How Lalamu App Reached €1,000/mo Revenue and 20,000 AI Lip Sync Videos Created (Interview with CEO Matthias Spitzer)

Introduction and Company Overview

Nathan Latka

00:00Lalamu. App is using AI to help you sync lip sync video or text to speech multiple languages with a click of a button. They had a successful product launch, 215 upvotes. That's helped people create over a 100,000 videos I'm sorry, a 100,000 website visits over the past four months. They've created over 20,000 videos, now averaging a thousand new videos created per day. They're trying to use those metrics to go out and raise a $2,000,000 funding round

00:22at a 10,000,000 valuation. He's quitting his full time gig to go all in on this. Hey folks, my guest today is Matthias Spitzer. He's the CEO and Founder of lalamu.app. If you wanna follow along, he's got twenty years of experience in advertising primarily as the art director and motion designers, gained deep insights into the world of visual communication. Today he helps AI lip sync

00:43and video solutions at app lalamu. All right, Matthias, you ready to take to the top?

Matthias Spitzer

00:48>> Yes, okay.

How Customers Use Lalamu App

Nathan Latka

00:49All right, so I guess explain to us how a customer would use the application today.

Matthias Spitzer

00:55>> So the customers are B2B or B2C clients and it's like customers be like from creations of video creations or post production videos companies or advertising companies like that and they use the tool for lip syncing their videos in different languages. So they got original languages like German and they want to translate it on any different language like Japan or Japanese or Spanish or whatever, so they can translate the original speech like from text to speech or

01:38>> from the original speech to a different language, and then

01:46>> it's about one tip on creating lip sync and the original video takes the audio they create and the movement of the lips creates. About the Spanish talking is about

02:07>> Japanese speech.

Nathan Latka

02:08Understood Matthias, understood.

Matthias Spitzer

02:10>> Makes sense. Tell me, I

Nathan Latka

02:12understand the pricing here. What do customers pay on average per month or per year if she uses technology?

Matthias Spitzer

02:18>> We don't have any offer because we are in a demo version right now. So it's for free right now.

Nathan Latka

02:28Okay, so just to be clear, you have no customers today. Help me understand when

Matthias Spitzer

02:32>> you No started paying customers, yeah.

Nathan Latka

02:36Well, that's what a customer is, right? Someone who's paying you.

Matthias Spitzer

02:39>> Yeah. No paying customers today.

Nathan Latka

02:41When did you first start writing code for the platform or for the tool?

Matthias Spitzer

02:45>> The first tool is LipSync app. It's called lalamu app.

Nathan Latka

02:50Now Matthias, when? What year did you launch the company?

Matthias Spitzer

02:54>> What?

Nathan Latka

02:55When did you launch the business? The time, the year.

Matthias Spitzer

02:57>> We launched 2020.

Nathan Latka

03:02Okay. So you funded the business to date pre revenue. I mean, you have to pay yourself salary and have to pay rents and things like that. How do you do that?

Matthias Spitzer

03:11>> Yeah, so the first product is a lalamu app. It's a lip sync app. It's only the app, it's a fun app. And we got small revenues and so we focus on B2B. It's lalamu studio, it's a demo version, and now we are up to create some funding to make some high quality videos. So we are on the funding stage and so the revenue in B2B sector is quite zero.

Pricing and Paying Customers

Nathan Latka

03:41Okay, guess, sorry, so you use the earlier version of the app that you built to fund some of your expenses that has some revenue. How much revenue does that have?

Matthias Spitzer

03:51>> It's about €1,000 and that's all.

Nathan Latka

03:57Okay, that's great. And do you have a co founder on the business or is it just you?

Co-Founder and Team

Matthias Spitzer

04:01>> Yeah, no, no, I got one co founder, it's called Philip Salfo, he's the lead of FX in the side way, a side business for Weeter, it's the greatest post production company worldwide. He has the lead of effects of Guardians of the Galaxy or Transformers, and so he's the CTO and my co founder.

Nathan Latka

04:25So Matthias, just to go back to this, so the company has been making since 2020 about $1,000 per month on this first version of the application. You've now launched a B2B version, which is AI enabled, that is free revenue, no customers there. It's really hard to support two people on a thousand dollars a month. So have you and your co founder both kept side jobs or something to pay your bills?

Matthias Spitzer

04:44>> Yes. I get my job as well as a motion designer and Philip is the leader of FX at Weetel and now we are on the farming grounds about €2,000,000 to create the AI developers group.

Funding the Business Pre-Revenue

Nathan Latka

05:03You've already closed that round or you're currently raising it?

Matthias Spitzer

05:06>> We are currently raising it, so.

Nathan Latka

05:08And what are you learning from the market today, giving you the valuation that you want?

Matthias Spitzer

05:12>> I think we are on the right way.

Nathan Latka

05:19You know what that means?

Matthias Spitzer

05:21>> We know that the B2B web solution is quite the right way to make some revenues because we got awesome feedback from users worldwide. They use the free demo version right now, the lalamu studio free demo version.

Consumer App Revenue

Nathan Latka

05:43Oh, what's going on there YouTube? Good to see you guys. Now imagine this, you love watching these interviews with SaaS founders, but imagine if we took all of the valuation data out from over 2,807 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 Founderpath. Check this out. I'll show you how you can access this in a second, but you log in, you connect

06:06your Stripe account, you see your valuation real time. You can see what it changed over the past eighty eight days and even set goals for valuation this year. Now the secret evaluation is there's many different ways to value a SaaS business. So the reason you're gonna see three or four different valuations inside of your Founderpath dashboard, this is all free by the way, is because depending on who's doing the buying of your SaaS company, you're gonna

06:31get a different valuation. A VC is gonna pay a different valuation, private equity firm is different. If you're gonna 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

06:53not 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, 1,200,000 seed round, 3.7 raise. They sold 22% of their business. Go in here and filter by the event. Maybe you only wanna 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

07:18going out right now and you're raising your seed round. We'll 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 dataset of SaaS valuations than what you can get now inside of Founderpath. And we're thrilled to bring it to you. Alright. We're gonna go back to the YouTube video here in a second, but if

07:40you wanna check this tool out, if you wanna jump in and sign up, you can check it out for free to get your valuation at this link. This link, founderpath.com/products/valuations. Or if you go to founderpath.com and hover over products, click on get your valuation 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. Alright. Let's jump back into the

08:07interview. What behavior are you watching on the free version that gives you confidence that you can charge for this tool?

Matthias Spitzer

08:14>> Because they ask about API, paid API to use it in high quality.

Nathan Latka

08:21I see. So when do you plan to launch a pricing plan?

Matthias Spitzer

08:25>> A couple of months, like maximum six months from start right now.

Nathan Latka

08:31And how many free users are on the B2B tool right now?

Product Hunt Launch and Video Creation Metrics

Matthias Spitzer

08:34>> Every day about 1,000 videos are created. Each day 1,000 videos have been created. Since May 14, we launched it on Product Hunt and since then we got over 20,000 created lip sync videos.

Nathan Latka

08:55And so the thousand videos that have been created over the past thirty days, how many users created those videos?

Matthias Spitzer

09:04>> The numbers of creators we don't know, but we only know the created videos. It's about 20,000 videos they have created since the last four weeks.

Nathan Latka

09:22Sorry, they've created a thousand videos in the past thirty days or 20,000 in the past thirty days?

Matthias Spitzer

09:27>> 20,000.

Nathan Latka

09:29Oh, okay, so it's a thousand per day, you said?

Matthias Spitzer

09:31>> Yeah. Yeah. Sorry. Sorry. Okay.

Nathan Latka

09:34So 20 ks videos last thirty days, but just to be clear, sorry, you're not tracking the user's email address that created the video? You have no way to know how many actual individual users are using the tool?

Matthias Spitzer

09:45>> So we got Google Analytics quite running and we see about 19 to 100,000 not really users. The 100,000 are all the people that open up the website, but creators'videos are at 20,000 since So

Nathan Latka

10:13I guess how emails do you have? User emails?

Matthias Spitzer

10:17>> User emails?

Nathan Latka

10:19Yes. Users that have signed up to lalamu. How many emails do you

Matthias Spitzer

10:23>> No, no. You don't have to sign up. It's a free version. It's a demo. So you type in the website and you can begin at the start. You don't have any login,

10:36>> no emails.

Nathan Latka

10:37So then how do you market to these users once you launch your free plan? How do you go find them again?

Matthias Spitzer

10:44>> It's in the future because now we want to have some feedback from the users to what's good, what's

Nathan Latka

10:53How do give you feedback though if you don't know who they are, if you don't have their email address?

10:57>> How do

10:57you talk to them?

Matthias Spitzer

10:58>> They talk to me, they write to me.

Nathan Latka

11:01How? Via email?

Matthias Spitzer

11:03>> No, no, we got no login in the free version.

Nathan Latka

11:07So how do they write to you?

Matthias Spitzer

11:09>> They write to me because we got on the website's email address, and so when they have some asks about lalamu studio or the features that we build up, they write to us by themselves.

Nathan Latka

11:24So they email you, you put your email on the site, they email you?

Matthias Spitzer

11:28>> Yeah.

Nathan Latka

11:29When they email you, then you see their email address, correct?

Matthias Spitzer

11:33>> Yes. But how many emails there are, I don't know.

Nathan Latka

11:39I guess what I'm trying to understand is like all these usage metrics on the tool, again, go to lalamu.studio to sign up to use it, you don't have to actually sign up for anything, you just start using it. It's great that you've had a thousand videos created per day, but again, how do you I guess you have to keep getting new traffic every single day so that when you do launch your pricing page, that new traffic

12:00that hits that day when you launch it sees it because you have no way to go email market or in any way reach out to people that have used you in the past. No.

Matthias Spitzer

12:11>> Why we choosing this way is to see how many people are using our website or creating videos to tell that numbers to the future investors. That's the only

Usage Tracking and Investor Metrics

Nathan Latka

12:31What is that? That's what I was asking earlier. What is that number? How many people created videos over the past thirty days?

Matthias Spitzer

12:37>> How many people? We don't know. We only know

Nathan Latka

12:40Well, you just told me that Matthias, you just said that you're measuring to show investors, and then when I asked you, well, what's the number? You said you don't know the number.

Matthias Spitzer

12:46>> I don't know the number how many people are using the website. We only know the number how many videos are created since the last four weeks.

Nathan Latka

12:57Got it, so it could be one user who's just sitting there running a cron job, launching a thousand videos.

Matthias Spitzer

13:06>> Google Analytics tells us 100,000 users opened the website.

Nathan Latka

13:13Over a period of time?

Matthias Spitzer

13:15>> Yeah, but how many users really use their websites to create some videos, I don't know.

Nathan Latka

13:22Many of the 100,000 that opened the website, over what period of time?

Matthias Spitzer

13:28>> Last four weeks.

Raising a Pre-Seed Round

Nathan Latka

13:30Last four weeks, okay, that's great. And so you're raising a $2,000,000 pre seed round today, what valuation are you targeting?

Matthias Spitzer

13:39>> Because what valuation? It's like

13:45>> tell me the

13:47>> ask me again, please. Sorry.

Nathan Latka

13:49Yeah, no problem. So

13:53if I say I'm going to give you $2,000,000 Matthias, how much equity will you give me in lalamu app?

Matthias Spitzer

13:58>> How many equity? We think about 20%.

Nathan Latka

14:03Okay, so that would be effectively two point so that would be a $10,000,000 valuation is what you're asking for?

Matthias Spitzer

14:08>> Yes.

Nathan Latka

14:09How do you defend that? I mean, you think someone's going to give you a $10,000,000 valuation today?

Matthias Spitzer

14:14>> We think so because I'm speechless with different investors,

14:21>> so we got a great stage about our future plans. It's about the API because our focus is not on B2C clients, it's only on B2B clients, and we want to sell our API to different B2B clients like Canva or Shutterstock or Envato or else.

B2B API Strategy and Future Plans

Nathan Latka

14:47But if I was an investor and you were asking me for $2,000,000 and you told me that you weren't full time on your project, I'd say I'm not interested, you're not serious about the company. You still have a side project. Don't you have to quit your full time job before you go out and invest investors to give you a million valuation?

Matthias Spitzer

15:01>> Yes. Definitely. Yes.

Nathan Latka

15:03So when are you quitting? Why or when? When. When.

Matthias Spitzer

15:08>> Right now.

Nathan Latka

15:11That's breaking news on the podcast. You're quitting your full time gig to go all in on lalamu out.

Matthias Spitzer

15:15>> Yes.

Nathan Latka

15:16Does your boss know that?

Matthias Spitzer

15:21>> I'm self employed, so I got no boost.

15:24Ah!

15:24>> Yes! Okay.

Nathan Latka

15:27Got it. I see, I see. All right, very cool. Well, listen, we're certainly wishing you an invest. I guess, Ed, we have about a minute left. Tell us how you had so much success on Product Hunt. What was the key to getting so much traction when you launched?

Keys to Product Hunt Success

Matthias Spitzer

15:40>> The key, we think about it's we got no login. That's the first key because people love it to play as soon as possible. They open the sites and they can play. They can create videos at the start, at the beginning, and we think that's the key, and our focus and our target is to build the paid version like it's right now, but when you like to build, create some high quality videos, you must pay per minute

16:18>> or monthly about ten minutes package or twenty minutes package and so on.

Nathan Latka

16:24Got it. Well, you did well, you got two fifteen upvotes. Congrats on that. We're out of time though for today, so let's wrap up with the famous five. Number one, what's your favorite book?

Matthias Spitzer

16:32>> Oh my god, oh, it's too fast. My favorite book, oh my god,

16:40>> it's too fast. Can we take the next? I'll say none.

Nathan Latka

16:44Number two: Is there a CEO you're following or studying?

Matthias Spitzer

16:49>> One CEO I'm following.

16:53>> I'm following by myself.

Nathan Latka

16:56Sorry, that's What's very your favorite online tool for building a lalamu app?

Famous Five

Matthias Spitzer

17:02>> My favorite online tool to building a lalamu app. It's building by our own technique.

Nathan Latka

17:13Sorry, what's a tool that you use, your favorite online tool besides your own?

Matthias Spitzer

17:18>> Ah, Canva.

Nathan Latka

17:20Number four. How many hours of sleep do you get every night?

Matthias Spitzer

17:23>> What? Sorry.

Nathan Latka

17:24That was two parts.

17:25Sorry. How many hours of sleep do you get every night?

Matthias Spitzer

17:28>> Oh my god. Five hours, I think.

Nathan Latka

17:31And your situation, Matthias? Married? Single? Do you have kids?

Matthias Spitzer

17:36>> Single. No kids.

Nathan Latka

17:38Okay, and how old are you?

17:44How old are you?

Matthias Spitzer

17:46>> Oh, how old? Thought how I am. I'm 42. Sorry.

Nathan Latka

17:5242, last question. Something you wish you knew when you were 20 years old?

Closing Advice and Outro

Matthias Spitzer

17:59>> I built the lalamu application at 20, not at 40.

Nathan Latka

18:07Build sooner, lalamu. App is using AI to help you sync lip sync video or text to speech multiple languages with a click of a button. Had a successful product launch, two fifteen upvotes. That's helped people create over a 100,000 videos, Sorry, a 100,000 website visits over the past four months. They've created over 20,000 videos, now averaging a thousand new videos created per day. They're trying to use those metrics to go out and raise a $2,000,000 funding

18:30round at a 10,000,000 valuation. He's quitting his full time gig to go all in on this. Matthias, we're rooting for you. Thank you for taking that to the top.

Matthias Spitzer

18:37>> Thank you. Thank you so much.

Nathan Latka

18:40One 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 one

19:04p. M. Central. Additionally, remember these recorded founder interviews go live. We release them here on YouTube every day at two p. M. 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. I wouldn't want you to miss breaking news in the SaaS world, whether it's

19:26an acquisition, a big fundraise, a big sale, a big profitability statement or something else. I don't want you to miss it. Additionally, if you wanna take this conversation deeper and further, we have by far the largest private Slack community for B2B SaaS founders. You wanna get in there. We've probably talked about your tool if you're running a company or your firm if you're investing. You can go in there and quickly search and see what people are

19:48saying. Sign up for that at nathanlatka.com/slack. In the meantime, I'm hanging out with you here on YouTube. I'll be in the comments for the next thirty minutes. Feel free to let me know what you thought about this episode. And if you enjoyed it, click the thumbs up. We get a lot of haters that are mad at how aggressive I am on these shows, I do it so that we can all learn. We have to counter those

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