Hey - Marc here.

Happy Saturday morning, motivated B2B SaaS Founders!

Here's at least one tip to keep in mind as you grow your B2B SaaS company:

Today's issue takes about 5 minutes to read.

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In today's issue, I share some key takeaways from a recent interview between Nathan Latka, the host of Daily Interviews with SaaS Founders, and Esra Kaygin, the founder and CEO of Hirize. They discussed how they hit $14k in MRR in 60 days.

Esra Kaygin is an accomplished individual with experience as a two-time founder, VC partner, investor, lecturer, board member, and author. Her exit from a previous venture and acclaimed book on innovation has led her to her current focus on building Hirize.

About Hirize

Hirize is the industry's most advanced AI-powered resume parser, resume, and job matcher API. They extract data from HR documents with the greatest accuracy and can be seamlessly integrated with your exciting tools in minutes.

Their clientele includes HR startups, job boards, and applicant tracking systems, along with enterprise customers who integrate the API into existing systems like Oracle, SAP, and Greenhouse.

They launched two months prior and have achieved $14k in MRR with 12 customers. The first line of code for the platform was written in December 2021. They raised $1 million in a pre-seed round with investors like Excel Springer and Porsche.

They had 1,400 beta signups, but only 80 active users, of which 12 converted to paying customers. Esra is attending an event and engaging with potential investors and aims to raise $2 million with a valuation of $29 million.

Challenges

Introducing new technology and convincing customers to adopt it can be challenging–

Especially when the market is accustomed to older solutions. Sovereign is a competitor that uses outdated technology but still holds a significant market share. Hirize needs to educate the market about the benefits of its advanced AI technology and persuade potential customers to switch to its solution.

Advice to Other Founders

Long beta stage could be beneficial.

Ezra mentions that they had a lengthy beta stage, during which they collected feedback and refined their product. This allowed them to fine-tune their offerings based on user input before fully launching, potentially resulting in a more polished and attractive product at launch.

Leverage your network and reputation.

Esra's background in the VC industry, along with her co-founder's experience, likely played a role in securing initial funding and generating interest in the company. Having a strong network within the industry helped them connect with potential investors and advisors who could provide support and guidance.

Strategize your fund allocation.

The funds raised from their pre-seed round were primarily allocated to salaries and development. Hiring skilled developers and building a strong technical team enabled them to create a robust product that resonated with users.

Bonus

1. Esra's preferred read is her very own "Disruptive Innovation: How to Win in Times of Change."

2. When asked if there's a CEO that she looks up to or studies, Esra readily acknowledges, "Bill Gates."

3. Esra shares a candid revelation: "sleep less." With time, she recognized the potential to manage with less sleep, thereby creating room for more enriching experiences and enjoyment.

TL;DR

Hirize was launched about 18 months ago by Esra and her co-founder. They introduced their first paywall roughly two months ago and managed to convert 1,400 beta signups into 80 active beta users. Out of these, 12 users have started paying, resulting in a monthly revenue of $14k. They secured a pre-seed funding round in October 2022, raising $1 million at a $10 million valuation cap. Currently, they are in the process of raising $2 million, targeting a $20 million evaluation. They are focusing on managing dilution effectively as they continue to grow.

PS Here is a link to the full interview if you are interested in listening to the full episode: How Hirize hit $14k in MRR in 60 days

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See you again next week.

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