How Restworld CEO Luca Lotterio grew Restworld to $1.7M revenue and 95 customers in 2024.

guys restworld.i.t launch in 2020 they're doing 33 000 Euros per month day in Revenue up from 8 000 just a year ago so nice growth rate uh they've raised small seed rounds to be very Capital efficient from their customers most recently at 265 000 seed round at 3.2 million evaluation today investors own 20 of the company and the other four co-founders own the other 80 split evenly they've got 12 on the team today three Engineers looking to scale their servicing restaurant owners with between 1 and 20 employees who need to hire that's what they go to rest world uh to do and to use it for hey folks my guest today is Luca loterio he's a 29 year old CEO managing the evolution of restworld.it which helps match workers and Employers in Eureka that's in uh that's in Italy all right uh Luca you ready to take us to the top um are you ready to start yeah absolutely great so how do you guys make money is it a SAS company or is this a Marketplace so basically we understood that we were still not a SAS model exactly but we are still a Ras model that means not software accessories but the recruiting as a service this means that every time that a customer needs our help they used to pay um a subscription like a monthly subscription quarter subscription Android subscription but they've got not a service that is a software that they can use alone but they got the help of our customer success managers then manage their researches we used to match our work is to match people and companies to work together so we help restaurants and bars to find stuff so it's more like uh as it as it already it's a recruiters and services like if you have an Outsourcing of the recruiter what is the average customer then pay you per month or per year to use your service okay so in per month normally is a restaurant is a little restaurant between 1 to 20 employees that they need just a research so they start a research over one month they find the right person they hire the person and they leave so they quit the turnover the chain rate is really high against in this part but it is a momentum item this means that after two or three months they come back because they need the service again otherwise it's completely different into chains franchisees how much do customers my question was how much do customers pay you per month or per year okay between 200 to 400 euros per month per singles a lot there's a lot is the number of the available researches that they got simultaneously so we got customers that paid 2 000 Euros per month as well but the average pays 200 Euros per month the the average actually is 350. 350 and how many customers are you working with today actually 95 to 10 is 95 opener 95 can I take 95 customers times 350 Euros per month you're doing about 33 200 Euros per month in Revenue absolutely more or less is um congratulations where were you exactly one year ago in terms of Revenue so we can calculate growth rate so one year ago we were making revenues 8 000 Euros oh well congrats on the congrats on the road and when did you launch the company what year Well we launched the company one week before the pandemia started of the covet so we spent our first six months without any Market uh so it's 20 20. yeah yes and we actually started making revenues at the uh during the hour of the 2021 and um have you done all this bootstrap or have you raised capital we raised Capital we raise Capital At the beginning from restaurant owners how much did you raise in what year at the beginning for in 2020 42 000 Euros in 2021 100 000 Euros in 2022 it's 200 250 000 Euros more or less that's great okay and um are you raising that money on convertible notes were they priced rounds uh so it was always inequity so directly directly into the company so how much Equity did you sell last year when you raised 250 000 so the the last round was about 2.8 million uh now we are closing this week another round uh for 265 000 Euros for 3.2 million 3.2 million that's post money valuation yes no that's spring man evaluation sorry post money evaluation means okay 3.5 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 going to see three or four different evaluations inside of your founder path dashboard this is all free by the way is because depending on who's doing the buying of your SAS company you're going to get a different valuation a VC is 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human resources and the name while I was working as a waiter in different restaurants to pay my studies so I just mentioned the two things when my thesis was about how can we improve the recruiting in hospitality and talking with restaurants they started to ask to us if they if we were able to help them to find stuff but we were just students I mean we didn't have any expertise into recruiting or worrying people so we started me and a friend of mine as a game so we started making as Freelancers to help restaurants to find recruiters and at some point we decided we said okay maybe we should we should do some business on this not that we were completely unable to understand which was the rules of the of a business never at the startup never had people in our family working in the entrepreneurship board and we matched with two engineers an ID engineer and management engineer and then we started the company that's amazing so there's two of you two co-founders we are four actually the two engineers and Tube psychologists did you guys split Equity evenly at the start with that we started splitting the equity as interesting and so today how much of the company do investors own uh the the investors have the 20 of the company with the round that we're going to close the next week okay so they own 20 which means you guys each also own 20 the four co-founders today yes very cool talk to me about how you grow how do you get to a million dollars a year in Revenue what's your growth strategy so actually our growth strategy is every time um we we catch we collect leads of employers from basically from advertising so advertising is busy and we converted it really well I mean our cost per lead is something like three or four Euros and we used to convert one of five leads into customer that pay already so this means the back is something like 25 Euros yes if you include the cost of the sales so speak with the person accelerates something a bit more but still under 100 euros and they used to pay 350 on average per month so I mean in the first month we have already the money back the second thing is that obviously when you have more customers we need to scale the recruiters team because as I told you the customer success managers still manage all the the relationship with the customer so every single customer cannot open the age of positions or they um that they cannot sponsor their job positions alone they need someone in our team so every time that we put one sale and we grow a bit the the deposition the the...