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Zvi Schreiber, founder and CEO of Freightos \\u2013 the internet marketplace for the trillion-dollar international freight industry. Zvi was previously the CEO for Lightech which was acquired by G.E., and was also the founder and CEO of Unicorn Solutions which was acquired by IBM. Additionally, Zvi was the founder of G.ho.st, a predecessor of DropBox, which ended in a fire sale. He\\u2019s spoken widely and was in many articles and patents. He has a PhD in Computer Science and he\\u2019s the author of Fizz: Nothing Is as It Seems, which tells the history of physics as a novel.

Famous Five:

• Favorite Book? \\u2013 Crossing the Chasm
• What CEO do you follow? \\u2013 Jeff Bezos
• Favorite online tool? \\u2014 Mixmax
• How many hours of sleep do you get? \\u2014 7 hours
• If you could let your 20-year old self, know one thing, what would it be? \\u2013 \\u201cIt\\u2019s okay for startups to take on a big conservative industry\\u201d

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Time Stamped Show Notes:

• 01:08 \\u2013 Nathan introduces Zvi to the show
• 02:23 \\u2013 Freightos is targeting the world of international freight
• 02:45 \\u2013 90% of the products sold in the West are imported \\u2013 the entire lifestyle is dependent on international freight
• 03:18 \\u2013 The biggest cost components in the freight industry is the trucking, ocean liners, port handling, and airlines
• 04:38 \\u2013 \\u201cThis big industry is very inefficient\\u201d
• 04:52 \\u2013 Asking for a quote from a big freight forwarding company can take about 3 days
• 05:45 \\u2013 Freightos is the \\u201cExpedia\\u201d for freight
• 06:09 \\u2013 Freightos makes money by taking a cut of the transaction
• 06:24 \\u2013 They basically do the marketing for the seller
• 06:40 \\u2013 Freight forwarders are companies that arrange freight like Expeditors and H. Robinson
• 06:59 \\u2013 Some more known forwarders are UPS and FedEx
• 07:24 \\u2013 The buyers in this marketplace are the import/export companies
• 08:46 \\u2013 Freightos helps with importing/exporting and not door-to-door deliveries
• 09:15 \\u2013 Freightos only takes 2% from the freight forwarders\\u2019 transactions
• 09:35 \\u2013 They don\\u2019t take any percentage from the buyer\\u2019s end
• 10:02 \\u2013 Many freight forwarders are using Freightos\\u2019 software to automate their own pricing
• 10:23 \\u2013 Freightos is a SaaS business
• 10:33 \\u2013 They\\u2019ve recently raised $25M from an investment round led by G.E.
• 11:21 \\u2013 In 2016, 90% of their revenue came from SaaS because they\\u2019ve just launched the marketplace that year
• 11:35 \\u2013 Without the SaaS, freight forwarders are not able to do instant pricing
• 11:54 \\u2013 The SaaS platform is serving about 1,000 freight forwarders all around the world
• 12:04 \\u2013 Freightos is the market leader for the SaaS
• 12:22 \\u2013 There are only a few thousand freight forwarders that matter and Freightos has 1,000 of them as customers
• 12:35 \\u2013 January 2012 was the launch date of Freightos
• 12:43 \\u2013 Freightos\\u2019 team size is about 150 people across the world
• 13:17 \\u2013 Every shipment involves 2 countries
• 13:26 \\u2013 Their biggest office is in Jerusalem and Barcelona
• 14:07 \\u2013 Their customers pay less than $1K/month to tens of thousands per month for the subscription
• 14:43 \\u2013 The reason why most marketplace startups fail is because of the chicken-and-egg problem
• 15:06 \\u2013 Freightos spent 4 years selling SaaS to companies
• 15:40 \\u2013 Freightos\\u2019 first year revenue was 0
• 15:45 \\u2013 Their first revenue came in 2013
• 16:25 \\u2013 It was in 2015 when Freightos earned their first million
• 16:56 \\u2013 Each month, there are about several hundreds to a thousand transactions in their marketplace
• 17:33 \\u2013 Freightos is starting to educate freight forwarders and importers/exporters that they don\\u2019t need to wait anymore for pricing
• 18:16 \\u2013 There are thousands of buyers already using their software
• 20:03 \\u2013 The Famous Five

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3 Key Points:

1. Our lifestyle is heavily dependent on imported goods.
2. Find an industry\\u2019s pain point and start from there.
3. Don\\u2019t be afraid to create a startup in a big and conservative industry.

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Resources Mentioned:

• The Top Inbox \\u2013 The site Nathan uses to schedule emails to be sent later, set reminders in inbox, track opens, and follow-up with email sequences
• Klipfolio \\u2013 Track your business performance across all departments for FREE
• Hotjar \\u2013 Nathan uses Hotjar to track what you\\u2019re doing on this site. He gets a video of each user visit like where they clicked and scrolled to make the site a better experience
• Acuity Scheduling \\u2013 Nathan uses Acuity to schedule his podcast interviews and appointments
• Host Gator\\u2013 The site Nathan uses to buy his domain names and hosting for the cheapest price possible
• Audible\\u2013 Nathan uses Audible when he\\u2019s driving from Austin to San Antonio (1.5-hour drive) to listen to audio books

Show Notes provided by Mallard Creatives