Scaling Europe
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
00:12:03 · Sebastian Johnson, Omer Kaplan
[00:12:03] S0: Oh, a [00:12:04] S1: 118. Wow. Okay. You raised a lot of money. A chunk of that is now going into this. Yeah. Why was this the thing? And why this amount? Why not double? Why not half? Why not spend that money on growing the team? What is your expected ROI on this amount of money, you think? To be completely honest, there a discussion around should it be $4.98 or $5.87 and we failed at 500. We really believe that there are many, many companies out there. We have seen, by the way, we've already done about 100 of these marketability tests and we've already identified several really amazing companies. We think that within those 500 that we're going to really be selective in selecting them, we're going to find many, many exciting companies with exciting potential. Whether we would then expand that number or whether we'll adjust it, I think it's less what's important. What's important right now is that it's a big enough number for us to really go after a significant amount of opportunities and companies out there and help kind of unveil this type of potential. [00:13:23] S0: And how many do you think of that 500 would you like to take on to the next stage and become proper partners with ZyG? Is it five? Is it 15? Do you have a sense of how many you'd like to [00:13:33] S1: work with? I think realistically we are speaking about something around 10 to 20% of the ones that we will start doing the process with that will get a high enough ZyG Score for us to scale. And can you talk
00:13:33 · Omer Kaplan, Sebastian Johnson
[00:13:33] S1: work with? I think realistically we are speaking about something around 10 to 20% of the ones that we will start doing the process with that will get a high enough ZyG Score for us to scale. And can you talk [00:13:51] S0: a bit about that next stage of the journey then? Because they come on board, do the score, they do the market and then they become kind of scale partners. What does that look like for an e commerce brand?