Quickorderrevenue, valuation & funding

Introduction hello everyone my guest today is mods better cop he is the 24 year old ceo and co-founder of quick order he's been leasing since the age of 17 where he led a sorry leading and led a sales team of eight people at 18 he was in charge of 120 people he found a quick order at age 18 and it sends from the company from five co-founders to 40-plus employees majority takes the top yeah let's do it all right five co-founders man what's that mean you guys each have like 20 percent of the company on day one yeah so each 20 um and been equally shared ever since you guys don't fight you get along we get along yet so i'm the only one left in management the other guys are in operations today um but yeah it all has always worked out really great so what tell us about the product what is quick order yeah so quick order is an all-in-one sas solution for restaurants and cafes we call it a restaurant os so it consists of point of sale schedule planning for staffing table booking and most important the online ordering and in-seat ordering from the consumer's phone in the restaurant so everything is combined and on top of that we use the data to generate custom engaging insights and operational efficiency inside the restaurant now when you came on back in june of Currently serving 1300 locations last year i believe it was you guys had raised about 2 million bucks you told me because it just passed i think about 20 000 a month in revenue uh had about 305 customers obviously cobit has happened since then where's the business today so kobet crazily accelerated us so we are now at 368k monthly occurring revenue 386. yeah free yeah free yeah six eight three six eight three sixty eight three hundred sixty eight thousand a month yeah you can grow new us dollars okay um we are as you know um 40 plus people and we were in just around 14 at the time where we talked last time mm-hmm um so just be clear you guys are doing like more than it's about a four four and a half million dollar run rate yeah yeah right i mean that's incredible growth that's crazy growth over 12 months you went from nothing to 4 million run rate under 18 months yep correct um we're very very happy with that um so yeah it's been a crazy ride um our aipc also went up after we added the nc and online ordering to the business so we are now at 283 us dollars per location and that puts us at just around 1300 locations all across dynamics so thirteen hundred locations and are those individual customers or are they sometimes there's four customers yeah so sometimes it can be ten locations for a logo okay okay great um and okay so ten locations per account so how many are unique so over 300 uh locations how many are worth a unique brand so i actually don't have an exact number for that because we count locations um but a good guest would be just around a thousand so it's various and garden groups so 1300 locations across a thousand sort Monthly recurring revenue of different brands and they pay about 280 per location that's how you have four and a half million dollar run rate today yeah okay so how i mean this is incredible my incredible story here mads how did you i mean how did you go from you know you know nothing i mean you basically remove four million in revenue very quickly where are you getting these customers how are you setting them up um so part of it came from a merch with a norwegian partner um not competitors in any way but they were doing online ordering um and of course they brought in a lot of synergies to the business so we were able to accelerate the growth a lot on by bringing those guys in and the other part came from us being really really fast to react to kovid so when kobe started back in march we were the only post in the nordics basically um especially in denmark norway had a few competitors but we were one of the only ones in the nordics that had both posts and integrated online takeaway for for their homepage and the ability for the guests to order from the table with their phone and that just created a huge spike in demand because then the restaurateurs would actually continue operating instead of being shut down by the government but which of these mats i New products mean when you when you look at your website you have a new you feature four products you have cder which is table booking that's obviously out the window of code because no one's coming in and sit down right yep quick manager salary and shift schedule i imagine that's not as popular now with covet you have quick serve which is the handheld terminal for waitresses to use at tables i imagine again that's not great if there's no one sitting you don't need that and then you have the quick pos cash register system i imagine that's the product that's building and growing the fastest yeah it's the post um and the post capabilities of doing online ordering um so the post has a consumer facing side to it um unless you're saying accelerated everything so a restaurant brand could take your old sort of quick point of sale system which is a cash register system you have a version of that they can just the restaurant can put on their home page and then consumers can order via the home page and feeds into their system yeah correct um so they don't have to handle a card reader or cash for that sake and it's just in general very very cobit friendly everything is insurance phone the way that comes to the table with with what's ordered and paid so there's also minimal interaction between the waiter and and the guest and that of course keeps physical distance which is really great in covet times so of the 368 000 you'll do or you did last month did you have any profits or were you cash flow negative uh still just cash flow negatives um just but very very close to break even um Raised so when you say i mean you're like you're burning five thousand dollars a month or something small yeah it's very small it's it's less than 10k a month okay and have you raised additional capital or still have the two million um we raised another 1.5 million ish um so danish it's just around 10. so 1.5 calculated into dollars and that basically put us at the spot where we are now so you raised total 3.5 million dollars yeah are you planning to raise additional capital now to double down on the growth you've seen no not now um we're actually waiting for the market the vg market to kinda find its feet again um we are in the fortunate position where if we just keep doing what we do we will hit rate even within a few months and that and that is with additional highest so we can kind of play the waiting game and let the vcs line up that's great so 40 folks on the team how many engineers so that is oh we've it's been so fast so just around 20 20 engineers okay and any quota carrying sales reps or no uh yes so we have that's three now but if you include ces who also have a quota um it's ten ten why do you why do you give your customer success reps a quota i see customer success as a sales position um it's not an a cost it's an investment our quarter quota aren't as far as high as a sales rep but all of customer success reps are in charge of cross-selling um and upselling an additional plans to to existing clients because they know the best which clients can have use of other parts of our product which they might not be paying for today what quota do your sales reps have so the way we we um calculate it is that we take that base salary and we want them to do four extra base salary and annual contract with revenue every month okay so let's let's make up a number let's say i'm one of your sales reps you're paying me fifty five zero thousand dollars annually what you're saying is you want me to close two hundred thousand dollars in new ar every month um no it's a um monthly salary times for in annual revenue every month so if you do 10k a month a base salary i want you to do 40k annual annual contract value every month i see so yeah so just to get so we're talking about the same lengths of time for each if you're paying me 10 000 a month base as a sales rep you won't be adding 40 000 a new acv which is equivalent to about 3 500 of new mrr yeah yeah correct i see interesting and has that sort of work do you think you can scale with those sort of ratios yeah that them that's working very well um our leads are super cheap um so with that ratio we've been able to to now have um four guys selling and we expect to to get that to 10 within the next 12 months um sorry give what to 10 the product bearing sales reps so from four to ten within the next 12 months into oh sorry in terms of hiring more yeah yeah yeah okay got it you said you get leads very cheap what's it cost you in terms of fully weighted attack to get a new you know 3 500 a year customer yeah so if you factor everything in with um salary and onboarding and ad spend um our right now is two thousand dollars two thousand okay so about 10 months 11 months pay that period yeah yeah and it's actually a bit shorter because we have an upfront fee um from our clients which kind of cuts down that payback period a lot what's the opportunity so that's just around a thousand us dollars and what is that first setup or something yeah that's what set up yeah interesting so like helping them install your checkout system on their home page yeah exactly okay churn's critical in a sas company last time came on you said it was about 18 annually what's it today in terms of revenue um so growth were you asking about growth uh sorry sorry revenue churn annually yeah so annually we are around 10 10 and do you have expansion revenue as well yeah so net revenue retention um is actually 131 Customer Success okay so so you're churning 41 annually you're expanding sorry you're turning 10 annually you're expanding 41 annually so net revenue retention is 131. yeah how what's the most effective way that your customer success reps are driving expansion revenue is it selling into new products or is it upselling a utility-based usage metric so the most the single most efficient one is actually making the restaurant choice implement the loyalty scheme of our online ordering product um in order to generate more online orders because we have a revenue kickback on those orders so that's the single most efficient one then the second most efficient one is upselling no not obviously selling um so that we make sure that the clients have the full product suite super smart very good man you're building you're building an animal here man you should be excited yeah i am it's it's amazing and all the co-founders uh they're still in the company so they all still have about 20 yeah yeah so everybody still in the company um everybody owns equally um of course we diluted after funding um but we we own equally um that's that's great and how are you uh 24 and the other guys are between 22 and 30. that's great all right let's wrap up here with the famous five number one favorite business book uh blitz scaling by reed hoffman number two is there a ceo you're following or studying reid hoffman number number three what's your favorite online tool for building your company um so easy answer would be slack um but i would go with g suite i think it's uh it's so powerful as number four how many hours of sleep do you get every night eight hours 24 years old i assume you're single no kids uh i'm actually not single on living with mrs um not married but we expect a kid to library oh that's super exciting got it so married and one kid on the way that's extremely sorry sorry not married but one kid on the way yeah yeah and very that's exciting you're gonna have a lot of you're gonna have a startup baby and a real baby here soon yeah yeah all right last question take us back four years what are you wishing you knew when you were 20. how not to up a cap table um did some really toxic rounds early on and had to fix that luckily i did but learn the funding game from exposed talk to somebody who's done it before Toxic Rounds sorry i should have asked questions about that i didn't know you went through a painful experience there what happened early on where you just you wouldn't do it the same way again um we took in way too much money on a too early stage which led to too much dilution so when metro accelerator came around a couple of years then and one desert was on we actually went to the selection day but got turned down because of a cap table in the end um and had to fix that so basically to being a toxic investor who didn't know anything about sas we didn't know anything about startups took too much money from them and about captain and had to fix that mads how much of the company did you sell for two million dollars um so to so that's post that um so today we dilute it by thirty percent uh total um but prior to that before i fixed that i got what i did really early on and we were diluted like nearly half it was like money takes close to half of the business for 400 k dollars for 100k or 400k 100k what year did you do that round in that was in 2015 um but we we fixed that a couple of years later okay got it so Selling 50 of the business you sold i mean this is early on you didn't know what you were building right so you sold 50 of the business for a hundred thousand dollars in 2015. you then realized oh my gosh we messed up tell me how you got out of that um basically we were lucky that this yahoo disagreement was uh something the investor basically got from the drawer um and it was really really badly constructed so we were able to use that to our advantage and basically we could sit on our houses and do nothing for as long as we wanted so we kind of pressured him out in the end he accepted to take the money he put down dollar by dollar and gave us all the shares back what year was that so he put it in 2015 you gave the money back in what year 2017. okay so he basically had 100 grand locked up earning no interest no return for two years yep okay well hey at least you got it fixed man yeah we did we did we had to take the bank but [Music] guys quite a story quick order dot dk you'd think because they said the restaurant industry covered would hit them hard they've actually like quadrupled the business more than quadruple they were doing just 20 000 a month about 18 months ago now they're doing almost 380 000 a month the 4.5 million dollar run rate serving 1300 restaurant locations the number one product the ability for customers to check out on restaurants websites actually obviously a great feature to have during cove but they raised 3.5 million dollars to do it they're almost profitable team of 40 20 on the team 10 quarter carrying folks between sales and customer success mods thanks for taking us to the top thank you 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 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