Selling a company after bootstrapping to $4.6M with Esben Friis-Jensen @Userflow

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/. In this episode #48, we are talking with Esben Friis-Jensen, co-founder of Userflow, (https://userflow.com/), a no-code tool for building customized in-app tours, checklists, and surveys that he bootstrapped to $4.6M ARR with just a team of 3 and then sold for what the gossip says is a whopping $60M. We talked about the team’s focus on product-led growth and how having this strategy benefited the company during the due diligence and acquisition processes. Esben also shares the reason behind the exit and how they chose Beamer to be their acquirer. He also talks about the importance of having all documents, contracts, and data in one place from the very beginning because it speeds up due diligence and adds value to the acquirer.

Building a Successful SaaS Company: Insights from the Userflow Co-founder

The Journey to Success

Starting a SaaS company from scratch and growing it into a successful business is no easy feat. It takes hard work, dedication, and a deep understanding of the market. Today we’re talking with Esben, the co-founder of Userflow, a user onboarding product for SaaS companies. Userflow started as a bootstrap company with just a team of three and successfully grew to generate $4.6 million in revenue. 

From Solo Entrepreneurship to a Thriving Business

Userflow was founded by Esben and Sebastian, two entrepreneurs with a passion for building great products. They believed in the power of user onboarding and set out to create a tool that would help SaaS companies improve their onboarding process. With a small team and a lot of determination, Esben and Sebastian bootstrapped their way to success. Within a few years, Userflow became a well-known player in the market, attracting attention from potential acquirers.

The Merger with Beamer

After gaining popularity and achieving consistent growth, Userflow caught the attention of Beamer, a similar company in the market. Beamer had a complementary product offering, focusing on product communications and updates. They saw the potential synergies between their products and approached Userflow with a partnership opportunity. This partnership eventually led to a merger, creating a stronger company that could compete with the bigger players in the market.

Aligning Visions and Expanding Product Offerings

Both Userflow and Beamer share a vision of empowering product managers with no-code tools to enhance their workflows. The merger allowed them to combine their expertise and product offerings, creating a comprehensive toolkit for modern product managers. Userflow’s focus on onboarding and recurring onboarding complements Beamer’s strengths in product communications and news updates. By joining forces, they aim to provide a one-stop solution that would eliminate the reliance on developers and enable product managers to build and optimize their products more efficiently.

Building a Strong and Structured Company

One crucial aspect that contributed to Userflow’s success was their commitment to maintaining a structured and well-organized company. As a product-led company, they prioritized building a seamless user experience and a bug-free product. By keeping their subscriptions and data on tools like Stripe and Mixpanel, they were able to provide accurate information during the due diligence process. This streamlined approach made the acquisition and merger smoother and more efficient.

Staying Focused and Evaluating Opportunities

Throughout Userflow’s journey, Esben and Sebastian remained focused on their primary goal of building a strong company. While they received various acquisition offers and partnership opportunities, they were cautious and evaluated each opportunity carefully. They believed in the potential of Userflow and were willing to continue growing the company independently, as long as the right offer did not come along. Their patience and confidence in their product ultimately led them to the right partnership with Beamer.

Lessons Learned and Future Plans

Esben and Sebastian’s journey with Userflow taught them valuable lessons about running a successful SaaS company. They recognized the importance of building relationships, networking with potential partners, and attending conferences. These efforts helped them build strong connections within their industry, leading to the eventual merger with Beamer. While they are currently focused on supporting the growth of Userflow and Beamer, they have plans to explore other exciting opportunities in the future. Their entrepreneurial spirit continues to drive them forward.

Conclusion

Building a successful SaaS company requires dedication, strategic decision-making, and a deep understanding of the market. Esben’s story with Userflow exemplifies these qualities, as they successfully grew their company from a small bootstrap business to a sought-after acquisition target. By staying focused, building strong relationships, and maintaining a structured approach, Userflow was able to achieve remarkable success. Their merger with Beamer further validated their vision and opened up new opportunities for growth.