How Unomy CEO Gal Harzvi grew Unomy to $2M revenue and 100 customers in 2016.

this is the top where I interview entrepreneurs to our number one or number two new in their industry in terms of revenue or customer base you'll learn how much revenue they're making what their marketing funnel looks like and how many customers they have i'm now at twenty thousand dollars per tov i haven't explained she has happened on global domination we just broke on a hundred dollars full mark and I'm your host Nathan lakha okay top drive this week whenever 100 bucks is Rick big man directly Kingman he is dust brick-and-mortar business that is his focus so congratulations Rick if you did want to win a hundred bucks every Monday on the show in order to enter simply subscribe to the show on iTunes now and then text or Nathan two three three four four four again text or Nathan 2 three 3 four 4 for folks many of you reached out to me and you say make them so many guests on your show talk about the importance of batching but whenever I try and bashed you tell me that you go Nathan they don't look back to back time so you and where they don't show up after they broke it's frustrating the answer is guys you have to use march of tools I using school called acuity scheduling at Nathan latke calm /schedule tell you specifically how I use it later on in the episode Nathan left to hear this episode's 545 coming up tomorrow morning we will hear from Josh luchia one of the founders of the pitch podcast which made 80 grand in year one sponsor revenue by the way today's ever wonder how much I make I can't tell you but I tell you what it's a lot it is a lot they made a DK their first year in revenue and it has seven hundred thousand downloads see how they did it tomorrow morning Nathan Alaska here good morning guys our guest today is a gal hearts be and I think you're really enjoying he's a passion on for who lives and breathes b2b sales marketing and everything in between he's one of the founders of vowel shine venture as a technology holding company and a successful online marketer and various software categories and verticals he's currently the CEO and founder of a company called Luna me which we're going to talk about more here in a second gal are you ready to take it to the top deck opening all right let's rock and roll so tell us what tsunami does and what's your revenue model how do you money so it's actually you know me and I don't know me but people tend to do think regretting me just ahead sure so what we're doing we're providing a stealth intelligent solution and we are you making money by telling anyone subscription okay so the staff business it is ok walkest so give us some more context here what year did you launch the business end sorry what year did you launch the business end we launched at 24 in early in 2014 and what we can we launched done yes oh we lost you in early 2014 we braised in the first couple la I'll observe bout six months about almost to a half years ago and we launched the current version or with the current focus on enterprise sales about a year ago so when we started it was not very focused on sales intelligence it was a more holistic solution to research companies and industries and for the best year we've been very focused on on sales and we are in pastels intelligence categorical so what was your first year revenue you remember 2014 it was none actually we are very focused on building the product and he took some time to gather all these tremendous amount of information that we have today about companies in a entender employees so we took about a year to build in the first database for the initial database in the interface and then we had a better version Pylos for for about four months with just a couple of terms of of companies and two in the first q tienen change review also in the second year we started with the freemium model which wasn't very successful for us and only in this year about 11 months ago we complete change the business model and switched into an annual subscription in it with a man inside sales team and form an enterprise sales approach so fast forward and in 2015 what was your total revenue total revenue and just a couple of town deposit okay so call it 30 grand yeah something and then I know you part i know i know you're Europeans you had party hard over there so what are you gonna be what revenue number and 2016 if you hit will you be partying very hard ah maybe it's a beautiful nice for me to disclose it did it like the exact amount but it's below media okay low so so called call it's 2 million something like that yeah and it is most of this are you doing any kind of small business or our mid market sales anymore is it almost exclusively enterprise so we actually in the process of right now we're still doing both and we'll probably have a diversity of of customers in the future as well but we're switching to more to larger and larger account that we move forward my when it started hailing two years ago on it start to sell we used to sell a product for fifty dollars a month and then we started to tell anyone subscription for like three thousand dollars annually today it's like it's about 10 times more and on average okay just so on average customers paying you 30 grand a year right and yes right now which wasn't like that when we started it wasn't like that even a couple of months ago though ok I'm changing and how many current customers were you serving here in December 2016 just over on good okay so about a hundred of them great that makes good sense and then a funding history are you guys have you raised capillary bootstraps yeah yes we need so two days you have read 3.4 a million dollars from three uses okay and well I assume will you did a seat in series a what we need is we need to see Dan in a few convertible notes yes fancy ladies and now we're doing our seriously okay so you haven't done a price around yet then yes of course okay got it so you're doing your Syria is that you're doing your series a now yeah we're planning to watch it dang good export with what's your what are you seeing in the market right now obviously you're doing it so you think it's a good time to raise capital what do you like I actually see a lot of investments there lacing north space and distilled intelligence parity a lead scoring more predictive intelligence there are tons of companies rating monitor their 0a you repeat and just a lot of money being interested in your marketing right I'm feeling a great time and here in Israel there are two distinct ego and lisas dance or honoring their students T's and C's been a lot of companies raise money recently in matter mark Darren I'd oils a lot of Prayer players take I desk and a lot of our competitors data for many raised a money in the best a couple fun and what are you like how much were you looking to raise and will probably raise an additional probably around five major marketing yes that makes sense and what were you and you can speak generally here or be specific now how does the founder like you doing you know around two million bucks in air or how do you value the company well valuation when you try and get I prefer not to disclose right now good we are doing around right now something will tell us nothing that's not information that's what I said talk about it in generalities if you need to how do you like where should other CEOs listening that are about your size how should they think about raising capital in terms of valuation to be honest it's really hard to tell because when we when you mean exists or some investors will tell you just let's look at your AR RN x 8 x 10 x 12 x 12 whatever it makes sense to them another way to approach it just to look at other rounds of similar companies its allure strangest pages and use them as a benchmark and sometimes you'll you'll come up with a different conclusion and then just to use the RR and some multiplies though and I think that in every round regardless of is the seriously drunk us a USB the father should be expecting to lose anywhere between i would say twenty-five to thirty-five percent of your company including some options for for ease of data and so the i think he is or or our goal that founders is just to try to get as much money as possible for for giving away twenty-five or thirty percent of the company yeah so if you I mean you tell me if this would be a good deal if I was a VC and I said hey gal i would offer you a 15 million dollar pre-money valuation raise five million you get 20 million post your having up twenty-five percent of the business that's about what nine or 10 x arr is that a good or bad deal would you say yes that's probably the average deal yeah in trouble an average CEO and it will depends where you are and you can add more valid than just the money or not depends what what you can offer this kind of boat and proposal but generally speaking yet these are pretty much the numbers and are you are you eat I'm curious what the Israeli markets are like is there a lot of venture capital available over there are you coming to the states to raise no show actually you're all of companies here needs a lot of visas and all the foreign species as well talk there's a lot a lot of money comes from us beaches and in the past two years from from the Middle East it well especially from from China also from Russia so actually the equities in Israel is the second...