and just trying to get by in the first two years.
Nathan Latka
09:45The hustle is real, right? Hustle is real. Okay. First customer, though, onboarded this year?
Duy Vo
09:52>> First customer onboarded with the platform that is currently scaling onboarded this year. We had a prior version of the platform that, you know, we were just trying to get MVP out to get some revenue in.
Nathan Latka
10:04But
Duy Vo
10:05>> this year, we released a brand new platform, and that's what the with the entire cohort of clients are launching on.
Nathan Latka
10:11I see. And and what's the cohort size today? How many customers are on the platform?
Duy Vo
10:15>> I'm not sure that we're releasing that information publicly yet.
Nathan Latka
10:20Okay. We're talking like a hand I'm talking like five or like 500?
Duy Vo
10:23>> It's it's more than five. But it's it's not it's not in the hundreds.
Nathan Latka
10:28Got it. It's a handful of enterprise accounts that you're onboarding meticulously, slowly, and making sure you get the product fit right. So you're talking like five to twenty, thirty, something like that.
Duy Vo
10:36>> Yeah. It's somewhere between five and a 100.
Nathan Latka
10:39Okay. Okay. Fair. Got
10:43it. Fair. Alright. So talk to me more about sort of backstory here. Did you come from embedded finance or somewhere? What got you into this?
Duy Vo
10:49>> Yeah, I just spent a lot of time in financial services. You know, really love it. Really wanted to think of a way to build financial services in a way that is kind of more compassionate. That's kind of been my passion. And that's why I really wanted
Nathan Latka
11:02to be But why though, Duy? Why? Were you scarred? Did something happen to you where you're like, Wow, this is totally this is pure injustice. I need to fix this.
Personal Backstory and Team Composition
Duy Vo
11:09>> I mean, for me, you know, first generation immigrant. I was homeless in high school, didn't know how to access financial services. Yeah, I mean, I that's probably my experience.
Nathan Latka
11:20Well, mean, that would do it, right? You experienced it firsthand, so that makes complete sense to me. Me more about the team today. How many folks?
Duy Vo
11:30>> Right now, we're at 30, but, you know, we're already adding two more in January.
Nathan Latka
11:35And what is the mix? How many of those folks are engineers?
Duy Vo
11:39>> So, engineering collectively is 17 people.
Nathan Latka
11:4317. Okay, cool. And I mean, so what does the motion look like? Do you have to hire inbound sales folks to onboard some of these financial institutions, fintechs?
Duy Vo
11:50>> So, financial institutions are different. Financial institutions are handled by our bank partnerships and financial operations team. The onboarding of our clients is handled by our servicing team. And then the actual commercial team is
12:04>> what you would expect from a sales organization. So, three different areas of responsibility.
Nathan Latka
12:09I see. I see. Okay, cool. And then talk to me a little bit more about, but you've chosen, I think, raise capital and keep pouring fuel in the fire. What happened after the 280,000 seed?
Duy Vo
12:19>> We raised our seed round 2.35 back in And
Nathan Latka
12:23August '20
The $2.35M Priced Seed and $16M Series A
Duy Vo
12:31>> then we did a $16,000,000 Series A back in April of this year. And then we're going to be out fundraising
12:40>> sometime next year for a Series B.
Nathan Latka
12:42Most folks, obviously, when they're doing that Series A, you know, in today's market, it's kind of crazy, but it's selling between 10 to 20% of the business. Were you serving that standard range or do you do something crazy?
Duy Vo
12:53>> I would say, you know, that range is in the ballpark. Yeah.
Nathan Latka
12:56Okay, cool. Why, like, you know, some founders who maybe have done Razee in the past and it scarred them might say, you know what? I'm only raising a 60,000,000 series A if 80% of it is secondary for early employees or, you know, do some sort of crazy stuff. Did you have any of those historical experiences where you've changed like the model and you've thought differently about how to raise?
Duy Vo
13:16>> No, don't. I mean, I don't think we did anything crazy. Don't think we did anything crazy.
Nathan Latka
13:22No, no, I'm asking you. I don't know. That's why I'm asking.
Duy Vo
13:25>> Oh, I I thought what we did was pretty standard. Yeah, I mean, you know, we made sure that we took care of our employees.
13:35>> But, yeah, I mean, the dilution is probably, you know, in line with some of the numbers that you said before.
Nathan Latka
13:40Mhmm. And then most pre seed rounds these days, I mean, sometimes, know, did you do a price run or you do it, say, on the 2.3?
Duy Vo
13:47>> That that was a price round.
Nathan Latka
13:48Oh, you did decide? Why did you decide to price it? Did you have a seed round before that on a safe?
Duy Vo
13:53>> We we had a pre seed round on a kiss note, not a safe. Okay. Then, we did the price round on seed of the 2.35.
Nathan Latka
14:02And the
Duy Vo
14:02>> reason why we did it is there was this person that we really, really wanted to work with. He's our board member today, Dave Matter. And his firm had a, I guess, a standard way of doing business. For Seed, they do price rounds and that's just the way we and we really wanted to work with him.
Nathan Latka
14:22Sounds like Sunny and the crew at Point72, right?
Duy Vo
14:25>> Yeah. Sunny is one of the people there, but Sunny wasn't the person who was our board member or working.
Nathan Latka
14:33No, that makes sense. Okay, cool. And then, so again, somewhere between five and sort of a 100 customers say like, look, if we look at like 40 or 50 customers at a 1,000 ARPU, I mean, you guys are somewhere around $50,000 a month right now in revenue?
Duy Vo
14:44>> We're definitely not releasing any revenue numbers out there. And so that's, yeah, that's probably not something that I'm comfortable discussing.
Nathan Latka
14:52What can you discuss so you can help my audience understand what multiples look like today? You just raised, you know, 16,000,000 Series A, right? What revenue should my listeners be hitting before they think about their Series A?
Duy Vo
15:01>> I think, you know, I'm hesitant to to encourage anyone to abstract from our experience simply because, you know, like like, fast infrastructure versus, you know, you know, like
Nathan Latka
15:15Totally. I knew there's nuance there's nuance every there's nuance everywhere.
Duy Vo
15:18>> Yeah. Mean, that's That's
Nathan Latka
15:18we that's why we ask for data points.
Duy Vo
15:20>> Yeah. Yeah. It's it's it's a little bit more difficult for me to share some of those for updates, especially, you know, if yeah. I I just I just think that's of, sensitive data that I that I'm I'm not sure that we're comfortable sharing at this point.
Nathan Latka
15:31Yeah. I mean, look, what we can do is mean, you said between five and a 100, right? So assuming your minimum five customers at a thousand bucks a month minimum, you're doing more than $5k a month in revenue. I think you're doing much more than that, but we can serve conservatively, that's what you're choosing to show.
Duy Vo
15:41>> I could say we're definitely doing quite a five ks a month in revenue.
Nathan Latka
15:45Cool. Can you share anything more in terms of like what year you broke a million dollar run rate?
Duy Vo
15:52>> Again, I'm just a little bit nervous about like, you know, sharing information that I just haven't fully thought through like what has already been shared on like the TechCrunch articles and things like that. I'm just not sure what we're ready to share at this point.
Nathan Latka
16:08Yeah, that's totally fine. What is the revenue goal for the end of next year? So you're not sharing current numbers, you're sharing sort of where you want to be at the end of next year.
Duy Vo
16:16>> Yeah, I think a lot of it is, you know, we've seen, multiples of growth month over month. So, it's hard to say because next year we're going to be releasing secured credit cards in Q1 and then unsecured credit in Q3. We're just just going going to like even if nothing else changes, like just going back to the bips, the fundamental ways the bips are going to be calculated are going be fundamentally different, which is going to
16:47>> be a huge, huge change in the revenue alone even if we added no new clients or anything like that. So, it makes it really, really difficult at this point. This is part of the Series B exercise that we're going to go through and we're going to kind of project out these things, but that's the exercise we're going through in the next, you know, one or two months as we ramp up to get ready to go to
17:08>> Series B, is to kind of come up with these kinds of projections.
Nathan Latka
17:11Well, what was the big sales pitch in the Series A? Again, I mean, mostly Series A, depending on whatever, $2 to $3,000,000 revenue, 40x multiples, you've got to have some of these bets in those decks. What were the bets in the Series A deck?
Duy Vo
17:22>> Yeah. So, what we're able to focus on is the early traction that we have, the usage numbers that we had, and the
Nathan Latka
17:31client Which usage numbers though? What numbers?
Duy Vo
17:34>> The number of
17:37>> accounts that were linked on
17:40>> our site, the ACHs that executed on it, and then the beginning of the roadmap around card issuance, which we launched back in July, the launch of our debit card program. So, those things allowed us to get a Series A.
Nathan Latka
18:00Can you share any of those three numbers? So, maybe not connected accounts, maybe ACH volume to the platform?
Production Users and Debit Card Traction
Duy Vo
18:05>> I don't know if we shared the ACH volume, but I think the number we shared was between on the TechCrunch article was, I think, between January and August, I think it was like 150,000 production users got added to our system. And then, I think that was the number that we shared on the TechCrunch article.
Nathan Latka
18:28Yeah, but again, people, I don't want to listen, people listen to this episode and go, Man, that was a big waste of time. I could have read in a TechCrunch article. I don't want you to just cite things you've already said. Is there anything you can share that you haven't already shared?
Duy Vo
18:37>> Otherwise, we
Nathan Latka
18:37wouldn't do the interview.
Duy Vo
18:39>> Yeah, I'm just, I'm hesitant
Nathan Latka
18:42I understand that. Is there anything you can share that you haven't already shared is my question. I understand you're hesitant.
Duy Vo
18:49>> I think, you know, I can talk about the release of our flagship product
18:56>> January, which is something that we generally haven't talked about yet.
Nathan Latka
18:59Well, I get that. Mean, that's a marketing pitch for a product, though. I'm trying to understand your ability to execute, right? So 150,000, you know, 150 ks production users added between January and August is a great real data point. Can you share what that number was between August and today?
Duy Vo
19:12>> I think the let me think about this. I'm trying to give you a sense of numbers or scale
19:23>> without giving out specific numbers that we haven't fully vetted yet. I think it's probably safe to say that our debit card transaction volume
19:36>> grew by, I think,
Debit Card Volume Growth
Duy Vo
19:41>> somewhere between 2.5x to 4x between October and November, and we're probably going to 3x that from
19:51>> November to December. I think that's probably like that's a number that we haven't released anywhere else. And it talks to kind of the reason why we're really excited about cards.
Nathan Latka
20:01Now, I mean, you're good at what you're due because going from $1 in October to $3 in November is 3x growth. Right? Those numbers are useless without understanding what the base was in October.
Duy Vo
20:11>> Yeah. Yeah. No. I I understand that. I understand that. It's just we're I mean, these are the numbers we can share today. We just
Nathan Latka
20:19When did you launch the debit card?
Duy Vo
20:21>> We launched it in in July.
Nathan Latka
20:24Okay. So it's fair to say there was some base built up. It's not like you were starting at a dollar in October and grew that 3 x to $3 in. Yeah. Okay. Fair fair enough. By the way, look, you know, I can predict you're not gonna comment on this, but we get so many data points on series A companies. I mean, right? 3,200 interviews done. Most series A companies today are generating somewhere between a 100,000, $120,000
20:46in revenue per employee, and you shared 30 team members. So we can kind of back into like 2 to $3,000,000 run rate. Obviously, can't comment on that, but my audience knows how to do that math and they can sort of think about it that way. Tease the product before we wrap up, because I know you wanna talk about it, the January launch. Talk a bit about that product before we go into the famous five.
January 2022 Flagship Product Launch
Duy Vo
21:03>> Yep. So, what we're looking for is to enable any organisation without an engineering team, without a compliance team, without a servicing team, to launch a financial credit union like experience in less than a week. That's kind of what our goal is for 2022. So, 2021, in January, we're going to enable any organization without an engineering team, without a service team, without a commercial, without a compliance team, to launch a financial product with direct deposits, DDAs, debit
21:32>> cards, ACH and wires in less than a week. And then, can add on secured credit card, unsecured credit card, secured credit card in Q1, unsecured credit card in Q3, and then unsecured lending at the end of the year.
Sole Founder and Investor Alignment
Nathan Latka
21:45Alright, Quinn. Duy, you haven't mentioned team. Are you sole founder?
Duy Vo
21:50>> Yes, I am.
Nathan Latka
21:51Ah, very cool. So that sometimes is hard for VCs to get comfortable with. How did you de risk that for them?
Duy Vo
22:00>> I've been lucky to work with some really amazing people.
Nathan Latka
22:03Okay. Come on, Duy. Gotta be specific here. So most I know Sunny does this. I'm fairly certain you're Series A folks, Centimeters would have done this as well. Do they take a big chunk of the shares you've already invested and put you back on a vesting schedule in that term sheet where you only invested 30% and now the rest is on a four year schedule?
Duy Vo
22:19>> Yeah, I think, you know, let's just say that I'm very much aligned with the long term success of this company and the investors know that I'm there for the long run and I'm incentivized to be there with the company for the long run.
Famous Five
Nathan Latka
22:32Okay. So you're not going to be specific there. Got it. We'll move on and finish up with the famous five. Number one, favorite business book.
Duy Vo
22:41>> It's not specifically a business book, but it's algorithms to live by, which is which is something that I use in my day, everyday life, including how I think about business.
Nathan Latka
22:48Number two, is there a CEO you're following or studying?
Duy Vo
22:54>> No, not any one specific CEO.
Nathan Latka
22:57Number three, what's your favorite online tool for building the business?
Duy Vo
23:02>> Probably AngelList.
Nathan Latka
23:04Number four. How many hours of sleep do you get every night?
Duy Vo
23:07>> Oof. Weeknights, somewhere between five to six. Weekends, I usually get like, you know, nine hours a day.
Nathan Latka
23:16Okay. And what's your situation, Duy? Married, single, kiddos?
Duy Vo
23:20>> Married, one baby girl.
Nathan Latka
23:23One girl. Okay. Very cool. And how old are you?
Duy Vo
23:25>> I am geez, this question should be easy to answer. I am 38.
Nathan Latka
23:30Okay. And take us home here. Something you wish knew when you were 20.
Duy Vo
23:38>> That quote, persistence is omnipotent. It's by Calvin Coolidge. It's this whole quote about like the power of persistence.
Nathan Latka
23:44Guys, there you have it, productfy. He was homeless in high school, had a really hard time entering the financial system, and now he's solving that with productfy, helping to bring power back to folks that maybe were disenfranchised from the current financial system. He's got between five and a 100 customers already on the platform, moving towards helping non FinTech companies do things like launch a credit union in under a week. They have raised $16,000,000. Series A sold,
24:06call it, pretty standard between 1028% of the business. 30 folks on the team today has looked to continue to scale heavy engineering with 17 there. Duy, thanks for taking us to the top.
Duy Vo
24:14>> Thank you so much, Nathan, and hope you have a wonderful rest of your week.
Nathan Latka
24:19One 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
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