Scaling Europe
00:02:29 · Omer Kaplan, Sebastian Johnson
[00:02:29] S1: So would divide that to two. First, I think it's poor product bets. Think that most of these companies, they don't really understand if there is a real TAM out there, if there's a real need. It's really emotional. Consumer entrepreneurs, it's really emotional based. So they might be betting on a product on a very saturated market, as an example. They might be betting on a product when a category is actually declining. So I would say that first is product bets, but then even if you're choosing a product with potential, execution is extremely fragmented. You need so many things to work together. You need to build an amazing store and brand. You need robust data infrastructure to really crack attribution and lifetime value and predicting lifetime value because media is really expensive, you're actually losing money on the first purchase. Even thinking like that is very hard and not intuitiveforecom. You need to be able to do conversion optimization, right? The entire CRO funnel. You need to do email marketing because everything is retention based today and SMS marketing and customer support. You need to connect all of this also to inventory forecasting. And I'm telling you, it's mind boggling. And I think that because you need to master so many things differently, you need to get an A plus in all of them because it's really hard. And to bet on the right product, I think that that results on the vast majority of them failing. And then how are you solving this? [00:04:16] S0: What have you built to try and plug this gap and solve this problem?
00:04:16 · Sebastian Johnson, Omer Kaplan
[00:04:16] S0: What have you built to try and plug this gap and solve this problem? [00:04:19] S1: So we are literally taking the entire scale challenge, the entire problem of scale, which is comprised out of all of these nuances I just told you about, and we are delivering an outcome service. We've built endless agentic capabilities to make sure that we can manage all of these in a very effective way, scaled way, but also connected way that all of the agents are speaking to each other and improving the funnel. Then so we literally would replace for that company, we would replace all agencies, all internal marketing teams, all creative, like literally they would outsource scale to us. But it's important to say we will only do it with companies that we think that they have the potential to really break the internet, right, or to really like 10x. That's why we always start in the validation process. [00:05:24] S0: And so this takes us to ZyG Score, right, which you've just announced. And this, I guess, is your way of assessing those companies. Can you talk a bit about what that process and what it is that you've released?
00:05:34 · Omer Kaplan
[00:05:34] S1: Yeah. So it's very exciting. It was announced today. So let me walk you through the onboarding funnel. So first, I'm a consumer company. I'll go to the ZyG website and then there are kind of pre requirements to start the process. So you need to sell it at least $1,000,000 a year. You need to have an AOV, an average order value of $40 per transaction. And then you're starting with what we're calling an intake, which is you just give the domain, like basic contact information. We will send many agents to kind of pre fill all of this process for you. This is something without that will take you a few hours because we are literally x raying everything about your business. From modes to brand voice to target audience to cogs, to like really, really, really deep, deep, deep understanding. And then you would go through this agentic onboarding form where it will take you ten minutes instead of maybe, I don't know, five meetings. Right? And then after that, within a couple of hours, we would generate an opportunity kind of assessment which we're calling a ZyGNAL, where we would literally go and send agents to every relevant place online, paid resources, open resources, our own taxonomy, our own benchmark, competitors, like really, really deep research. And you're going to get this report that analyzes the market, analyzes the competition, but really going deep into each of your competitors, analyzing your moats, analyzing different funnels and USPs and claims, and what can you say that others can't say, or what are others saying that you can, and really take all of that and give you a first assessment of understanding when looking at the market and looking on only the things that you can say, your specific differentiator, you would get a first indication of, is there a signal for something interesting here? And if the answer is yes, then you'll get invited to move to the next phase where we're using all of these insights to now agentically build all of the assets that we need. So a store, creatives, landing pages, messages, everything we need in order to do advertising and to bring real world users into this funnel to really measure what is their potential. We are combining, we're using really advanced AI capabilities to build and optimize and understand all of the messaging here, what we want to offer the world. But then we don't stop there.
00:08:31 · Omer Kaplan, Sebastian Johnson
We spend about $10,000 of media in order to bring enough users to this funnel to get exactly the KPIs that matter, benchmark them compared to that specific category, and then we can really have a score of what's the potential here. [00:08:48] S0: And so that first stage, I guess, of entering in your details, you get to a score before you get to the place where you help them run their marketability test. What does good look like? What does a good company, a good e com brand look and feel like? And what are the key things that you're measuring on? Is it uniqueness proposition? Is it price? What are
00:09:08 · Omer Kaplan
[00:09:08] S1: the things that really companies are getting measured on? So in the first phase we are going a bit macro and we are looking at exactly kind of what you said. We're looking at the market, we're looking at is there anything unique here in what you're offering, how are you pricing your product compared to everybody else. We even go to places like what is your margin? And then how much do you need to price the product? How does it compare to others? But that's more on a macro level on phase one. On phase two, we would go as granular as really understanding predicted lifetime value and predicted ROAS compared to CAC, to customer acquisition costs. So at the end of these seven days, after we spent about $10,000 we would literally say this brand has a predicted lifetime value versus CAC or predicted ROAS of 2.5. And if we are seeing a number at this phase, which is I would say north of two, then we are in a good environment. But the score doesn't only take that. The score also takes many other elements like did the results generated from a single creative or was it diversified? Because maybe there was just one message compared to diversification. Was it only women at the age of 42 to 44 that converted or was it a wider spread, both males and females? Like we would go, what was the viral impact of your advertising? Did people share it? So everything, we are literally benchmarking a lot of areas in order to eventually give this score.
00:10:52 · Sebastian Johnson, Omer Kaplan
[00:10:52] S0: And so that test that you're running, where you kind of put in $10 of your own money to help them to test things, you're testing assets ZyG itself is creating on behalf of that company. Right? You're taking all the information. You're then spinning up assets and kind of advertising, and you're testing it on that. Is that right? [00:11:11] S1: Yes. First of all, it's important to say we are going to sponsor the 500 companies that we think has the highest potential. We're not going to sponsor everybody, but we're to sponsor the 500 because we are really on a quest to find the next breakup brands. Literally, we're feeling on a quest do it. Yes, we would use obviously their own assets. So companies already have brand and a good brand presence. We know how to identically take that and build it, but we will build our own funnel, which is very much it's database and all of the piping, and we can do all of the modeling around it. [00:11:53] S0: And so you mentioned 500 companies. This is going to cost millions of dollars. Is this the thing that you've chosen to invest the money? You know, you raised $60,000,000 only. [00:12:03] S1: A 120. [00:12:03] S0: Oh, a