EP 531: $5m Note Cap Pre-Revenue? How? With ZeroApp CEO Alex Babin

Published: Jan. 6, 2017, 10 a.m.

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Alex Babin. He\\u2019s a serial entrepreneur who has more than 10 years of expertise in innovation, product development and artificial intelligence. He started his first hybrid vehicle company at the age of 24 funded by DFJ. He also founded an interactive video software company. Now, he\\u2019s running an artificial intelligence, communication startup which is building a device-centric, secured, corporate email client called Zero.

Famous Five:

  • Favorite Book? \\u2013 Steve Jobs
  • What CEO do you follow? \\u2013 Mark Daniels
  • Favorite online tool? \\u2014 HubSpot
  • Do you get 8 hours of sleep?\\u2014 No
  • If you could let your 20-year old self, know one thing, what would it be? \\u2013 \\u201cTrust your intuition\\u201d

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Time Stamped Show Notes:

  • 01:45 \\u2013 Nathan introduces Alex to the show
  • 02:23 \\u2013 Alex loves listening to podcasts
  • 02:53 \\u2013 Zero is currently on pre-revenue, but they have a list of pre-sales
  • 03:12 \\u2013 Zero is focused on the corporate market
    • 03:28 \\u2013 Zero helps people be more productive with the help of AI
  • 03:38 \\u2013 Zero charges per user per month on the corporate market
  • 03:48 \\u2013 Zero was launched 2 years ago, was in self-mode for 1 year, and launched the first version a year ago
  • 04:00 \\u2013 Zero had a seed round, in May, from angel investors
  • 04:41 \\u2013 Zero has 3 founders and a total of 6 on the team
  • 05:19 \\u2013 The one who will win the space in the market is the one who will penetrate the market with the most convenient product for the customer
  • 05:33 \\u2013 Customers don\\u2019t want to change anything \\u2013 they have strict security policies
  • 07:15 \\u2013 Zero has 30,000 downloads
    • 07:30 \\u2013 2,000 active daily customers
    • 07:37 \\u2013 Alex shares the difference between daily and monthly active customers
  • 08:55 \\u2013 Zero has recently introduced exchange support
  • 09:28 \\u2013 Zero currently targets CIOs
  • 09:48 \\u2013 Zero\\u2019s pricing
  • 10:10 \\u2013 Alex shares that they are open to another seed round
    • 10:19 \\u2013 Target to raise is $1M
    • 10:22 \\u2013 Convertible note CAP of $5M
    • 11:00 \\u2013 Some of the customers are converting into investors
  • 11:38 \\u2013 Find Alex on Twitter
  • 13:05 \\u2013 The Famous Five

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3 Key Points:

  • The one who wins the market is the one who penetrates the market with the best and most convenient product for the consumer.
  • Be patient and respectful with your customers when explaining your product.
  • TRUST your intuition\\u2014it\\u2019s often the right direction to follow.

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Resources Mentioned:

  • Acuity Scheduling \\u2013 Nathan uses Acuity to schedule his podcast interviews and appointments
  • Drip \\u2013 Nathan uses Drip\\u2019s email automation platform and visual campaign builder to build his sales funnel
  • Toptal\\xa0\\u2013 Nathan found his development team using Toptal for his new business Send Later. He was able to keep 100% equity and didn\\u2019t have to hire a co-founder due to the quality of Toptal
  • Host Gator\\xa0\\u2013 The site Nathan uses to buy his domain names and hosting for the cheapest price possible.
  • Audible\\xa0\\u2013 Nathan uses Audible when he\\u2019s driving from Austin to San Antonio (1.5-hour drive) to listen to audio books.
  • The Top Inbox\\xa0 \\u2013 The site Nathan uses to schedule emails to be sent later, set reminders in inbox, track opens and follow-up with email sequences
  • Jamf \\u2013 Jamf helped Nathan kept his Macbook Air 11\\u201d secure even when he left it at the airplane\\u2019s back seat pocket
  • @AlexBabin \\u2013 Alex\\u2019s Twitter handle
  • Show Notes provided by Mallard Creatives
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