April 2021 investor update

Dear all,

April was a good month: we continued to expand the existing relationships with customers, hired our first two developers outside Argentina, and did meaningful progress towards automation of the talent funnel and management of payroll. However, we still feel a lot of work needs to be done to reach the level of monthly hires we want to have. 

KPIs

  • Net Cash Balance: $1.096M in cash and short-term AR (previously $1.122M)

  • Last 30-days cash consumption: $26k

  • Months of run-rate: 42 months

  • GMV managed: ~$2.2M (prev $1.9M)

  • MRR: $51,300 (up from $41,500)

  • Customers: 9 (prev 10)

  • Talent placed: 40 (prev 34, removing the 7 placements for reporting purposes)

  • Open positions currently hiring for: 17

What we've done in the last month

In our last newsletter we said we would:

  • ✅Hopefully we will be able to share some screenshots of what we've been building.

  • ✅Better understand the funnel on the supply: build first end-to-end dashboards for the supply.

  • ❌✅❌ Close 1 more customer. Hire more on two existing teams. Get 3 customers to hire their first developers.

Demand: We did not pursue closing any new customers, and focused our entire team efforts on the supply of talent side of the marketplace. As a result we grew our business with three existing customers (two of which hired their first developers). As a result, our MRR grew to $51.5k and we have 3 customers pending any placements (we don't count their open searches as MRR until we close them).

  • We lost a customer that had only one open search with us. We tried to fill up a couple of positions with them, but we're unsuccessful in placing someone. While the customer has not "fired" us, it is currently not hiring for those positions anymore and is "hybernating". We consider it as churned, and only if they re-open a request we will re-active that customer.

  • Our efforts are still falling short of the level of placements we should expect (too many developers are being rejected). We attribute the "inefficiency" to cultural differences between recruiters and talent. And opens to the opportunity to better prepare through training the candidates we have.

Talent Supply: The current focus is to both fill the open reqs of existing customers while at the same time find scalable ways to attract and screen talent.

  • We placed 6 new people, above our 5 people goal we had for the month, and while we didn't get to our goal of 3 customers to make their first new hire, we did get 2 customers to make their first hires. Overall, we're quite happy with the effort, but as said, the results don't reflect the level of effort. 

  • Our gitsight powered audiences continue to work, and we've started to ramp up the email campaigns. We hope to be able to supply talent at a steady pace to our customers!

  • We continue to try to streamline our processes to be more agile and efficient. And we continue to find ways to enrich our database of developers that have engaged in our process.

  • We've tracked in april and been able to report on the changes of stages of our recruiting process. This is providing great visibility and allows to better manage the different bottlenecks of the talent pipeline.

Product: we've started using our gitsight chrome extension to beta test our newly designed workflow, and it's working beautifully!

  • We've added 41 users to our new CRM system, and we expect to rollout fully to our entire contractor base by the end of May.

  • We've continued to automate the data enrichment of our ATS. We enrich with our Gitsight proprietary data, but also started to automate the enrichment of linkedin profile data.

  • We've identified new compliance opportunities to be productized with our largest customers. These will take some time to standardize, but we expect that can be a great value add in the mid term.

  • We are refactoring our landing pages (demand, supply, gitsight), and adding a design layer on top of our crm tool.

What we'll be doing during the next month

  • 🗺 We will have 100% of our contractors live in our platform. We will have our new landing pages live. We will release our chrome extension for any tech recruiter to use.

  • 🧪 We will continue to experiment and improve our chances of placing a candidate.

  • 🔝 Close 1 more customer. Hire more on two existing teams. Get 2 customers to hire their first developers.

How can you help?

Want to join our alpha Ambassador Program? We provide 10% of the first year ARR that is generated by the startup you introduce us to. If you're interested, let us know and we will walk you through the steps. We are prioritizing people that know us well and are connected to VC backed, US based founders, CEOs and CTOs.

We look forward to updating you again next month, in the interim, let us know if you have any questions. 

Many thanks,