How Unomy CEO Gal Harzvi grew 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 largest in the world after of the leader Wow in both terms of number of and also in the number of investments being made you and is the whole thing is the whole team based in Israel so not everybody we have three branches so we have any trail give some salespeople to marketing the GNA and we end the top of the R&D people we have another artist in store in Ukraine and we have sales people in miami in boston and in about a month and a half we're going to have an office in New York as well okay so you got Israel Miami Boston in New York coming shortly yes and what's total team size we're now 24 24 people okay take us back to some of the economic kind of custom economics of the business what are you seeing in terms of gross monthly customer turn or annual journey that's easier yeah so actually months and journey is almost impossible because we do and you know subscriptions and many times the contracts are for two years or feared and so customers will be able to lock the price and because EP we keep changing the enterprise with the product gets better and as we can provide more and more a value and so it's really hard to tell exactly like the average is being changed from from a scope on and let me ask it differently then when you're trying to figure out how much you're willing to spend to acquire a customer what do you assume their rice time value is going to be and its really really depends because we have customers their days are just a few tens of thousands and potentially their customers the indoor deals in our state of hundreds of thousands and so it really depends on the customer I would say that if I need to gas on average it's probably going to be around and fifty thousand dollars on average the lifetime value of over the card okay and assuming that that's the best kind of accurate that's what you're going off of woody then willing to spend to acquire that customer probably a third parties amount although today we don't need to spend a third week and much much much less and but we don't even know yet what the average their lifetime value of or will be also the Sharon the concern right now it's actually negative and because we knew have more off than thank you well that's right that would be that would be kind of like IAM net negative revenue sure and that's why when i asked the question i said gross customer churn it's what i was curious if you've lost any means have you lost any has anyone that was paying you stops paying you over your over the last 12 months yes we have more than 100 and we need a lot a few customers because of different reasons usually easily because it wasn't very good sweet thing from their first place so maybe it was some singing setting the right expectations or just making sure that we have a good coverage in their specific territories that they were looking for or maybe specific regions in the world where we don't have a good coverage in our database it's very rare but in you depends on how many companies you have do you have mapped out in your platform so we currently have I think it's one of the largest database is out there we couldn't have about seven million companies and 77 million business professionals with their verified contact information and i would say that out of these companies and people about eighty percent or based in the US so out of the 77 million people i think that all about 58 59 million people are business professionals in the US and what makes you better than called you know pitchbook CB insights data fox matter mark a bunch of people or a bunch of people in this space do you have like a different data source that use have you built something internal that gets better data or what oh so actually they are little bit in with the ones that you mentioned are always like many differences so we have everybody you can be categorized as sales intelligence solutions but in fact they are more nishat or you can segment it's market day even further so you mentioned companies like they're a fuckton and peach book so data fog speech book DB inside and mutter mark all these companies were very focused asleep when they started they were very focused on helping investors finding the best investment opportunity investors and business and development corporate development if people for M&A activity so because this was the main goal when they started their database includes a mostly technology company looking to raise money thinking so they have about one of your companies in their databases all them together usually the youth brunch with the benchmark and then they get information about all of this company and and in terms of business professional the investors they don't need to know everything about everything you'll employee in the company or to get phones and emails of decision makers of this company so they have about 200,000 people endure database so we have seven million companies because there is no stick to can find companies from different industries education government nonprofit manufactures and of course also technology companies they're sore for people we also have 77 million business professionals so we're talking a very different chemical we have different purposes we were we founded the company 12 tell people not investors so the focus was different although a few of the nominees we just mentioned these people and started to sell to yourself in as well and we're under there I will wait so what would you say like you have AOL listed as a customer on your customer page well if you're just in one sentence say why they pay you versus paying CB insights what would the answer be it was simply a much larger coverage it would be one thing a much larger covers but it's not just that it's also the accuracy because we're using a lot more resources then in others we actually just two different exist together our information the one is our own web colors we have powerful web colors there can the women look for information in public places like we get it from the company website this is directory search engines use website etc and every public source that includes company information about companies and your employees will get it using our powerful web colors another method with that we're using on top of that its partnership so we've partnered with a lot of companies in your state so I can mention a few with others I cannot mention I can mention a few a for example crunchbase so we've licensed there is our database you can find it on onion on every single company from CrossFit travel a lot more built with Alexa zooming for many many many others we have tons of partners as well to license their data we ever get everything together and then we use a lot of machine learning natural language processing to do the identity recognition and to match all these fragments pieces of information to comprehensive profile and this is how we're building our database do you guarantee if you give someone say a thousand leads do you guarantee a correctness rate like we say less than 10 feet without we joined the hundred one hundred percent so if you got an email from us or leave from us and from any reason the email bounced you get your Pope Benedict and it's actually very rare because we think we do a real-time verification whenever we want to get someone contact information when you click that you want to get it before we show you to you we will do a real timer education to make sure that everything is you get from on yes exactly and if somehow you got a bound or the email was not deliverable and then you get your full credit back cooperate because I get at all the time Nathan that you host all these interviews hundreds of them for months how do you do them efficiently and guys to answer is simple people always agreed to my calendar back-to-back meetings I batch my injuries to say very efficient and the way that I do it is I use a tool called acuity scheduling at Nathan latkin calm /schedule and the reason I use it is very simple they keep my no-show rate or very low because they send out reminders about when the interviewer where the meeting is coming up and also they make it very easy to schedule time right go back and forth via email 10,000 times of I'm trying to meet with and Nathan rented calm /schedule health cleaning is so much and by the way look like have so many meetings i'm the best of meetings okay do them back-to-back very very efficient you guys know me many peoples them the most efficient they've ever seen okay so i use the tool is so efficient and by the way I got Gavin I said Gavin he's the CEO I said I want a great deal for my people he said Nathan well most people get a 14-day trial is none great i said no he's given us a 45 day free trial at maison rabih calm /schedule that's not gonna stay up rubber to go get it now Nathan vladka dot-com /schedule got it very cool listen up I want to obviously get in the final form of the show the famous five let me jump into those either quick one word answers the first one gal is what is your favorite business book I have many one of my favorite it's probably peach anything by oren clamp number two is there a CEO you're following or studying right now and nothing not right now no number three is their favorite online tool you have like a cutie scheduling wow I have so many i use collins e ya gong day we love and we just started to do it to use it doom us to do the web Harper says I feel like it as well they're off a few others if you have wound up stop your head yeah sure I'm we're using yes where cells loft and what else hey boo me wrong I love using I used to use the report view but i think it's not available anymore good awesome all right stop striving in allah stick those resources in the show notes at Nathan Lanka com /the top 5 45 again four types of South 5 45 next question gal yes or no you get eight hours of sleep every night you know originally and what's your situation married single d have kids I got married three months ago Congrats so no kids yet thank you no kids yet I know here's no no kids I and how old are you go I'm 34 alright last question take it back 14 years what he was your 20 year old self knew Wow just do whatever your love and passionate about and everything will be good top tribes there you have it do what you love the rest will take care of itself from gal he is that one of the founders of tsunami and again they raised 3.4 million bucks looking potentially raise more here shortly they're serving 100 customers currently on on average thirty thousand dollar per year contract will do somewhere around 2 million bucks this year they have unbelievable churn it's very lowly of net negative revenue turn they're willing to spend about one third of their lifetime value which is 50 grand on acquiring the customer they've got a team of over 24 people across israel miami and boston gal thank you for taking us to the top june is out if you enjoyed gal today go backwards into eric blog than yesterday he runs red blog which did 700 grand 2015 revenue now they're doing 90 grand and monthly recurring revenue with them on pace to you about 1.2 million ARR to help customers drive new revenue okay stop trying I'll see you bright and early tomorrow morning and don't forget before you listen to any other episodes subscribe on iTunes right now for your chance to win a hundred every Monday