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Zoom and MikMak



Welcome back to season two of zeroed IPO. Today we have a very exciting couple of entrepreneurs on the show. Rachel typical graph the founder of Mick Massey founder and CEO who was called by Entrepreneur magazine one of the fifty most daring entrepreneurs and we also have eric yuan the founder and CEO of Zoom. Which as we all know has grown into a beam of video conferencing. Yeah I think what's very interesting? Here is both enterprise software entrepreneurs one who is earlier in her journey another one who is later on in his journey. He's gone public taking it public but still has a lot of memory about what it was like to be at her stage so. I think this is going to be very very interesting. Let's introduce our guests grey. Eric Yuan is the CEO and founder of Zoom and has grown zoom into a little bit of a big company. I think it's very small compared to what you're going to become. That's how he thinks about it right down. Eric started the company in two thousand eleven and appealed last year and at the IPO. The company had a market cap of a little over nine billion now less than a year later. It's at twenty one billion on the public markets. Tha that's more that's more more a little bit more. That's great that's growth node and never look at him. I never let's right notice. This market cap is not sustainable revenue. Would you talk about the revenue growth? Revenue growth is very impressive. It's about on the order of about one hundred percent year over year kind of up on a six hundred plus million dollar revenue year consensus estimates. We're not seeing anything out of the ordinary here. That is very impressive. And when you can see that kind of growth that kind of scale that's something. That's very exciting. Well before we go any further. I want to introduce Rachel. Tipo graph the CEO and founder of MIC MAC which is a fast growing startup. And there's a lot of things I want to ask you about and talk to You. About part of the purpose of this show is to hear from you about how you're growing the company. What your hopes and aspirations for at our and any kind of obstacles that you see ahead that perhaps not me but the other two leaders of public companies might be able to chime in with some experience. Let me ask you to describe MC MAC for our listeners and talk a little bit about what the company does share so mic. Mac were a marketing ECOMMERCE platform fortune. Five hundred brands license our software to better understand their consumers by connecting digital invest minced. Online retail insights. So essentially when I put a dollar into facebook what does that mean for my performance at Walmart for example so my clients span. Campbell's Hasbro Lego L'OREAL Nestle essentially. If you sell it Amazon Target Walmart you will become my client because you live in darkness with retail data. Let Me Brag a little bit about you. If I may at age twenty four you became the global director of digital and social media at gap which seems pretty young to have that role. I wasn't doing much of anything at twenty four. I think I was taken out the mail for running that role at gap at the time. But then you walked away from that to start this company out of your apartment. I believe in Brooklyn that must have been a difficult decision similarly Eric. You had a big role at Webex. You were leading the engineering team. You had hundreds of engineers. You said your wife. Hey I think I need to go start this company. And she didn't like the idea yes. She's sort of an online at likely. That idea by almost field to graduate was twenty. Four years ordered the three of us. Degenerates Rachel Rachel? With killing by the way the other thing that I love about what I've heard about your career is Gary Chuck who was an investor. My company and I believe invested in yours describes you as a fucking gangster quote unquote and lucky to have his support. Let's talk about MC MAC and the growth of online video and the commercialization of online video. Obviously Eric has a massive video business. What you're trying to do with mic-mac some people describe it as infomercials for the web. I've heard the term mini-martial Did you come up with that may I coined? Yeah and the idea is that it was very hard before mic-mac to see video and buy something you had to jump through hoops. And the bounce rate was like above ninety percent when you click through and now with mic-mac the bounce rate comes down to often like just ten percent right and a thesis of MIC. Mac was I was a gap. I was seeing the growth of video. I was seeing the change in the customer journey so gap Dot Com. The home page was the most traffic web page when I started when I left the product. Detail pages were seen five. X. Amount of traffic so all of a sudden all of these landing pages were actually becoming the heartbeat of conversion but no senior leader was paying attention to them and then finally the rise of Amazon so the early signs at the major retailers were about to become new wall gardens. And if you talk to major. Cpt brands they would be investing hundreds of millions of dollars whether is in digital video social paid search programmatic and having no idea what the outcome was on the other side. So in your case you have this insight and you know it's a good insight. I'm going to start a company but you leave a massive company and now you're this tiny little entity all by yourself and you have your your powers. You have the insight that the bravest lady in the Roman. You're like little little the honest truth. We said we tell the truth. And you have these massive companies that could easily swoop in and take your idea like talk to us about. How do you navigate that? And I want to hear also from Eric because he was in the same boat as you leaving Webex. Yeah it starts with an insight. That's not the hard part. The hard part is executed and initially. My competitor advantage right is speed to market. I'm nimble I can move faster fast. Forward all of a sudden I start proving myself and then other companies begin to pay attention. Because obviously if I'm successful must mean that there's a larger opportunity out there. How did that make you feel what was your reaction to the you know? The encroachment potential encroachment. My first reaction was. This is a good thing because you don't want to be a lone ranger business. It means you're you're not doing something to market if you're the only one marquette so I was excited I'm like yeah like competition bring it on but then when you look at the size of those companies so I currently thirty employees my competitors have upwards of five thousand employees. Then you start to get a little bit scared because they could put you know. Fifty salespeople against the southwest territory and then no one at Kirk Dr Pepper. We're GonNa talk to me and those are. The dynamics began to change for me last year. Which was a like. I got a suit up. Because there's people who can be louder and market right now. I still have the utmost confidence in my product. I have most confidence in my ability to lead but the reality is that they're bigger than me. Eric talked pretty shortly to catch up. Because speed everything up today have thirty. You may not know in five years. Probably have five thousand or six thousand you know more than your competitors as

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