Finding the right acquirer to expand SaaS business globally with Cornelius Frey @Opinary

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 #39, Anna Nadeina talks with Cornelius, Co-Founder at Opinary, and CIO / CEO of the SaaS division at Affinity Global.

Background: The Journey to Founding Opinary

Cornelius Frey’s journey began in Germany, but his experiences across various countries shaped his perspective on creating a product that resonates with users globally. He spent over 15 years living in places like the UK, the US, Russia, and Nigeria. This diverse background informed his understanding of different markets and ultimately led to the creation of Opinary.

While working at McKinsey, Frey felt a disconnect from his home country and wanted to understand the sentiments of people back in Germany. This desire spurred the creation of a tool that could engage users and gather their opinions on current affairs. His co-founder, who is also his sister, highlighted a significant problem faced by media publishers: the struggle to connect with their audience. This realization led to the development of Opinary, a polling tool that helps publishers engage with their users and understand their preferences better.

Opinary’s Evolution and Product Development

Opinary’s product has evolved significantly since its inception. Initially, the tool was a simple voting mechanism that allowed users to express their opinions. However, the team quickly realized that to remain relevant, they needed to adapt to the changing digital landscape. By integrating machine learning and AI, Opinary transformed into a sophisticated platform that automates question delivery based on user context.

The evolution of the product can be categorized into three dimensions: how, what, and for whom. The ‘how’ involved moving from a basic polling tool to a more complex system that uses AI to deliver relevant questions in real time. The ‘what’ shifted from merely engaging users to solving crucial pain points for publishers, such as collecting first-party data and driving conversions. Lastly, the ‘for whom’ aspect expanded from focusing solely on media brands to including e-commerce players and other market sectors.

Customer Discovery and Sales Strategy

Finding the right customers was a learning curve for Frey and his team. Their approach began with direct outreach to publishing houses and attending industry events to build trust and establish connections. This hands-on strategy proved effective in gaining initial clients, as personal relationships were critical in a sector where trust was paramount.

As the company grew, the sales strategy evolved to include content marketing, channel partnerships, and leveraging their extensive user base. The realization that potential clients were also users of their tool allowed them to create a demand-driven sales process. This insight led to a more organic approach to converting leads into customers.

Identifying Stakeholders and Decision Makers

One of the challenges Frey faced was understanding the complex decision-making structures within potential client organizations. Often, the person excited about the product was not the one with the budget. This disparity required a nuanced approach to sales, ensuring that all relevant stakeholders were engaged in the conversation.

Frey emphasizes the importance of mapping out the decision-making unit within organizations. This means identifying not just the budget holder but also influencers who can advocate for the product. By addressing the needs and concerns of various stakeholders, Opinary could better position itself as a valuable partner.

Surprises in the Sales Process

Throughout the sales journey, Frey encountered several surprises regarding who the actual decision-makers were. He learned that organizations often have multiple divisions with different goals and incentives, complicating the sales process. For instance, while a newsroom might be enthusiastic about Opinary’s product, the budget might reside with a different department entirely.

This complexity necessitated a thorough understanding of each organization’s internal dynamics. Cornelius advises founders to engage with all levels of an organization, fostering collaboration and communication among departments to ensure a smooth sales process.

Building a Lean Team

Despite the scale of operations, Opinary maintained a lean team structure. Cornelius attributes this efficiency to a well-defined focus on a core demographic and an inbound-driven sales model. The company’s small size allowed for agility and quick decision-making, which proved advantageous in a fast-paced market.

However, as Opinary expanded its client base beyond media publishers to include e-commerce and other sectors, the need for a more robust sales team became apparent. The acquisition by Affinity Global provided the necessary resources to scale operations and enhance sales efforts without compromising the company’s culture.

The Decision to Sell

The decision to sell Opinary was not taken lightly. Frey and his team recognized the potential for growth but also acknowledged their limitations in scaling the business independently. The acquisition by Affinity Global was a strategic move aimed at leveraging their established market presence and resources to accelerate growth.

Cornelius emphasizes that they were not looking for a quick exit; rather, they sought a partnership that would enable them to expand into new markets, particularly in the US and Asia. The alignment of values and vision between Opinary and Affinity made the decision straightforward.

Cultural Fit and Integration

The cultural fit between Opinary and Affinity was a critical factor in the acquisition process. Frey noted that the entrepreneurial spirit and ambition exhibited by Affinity’s leadership resonated with his team’s values. The integration process has been smooth, with both teams working collaboratively to drive growth.

Post-acquisition, Opinary retains its independence while benefiting from the resources and expertise of Affinity. This arrangement allows the team to focus on executing their vision while leveraging the strengths of a larger organization.

Future Plans for Opinary

The future looks promising for Opinary as it embarks on a new chapter under the Affinity umbrella. The focus will be on expanding its global footprint, particularly in untapped markets. Frey is optimistic about the opportunities ahead, emphasizing the importance of adapting to the changing landscape of digital engagement and data privacy.

With a solid foundation and a clear growth strategy, Opinary is well-positioned to navigate the challenges of the SaaS industry. The lessons learned from their journey serve as a valuable blueprint for other founders looking to expand their businesses globally.