From: “I think there is a much longer-term trend going on right now – computing of the world. The Internet is not new, but it is in our hands and is entering traditional industries. Even all the software has moved to the cloud. It has changed the interpersonal
communication, but for work it is not really yet Google Docs, for example, is not real computing because there is no sharing, no information aggregation, no processes, it’s still ‘stupid’. The beginning was not smooth. In January 2014, a year and a little after the company was founded, the company’s board of directors convened for a crucial meeting. At that time, the company had $ 400,000 left in the bank, and could only go on for three months with no additional money. Six customers provided the company with only $ 6,000 a month. “Customers were satisfied, but for a year, we felt we were failing,” Zinman said in an episode of the Startup for Startup podcast by Manday, designed to provide insights to entrepreneurs and executives. At the end of the fateful meeting, investors decided to grant the company breathlessness through a convertible loan, rather than sending it to try to raise capital for the market. “In retrospect, if we were going for another round of financing, the company probably would not exist today. We could not improve our situation from the previous round of financing,” Zinman added in the episode.Six facts about Monday Six facts about Monday
“We know where the money is going”
The company’s business model is structured as follows: Each organization pays according to the number of users in the product, a few dollars per user, in the SaaS (software as a service) model. There are different types of users, depending on the level of complexity of the product. According to Monday, its revenue has grown almost three times over the past year. The ARR, a figure that reflects customer commitment for the coming year, is $ 84 million. Most people pay a year in advance, so the money goes into the company’s coffers and can be used for marketing and sales efforts.When we were now in the recruiting round at Silicon Valley, we were told it was a crazy growth rate. We knew that, of course, but they put us at Benchmark with other companies, we’re really at the top of the revenue growth rate,” says Zinman. This is also the reason why the company achieved a fundraising close to four times the value of the $ 550 million fundraising round a year ago. The company explained that the amount of the recruitment is used by the company for ongoing activities, recruitment of personnel, hiring, etc., while the revenue is used for marketing and sales expenses.
Leading the round of funding is the Sapphire Ventures Foundation, which sits in Silicon Valley. Also taking part in the round is Hamilton Lane, ION Foundation, Vintage and HarborVest Partners. Investors have joined existing ones, including Insight, Enterri Capital and Stripes Group. Man and Zinman say the recruitment process began with the mapping of 50 potential investors, telephone calls with many of them, and eventually 6-7 investors came to Israel to get a closer look. The Hero Show is designed to meet other funders, as part of the fundraising process itself.Zinman: “We were two days in New York and four days in San Francisco. It’s very intense. You’re in jet lag, tired, doing it four times a day, repeating the same jokes and not sure if you’re still funny. It’s a roller coaster because sometimes you get A very positive indication at the meeting, and at another meeting you feel that it did not go well and it greatly affects your mood. Over the years it has made us sick and you realize that everyone is human, they also have their problems, they are tired too. .How stressful is it to receive a $ 150 million check when you have a responsibility to make this amount significantly higher?From: “If you brought it up at the beginning, it was very stressful. We wouldn’t know what to do with them. It’s not stressful today, it’s exciting. I understand what I can do with it. It’s clear to us and the investors where the money is intended, and the opportunity is clear to everyone. “.
Some investors have offered you higher value and decided not to invest in them?Zinman: “Yes. We do not optimize for value but for a partner. We think it will increase value later.”From: “It is a privilege of both the market and the state of the company, but it was important for us to bring in people who, the day after the recruitment, built together the same company we wanted to build the day before.”Did you receive purchase offers along the way?From: “We have received a lot of offers in the past, but we are broadcasting that we are not interested. Buyers will now have to pay the value we will reach in a few years because we see the potential.”Don’t you worry that the valuation is currently high and may fall in the future?From: “I always look at a multiplier – does the company raise enough money to get there. If the fundraising was done at $ 2 billion, but you only raised $ 10 million, then that’s a problem, because you run out of money, and the market can change. That the market is still intelligent, investors are very selective and are looking very well and analyzing how sustainable the growth of the company is. “It was eye-opening, we learned a lot, and it got us excited.”The recruitment process seems to be intense, and you only performed one year after the previous round. How to prepare the company?Zinman: “Our great strength is that almost 30 people have been involved in the process, it’s not just me and Roy. From financiers, BI, and designers, to legal professionals. Because our company is transparent and everyone knows all the numbers, there’s no problem sharing them in the process.”Why didn’t you go to the IPO now?
From: “I think the current fundraiser is designed to allow us to make an offering at the point in time that we think is right. It is likely to happen but the timing is important. Companies remain more private because the opportunities are greater – they are becoming global and growing faster. We are getting close to the point where we will be ready In terms of our ability to predict our operations optimally. We are aiming for over $ 100 million in revenue. I feel we have a lot to grow. We are at the beginning of the road and we are not in a hurry. “From: “The investor who comes in expects the investment to give him a five-fold return, not just three times. They see the vision of the product, and we were surprised to see that we talked a lot about how much the product wins the market. There is faith here, not only in us but also in ecosystem The Israeli, because they believe the company can go for a $ 10 billion issue. We had one investor, but only one, who said everything was good but the reason he was not an investor was that an Israeli company of such value was never issued. ” Instagram recruits clients from Fortune 500 companies
“I think it’s a good tip for startups – good salespeople can sell everything, but the question is if over time the customer will be satisfied? It was important to us that people adopt the product because they love it – not because they pay or are told to use it. In the beginning there will be no sales team. So many times I have been told by organizations that are starting to use the software and doing employee training but they are starting a rebellion. Today, employees have a lot more power. “From: “Sales people go to customers, bring a big deal, and then dictate how to develop the product. So it can be an easy product to sell, but it’s not necessarily the best possible. It was very important for people to experiment with the product alone and decide to pay without anyone talking to them – Big accounts, too.We get Instagram clients from Fortune 500 companies, nobody believed it could be done. We also do consumer-oriented marketing – say, ‘Project management is better when it’s visual. It’s not something you tell the CEO, but we’re going About consumer, emotional messages. Everything people don’t like about their work and would like to change. ” For the first time since 2008: The US central bank has lowered interest rates, but Powell is cooling its enthusiasm
For the first time in more than a decade, the Fed is reversing its policy tonight and lowering US interest rates by a quarter-percent range of 2.25% -2%, according to forecasts. • In addition, the Fed ends its balance sheet reduction earlier this morning, instead of September. R. Powell tries to keep the cards close to his chest and sounds particularly hawkish: implying that the lowering does not start a trend after three years during which he raised rates slowly and gradually, Chairman Jerome Powell reverses the Fed’s policy and lowers interest rates for the first time since the 2008 financial crisis However, at the post-Powell Sage press conference, it was not the beginning of a trend.The Fed announced a quarterly rate cut of 2.25% -2%, Thursday evening after a two-day meeting of members of the Open Market Committee (FOMC) said. In addition, the Fed is finalizing the balance sheet process earlier than expected tomorrow instead of next month, late September. The lowering of the Fed’s interest rate reflects a sharp reversal in its policy from just 7 months ago, and as bank officials have signaled perversely to markets since early May, due to fears of a slowdown in the global economy, a weakening industry and a fall in inflation. The Fed’s interest rate cut is in line with the expectations of fully-priced markets (100%) at 25 basis points. Also, this is considered moderate relative to a small portion of estimates because a sharper 50 basis point interest rate cut is required.If the positive U.S. growth figures released last weekend alongside good macro data raised the possibility that the Fed would cut interest rates, tonight the Governor aligns with the market and lowers interest rates in accordance with President Trump’s repeated calls. Lowering interest rates in global developments that paralyzed inflation The Fed’s announcement emphasizes that interest rate cuts will deal with the strengthening of uncertainty factors that may affect growth in the future, but the Fed has defined growth as “moderate” and the US job market as “strong.”
In the post-interest press conference, Powell cited the enthusiasm as being particularly hawkish, suggesting that the move he had taken was not the beginning of an interest rate cut. In fact, Powell said of a decision to lower interest rates because it was a “mid-cycle” match. Powell ruled out a series of interest rate cuts while the market would like to hear about 3 interest rate reductions in 2019. If that is not enough, the Fed’s chairman sounds hopeful that the economy will grow at a satisfactory pace to justify raising interest rates. Powell said he was confident interest rates would quickly rise again.In doing so, the Fed chairman manages to confuse the market – when after the news conference, stock indices took a negative direction despite lowering interest rates and the dollar jumped sharply – leaving the cards close to their chest; rejoicing against President Trump’s wishes; . The dollar jumps against the shekel after the Fed’s interest rate announcement: “Powell disappointed the markets”The dollar jumps by 0.7% and trades above NIS 3.52 • The Fed lowered interest rates by 0.25%, according to market forecasts, but the Governor cooled the flames by saying that this is not a beginning trend • Peaks do not buy Powell’s words: “The US has entered Yesterday to a significant cycle of interest rate reductions • Best Dash: “Fed Will Reduce Interest Again” Morning After Fed Rate Announcement, Dollar(3,5098) Increases by 0.7% against the shekel and goes above the level of 3.52 shekels. The euro(3.8938)Loses 0.2% in height and trades below NIS 3.9.The Fed lowered interest rates in the U.S. for the first time in more than a decade, from 2.25% to 2%. This is a 0.25% reduction in interest rates, in line with market forecasts. However, at the post-interest rate press co
nference, Chairman Powell Reflect his enthusiasm when he said this was not the beginning of a trend of interest rate cuts. Powell’s comments led to a sharpfall in stock indices and a rise in the dollar index.