No Way This Fitness App Worth $8m With No Revenue?

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In Episode #212, Nathan speaks with Ashu Dubey, Co-Founder of Get Applause, an app designed to help people lose weight and get back in shape. Listen as Nathan grills Ashu about the valuation of his business, how he was able to court Marc Benioff, and why an $8M offer wouldn’t be enough for him to sell right now.

is a product guy, hacker and data scientist rolled into one. He is the co­founder of 12 Labs’ Applause ­­ a data science powered weight loss application. During his undergrad, Ashu launched a successful nonprofit Fast Forward India to help underprivileged kids gain computer literacy.

Famous 5

  • Favorite Book? – Pitch Anything
  • What CEO do you follow?— Jack Dorsey
  • What is your favorite online tool?— SideKick by Hubspot
  • Do you get 8 hours of sleep?— No
  • If you could let your 20 year old self know one thing, what would it be?—Start one more company.

Time Stamped Show Notes:

  • 01:06 – Nathan’s introduction
  • 01:32 – Welcoming Ashu to the show
  • 01:48 – How Ashu makes money
  • 02:40 – Volume, downloads, and how they’re making money
  • 03:03 – Active users are defined as someone who takes an action with a month
  • 03:29 – Nathan quizzes Ashu on the meaning of “Retention”
  • 04:55 – Raising money, and keeping the lights on via a priced round
  • 06:25 – The leadership team at Applause
  • 07:50 – Why Ashu feels an $8M valuation is small
  • 08:40 – Optimize for the long term
  • 09:50 – Execution risk
  • 11:03 – The data points used for valuation
  • 12:53 – Courting Marc Benioff
  • 13:30 – Ashu’s Twitter Handle

3 Key Points:

  1. Understand how you’re going to make money—if you don’t, you’re done before you get started.
  2. Optimize your businesses for the long-term.
  3. Clearly understand your execution risk.

Resources Mentioned:

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