Sramana Mitra: What scale did you get to with that business before you exited?
Bhavin Turakhia: In the public domain, we exited that business at a valuation of $900 million to this consortium of investors in a public company in China. This happened in August of 2016. It was the third largest ad tech deal ever and one of the largest bootstrapped cash exits globally.
Sramana Mitra: Yes, it’s huge. What revenue level had you reached to get that $900 million valuation.
Bhavin Turakhia: The revenue numbers are still not public, so I can’t give you specifics but the deal size is public. The revenue numbers will probably become public. In China, these transactions go through a two-phase process. Once the whole process is completed and the public company announces it, the revenue numbers will be public at that point. >>>
In case you missed it, you can listen to the recording here:
Earlier this week Twitter (NYSE: TWTR) announced its first quarter performance, which surpassed market expectations. But the market is still not pleased. This was the first ever quarter that showed declining revenues since the company went public. And, the future doesn’t look much rosier.
Sramana Mitra: What I’m hearing is that you came to the conclusion that you wanted to cater to large enterprises. Based on what you were describing, that was my first instinct to hear that this needs to be an enterprise sale. I was actually surprised that you were going the route of selling online. It sounds like you got to the conclusion anyway.
Rephael Sweary: Initially, we didn’t have the offering for an enterprise. When we were selling online, enterprise customers came to us. They said, “We love your product, but we can’t use it. It’s not secure.” When we fixed that they came to us, “Your product is secure, but you don’t have a delegated admin.” We built that as well.
Then they said, “You product is great but we have different environments. We have our staging environment. We have our QA >>>
During this week’s roundtable, we worked on two ventures.
First, Ricardo Martinez from Miami, Florida, pitched Perconvly, a firm that advises businesses on Facebook Advertising.
Then, JR Smith from Prague, The Czech Republic, pitched Nuro, a secure messaging platform.
We also went through another set of video tutorials:
Do NOT Dilute Too Much Equity Right Away
How To Raise Venture Capital And End Up Making No Money
In our methodology, capital efficiency, bootstrapping, equity preservation are paramount. We absolutely don’t believe in raising too much money. We especially do not believe in death by overfunding.
Sramana Mitra: In parallel, you started other businesses. At what point did you start the next line of business besides web presence? What was the thinking behind that? What were the circumstances?
Bhavin Turakhia: In 2007, we started dabbling in the online advertising business using a brand called Scenzo. My brother started operating that business. We grew that to a certain size.
Sramana Mitra: What was the thesis of that business?
Bhavin Turakhia: This business targeted publishers who own domains or websites. if they wanted to put up ads on their sites, we had a technology that would figure out the best ads >>>
Today’s 350th FREE online 1Mby1M roundtable for entrepreneurs is starting NOW, on Thursday, April 27, at 8:00 a.m. PDT/11:00 a.m. EDT/8:30 p.m. India IST. Click here to join. All are welcome!
Today’s 350th FREE online 1Mby1M roundtable for entrepreneurs is starting in 30 minutes, on Thursday, April 27, at 8:00 a.m. PDT/11:00 a.m. EDT/8:30 p.m. India IST. Click here to join. All are welcome!