Becoming a market leader in contract management SaaS with Sebastian Wengryn @ContractHero

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 #19, Anna Nadeina talks with Sebastian, Co-Founder & CEO at ContractHero, the all-in-one software for your contract management.

Sebastian’s journey began in sales, where he worked for Bloomberg in London before moving to Berlin. His experience in software sales and his exposure to various startups, particularly in the fintech sector, provided him with a strong foundation. He was involved in launching companies within an incubator model at Finleap, gaining firsthand knowledge of what it takes to start a business.

During his time in the industry, Sebastian and his co-founder Gary identified a significant pain point in contract management. Gary’s experience preparing for an exit highlighted the inefficiencies and frustrations surrounding contract management processes. This led them to explore the contract management niche, where they found a lack of suitable solutions for small to midsize companies.

Identifying the Problem

The primary issue ContractHero addresses is the lack of clarity and organization in contract management. Many companies collect contracts without a proper management system in place, leading to missed deadlines, compliance issues, and financial implications. Sebastian emphasizes that contracts are the foundation of business relationships, and understanding them is crucial for effective cash management and forecasting.

Ideal Customer Profile (ICP)

Initially, Gary represented their first ICP, with his background in finance and legal at a mid-sized company. Over time, they learned that their ideal customers were typically companies with around 200+ employees facing challenges in managing their contracts. ContractHero aims to provide these companies with the tools to gain visibility and control over their contract management processes.

Common Mistakes of First-Time Founders

Reflecting on their journey, Sebastian acknowledges that they made common mistakes often seen in first-time founders. However, they were careful not to raise too much capital too soon, which allowed them to grow efficiently without the pressure to hire aggressively. The first 100 customers were closed by Sebastian himself, allowing them to gather valuable feedback and refine their ICP.

Sales Experience and Its Impact

With a background in sales, Sebastian was able to approach the early stages of ContractHero with confidence. He emphasized the importance of feedback and learning from customers. Instead of relying solely on a product-led growth (PLG) strategy, they adopted a sales-led approach, focusing on understanding customer needs and validating their solution through direct engagement.

Transitioning from Product-Led to Sales-Led Approaches

As they developed their product, they realized that a sales-led approach allowed them to learn faster. By not offering a free trial initially, they ensured that customers valued their offering and were more committed to providing meaningful feedback. This helped shape the product roadmap and prioritize features based on real customer needs.

Understanding Jobs to Be Done

ContractHero’s approach centers around understanding the “jobs to be done” for their customers. They focus on the context and circumstances surrounding contract management rather than just the features of their product. This understanding allows them to tailor their solutions to meet the specific requirements of different customer segments.

Focusing on the DACH Region

Currently, ContractHero is primarily focused on the DACH (Germany, Austria, Switzerland) region, where they see significant growth potential. Many companies in this market still lack effective contract management solutions, presenting an opportunity for ContractHero to establish itself as a leader.

The Principle of Optionality

Throughout their journey, Sebastian emphasizes the importance of maintaining optionality in decision-making. This mindset allows them to adapt to changing circumstances and explore various paths for growth, whether it’s pursuing venture capital or adjusting their go-to-market strategy. Flexibility and adaptability have been crucial in navigating the challenges of building a startup.