Scaling Europe
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?
00:13:51 · Sebastian Johnson, Omer Kaplan
[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? [00:14:01] S1: So that actually is extremely unique because if and maybe we can do it another time but if you go to our dashboards in our platform, I think we're the only one in the world that gives within the same place basically other than the manufacturing itself, they have everything there. They have obviously all of their data but their data is already thinking PLTV and ROAS and LTV not just ROI which is very important. They have all of their performance there, but not only Meta, Nepalveen, and TikTok, but also in the same place they have Amazon and they have influencers and they have attribution for each of them, understanding also the correlation between everything, which is extremely hard. They have everything around CRO. They have everything around retention. They have everything around customer support. They have inventory forecasting. They even have the kind of twelve month budget plan that's connected. It's literally replacing for them at least seven or eight companies dashboards and platforms that they're working with. So instead of going to Shopify and to Meta and to Amazon and to Klaviyo and to Gorgias and to Triple Whale, they now have everything within the same place. And it's not just that everything is there, it's also really connected, which is very, very unique.
00:14:01 · Omer Kaplan, Sebastian Johnson
[00:14:01] S1: So that actually is extremely unique because if and maybe we can do it another time but if you go to our dashboards in our platform, I think we're the only one in the world that gives within the same place basically other than the manufacturing itself, they have everything there. They have obviously all of their data but their data is already thinking PLTV and ROAS and LTV not just ROI which is very important. They have all of their performance there, but not only Meta, Nepalveen, and TikTok, but also in the same place they have Amazon and they have influencers and they have attribution for each of them, understanding also the correlation between everything, which is extremely hard. They have everything around CRO. They have everything around retention. They have everything around customer support. They have inventory forecasting. They even have the kind of twelve month budget plan that's connected. It's literally replacing for them at least seven or eight companies dashboards and platforms that they're working with. So instead of going to Shopify and to Meta and to Amazon and to Klaviyo and to Gorgias and to Triple Whale, they now have everything within the same place. And it's not just that everything is there, it's also really connected, which is very, very unique. [00:15:39] S0: And how does this work for ZyG? What's the business model? What's the upside for you and the company?
00:15:39 · Sebastian Johnson, Omer Kaplan
[00:15:39] S0: And how does this work for ZyG? What's the business model? What's the upside for you and the company? [00:15:44] S1: So the business model is we take a range of 12% to 15% of revenue. That range is usually also dependent on kind of what is the... Because we help finance the growth, so also the return time on kind of the CAC versus LTV. And what's really interesting is that we onboard companies that we think are going to be at least at the round of like 2.5 LTV to CAC at scale. When you are taking our kind of fee and you compare it to the alternative cost of doing it themselves, because we are replacing so many different functions, we are actually a cost saver. So in addition to being able to provide tremendous scale, we are actually a cost saver if you compare apples to apples. [00:16:45] S0: And for the companies themselves, you mentioned it's a cost saving, you're consolidating a lot of what these tools would be doing. What would be the best outcome for them? How big do you think they can get and how big can you help them get? [00:16:56] S1: We are literally trying to only onboard companies that we can 10x them. So if they're selling at like $5,000,000 when they start working with us, we expect them to get to 50,000,000 in like a couple of years and then to more. I know, I see, I see, see, this is what we're looking for. We're not looking to provide something that can help you improve your numbers by 20%. We're looking to really take you to a whole different level.
00:16:56 · Omer Kaplan, Sebastian Johnson
[00:16:56] S1: We are literally trying to only onboard companies that we can 10x them. So if they're selling at like $5,000,000 when they start working with us, we expect them to get to 50,000,000 in like a couple of years and then to more. I know, I see, I see, see, this is what we're looking for. We're not looking to provide something that can help you improve your numbers by 20%. We're looking to really take you to a whole different level. [00:17:30] S0: And you showed me the tool, and I remember being almost gobsmacked by it because the speed at which it was able to assess the market, put all the materials together, it was absolutely insane. And the technology is clearly there today to enable so many parts of the scaling process to happen quickly and in [00:17:51] S1: a way that [00:17:51] S0: they haven't happened before. How do you see this changing the next three or five years? What other changes are coming down the line that can help companies grow even faster?