A founder closed a $1.9 million seed round in two days, but Prime Area passed because the fund needed a $10 billion exit potential. He's keeping a lean runway to force discipline on funnel metrics and unit economics while the SaaS call-tracking product grows 20% month-over-month.
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You have like a million dollars to like make this thing like work. Like, if you can't do that, it's like it's on us for like not being able to execute. I mean, I think they're going to do it. I would do it if I was them. What happened with the guys from yesterday? All right, so guys from Prime Area, they had— gives a hard pass. A lot of times fund economics play into it. Like, the funds too big, they have to invest either too much money or the company has to be a $10 billion exit or they have to be able to see the company get into a $10 billion exit for it to make sense for them to invest. Presentation didn't do it? No, it didn't do it. Andy just couldn't get it. But that's cool, we were kind of bro-ing out on this email. I was like, yo, wish you best of luck. He was like, I wish you best of luck. I love you, dude. I love you, bro Montana. We closed the round today. High five! High five! We raised $1.9 million in 2 days. We closed it. I mean, we don't even need, we could operate off of $1.2 and get to our goals where we need to be. We had it higher just because we were getting a lot of interest into the rounds. And we still might get another $500K come in. We were talking to some people still. So now I think the next bid is like $1.25. I think Launch will come in for $3 and then like, I don't know, I have a weirdly good feeling about it looking like $3. It doesn't matter anything at the end of the day. It actually just means we sold less of the company, which is good. So we get to retain that equity. We have to just be a little bit more disciplined how we execute because we have less money to burn, but it's like, I'm kind of excited about it because now we get to like just be super, super focused on like funnel metrics and unit economics and things like that, whereas like, before it's like you have too much money so you can be reckless. I want everyone now in the round to be like, make a lot of money and everyone's only gonna make a lot of money if the company does really, really well. So now it's like, it's just time to execute. [MUSIC] If you can still see the screen, this is where you set it up, but it's like basically you're saying like, hey, we only needed to swap for AdWords 'cause we only wanna track, you know, call conversions for AdWords. Again, it's up to you, kind of what you're looking to do with the data. What I'm finding is like the financial decision maker is a lot of times different than the like product decision maker. A lot of times the product decision maker will be like a you know, director, you know, digital search manager or something like that. And the financial one would be like the owner, right? So then it's like you kind of have multiple parties that you have to sort of sell to. And that's what I want to do is like I want to— you want to humanize it because SaaS like these days is like super commoditized, you know, where it's like product, you know, everyone's gonna have the same features at the end of the day. But it's like, you know, if we could just wow them into like them. Competitor call. So a competitor, co-founder of a competitor called. I don't know what he wanted, but we were just chatting for like 30 minutes about like call tracking in the space. He's like a direct competitor too. Like they do the exact same thing as us. What we're doing, and probably what you're doing, is more like top of funnel. Like hey, you know, optimize marketing spend, you know, see what's working, what's not, and like, you know, really track your cost per lead, cost per sale better. But then it's like, how do we then help them like sell more as well and like really own the conversation? But they're doing like a million in annual revenue and I told them, I don't know, it was cool, it was actually cool. I don't like not sharing, I share everything. You guys have been following along for the journey, you've been following us as we've been raising this and we finally closed. It only took us like 2 months, really, to like decide. Yeah, that's a good point. Then like create the video, then create the deck, then actually like get the meetings. Stuff, then get all the other investors into the round, then get the term sheet, then get like all the documentation signed with them. Then we got to get like D&O insurance, then get legal to goods, then we have to like file in New York to like even do business in the New York. Multiple pitch deck, then boom, finalize paperwork, get the signatures, get the wires into the bank in 2 months while still running and growing the business at like 20% month over month. Again, I want to thank everyone for like following along on the journey, and, uh, we're out. Peace.
