Seva Exchange Corporation Revenue, Valuation & Funding (2024)

[00:00] Hey, folks. My guest today is Anitha Beberg. She's an alumni of the Silicon Valley Founder Institute, is the founder and CEO of sevaexchange, which is a platform using machine learning technologies to galvanize global volunteerism by reinventing time banking and other mutual reciprocity based services for the modern digital economy. Check her out at sevaexchange.com. Anitha, are you ready to take us to the top? [00:23] >> Yes. Alright. It is seva, by the way. Seva. [00:26] Seva. S e v a. When did you guys launch? When did you write the first line of code? [00:33] >> Oh, we only started building our product probably December 2019. So it's in two years almost. Almost, not quite. [00:43] Okay. And walk me through what are companies or what are nonprofit? Like, who are you serving? Who are your customers? [00:50] >> Well, what I wanted to do because while our MVP launched in March 2020, as you know what happened March 2020, So the I decided just throw this out there to communities. Our platform really is, there is nothing else like this where anyone can ask for help when they're in need and anyone can offer help any way they would like to, whether it's through time of service, through fundraising like money donations, through goods donations, and even lending [01:22] >> out stuff. So no one can give you any excuse that they can't help their community on our platform because we've given you every option. [01:30] Well, so who's paying for it? Like, is it the government of the community or an HR lead or something? Who's paying? [01:35] >> Yeah. So it would be the public sector that would pay for this. Cities, smaller towns. We're going after those because we don't want to charge members. However, for nonprofits, I mean, what do nonprofits need? They always need volunteers and they always need money. So our platform helps them with both. So they would pay because we've created features for them that's conducive for them. And then we've also [02:05] >> included an enterprise version so businesses can connect. It's like we're bridging the gap and building a completely new ecosystem of connecting all of these different sectors. [02:17] And so, Anitha, what's the average city or nonprofit paying you per month to use this technology you've built? [02:24] >> Honestly, the best number, if it's a large city, we have to separate. So I know there's a borough in New York. Is it Hudson? No. Redhook. I think it's Redhook. Hudson's another one in New York. You would have to break it down. I mean, if it's like 10,000,000 people, the whole point of our platform is to build trusted communities. So if Facebook were to be redone, like envisioned, I would say that it would be sevaexchange. [02:54] Well, so sorry, Nathan, just to dig deep, I just want to get a sense of pricing, though. So you price based off number of citizens the city's managing? [03:00] >> Yes. Yes. For the citizens. However, right now, if you are a community, a neighborhood, it's free for neighborhoods. And then it's only $15 for a smaller community of, let's say, 200 to 500. We'll just give it to you for $15 just to start it off. It's really based on the features that you need. [03:19] Okay. So it's 15 per month for a smaller community of 200 to 500 people? [03:23] >> Yes. [03:24] Okay. Got it. And when did you sign up your first paid community? Do you remember? [03:28] >> Yes. That was last year because we had already negotiated with them. It was the Poor People's Campaign. It was a nonprofit in Alaska, Anchorage, Alaska. [03:38] Holy mackerel. Okay. So last year, first customer. Now, how many customers are you working with today? [03:43] >> Well, we've got two twenty four communities onboarded that from around the world. [03:50] So Are they all paying? [03:51] >> They're not all paying, but it's okay. I'm not I'm not focused on paying. I'm focused on getting people on there. Right? Without the humans, the people to volunteer, there's nothing. Right? It doesn't matter how fancy a platform you are. [04:03] Sure. You onboard them and then you can upsell. But how many have you successfully got onto a paid plan out of [04:07] >> the We've two twenty got several nonprofits now and several communities paying, but it's, I don't really want to give away numbers right now. We got to work. We're, we focused all this time on building this incredible software. Now I'm shifting focus to converting our clients. We've got like an $80,000 backlog of clients that we can convert right now. So I don't know if that's helpful. [04:31] Okay. Got it. But so two twenty four onboarded and maybe like 10 ish, 20 ish or so, you've gotten over to paid and that's your focus sort of moving forward is to convert more of those over to paid plans? [04:40] >> Yes. Yes. [04:41] How have you funded yourself to date if you've you've basically sort of been pre revenue? [04:45] >> I had a few like friends and then mostly family. Yeah. [04:50] So you raised the whole angel round? [04:51] >> Not quite. It was very informal. So it's just people who knew me. [04:56] Did they did they get did you give them did you sell them equity? [04:58] >> It's a safe. [05:00] Oh, okay. Well, that's pretty standard. I mean, are we talking like a $100,000 raised or like a million bucks raised? [05:05] >> No. About a 250,000. [05:07] 0.25. Okay. 25,000. [05:09] >> No. 250,000. So 2 A 250,000. Yeah, yeah. [05:12] Okay. And that was back last year, you said in 2020? [05:15] >> No, no, I was Because it's family, I just get it as needed. So it's about $250,000 at this point. Yeah. [05:23] But when did you do your first, I guess your first dollar on this safe? [05:29] >> It Oh, pre [05:30] >> yeah, definitely pre COVID because I actually met with someone who is a CIO of a company. It was a friend of my mother's and I was going to talk to him about technical people and he literally wrote me a check for $10 that day. [05:43] That's very cool. [05:44] >> Yes. But that's not, you know, that's not a normal occurrence as I've learned. [05:48] Sure, sure, sure, But okay, but this is great. You hustled your way. You've gotten some seed funding here. You raised on a safe. Now you mentioned you might be thinking about sort of going out and looking at additional capital. Are you looking at raising more or no? [05:59] >> I am right now wanting to raise 1,500,000 for equity round of 20%. [06:06] Okay. So, how much? So, got it. So, you're trying to raise that evaluation of what? What would that be? 9,000,000 post money? Something like that? [06:13] >> Uh-huh. [06:13] That could [06:14] be You wanna sell 20% for 1,500,000? [06:17] >> Yeah. [06:17] Okay. And why is that the right amount? [06:21] >> Just because my teammates, both of us have looked and studied like Jason Calacanis, you've heard of him this weekend started. We looked in all different ways and how we would convert based on how much we're just starting post revenue, [06:39] >> the stage we're in, how much we built the product, where we're located. We're in the Silicon Valley. Our team is strong. So all of those factors that put in, it kind of helps you figure out your valuation. [06:50] So got it. So 1.5 on basically a six pre or 7,500,000 post means you'd be selling 20% of the business. Now, do you think you need to really get revenue going in order to go get that valuation or you think you can raise that valuation right now with the 224 savings? [07:04] >> I can raise that right now. If I get more and more clients, the valuation will go up. So it's better people if they want it'll be a Yeah, I think the valuation definitely will much be higher. So, I'm doing both because I can't stop. I'm still trying to sell it to as many people and I'm fundraising at the same time. [07:23] But right now, I mean, again, 224, you mentioned, you know, a handful are paid at $15 sort of per city or community. So if you get 10 at $15 a month, MRR today is about $150. So post revenue, but not sort of scaling. [07:34] >> Yeah, it's not that much. But again, if I get enterprises, it's a dollar to $2 per employee per month. So, like I said, I'm not trying to make a buck off the citizens who are going to be volunteering and helping out. It's really off the nonprofits and enterprises based on the features. [07:54] I love that. You keep saying we. Tell us about your team. How many folks? [07:57] >> Let's see. We've got Martin Hoist. He is my digital strategist. He's from England originally. He's been with me the longest. [08:06] Well, how many total, Anitha? I don't want to [08:08] >> Oh, total. Well, he's I had to do a shout out to him. He's basically my co founder. About seven. And we have a team in India of about seven. Mhmm. They're contract developers. [08:23] Did you find them via KodiTAS or any of those tools? Or are these developers that you met like one on one personally and hired them? [08:29] >> No, it was a personal recommendation from another friend and I did not regret that. I'm very blessed. Think of this as their baby. Very And that's very rare to get. [08:40] Yeah. No. Very cool. So, you own most of the equity, but your friend, it sounds like has a little bit as well. Plus, you've sold $250,000 worth to your friends and family. [08:48] >> Yes. I mean, friends and family, it's always, they they're not they're not in it to to make a ton of money. I mean, I just wanna pay them back essentially, at least. At least that. So [08:58] Very cool. Okay. Well, this makes a lot of sense. What about getting new cities on board? How are you growing? [09:03] >> Well, I'm actually working with community organizers, one in Oakland, the city of Oakland and San Francisco. So as you know, the city of Oakland and also Chicago. So having people there who are part of the community, the person I'm working with is Africa Williams. She's also joining my team. It's weird. Every time I meet someone, I talk about it. Like, can I join? Can I join? I wish I could pay all of you. But it's volunteer [09:31] >> based right now. But she is going and getting all the primarily African American communities who really have been hit the hardest by COVID, but also by violence, gang violence. It's scary. I literally live forty five minutes from Oakland, but it's a completely different world. And I feel very blessed where I am. [09:55] >> We need to help people. And that's the whole point of seva. And my belief system is like dharma. If we are able to, we must. So, I feel being in a privileged place, a privileged state in life, I have to help. And I mean, we all should if we can. [10:15] Seva, on that note, which we love, let's wrap up with the famous five. Number one, what's your favorite business book? [10:20] >> My business book? I've actually just finished reading one by Jenny Kassan. I can't remember the name right this second. [10:27] No problem, Jenny Kassan. [10:29] >> Yeah. She has I actually liked her book better than Brad Feld's Venture Deals. I mean, I know people are gonna yell at me, but for a female social impact entrepreneur, it's the best book for fundraising. [10:43] Number two, there a CEO you're following or studying? [10:46] >> Yes. There's two CEOs. I actually like the one who created Papa, which is it's a company that helps with social isolation for older generation. And they match people, like elderly people up with younger people to talk to and stuff. I mean, our platform already does that type of thing. But they focus just on that and they've raised a ton of capital. [11:10] Okay. So the Papa Founder. [11:11] >> Number three, what's your favorite online tool for building seva? [11:16] >> We were using You mean the online tool? Oh, Flutter, for sure. I mean, our whole tech stack was Flutter? Flutter because you can build Android, iOS, as well as web all on one code in Dart. [11:29] Very cool. [11:30] >> I will shout that out. I mean [11:32] Anitha, number four. How many hours of sleep do get every night? [11:35] >> That's a good question. I'm working on that. [11:39] >> Four four, maybe four. Four for sure, but six if if I'm lucky. [11:44] That's not healthy. [11:45] >> Well, I'm on time zones everywhere, all over the world. I'm working with another great founder and civil rights activist, Tim Jenkin in South Africa. I'm working with people in Taiwan. So yes, I'm on different all over. [12:00] Okay, great. And as we wrap up here, can we get a little bit more about your situation? Married, single kiddos? [12:05] >> Single kiddos. [12:07] How many kids? [12:08] >> Two. [12:09] Very cool. And can I ask how old you are? [12:12] >> I'm in my mid forties. [12:13] >> Mid forties. Okay. [12:14] We ask because the next question is, and this is the last question, take us back to your 20. What's something you wish you knew back then? [12:21] >> Oh, wow. [12:24] >> I wish I had the confidence to know that I could do anything I wanted. [12:29] Guys, there you have it, sevaexchange.com, helping cities, communities, and nonprofits manage their volunteers, grow their causes more effectively and faster and more cost efficiently. Two twenty four cities, municipalities. Again, nonprofits are using the platform today. Anitha is just now focusing on converting that into revenue. She's gotten $250,000 of support from her friends and family, now looking to raise 1,500,000 at a $6,000,000 pre money valuation, selling 20% of the business. Team of seven cranking along as they [12:54] scale. Anitha, thank you for taking us to the top. [12:57] >> Thank you. [12:59] 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 [13:24] 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. 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