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In The Media

Money In. Money Out. Tweeting to Get VC

by Larry Chiang on January 22, 2016

By Larry Chiang
Every nickel in (revenue)
Every nickel out (costs)
#ENIENO
Be CRO first and help an existing entity
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This is how things might turn out

Leena K. Rao (@LeenaRao)
Also, worth noting that Beepi originally wanted to raise $300M in funding in 2015, and had to scale that back to $70M, citing the markets.

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Keith Rabois (@rabois)
@LeenaRao might also want to check marginal economics.


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Ale Resnik (@AleResnik)
@rabois Economics of the used car market: Dealers take 45% average. For Beepi’s segment dealers take avg 15%. Beepi takes between 6-11%.


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Ale Resnik (@AleResnik)
@rabois for our average transaction size, that’s ~$2500 in net revenue. Far from marginal. Happy to discuss one day.


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Keith Rabois (@rabois)
@AleResnik contribution margin is the key which is profit minus customer acq costs


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Ale Resnik (@AleResnik)
@rabois Beepi is + at 5%.


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Keith Rabois (@rabois)
@AleResnik 5% including the costs of acquiring the seller and the buyer?


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Ale Resnik (@AleResnik)
@rabois yes all in. Depending on volume and maturity of the market, can go up to 7% as fixed cost get carried.


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Ale Resnik (@AleResnik)
@rabois and 6-11% is the vehicle take rate. Beepi offers financing, extended peace of mind and soon, insurance.


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Keith Rabois (@rabois)
@AleResnik right so you take 6-11% and keep 5-6% absolute percentage points?


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Ale Resnik (@AleResnik)
@rabois happy to host you at Beepi to expand.


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Keith Rabois (@rabois)
@AleResnik I will bring my check book 🙂


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Ale Resnik (@AleResnik)
@rabois *even* in this environment? 🙂


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Jason Del Rey (@DelRey)
@rabois @AleResnik i took it as 5% of net rev is the contribution margin or maybe we are saying the same thing

 

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