The defensive moves, receivables financing, and AE incentives that took Metadata from near cash death to a $40M Series B
Gil Allouche · MetaData
Published September 1, 2022Gil Allouche, CEO and Founder of Metadata shares:
- How we survived a near (cash) death experience
- How to transition from surviving to thriving
- Closed $40m Series B and prep for hypergrowth
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Gil Allouche recounts Metadata’s near-cash-death period and recovery. The talk covers painful defensive moves, creative cash management, customer and sales incentives, demand experiments, team building, and the shift from survival to intentional growth.
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“bonus Equity after we got back back on track but but in that time when we really needed cash it was there we also did something cool that I couldn't believe was happening which is all the AES who are very cash you know kind of cash operated they converted 50 to 100 of their commissions into options into common options that got them a lot more invested in the business and got us about a million dollar cash back into”
“in their company as a partner so they all knew the pitch they all believed in the product they all worked together before amazing we also spiffed we gave an additional incentive for salespeople to get upfront payment you get the cash ahead of time by the runway customer gets a discount and the AE gets additional money this is essentially similar to doing accounts receivable debt but instead of giving the debtor that money you get it”
“opportunity an Arbitrage experiment it's called conversational ads which I'm going to show you in a second the next slide and that got us bottom of the funnel demo request not leads not interest not lead syndication this is our ad telling people you want to buy our product bring the person our ideal customer profile on the line and in return we'll give you a gift card very simple worked like magic still works like magic last”
“same group that already worked together before proven itself so we brought five AES undo each other they already know how to work with one another they ramped each other up they were super knowledgeable and all of them crushed the numbers they their ramp up time was insane I think in about a month and a half we were able to get all of them ramped up”
“reading this this book by uh tahi from Storm Ventures from survival to thrival and this is the definition I really wanted to be there because I was in the survival mode PTs did every day this is instead a better State this is when you want to invest in growth you have to forget about the previous stage that you were in don't forget the muscle but forget about the previous stage for a second don't worry all the time about being defensive and go into offensive mode so this is what we did”
“In 2020 we were a few months away from $ death 😭”
“In 2020 We Finally Hit p/m Fit”
“Marketing Innovation - Conversational Ads”
“We ended the year at $5m and with a breakeven path”
Video
How to build a Series B fundraising deck
How to Survive Cash Death and Grow 600% in 2yrs - Slide Deck
Gil Allouche is a tech entrepreneur whose passion for artificial intelligence, big data, and growth marketing led him to start Metadata in May 2015. As the Founder and CEO of Metadata, Gil prides himself on building a customer-first company. He is part of an ambitious team that is committed to solving a major problem that B2B marketing and salesprofessionals face every month -- generating qualified, opt-in leads.
Gil Allouche · MetaData
Gil Allouche · MetaData
Ari Salafia · Taxtaker
Becca Kay · Dingus and Zazzy
Ben Carpel · Galleon
Brad Miller · AwarenessTech
Each slide with a short explanation of what it shows. Open the slide text for its exact wording.
36 passages
How to Survive Cash Death and Grow 600% in 2yrs Gil Allouche CEO, Founder of Metadata Founder500, Sept 2022 + 3 months of positive cashflow … and increased LTV by 400%
The talk traces a path from near cash exhaustion through survival measures and a shift toward growth, then closes with preparation for hypergrowth. The outline includes receivables financing, sales incentives, operating changes, and fundraising.
Over the next 20 minutes: In 2020 we were a few months away from $ death 😭 I’m going to show you HOW TO TRANSITIONED FROM SURVIVAL TO THRIVAL What drastic measures we took to stay alive 🥵 Hack: debt against receivables & AE spiffs for upfront $ Letting go of PTSD and putting $ in growth Sales hack: senior AEs who worked together before Post-A (& Post-B) operational efficiencies Fundraise Hack: Convertible notes and syndicates Closed $40m Series B and prep for hypergrowth HOW WE SURVIVED A NEAR (CASH) DEATH EXPERIENCE PREPARING FOR HYPERGROWTH Our Series B Pitch Deck 🎁
Metadata reached product-market fit at $2m ARR in 2020. The graphic marks the company at that point on a revenue chart.
In 2020 We Finally Hit p/m Fit $2m ARR We’re here
Despite reaching product-market fit, Metadata had only two months of cash left. The weekly balance chart falls from near $1 million to below zero over the period shown.
We’re also here But We Also Had 2 Months of Cash Left
This section focuses on the practical work of keeping the company alive during its cash crisis.
The first defensive move was to reduce the annual ARR goal by 33%. The background chart shows quarterly revenue continuing to climb through 2021.
In 2020 We Finally Hit p/m Fit Defense How we turned things around Q1 2022 Reduced annual ARR goal by 33%
The company laid off 36% of its team and cut remaining salaries by 20%. The background chart shows revenue continuing to rise during the following quarters.
In 2020 We Finally Hit p/m Fit Defense How we turned things around Q1 2022 Layed off of 36% of team and executed 20% salary cut for the remainder of us
For two quarters, the company converted account executive commissions and bonuses into common stock. The step appears within a broader cost-cutting sequence.
In 2020 We Finally Hit p/m Fit Defense How we turned things around Q1 2022 Converted AE’s commissions and bonuses into common stocks for 2 quarters
The company stopped paying nonessential vendors temporarily, then paid them later. The slide places this choice among the measures used to preserve cash.
In 2020 We Finally Hit p/m Fit Defense How we turned things around Q1 2022 Removed and stopped paying non-essential vendors (we eventually paid)
The company took multiple loans, including PPP loans, credit cards, and a revolving line against receivables. The slide presents borrowing as one part of the defensive response.
In 2020 We Finally Hit p/m Fit Defense How we turned things around Q1 2022 Took multiple loans (PPP 1+2, credit cards and an A/R revolving credit)
The company declined a Series A term sheet it considered draconian and multiple “shark” M&A offers. The slide emphasizes refusing these proposals during the cash crisis.
In 2020 We Finally Hit p/m Fit Defense How we turned things around Q1 2022 Declined a draconian Series A term sheet and multiple ‘shark’ M&A offers
The company opened an approximately $1m convertible note to employees and internal and external investors. This fundraising step sits in the offense portion of the turnaround.
In 2020 We Finally Hit p/m Fit Offense How we turned things around Q1 2022 Opened a ~$1m convertible note for employees, internal and external investors
The company hired a close-knit go-to-market team with a demand marketer and five quota carriers. The slide presents this hiring move as part of its growth push.
In 2020 We Finally Hit p/m Fit Offense How we turned things around Q1 2022 Hired and ramped a close-knit proven GTM team (1 demand marketer, 5 x quota carriers)
Account executives received incentives for customers who paid upfront. This tactic is presented as an offense measure during the turnaround.
In 2020 We Finally Hit p/m Fit Offense How we turned things around Q1 2022 Spiffed AEs for up-front payments
The team called customers and launched a recession-proof offering, identified here as MetaMatch. The move paired direct customer outreach with a new offer.
In 2020 We Finally Hit p/m Fit Offense How we turned things around Q1 2022 Called all customers and launched recession-proof offering (i.e. MetaMatch)
Marketing experiments led the team to conversational ads, which the slide identifies as a successful tactic. The chart behind the callout shows revenue climbing through 2021.
In 2020 We Finally Hit p/m Fit Offense How we turned things around Q1 2022 We invested in marketing experiments / tactics and discovered great success with convo ads
The slide leaves the audience with a principle for making decisions under pressure: do not let fear drive the choice.
NEVER MAKE DECISIONS OUT OF FEAR
A new marketing leader is asked to cut the budget by 67% while keeping the same goals and making no hires. The two speech bubbles contrast the request with the recipient's immediate reaction.
Curveball to My new VP of Marketing Reduce your budget by 67% but hit the same goals So.. we have to cut 67% of your marketing program.. Also no hires. Can you still hit your goals tho? WTF!? HOW AM I SUPPOSED TO DO THAT???!!!
The headline reports a 230% increase in demand with 60% less budget. The chart compares monthly demo requests with spend, showing requests rising after the initial months and peaking in November.
Marketing Innovation - Conversational Ads 230% Increase in Demand w/ 60% Less budget 0 $10,000 $20,000 $30,000 $40,000 $50,000 Demo Requests vs Budget Actual Spent Requests
The example shows a bottom-of-funnel conversational ad working like a chatbot inside LinkedIn messaging. Prospects can choose to continue or ask for more information, leading to different message paths.
Marketing Hack: Deploying BOFU Conversational Ads Like a chatbot inside LinkedIn Messaging What it looks like… Choose your own adventure
The slide pairs international hiring with potential benefits such as ownership, timezone alignment, and lower costs, alongside a possible culture clash. The map indicates a globally distributed team.
Hiring Hack: Int’l Employees International Teams Hustlers & Owners Timezone Sync Better Economics Culture clash
Hiring people who have worked together can bring familiarity, faster ramp-up, and established team dynamics, while reducing diversity. The diagram contrasts these benefits with the tradeoffs of international teams.
Hiring Hack: Teams Who Worked Together Before International Teams Hustlers & Owners Timezone Sync Better Economics Culture clash Battle Tested Teams Comradery Dynamics Fast Ramp Up Less Diversity
The first set of measures reduced burn, extended runway, and helped the company raise a Series A. The cash balance chart marks June 2020 as the low point before balances recovered later in the year.
First Measures Impact: Reduced Burn, Extended Runway and Raised Series A We got close to death 😬
After adjustments, the cash balance rises following funding and cost-cut milestones, while the unadjusted balance trends downward and falls below zero. The chart compares the two paths from early 2020 through 2021.
Second Measures Impact: Path to Profitability and Raised Additional $$$ 4,000,000 2,000,000 0 -2,000,000 Feb 20 Apr 20 Jul 20 Sep20 Mar 20 May20 Jun 20 Aug20 Oct20 Nov20 Dec20 Jan21 Feb21 Mar21 Apr21 May21 Jun21 Jul 21 Aug 21 Sep 21 Oct 21 Nov 21 Dec 21 Jan 21 Cuts #1 Series A Cuts #2 Add’l Funding Cash Balance - Before Adjustments and Cash Balance - After Adjustments Cash Balance - Before Adjustments Cash Balance - After Adjustments
The chart connects increasing runway and ARR with a Series A close, while actual demo volume grows and forecast demos continue upward. An annotation says the team reached 502% of its goal with one third of the budget.
New Runway + ARR Growing + Closed Series A
The company reports ending the year at $5m with a path to breakeven. The visible quarterly revenue bars rise through Q4, where the marker points to the current position.
We ended the year at $5m and with a breakeven path We’re here
This section marks the transition from surviving the cash crisis to operating with more room to grow.
2021 From Survival to Thrival
The company describes shifting from cash anxiety toward growth investment. The revenue chart rises from $2.2m in Q1 2020 to $11.9m in Q4 2021.
We are here Changed Mindset: Let Go of Cash PTSD and Invested in Growth
The speaker says the team raised its goal three times in 2021 and met its newest target by 97%. He also credits the survival period with bringing the team closer and strengthening its cashflow discipline.
We are here Changed Mindset: Let Go of Cash PTSD and Invested in Growth We increased our goal 3 times in 2021 and met our newest target by 97% That survival phase made our team much closer built our cashflow muscle made me a better humbler CEO
The pre-Series B review groups cash, burn, patents, and growth among the company's strengths, while naming net revenue retention and its market story as areas still needing work. Two charts on the right show rising deal velocity and revenue.
State of Metadata Pre Series B ( =where from now) Latest Cash $8.5m+ (after payroll) ← this is great Burn $200k/monthly ← this is very good IP - received our 4th and 5th patents (!!) Verbal interest + Physical meeting w/interested VCs Brought in HR help, CISO help Good Technology (differentiated, badass roadmap) ARR Growth (badass, ~600% in 24 months) Cash & Burn (badass, we can breakeven anytime) Bad NRR (4x in the past 24 months, still work to do before 130%) Story (“DemandGen” better than ABM, still confusing af)
The chart shows opportunity velocity and average selling price rising together from 2020 Q1 through 2021 Q1. Both series rise most sharply in the final quarter shown.
State of Metadata Pre Series B ( =where from now)
The stacked area chart shows Metadata's revenue expanding over time, with the platform segment forming most of the total. Display, managed services, partner, and one-time revenue add smaller portions.
State of Metadata Pre Series B ( =where from now)
This build adds the pre-Series B assessment over the revenue mix chart, grouping cash, burn, and growth among strengths and net revenue retention and positioning among remaining gaps.
State of Metadata Pre Series B ( =where from now) PRIOR TO B ROUND Cash $8.5m+ (after payroll) ← this is great Burn $200k/monthly ← this is very good IP - received our 4th and 5th patents (!!) Verbal interest + Physical meeting w/interested VCs Brought in HR help, CISO help Good Technology (differentiated, badass roadmap) ARR Growth (badass, ~600% in 24 months) Cash & Burn (badass, we can breakeven anytime) Bad NRR (4x in the past 24 months, still work to do before 130%) Story (“DemandGen” better than ABM, still confusing af)
The slide offers Founder500 attendees a special resource: Metadata's Series B pitch deck.
https://metadata.io/series-b-deck Special 🎁 to F500 Attendees - Our Series B Deck
The recap returns to the talk's three stages: surviving a near cash death, moving from survival to growth, and preparing for hypergrowth. It highlights operating changes, sales tactics, and fundraising.
Over the last 20 minutes: In 2020 we were a few months away from $ death 😭 I showed you HOW TO TRANSITIONED FROM SURVIVAL TO THRIVAL What drastic measures we took to stay alive 🥵 Hack: debt against receivables & AE spiffs for upfront $ Letting go of PTSD and putting $ in growth Sales hack: senior AEs who worked together before Post-A (& Post-B) operational efficiencies Fundraise Hack: Convertible notes and syndicates Closed $40m Series B and prep for hypergrowth HOW WE SURVIVED A NEAR (CASH) DEATH EXPERIENCE PREPARING FOR HYPERGROWTH Our Series B Pitch Deck 🎁
Gil Allouche closes by thanking the audience. The card identifies him as Metadata's founder and CEO.
September 2022 Gil Allouche Founder and CEO of Metadata