How Tuto CEO Ohad Ronen grew Tuto to $14.8K revenue and 5 customers in 2024.

hey folks my guest today is ohada ronan he's the co-founder and ceo of tutor he's 30 years old and also father of two little ones he was member of techstar's 21 cohort and studied computer science and entrepreneurship at rickman university after building several businesses he's now working on building the next knowledge engine for the internet ohio you ready to take us to the top thank you hey how are you i am well so i think the comp for this p when people hear you know knowledge engine for the internet they think google search engine they might think like algolia or something like that what are you building yeah so basically um what two to building is is an engine that helps us software's any uh web application uh to be able to teach their user train them educate them on how to uh properly use the software and to grow with the software together um so we understand that the most important thing when we talk about education and learning is to understand what the user doesn't know and try to understand it and provide him with the relevant content and the relevant education he need in order to overcome his needs so this is what we draw more soft is it more software oriented though or more like knowledge based so is it more like pendo and gainsight and jar and these sorts of things or something more like a knowledge base so so yeah um in in some way with combination of pendo and loom we been able to understand diffuser doing something uh while using or or using a visual content video we we see that a lot of companies invest a lot of money and efforts in creating what's called digital adoption platforms like walk me pando upkeeps and others but they also invest a lot of money and effort in creating content like visual content tutorials is going to youtube and and they create the academy that is a separate um product from the product itself and the idea is why not combine these two wall together on top of the product itself on top of the product ui and to give you in proactive way what you need to understand as the next step in your journey basically this this makes sense to me tell me what customers are paying on average per month to use the technology so basically how much they pay um is is very diff depend on the the usage and and how how much customer they have uh but we pricing it right now uh at 79 dollars per seat per per month uh it's so it's very very depends from company to company what would you that's why again we could talk about every customer's individual thing we don't have time so if we look at what the average is what would you say the average company is paying you per month two seats so yeah so average company it's it's something around 250 um dollars per month got it so caught me like four seats five seats something like that yeah something of that because our tools basically help a lot of different departments in the company uh we focus on support customer success uh product teams and also sales so it can it can really drive the revenue for the company um so a lot of people using it and ohio when did you guys write the first line of code for the for the company the first time we wrote the code for the company yeah when did you start building the business the first line of code when did you start building it um it was like back then we started to think about that the idea and um we got the opportunity to to try to get into tech stars at the beginning we thought it's it's a long shot and it's maybe not in our focus but when we start to thinking about that and sending the application uh we try to create a demo for the mvp something that we can show so we wrote the first code that was some of the first initial idea of of the company and it was like in in early april 2021 so our company is less than one year old 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 it 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 valuation this year now the secret evaluation is there's many different ways to value a sas business so the reason you're going to see three or four different valuations inside of your frowner 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 going to pay a different valuation private equity firm is different if you're going to do a minority sale that's different and if you sell the whole business that's a different valuation you can see all those when i hover over here right so the teal is what a vc would pay yellow is what private equity and red is if you sold the whole thing outright now what's cool about this is this is not built off random data again you guys hear these interviews on youtube all these datas are built from real-time valuation data points founders share with us on the show so traction 1.2 million seed round 3.7 raise they sold 22 percent of their business go in here and filter by the event maybe you only want to see companies that have sold the whole business well here are a bunch that have been acquired the valuation and the multiple maybe you're going out right now and you're raising your seed round well go in here and look at all this recent seed deals that went down what they raised what valuation they raised at and what percent that they sold there's never been a larger data set of sas valuations than what you can get now inside of founder path and we're thrilled to bring it to you all right we're going to go back to the youtube video here in a second but if you want to check this tool out if you want to jump in and sign up you can check it out for free to get your valuation at this link this link founderpath.com forward slash products forward slash evaluations or if you go to founderpath.com and hover over products click on get your evaluation here and go ahead and sign up to give it a whirl again all that valuation data live right inside the platform i hope to see you there all right let's jump back into the interview got it i love that and when you say we uh tell me about your team is it two of you guys how many co-founders there are three co-founders all of us uh study together computer science and entrepreneurship uh at the reichmann university's private university here in israel uh we had previous startup that tried to solve the return goods in e-commerce in the consumer side um but with that how'd that turn out should i shut that one down yeah after one year and a half from shut it down and we back to ideation um and we came up with uh with tuto um yeah and are you guys all you just did the easy thing and said okay we'll be even everyone gets 33 or how did you split equity we we totally even we really believe in that we're trying to take decision as a company um we really understand what the everybody like strange and where is the weakness weak weaknesses and trying to to move forward like a team like a company and not just in individuals and have you guys bootstrapped it or did you decide to use raise capital no it was very far very fast we got the 120k from techstars um i forget what do they do yeah they have like a combination of like taking um give you a safe uh for the 100 and and guarantee for the 20 um for the 20k um but what's the gap i forget what what's the cap on the safe usually the cup of textures is three uh three million uh pre-money yep so you raised 100 grand on a 3 million note with another 20k yeah yeah exactly um okay and we get into texas like just with a deck who doesn't have anything and get in with companies that you know live for one year two years and it was very weird for us so we this is what starts the journey for raising capital for us you know uh so boot trap no was one of the the option of after we raised the first money so have you raised additional capital or just 100 grand oh have you raised more money no after after yeah after a few like three months that we've been in in texas it was very hard for us like roll across there because we were very young with not validation then we focus on creating products that we can test we do a product on and then um we raise more money we wanted to raise 500k in the end we raised more than 700 dollars from a lot of angels and and legit investors we had we have in the cup table um justin martin is is one of the founders of tinder that invest in pitcher steal money and we also have arunaris that is was uh um partner in y combinator and a lot of like great people in the cup table that help us to grow and i'm very happy for for this round and very very excited so you would call that sort of your 700 000 seed round correct press it well okay so what is so there's the tech stars round which is what what's that like the pre-pre-seed round or what yeah yeah everything they they get it's the same...