Pat Mapper caters to 25 and under and kind of big college populations. Got it. "These markets had a huge net migration from New York and California, and they have held up," he says. He had actually interviewed me for a job at a different consulting firm and we stayed in touch. Got it. Anthemos Georgiades: Yeah. rex harrison audrey hepburn relationship. And then at business school, I think the single biggest thing I learned through the case study method which is how they teach it at Harvard Business School but I think its true. So you know I think Axle Springer very used to appraising companies that match their scale. Since 2012, Georgiades has grown Zumper to over 200 employees, 178 million annual visits, and raised $178 million in venture capital for the company. Im so glad I did it. It was not something Ive really ever thought about before. And so as you mature you look for a different kind of investor and that naturally tends to happen. Im the CEO and Ive always felt that it was my responsibility to do the fundraising. All of it is going to be important and it will come out at the right stage. So I learned a lot from a few companies that I loved, a few companies that I thought are doing crazy things I learned so much. They were super lean team of under five people and its been a great deal for Zumper like we have one backend, one sales team and then two consumer platforms. Whats your story and most importantly, how did you get started with the entrepreneurial bug? So all good companies have multiple offers on the table. So the way we monetize this is we either monetize the landlord mainly and we either charge them to leads. Then behind the scenes, Zumper will close the transaction with the landlord and set the renter up with kind of rent payment. How do you scale like 20 million in revenue to 200 million in revenue and we didnt need the more product set investors because we already have fantastic people at that. I knew the CEO for a while. Absolutely. They are brilliant about. I really enjoyed it and great stuff. Saying that, in the early days you kind of need to bring on all the capital that you can. We both wanted to be entrepreneurs. Anthemos Georgiades: Its part of the game. You know its interesting that you mentioned the chicken and the egg. I'm so proud of my wife Lucy Georgiades and her cofounder Lindsey Nehls on launching their business Elevate Academy today. Make sure tenants understand why things are . Tanguy Le Louarn Chief Product Officer. I think Id say forget everything you think you know and everything, your education [38:28]. And at one point I just told one I just feel like I want to step on the egg and shoot the chicken because it was so repetitive. So what was that process like you were talking about, yes, your network of Harvard but can you share with us like what was that process of landing Kleiner on your seed round? So the series B, weve done story now look at how quickly the renters are growing on the platform. A lot of that is in the bank. Were incredibly grateful for everything she did and she remains kind of shareholder in the company. So today, we have another founder and another one that is quite successful in their own paths. Im the CEO and Ive always felt that it was my responsibility to do the fundraising. Unluckily weve made some phenomenal early hires so the company that have all scaled to leadership roles, thats fantastic for retention because those people know that we could have hired from outside but we bet on them and it worked and so Zumper is a place to build theyre career not somewhere else. Thats just part of the game. Like many of our most successful entrepreneurs, Anthemos Georgiades was drawn into startup life to solving a burning problem. It seemed crazy that the real estate industry wasnt moving towards on demand. Alejandro: Got it. Had worked in politics. Thiel was the first angel investor in Facebook with a $500K check that turned into more than $1 billion in cash. Yeah. So our CFO is fantastic and what he was able to bring to the series C was real credibility where I meet the investors, get them excited about our vision and our story and then they spend hours with the CFO on the second or third meeting digesting our historical financial as were talking about where were headed. Alejandro Cremades leads the vision and execution for Panthera Advisors as its Co-Founder and. Alejandro: Got it. And so just be prepared that however smart, however many smart people have looked the deal and thought about whether it will work, it always take a little bit more time than you think it will to integrate because theres always some gremlin kind of hiding in the works that youre going to find. Obviously they knew and I think for us it was like telling Axle and the rest of our investors that there are going to be months where we massively beat plans and there will be months where were behind plans. Were going to charge you per lead or for the smaller landlords we charge them if theyre [11:15] for the transaction. When people ask me what Im most nervous about its how to keep our amazing team together, a couple of tactics and then one thing that really worked. I mean youre doing various jobs, head of sales, head of finance, head of fundraising, head of like DZ. You are going to get a bunch of nos so I wouldnt rule people out too early. Raising money first, marketplace businesses is still really difficult and Ive raised $90 million and Im still saying it is difficult. I didnt think that either of them originally. I think the startups end up wasting a lot of cash that could really extend runway but thats a different conversation. I think if you set these expectations from the very beginning that are super important. In the first two or three years you will kill your marketplace if you create any barriers to entry from either side. So our CFO is fantastic and what he was able to bring to the series C was real credibility where I meet the investors, get them excited about our vision and our story and then they spend hours with the CFO on the second or third meeting digesting our historical financial as were talking about where were headed. Alejandro: Got it. They were super lean team of under five people and its been a great deal for Zumper like we have one backend, one sales team and then two consumer platforms. To give you odds, at the seed stage and the series A stage of growth cuts, all about supply side where a two sided marketplace chicken an egg, on day zero you have no renters and no landlords, how do you solve that? Anthemos Georgiades is the co-founder and CEO of Zumper, the largest startup in the rental industry, used by more than 26 million renters last year alone. In terms of investors, I guess two comments. Not really actually. Anthemos Georgiades: Yeah. No. Alejandro: Got it. Alrightee. It was kind of [31:51] as early as we did to buy another stock up that was kind of four years in. You start to build depth and management structures. I think just up front boundaries before you close the round is super important. Yes, weve raised $90 million in capital including a series C that we just closed three months ago. I think just up front boundaries before you close the round is super important. I mean I think at seed round its like an [26:02]. So for Zumper our vision as I mentioned was to make renting an apartment as easy as booking a hotel and so instead of going in with just an idea, I built like a really crappy version of the end game that I wanted to build. We also actually had a really wonderful fourth cofounder whos no longer with us. Were very clear with Axle Springer that we have a lot of consumer scale so a lot of people use our platform on a monthly basis but were still building the [21:55]. Really, really nice to have you here and excited for the chat that we have ahead here. The reality is often in the early stages, youre going to want to take all the capital thats given to you and you may not have multiple term sheets. So we bought them. Subscribe: Google Podcasts | Spotify | Stitcher | TuneIn | RSS | More. Alejandro: Got it. So we tell the small landlords, Hey, dont just advertise in Zumper. And so I finally just gave in and thought no one is going to build this. There was no book [01:41]. They take every, some people go and warm theirif you have a brilliant idea, theyd be crazy not to take it and then their entire value is obviously give you a three month program and then at the end expose you to liek 40 investors. Since 2012, Georgiades has grown Zumper to over 200 employees, 178 million annual visits, and raised $178 million in venture capital for the company. Got it. So today, we have another founder and another one that is quite successful in their own paths. Its so hard to get marketplaces liquidity so correct, the beautiful thing as you know is when you have it, it took us three years to get to that, it just runs and you just grow naturally when you have both sides but its so hard to get to it. So I think as your company matures, you look for investors that have something that you dont have and so for us, were not yet doing $100 million in revenue. And I mean its quite a few cofounders. And even though that sounds so obvious six years later, people just werent doing this in 2011, 2012 and we created a bunch of data that overwhelming shows the renters wanted to be applying for apartments from their phone. A lot of it was completely bottom up. [06:54] the early days and it worked where there was just all hands to the pump. I mean to a point network gets you an intro but a lot of intros are 10 minute meetings where the VC immediately decides its not for them which is totally fair. Everyone filling gaps where they could and it [07:02] fulfilling gaps in to where youre skilled and so I think the most obvious thing to do for that is to hire people with very different skill sets to you that allows you to never really have awkward overlap and egos because everyone is kind of skilled at something very unique. The one unifying theme in every fundraising Ive run is momentum. Got it. So I think three months is an efficient round. Like what have you seen that really works? You shameless have to mine your network and I think all CEOs and entrepreneurs have to find that edge of how did they meet one of these investors, how did they meet someone that knows them. So you know I think Axle Springer very used to appraising companies that match their scale. Thank you so much. They were [sexy 23:47] company and really fantastic fundraisers but the rounds just take a long time, due diligence take a long time. So I saw for example Axle Springer which is you know more kind of like the corporate. It is not suppose to be easy. Retention is something I think about every day.
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