40 investors, 1 exit. How to navigate a SaaS acquisition with Yassine Chabli @Beekast

saas.unbound is a podcast for and about founders who are working on scaling inspiring products that people love, brought to you by https://saas.group/, a serial acquirer of B2B SaaS companies.

In episode #22, Anna Nadeina talks with Yassine, founder of Beekast, an online meeting tool for agile teams ,which saas.group acquired last year.

Yassine’s journey began in high school, where he started coding websites and selling them to local businesses. This early exposure to technology sparked his passion for the internet. He pursued a computer science degree at the University of Technology in France, which further solidified his foundation in tech and business.

After working at a consulting firm, Yassine realized that juggling side projects was not yielding the success he desired. He decided to fully commit to his entrepreneurial ambitions, which led to the creation of Beekast. The initial concept aimed to turn smartphones into microphones for conference rooms, addressing the common challenges faced during events.

The Importance of Pivoting in Business

Despite the innovative idea, Yassine’s first attempt at Beekast failed. The market wasn’t ready for such a product. Recognizing the need for change, he pivoted the business model to focus on a simpler solution—allowing users to submit questions via text during events. This shift not only made the product easier to use but also aligned better with market demands.

Yassine emphasizes the importance of listening to customer feedback. He advises entrepreneurs to be open to change and to pivot when necessary, as the first idea is rarely the best. By understanding customer needs and market readiness, founders can develop solutions that resonate with their audience.

Identifying the Ideal Customer Profile (ICP)

Finding the right customers is crucial for any business. Yassine started with cold outreach to acquire initial customers, which allowed him to fine-tune the application based on their feedback. He highlights that in the early stages, it’s essential to focus on a few customers to optimize the product rather than trying to attract a large user base.

As Beekast evolved, Yassine recognized the need to define a clear Ideal Customer Profile (ICP). Initially, the target audience included event agencies and managers. However, as the company expanded into new markets, such as education, it became more challenging to identify the right buyer personas. Yassine suggests that having too many buyer personas can slow down growth, and it’s better to focus on a few key profiles for maximum impact.

Transitioning from Outbound to Inbound Marketing

In the early days, Yassine relied heavily on outbound marketing strategies, attending trade shows and forming partnerships to generate leads. However, he soon recognized the potential of inbound marketing, which takes time to develop but can yield significant results. By creating valuable content and optimizing for SEO, Beekast began to attract more organic traffic over time.

Yassine notes that while outbound marketing is effective when starting from scratch, it’s essential to gradually shift towards inbound strategies for sustainable growth. Events played a significant role in this transition, as participants discovered Beekast during conferences and became advocates for the product.

Leveraging Events and Content Marketing for Growth

Events and content marketing were pivotal in Beekast’s growth strategy. Yassine carefully selected trade shows related to their market, ensuring that he connected with the right audience. He also invested time in creating high-quality content, including blog posts and white papers, which helped improve the company’s SEO and establish authority in the field.

Despite the challenges posed by the COVID-19 pandemic, Yassine noted a resurgence of interest in events as people began to seek networking opportunities again. He believes that while virtual events and webinars have become popular, in-person interactions remain valuable for building relationships.

The Decision to Raise Funding and Its Implications

As Beekast gained traction, Yassine decided to raise funds to accelerate growth. He viewed this as an opportunity to gain valuable advice and mentorship from experienced investors. For first-time founders, having seasoned investors can provide reassurance and guidance, helping them navigate the complexities of scaling a business.

However, Yassine also learned the challenges of managing multiple investors. With 40 shareholders, he found it complicated to balance their expectations while driving the company forward. He advises aspiring founders to carefully consider the number of investors they bring on board, as too many can complicate decision-making processes.

Navigating the Acquisition Process

In 2023, after raising funds and with shareholders seeking an exit, Yassine initiated the process of selling Beekast. He emphasizes the importance of transparency with his team throughout this journey. Starting six months before the acquisition, he communicated the potential sale and reassured them about the future.

Choosing saas.group as the buyer was a strategic decision for Yassine. He valued their strong company culture and focus on SaaS, believing that it would provide a good fit for his team. The acquisition process was smooth, with Yassine finding the efficiency and understanding of the saas.group team.

Cultural Fit and Integration Post-Acquisition

Post-acquisition, Yassine noted the importance of cultural fit in ensuring a smooth transition. The remote working culture at saas.group impressed him, as it allowed teams from different regions to collaborate effectively. Maintaining a positive work environment for his team was a priority, and he was pleased to see them thrive within the new organization.

Yassine’s experience illustrates that aligning values and culture between acquiring and acquired companies is crucial for long-term success.

Yassine’s Next Venture: Billabex

After successfully integrating Beekast into saas.group, Yassine is now focused on his next venture, Billabex. This new company aims to streamline the cash collection process for unpaid invoices using AI technology. By automating follow-ups and communication with clients, Billabex seeks to alleviate the pain points associated with debt collection.

Yassine’s journey from Beekast to Billabex showcases his continuous drive to innovate and solve problems within the business landscape. His experience highlights the importance of adaptability, customer feedback, and strategic decision-making in building successful SaaS companies.