Neil Patel

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Lucas Martinez chose to compete in one of the biggest competitions out there. The quest to win at taking a $500B industry online. His startup just closed a new round of funding, with $120M more in capital to succeed. The venture, Talent.com acquired investments from top-tier financiers like Inovia Capital, Caisse de dépôt et placement du Québec (CDPQ), Climb Ventures, and BDC Capital.

In this episode, you will learn:

  • The trials and benefits of rebranding your company
  • Running a startup with 3 co-CEOs
  • The fundraising process

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For a winning deck, take a look at the pitch deck template created by Silicon Valley legend, Peter Thiel (see it here) that I recently covered. Thiel was the first angel investor in Facebook with a $500K check that turned into more than $1 billion in cash.

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About Lucas Martinez:

Lucas Martínez is the Co-Founder and Co-CEO of Talent.com, a job search platform that aims to connect the world to work. The son of Spanish immigrants living in Switzerland, Martinez had the travel bug early in life and was always eager to experience new cultures, people, and places. Before founding Talent.com, he worked as a business consultant in Europe and B2B sales in the Middle East. During his graduate studies in Geneva, he met his fellow co-founder Maxime Droux, who was already friends with their third partner, Benjamin Philion.

Lucas then moved to Montreal in 2011 to start the company with his partners and spent the next ten years growing the business from a small start-up to the global $150M enterprise it is today.

Lucas now lives in Barcelona with his wife and three children.

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Connect with Lucas Martinez:

Read the Full Transcription of the Interview:

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Alejandro: Hello everyone and welcome to the deal maker show. So super excited about our guest today I mean obviously another fellow entrepreneur entrepreneur from Spain what can I say is always nice to have a other spaniards that are around the world and I think that in today’s episode we’re gonna be learning a lot about building. Scaling financing product market fit rounds of financing that happen almost going out of business because of uncertainties. But I think that you’re definitely going to find a lot of adrenaline in our episode today. So without further ado I like to welcome our guest today. Lucas Martinez: Martinez welcome to the show. Thanks.

Lucas Martinez: Ah, thanks a lot alejaro very very excited to be ah to be here today and and share my my my story and and our experience to the to your listeners.

Alejandro: So obviously originally really a race from spanish parents parents that they did travel quite a bit for work and left in Spain in many different areas but but but I guess tell us about your upbringings because I’m sure that. That really shaped the way you know that you see life and and as well as your personality so give us that walk through memory line. How was a life growing up.

Lucas Martinez: Yeah, so listen I was born and raised in in in geneva and in Switzerland so Switzerland is an amazing place to grow up. You know when you are from ah you know from come from parents like come from immigration. You know like you have so much social mobility healthcare is amazing. Public school is amazing and because it’s a small country you end up being with like the poor kids the male kids and the richer kids in the same schools you know and so it pushes you up right? And so I’ve been extremely fortunate to be to be born in this country I’ve been able to to study there. And at a young age I played Sports I actually played table tennis and I played olympic qualifyings a lot of european championships and world championships at the time so that big that gave me the travel bug. You know like from from from the beginning and so as much as I absolutely loved to sit and and I’m much lucky I was to be there. After graduating I really wanted to see the world and so this is where this is when I decided to actually leave switzland and and I ended up in in in London in the u k.

Alejandro: So and there actually is where you where you did your studies too in in Liverpool too. I mean you did your your masters there I mean you went to college there in Geneva but but 1 of the things that that I wanted to ask you I mean obviously one is how do you think is is shaped. You really like being all over the world because you’re being quite all over the world. Ah, that will be number 1 and then I think that that coupled with that table 10 is that you were alluding to I think that that also gave you like the intensity and the competitiveness that as an entrepreneur you always have in Europe. So.

Lucas Martinez: Yeah, no, definitely like to to 2 to second that I think like we like to hire athletes no matter what the sport and meta the activity right? It shapes you ship some mentality this competitiveness from the want to want to win all the time and and and be ready to do whatever you have to do you know training. Um, and and and and and so this mentality that you get from sports is is exceptional in business as well and I think that I’ve been you know like that that that really shaped me from from from the get-go and so yeah and and and and and the traveling. Ah yeah, I’ve been I’ve been a huge traveler and so. From day one I think I love languages you know I I speak my my 3 languages that I speak today are english french and spanish and and so for me like the more languages you speak the more lives you leave right? The more the more the more cultures you you you understand right? And so my first job there in London actually was ah was as an Erp and oracle consultant. And so it wasnt I was an internal consultant I was implementing pretty much year oracle all around the world. So they first sent me to Taiwan traveling in Taipei and all ridges around Taiwan when we had the luck to travel pretty much around Southeast Asia then we went we spent nearly. Eight months so in Taiwan now we went to ah to New Zealand and Australia spent a lot of time like close to like again close to eight months there ended up in Ireland for a few months and then and then in the us between Texas and New York so um from day one I knew that I wanted to travel and so I was I was extremely fortunate to be able to keep on doing that.

Alejandro: You and and I mean you did it it working as as you were alluding to I mean first in London then you worked in Dui now 1 thing that is very interesting here is I mean you were you were doing first day consulting then the business development but it’s funny. How. Coming from Spain I mean Spain especially you know during during the years that that you and I you know have been born I mean now entrepreneurship is like more normal right? and it’s not like you need to become a banker or a lawyer in Spain to be well-viewed I mean back then especially I mean you’ve been at it for for a while you know since 2011 maybe it was not as. Popular being an entrepreneur I said is today but but how was that leap of faith where you ended up saying you know in ef education where you were working at hey I’m gonna give my leap of or my or my notice and really get started with building something on my own I mean how was that. Transition. What was that incubation process to really getting started with with talent dot com and.

Lucas Martinez: yeah so yeah I think it was from day one I always been extremely extremely. You know like attracted to entrepreneurship I think that when I was already college I would say like you know like I would love to create something before it was sports I didn’t have the time to think about those things but when I kind of. Playing it was like okay, what’s an next big thing for me and I was like always about entrepreneurship and so I grew up like with a college friend extremely close friend of mine who’s the cofounder of the company today. His name is maximro. Um, and and you know like well after college. Um you know he was he was in the Uk as well working there in ah in finance world finance and he had a very close friend of his that grew up in geneva as well part of his life in geneva that was from Montreal in Canada um, and who. Like she left back to to Montreal in Canada and so it was told me about like he him and you know his ideas entrepreneurship ideas and endavs um, and so I was at the time working in Dubai and started a career and in and in b two b sales. Um, and when you know when we Maxim was actually telling me about like this this this amazing guy that had this all those ideas. Um, and so he told me like man you you have to you have to meet him I want to I want to invest in him. Um I will invest in him you got to you got to meet him. And so I I traveled to Dubai to montural and Benham was what the original idea ah pitched me the idea and I was always being like extremely attracted to the to the employment industry and the job industry in general. And I thought listen like if ah I was loving my job I thought like yeah, it’s a great company. Great culture. But I thought that I’m 20 I was 27 at the time I was in 2010 if I if I I do it now we with with this with this guy and my and my other friend maximine. Um, or I wait until you know I have kids you know too and and once the kids grow up, you know to do entrepreneur entrepreneurship and then um and and and wait maybe for too long I think it was a right, but it was a right timing and so that’s really when the decision happened like and and and so I decided to pack my bags. Ah. Flight to Montreal with Ben and max and this is how the story started.

Alejandro: So Wow and how was it like with your parents because I mean it sounds like like a little bit of of uncertainty there and and crazy challenge.

Lucas Martinez: Yeah I think that you know like at the time I already had left my like the family nest and they’re all are run now they they retired but like they’re at the time they were working in Switzerland and and so I think the the luck we we have in general you know in in Europe is don’t we don’t end up with the. With with college debt right? So we start from. We start from day from day one. Um and so I didn’t see this as ah as a as a massive risk like we didn’t we never saw this as a risk because for us it was like if it doesn’t happen. We’ll we’ll we’ll get back to work that was not the idea obviously that we never wanted that. But. We didn’t feel like it was that much of a risk for us. We really felt like okay we we have the luck of being debt free um being able to find jobs relatively easy. Um, very flexible. Um, you know in terms of geography. Um, and so obviously you know it it really didn’t feel like risk but more like. Like an exciting and amazing opportunity.

Alejandro: Now now. Obviously you guys get together. You go to Montreal how were the early days like of talent ah com. So.

Lucas Martinez: Oh gosh. So imagine you have ah you have 3 guys that know nothing about the industry. Ah and that try to to build something. Um you know and and and. And yeah, so as you can imagine didn’t go very well but like you know that we have the right attitude in a sense that we weren’t I don’t maybe not too smart I don’t know in the sense that we were not too stubborn into saying that this is the idea and is gonna stay like this. No. We were really with this entrepreneurship mindset where we were like we need to build until it works. We need to. Find product market fit and that’s what we did like for for for for a year at least we changed the model like every single month and and we only started everything started to make sense and started we found product market fit when we started to so you know like to sell our our services like. You know, like little cros on you know, like so like a lot of them and also you know like when when when we started making money while we were sleeping and so that really made then this a huge difference and we were able to scale from that point.

Alejandro: So so what was that what was that point where you guys failed I think we’re into something here. So.

Lucas Martinez: So from day one we knew you know we were aggregating contents and so at at the at the start you know the the traditional job boards. You know such as care build or monster in the us you needed to pay to have your your jobs displayed and so obviously this wasn’t like because of the model you didn’t have. Much content right on on on Carrie Sides on on those sites and so what we created was an aggregator that would you know scrape and actually index every single job available in 79 geographies. We started with ah with Canada at first you know, um, but like go on every single carrier sites get their jobs. And put them and centralize and into 1 place and so that was a bit like like Google but in the job vertical a bit like Trivago you know, Kayak or zillow you know, like 1 of those like vertical aggregators in in the job space. So we knew that candidates liked what we were that but we built. Um, because it was a lot of content way more content than on traditional job boards where you had to pay to post here. Jobs were displayed for free. Um, and so but really when when we started to see that it started to work and it started what it was when we started to monetize. We learn how to get content on our side. We learn how to how to attract some traffic through Seo and sem activities. But when we learn how to monetize was really when started to explode and the monetization was basically paperclick advertising and so at the time it wasn’t the norm in the and in our industry was more paper posts. Um, and so we managed to actually switch to a paperclick model. Um, where again where where every single employer would be able to measure their recruitment activities and and and their their recruitment budgets that they would spend with us. And so thanks to that and thanks to this new model that was actually way more cost efficient and that would help our clients measure their recruitment activities better than before that allow us to really scale.

Alejandro: Now. So for the people that are listening to really get it. What ended up being the business model of Talent Comma How do you guys make money.

Lucas Martinez: Yeah, so today the the the the jobs are displayed for free. Every single company. Um, we index all the jobs some curious sites and then we call them and we give them the opportunity to actually sponsor their jobs and so. Instead of appearing on page 2 or page 3 are jobs of job search results. They have the ability to appear on top of the searchers and whenever there is a click on there on the on the on the job itself. Um, it redirects to the careerier page of the client. Um and they payperc click and the the price per click depends. Ah, bit like Google Adwords to simplify it because it’s exactly the same money at the same um model as Google adwords the people click and the budget depends sorry the price per click depends on the offer and the demand of that given job and so very specific to the job. The type of job and the location of the job. So let’s say a truck driver in rally North Carolina could be at a dollar fifty a click because we need them so much and so there’s a lot of demand to appear on top of the search just for this kind of jobs.

Alejandro: Now in your guys’s case. It’s probably the most unique structure that I’ve ever come across so you not only not just have one Ceo you have 3 Ceos so it’s a co-ceo structure of three different ceos I mean. How do you guys make it work I mean how did you guys came up with with this with this structure. So.

Lucas Martinez: Yeah, well, it’s funny. Everyone everyone asked this and and listen we made we managed to make it work until now and the company last year built a 0 us. So it’s not like it doesn’t work right? It’s just that you know we we needed to make it happen. So why three co ceos. First I think is because we were the 3 cofounders and we like it always worked this way. We have a bit of a swiss approach. You know where you have several presidents and you know it’s ah it’s actually we feel that sometimes it’s a bit better than than two because you know you can there is always ah a tiebreaker you know and when when you have 3 um, and so we have very specific functions that we that we take care of you know? And so I think we’re not in we don’t we try not to step in and in every Otherto and so um, so far it worked. We also realize the limitations of of the the structure. Our idea was to always. Um, you know whenever we feel that we are you know like um, slowing down doing down the company or it’s not going in the right direction because of our structure we would change it and we we might approach it at some point you know the next few years but as long as it. We we keep growing. We provide value and we see that the company is going in the right direction we feel that the the the structure is is is okay.

Alejandro: So now in in this case I mean you guys have also raised quite a bit of money. How much money have you guys raised today.

Lucas Martinez: So we we we just announced last week actually around of 120000000 us um with another 30000000 of debt financing as well. The new bank that we work with and so that really, that’s that’s that’s that’s really exciting. We had another round in the past series a round of a 50 $53000000 round as well. Which was mostly a secondary. You know what you know for to remove the business angels Kindy Cap table um but today was it was it was it was a primary round and very excited about what’s to come.

Alejandro: Amazing. So then in this case I know that the first round happened in a soccer match or in a football match as we call it in Europe. So what happened there because you even had to it involved the chair of florenttino parrot.

Lucas Martinez: Yeah, so this is ah this is a this is very funny story so you know like when we when we first. Um when we first raised with business angels Ben Ben and I were in Montreal trying to figure it out and maxine.

Alejandro: But the the precedent of real Madrid That’s the story behind.

Lucas Martinez: Um, was actually in in Madrid he was actually at the Nba of ah intual and presa in madrid and and he was looking for money he was doing every single you know like workshop you know from ah I about about talent dot com and so. After a few months doing his Nba you know we call it be the Ray Maker you managed to ah to ah to get some um business angels um, you know, like interested and so we we started talking with them and you know like when we were about to to sign so we flew to madrid. Ah, sure to to ah to get them ah to you just to meet them and to make it happen and so and so the discussions were in english but met this gentleman was a spanish gentleman. Who actually saw my last name and asked me if I was where I was from and I said I was from Spain and the yeah obvious best reaction was like do you like soccer and I said yes I do and and he asked me and so who do you support and I said the best team in the world and so it’s. And he said obviously you support well Madrid right? and I was no no no no no I’m a big fc bar serona fan and so it was it was taken back. He was a bit upset at say by the answer. Um, at this point I was like I hope I didn’t say something bad. Got sign. You know there’s a big rivalry as you know, but everything went fine obviously but what happened he said you you wouldn see what’s goingnna happen to you and the next day yeah he picked us up with the other business angels and and and my two co-founders max and Ben. And he took us to the real madrid stadium in the in the vip zone and it’s a big table and he said this is you’re going to sit here and this is where the president of real madrid sits Ferina Peres and this is the best view of the stadium so that you can actually see the the best view of ah of ah of a stadium around the world and it was. Was not impressed, but that was definitely a ah story that sticks with me. Ah forever.

Alejandro: Some amazing and so so I guess for you guys I mean it has been quite an interesting journey when it comes to to fundraising because I mean you raised you know this this initial round and then it took you a little bit more time to to really raise the rest. It seemed like in the last name.

Lucas Martinez: Ah, yeah.

Alejandro: In the last year or so you know you guys have really raised most of the money. So what do you think you know what? what? What? What do you think caused that or or what was that fundraising journey like for you guys.

Lucas Martinez: Yeah I think that what happened is that the first round you know like was hard I think aggregators were not really like we were not. They were not in in 2011 I think post the post bubble crisis from 2000 left aggregators kind of heard. Um, and kind of old fashioned but the reality that really when I think the market was ready to adopt them at the larger scale and so it was a bit. It was a bit hard to raise it took us time and so when we raised we said the the initial money we raised was six hundred Thousand Canadian dollars and so when we raised we were like okay we’re gonna spend the first two hundred thousand is gonna be the University Of Max Ben and Lucas Martinez: um, and and after this we have to be profitable no matter what? so let’s make sure we get the industry we understand industry that’s make all the mistakes we can. But after that the company has to be profitable why because we. But didn’t want to go bankrupt. It was. We were close to go bankrupt right before raising? Um, and we had too much fund so we didn’t want to go back to ah to other jobs. So the company has been doubling year onyear. Um and while being profitable. Um, and so we never thought that we needed you know to to raise money. But at some point you know we had to run a process also for our business angels who wanted to see the color of their money back. So and this is really when after a few years we realized that okay, maybe it’s time to professionalize the company beyond what we’re currently doing and and get to that next level and and and bring professionals. You know. Um, investors on board that will help help us actually take this to another another level and and that’s what we did but it takes it took a few years.

Alejandro: Now in this case I mean what has been because I mean as you were saying it took a few years and then professionalizing professionalizing also the business. What do you think that those investors have brought I mean what was the talent dot com. Prior to really receiving that money and how does it look like today. What was that transformation.

Lucas Martinez: What I think there is a there is um, there’s a pre series there’s a series a and there is a series b so the series a with the with the cass de Po Quebec one the one of the largest pension funds in the world. Actually 1 of the largest investors in the world as well. Um, they really helped us to get. Our our finances right? I think that was the big. Ah the big thing when they arrives like hey um you know like this is we we we had the revenues of already like a large or largest startup. Um, but the the finance maturity of maybe of a smallest startup and this is where they really helped us get. All of our finance in department and support department to ah to ah to ah to the next level. Um, and I think this one now the series b is we to get to another level in terms of product marketing and the rest of all the you know market you know product marketing. Um and and and ah to some extent as well. They chart really get to. All the different functions um to another level why because before the company was always profitable and there were a lot of decisions that needed to be made um, remain profitable so we’d never had this luxury of you know, investing or spending so much money in all the functions. So the company has been extremely sales driven. And in products we were extremely efficient. We were trying to do a lot of things with variable resources and so this is something that needed. We. We saw the need to change because um, there’s so much we got to do we have so much data we have. Million unique visitors that come every single month on our platform. It’s 6000000 people that find a job every single month and now it’s every single year right now and on the on the platform worldwide 6000000 and so there’s so much we can do and we have so little people right now in terms of in terms of a product and in terms of our product sophistication as well. Data. Location and so we really felt that you know, bringing right now a Vc a strong vc and that’s why we we brought iovia on board. Um, get us to that next level in terms of product and really be ah our partner of crime to grow made a lot of sense.

Alejandro: Now in in your guys case too now for the people that are listening how big is http://talent.com to them I mean anything that you can share in terms of maybe number of employees or anything else.

Lucas Martinez: Yeah, so today we are around 400 employees we keep growing. We’re gonna we have a massive plans to hire with this round just this year we want to hire more than 300 people um

Alejandro: Wow.

Lucas Martinez: And and so you know pretty much across our Geographies. So monttras a headquarter. We have a a european headquarter in Losanne a us headquarter in Chicago. Um, and you know different offices all around all of itis in Colombia and Medein. Well not all of iiba a big chunk of our software engineers as there. Um, we hire in bocerona as well. Um, in in it and sales so pretty much all around the world. We’re looking to hire um company. Um, you know like if we last year we build one hundred and million usd is not a secret and the idea is to keep growing. A plan to go to $1000000000 revenues and the plan is to become. You know the second largest job site worldwide. You know you know Pepsi is to coke within the next in the next few years

Alejandro: That’s incredible and I know that you guys too have um, have gone through a rebrand So how was that rebrand for you not easy those rebrands.

Lucas Martinez: Yeah, so you know historically with yeah yeah, yeah, so so that was a tough one actually because you know we we knew from day one that um, you know when you start in the industry in the job space. Every single domain name is taken so Ben actually was browsing different different. Ah. Words and names on on Google translates and writing them in english and you know see what what it would come out in other languages and we came out with a name called nouvo with eu and e u v below which means advisor in finnish in Suwami and so. We realized that over the time that it wasn’t of a winner in terms of of as much as branding is that you know like ah it didn’t really help us let’s put it this way and so you know which we we we ah have doing a big push with the s and Bs um, right now when we knew that you know like when when. You are in the s and b space if you not known you know if you own a pizzeria dip dish pizzeria in Chicago for example and you and you’re looking for a cook. You’re gonna post a job in ah in a place that you know you know and so when you knew that we needed to get a more appealing name. Um, that could that you know anglophones could actually pronounce. And so we we we searched for after the the series around we searched for um for a new domain name and lucky enough http://tyna.com was available. Um, and so you know we we we very similar case so we might we put an offer it was it was for sale. We managed to get it. And then the really the very complex part to happen in the sense that you know like we needed to basically change an entire you know digital company. Um, you know like brands so seo or cm all the tools. Ah, and so it’s like basically changing. Ah, the the the the aisles of a plane while it’s flying. You know it’s it was an extremely difficult task and I don’t think many companies have had to do it and so for us it was really hard. It took us nearly two years to do it but we managed to come out of it extremely strong and I think like we could actually. Write a book about like you know, like what the do the dos and Don’s when rebranding. Um while in high altitude right? So it’s been a tough one. We’re done with it now. Extremely happy. Everything went smoothly. What mostly you know from the outside it looks like everything once bullok the reality is we had a lot of challenges. Um, but we are extremely happy to have done it and yeah.

Alejandro: I.

Lucas Martinez: It really helped us.

Alejandro: That’s amazing. That’s not easy. So imagine if you were to go to sleep tonight and you wake up Lucas Martinez: in a world where the vision of talent dot com is fully realized what does that world look like so.

Lucas Martinez: Yeah, so this is where I think right now the idea in the next few years for us is we are currently you know we most of the candidates right now they are redirected to curious sites of our clients. Um, and you know the the. The idea for us is for to be able to have candidates stay on our platform apply on our platform and so what I’m saying here is to control the application process but in the future for us. The idea is to control the hiring as well as well as payroll and so for us. Right now. The industry of the job board industry and the recruiting industry emerging into one. Um, and so the the base you have a basically a tam a total addressable markets a smaller one of twenty five billion and a bigger one of a half a trillion and that is not digitized and I’m talking about all those. The staffing firms placement agencies that are basically slowly merging into one and so we believe that there is a massive play for us into into into get into this in the future. But in the meantime there’s a lot of things we get to do right? but for us really controlling that process from you know from from. Someone looking for a job to that higher and payroll is the vision.

Alejandro: Now imagine if I was to put you into a time machine and I bring you back in time to that moment where you were thinking. Maybe you know that maybe you would pack the back you know, go to Montreal and and try your luck imagine if you have the opportunity of of stopping. Lucas Martinez: before that Lucas Martinez: came out the door with a luggage and you were able to sit down that younger look Lucas Martinez: and you were able to give that younger Lucas Martinez: one piece of advice before launching a business. What would that be and why even while you know now. So.

Lucas Martinez: I would say the first one is enjoy the ride more than than the the the goal you know I think this is like athletes have no problem suffering you know like and and put themselves in situations where they suffer so that. Because just the the end goal or the end result is what matters and I think this is but big. Ah big. You know it really helped us get us to where we are because I have this sense of ah of ah you like you know like sacrifice or you know like sense of if we we’re gonna move fast. We to do those things no matter what. Um, but I think it’s also very important to celebrate and you know enjoy the every single moment or on the ride and there are good moments and bad moments. But like I would say take a step back a bit more a bit more often. Enjoy every single milestone. Um that that you are that happens. You know that you that you go through. ah and yeah and enjoy the ride more than ah than you know then just like thinking about compete and and and you know and grow and be number one and those kind of things.

Alejandro: I Love it look out for the people that are listening. What is the best way for them to reach out and say hi.

Lucas Martinez: Well, but please to reach out my name is Lucas Martinez: Martinez linkedin http://obviouslytalent.com email lucus at at http://talent.com so very happy to to answer anyone as you know we’re hiring a lot so please do reach out.

Alejandro: Amazing Lucas Martinez:! Thank you so much for being on the deal maker show today. What an honor.

Lucas Martinez: Thank you very much a foundra I Really appreciate it and Bye bye.

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