This is the top where I interview entrepreneurs who are number one or number two in their industry in terms of revenue or customer base. You'll learn how much revenue they're making, what their marketing funnel looks like, and how many customers they have. I'm now at $20,000 per top five and sixty nine. He has helped in on global domination. We just broke our $100,000 unit soul market, and I'm your host Nathan Latka. Many of you who I've met in person have seen my unbelievable dashboards that I built. You know, I'm an aml analytics like crazy person. I love the data and I'm presenting the data in beautiful dashboards that my team can use on their mobile devices, their phones, and TV throughout the office.
Now the way I do this without having to hire a big development team is at NathanLakka.com forward slash analytics. It's using a company called Cliffolio, and I'll tell you more later on the show how I use them. NathanLakka.com forward slash analytics. NathanLakka here, coming up tomorrow morning, you guys are going to learn from Jennifer Lorraine up. She is from Mexico and a company is called Gas the Zen. They are just starting; they just raised $700,000, and they have a roof meter which basically tells Mexican households when gas is almost empty, and the way they're growing is unbelievable.
现在,我不用雇佣一个庞大的开发团队的方法是访问NathanLakka.com/analytics。这是通过一家叫做Cliffolio的公司来实现的。稍后我会在节目中详细介绍我是如何使用他们的。网址是NathanLakka.com/analytics。我是NathanLakka,明天早上,大家将会听到来自Jennifer Lorraine的分享。她来自墨西哥,她的公司叫Gas the Zen。这个公司刚刚起步,他们刚成功筹集了70万美元,开发了一款屋顶计量器,能够提醒墨西哥家庭燃气快用完了。他们的增长速度简直令人难以置信。
Good morning everybody, Nathan Latka here. Our guest this morning is Edo Gino, and he is the CEO and co-founder of Rapid API, which he founded when he was 16 years old. He's listed on the Forbes 30 under 30 list, and previously he was the co-organizer of hacking Gen Y. Originally from Israel, Edo currently resides in San Francisco, California, where he runs Rapid API and writes JavaScript projects on this side. Edo, are you ready to take us to the top?
Hi Nathan, how are you doing? I'm doing good. Thanks for being here. I appreciate it. Alright, so jump in with me here. Tell us what Rapid API does and what's your business model? How do you generate revenue? So Rapid API lets developers find APIs online, test them straight in their browser, and connect them, generally making the entire API connection process a lot easier. We also have a marketplace model on top of that, so you can actually pay for those APIs where we make a certain processing fee in the middle.
God, and what's that processing fee typically? It's typically from 10 to 25%. Okay, just depending on your business, kind of one off with your partners like Slack, Foursquare, etc., right? Yeah, it's dependent on the API vendor. And that's it, so it's just a try really—you can almost get it like a marketplace. You're connecting the vendors with APIs to people that want to connect those APIs, and you're taking a cut in the middle.
Yeah, there's instead of every developer having to talk to every other API vendor and then having to connect independently, you can like get a one-point connection to any kind of world. So take me back here, kind of give us some history. So what you're doing to this business then? So as you read before in the bio, I was actually part of hacking generation Y before that where we did a bunch of hackathons all over the world and kind of helped teenagers hack and learn about programming.
And what we discovered is that APIs are really powerful and they can make apps really strong, but connecting to them is really difficult. At that point, we created the first iteration of Rapid or the first version, which was pretty much a GitHub repository with a bunch of API wrappers. We started noticing that a lot of people were using those wrappers to connect to APIs, and we got a few thousand stars on GitHub. At that point, we realized that people need that one-off connection to APIs, and we went on we built Rapid as it is today.
我们发现,API 非常强大,可以让应用程序变得非常出色,但连接它们却很困难。于是,我们创建了 Rapid 的第一个版本,基本上是一个在 GitHub 上的代码库,里面有许多 API 包装器。我们注意到有很多人在使用这些包装器连接到 API,在 GitHub 上我们也获得了几千个星星。那时,我们意识到人们确实需要这种便捷的 API 连接方式,于是我们继续努力,将 Rapid 发展成了今天的样子。
And who is we? So it's me and then me, he has loves key who's make who funner, it rounds our dev team back in Israel. Very cool! And so what's your total team size today? So we actually just passed 20 people last week, which were very good. And why are you guys based in Israel or San Francisco? How are the words of teams put up? So we do all the engineering back in Israel, and then here in San Francisco, we do marketing, sales, and developer invocation.
What's the—I'm curious what's the average what are the economics like in Israel for developer salaries? I think they started a little lower, but as a lot more tech companies came to Israel, and I think Tel Aviv knows the second-largest tech ecosystem in the world after San Francisco, that prices have kind of gone out rapidly. Got it. So what, 60-70 for a junior engineer? Probably around that. Yeah. Interesting.
Okay, great, and have you guys raised capital or are you bootstrapped? So we've actually just announced our seed round this November, which we led by recent horlets. What would you raise total? It was 3.5 million. Great, and did you do that on a convertible note or equity round? It was an equity round. Okay, got it. Got it. So did you have any friends and family money in before that, or you just started us from scratch? So back at the day where it was still just an open-source project, and we took it around those hackathons and helped developers connect to APIs. We actually met with dog moron who is an ex founder. He founded M systems and Israeli company and he put the first money in which kind of helped us grow rapid and establish it.
And so if you add the 3.5 they just did from Andries and how much total have you raised? 3.5 is going to total so it includes that. Okay. It was money raised. Okay got it. And what is the so give us an example of how actual transaction would work. So so I'm going in here now right I want to develop on Slack's API. It's just look just a little icon and a hundred forty eight thousand. I mean a hundred forty eight thousand people have have used this to connect. It means a hundred forty thousand apps or projects using that to connect. And they're using your service to do that right? Yeah. Okay got it.
And so when do people when does money actually get transacted? So specifically Slack is a free API where you're not you're not going to pay for it. And then the service is completely free. But other APIs where there is payment where slowly agree any app payment through rapid API to. And do the processing. So rapid API again as a service is completely free for free APIs. Give me an example of one that I'm trying to find one here live. Give me an example of a API that's paid. And API that is paid. Let me actually open it on my screen. Okay.
那么,什么时候人们会真正进行交易呢?具体来说,Slack 是一个免费的 API,你不需要为它付费,而且这个服务是完全免费的。但对于其他需要付费的 API,你可以通过 Rapid API 逐步同意任何应用支付,然后进行处理。因此,Rapid API 本身作为一个服务,对于免费 API 是完全免费的。能给我一个付费 API 的例子吗?让我试着在我的屏幕上打开一个例子。
Or maybe maybe you do a better number would just be like transaction volume wise. What are you guys doing per month at this point? I mean are we talking millions of dollars or hundreds of thousands or 10,000? Per month probably in between the tens of thousands and hundreds of thousands area. Got it got it. So and that's that's you know ten thousand dollars that's a developer is paying through you guys to get access to some other paid API and you're taking. Between about twenty percent of the ten thousand up to you know a couple hundred thousand of dollars each month is that right? Yeah and that's the state is taken from the API vendor who's using the platform to distribute the API so not from the API consumer.
So you don't mark it up at all. No so for any API consumer using the platform it's completely free and any pricing we do is completely transparent to them. Got it interesting. Why are developers willing to pay for for first of a day you find an exam I'd love to talk about a real example. Did you find an example of a paid one? I'll be looking right now. I would be super curious to learn that. I've never seen a paid API that's one of the reason I'm curious. I mean the most popular paid API scroll with Twilio. Oh got it got it got it got it where they actually build six cents per tech center something like that.
Yeah so I mean Twilio is one of the largest APIs period and they're also one of the most popular paid APIs. Got it so just understand this this isn't they're not paying a fee just to access the API you're saying if someone connects to Twilio's API through you and then they start ramping up usage and volume where they're sending you know thousands of texts per month that six cents a six cents a text to Twilio you'll take up 20% of the six cents every time. Yeah so that that's how good works. Now I understand how this scales this makes total sense.
是的,我的意思是,Twilio 是目前最大的一些 API 之一,也是最受欢迎的付费 API 之一。我明白了,意思是,这不是说他们只是为了访问 API 而付费,而是说如果通过你们的服务连接 Twilio 的 API,然后他们开始增加使用量和发送量,比如每个月发送数千条短信,每条短信 Twilio 收取六美分,那么你们会从这六美分中抽取 20% 的费用。是的,这就是运作的方式。现在我明白了这种模式是如何扩展的,这很合理。
So what's the what's the plan with the platform? How do you grow it? How do you drive more usage? So the like rapid API is all about enabling the developers to connect to APIs. So one thing we do is add more and more APIs to the platform and we're actually soon going to open the possibility for developers to where the APIs themselves. As we open source more of the platform and then we just try and advocate this to the developer so help people find those APIs. Ever through Google or through GitHub or through other systems and connect them through rapid.
那么,这个平台有什么计划?你们打算如何发展它?如何推动更多人使用?Rapid API 的核心就是帮助开发者连接各种 API。我们的一项措施是继续在平台上添加更多的 API,而很快我们还会开放让开发者自己发布 API 的可能性。同时,我们会开放更多平台源代码,并努力向开发者推荐这些 API,帮助他们找到并使用这些 API。不论是通过 Google、GitHub 还是其他系统,开发者都能够使用 Rapid API 进行连接。
Got it love this makes a lot of sense you know let's let me jump in here. But did you have a company did you have a company before this where you like was the hacking Gen Y was out of business or was that just something you volunteered for? It's just a new melody for it and kind of help develop those those hackathons. So what were you doing before you know you turned 16 and launched this? So before that I was kind of working at creating apps and websites for certain businesses and learning how to develop. And using those kills I was learning to to make some money as a teenager.
明白了,我很喜欢,这很有道理。让我加入一下。你以前有公司吗?你的公司是否在“Hacking Gen Y”(破解Y世代)之前就已经结束了,还是说那只是你自愿参与的项目?这只是一种新的形式,并帮助发展了这些黑客马拉松。那么在你16岁并启动这个项目之前,你都在做什么呢?在那之前,我主要在为一些企业制作应用程序和网站,并学习开发技术。利用我学到的这些技能,我在青少年时期赚了一些钱。
And what are how are you now? I'm 19 now. What do your parents think about all this? I think they're excited by what I do and thing. Did you skip college? I think college. Boy they want you to go to college or they don't care. I think it's so it's so important does but they also understand how exciting this is and how. How interesting building a business is and how much you learn at the process. So I think they get that that I can all the time as well.
Like I told you guys the top of this episode I have amazing data and you guys know from my interview style I love data. But what I have more than data is making it actionable via beautiful dashboards that I can view on my phone on my TVs and my living room or even on my laptop as I'm traveling. And the company that I used to create these dashboards which pulls in data from my lives in back in my Google analytics back in sales force and other data sources is called Clip Folio. You can see an example executive dashboard or my social media command center or my web metrics dashboard at naithmaca.com forward slash analytics. That's naithmaca.com forward slash analytics and you can try it there for free for three months. It's Clip Folio you can try it free for three months. Everybody else has to pay.
So you get it free for three months. Alan's a good friend. He's a CEO of the company. He came on the show. I said I love your product. Can I feature it? So naithmaca.com forward slash analytics. Go check it out now. Let's jump in now here. I do the famous five. These are last five questions. Number one, what's your favorite business book? My favorite business book is definitely the hard thing about hard things by Ben Horowitz. Number two, is there CEO you're following your studying right now? I've been following Slack's steward for a while. I think he's an incredible job building that business. Steward Butterfield.
Yeah. Yeah. Number three, besides your own, is there a favorite online tool you have like a QD scheduling? What was that again? What's your favorite online tool? Get out. Use that daily. Number four. Yes, or how many hours of sleep do you get on average per night? Six to seven. That's pretty good. Yeah, it's important. You've got to be productive during the day. So you've got to sleep during the nights. Right. And then what's your situation? I assume I assume no kids in single, right?
Yeah. So not married. No, no kids. Yeah. You're 19 right now. You know, usually I ask for guests to tell me what their 20 year old self, what they wish they knew. But even back in episode six, 13, I had a guy on him, Sahil, who's inventing really putting advertisers into the back of cabs in India. And he's 18. So I ask you the same question I asked him, which is take us back nine years. What do you wish your 10 year old self knew? I wish I knew what I didn't know back then because I feel like learning or building a business and trying to run a company.
There are so many things you have to learn. And the damage you can you can do by thinking you know them. He's pretty big. So just knowing what I don't know and trying to learn that earlier on would have probably helped me a lot. Guys, there you have it from the CEO and the creator of Rapid API. He wishes that he knew more about what he didn't know back then. Just more more open approach so we could learn faster and launched Rapid API back in 2006. His team sizes now about 20 folks based between Israel and San Francisco in November 2016.
They raised three point. Well, they've raised a total 3.5 million bucks of capital now processing on the tens of thousands to hundreds of thousands of transaction volume per month. And the way they make money and grow is they take 20 to 25% of that transaction volume. Edo, thank you for taking us to the top. Thank you, Remorse Neidon. If you enjoyed Edo today, go back and listen to Mark yesterday. His company Smartsheet has raised $70 million and just past $80 million an annual current revenue helping 65,000 customers with project management.
It wouldn't mean the world to me if you guys got any value from this episode. If you would go leave a review on iTunes right now and then subscribe. You know, I hustle like heck to get these episodes out every freaking day for you guys and trust me, I love it. I would do it with no listeners, but boy oh boy, it makes my day and it makes my teens day when we see great reviews and get your feedback. So thanks so much.
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