Mutinex co-founder moves to APAC role as company looks to US expansion
Mutinex’s co-founder and global chief customer officer, Matt Farrugia, will move into an APAC-focused role to support the company’s growth in the region, while its latest round of funding is set to fuel its US expansion.
Following the expansion of its Australian customer base and early growth in APAC and the US this year, Mutinex has raised AU$17.5 million in funding, led by Marbruck Investments and supported by EVP and Archangel Ventures. It is now claimed to be valued at AU$132.5 million.
The new capital will fuel efforts in the US, where new local customers are being onboarding across multiple categories.
Have to respect their ability to get money from people
round 1 – industry ppl
round 2 – $5m
round 3 – $7.5m (including $500k Mat Baxter said publicly he put in)
round 4 – $17.5m
So likely $30m+ in raised funds. A lot of cash. Was this founders/early seed investors taking money off the table or all going to funding the business and have they stayed in.
Approx. 60 staff according to Linkedin. Let’s assume they’re average $200k TC a year. $12m in salaries. Website claims 60 clients. Let’s assume they’re paying $300k PA after kickbacks to agent/agency = $18m in net revenue.
Would there be $6m in computing costs, travel, boat parties, Bondi dinners, offices, jollies, trade media marketing etc? Maybe. Depends how hard the spending is.
But it’s hard to see why the founder(s) would want to dilute to the level they have when the business is 6 years old and seems to have a pretty chunky amount of cost. If the margins are better than the above as a founder you would never dilute and you’d fund expansion with cash flow.
And if you’re an investor you’d probably wonder why at this stage of life it needs to keep raising money so aggressively if the margins are anything like a traditional software business.
Maybe they’re fighting off investors and just taking bags of cash under good conditions and consider why not take the money on offer.
As always, lots of questions on this one. But good luck to them in getting some of that sweet eager VC money.
No comments?
Pretty obvious isn’t it?
They’re probably at about ~$14m revenue with some US traction.
They’ll have around ~$13m in costs if the 75 people on LinkedIn + offices + expenses.
The back of the hand will be telling them they need similar amounts of cash, maybe a bit less, to get the US to profitability and probably get a good Asia office going, plus there will no doubt be some secondary market transactions floating around each time.
So it seems to make sense this is what they would do. I suspect they’ll raise again at $30m ARR or so to try to keep financing that growth unless they slow down.
Well done, great to see a good MarTech story and a sticky product…. 75 jobs created, that is what it is all about creating opportunities!
Have the Americans not heard of MMM?
According to their vc guy they’ve done 3x3x3x2x2x last 5 years
Revenue per annum based on that growth claim
14m now
7m – 23
3.5m – 22
1.16m 21
388k – 20
129k – 19
So appears to be a 10x rev valuation per raise. Not bad on a business with razor thin margins! Well done Mutinex but time to start making profit as a software business or pivot to being a service business with some software.
Significant investment is needed in EQ and DEI training. It’s important the environment becomes psychologically safe, first and foremost.