Tech founder journey from open source to SaaS with Julien Danjou @Mergify

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 #33, Anna Nadeina talks with Julien, CEO and founder of Mergify, a SaaS company providing merge automation and CI/CD tools for software engineering teams.

Julien’s story begins in the early 2000s when he discovered his passion for tinkering with computers. Initially, he found himself drawn to system administration, developing skills in installing Linux distributions and managing servers. His journey soon took a pivotal turn as he delved into open-source software, contributing to various projects and honing his expertise. This path ultimately led him to work at Red Hat, one of the largest open-source companies globally.

While at Red Hat, Julien collaborated with his co-founder, Mehdi, on an open-source project. They encountered challenges with their CI/CD processes, which sparked the idea for Mergify. What started as a tool to solve their own problems quickly gained interest from colleagues, prompting them to share their creation with a broader audience. Julien recognized an opportunity: perhaps there were others in the tech world facing similar challenges who would be willing to pay for their solution.

The journey of building Mergify

With the initial concept in hand, Julien and Mehdi embarked on the journey of building Mergify. They faced a crucial decision—how to validate their product idea and find customers willing to pay for it. Julien emphasizes the importance of being one’s own user. By using Mergify for their own development processes, they gained firsthand experience and insights into the product’s functionality and potential improvements.

However, many tech founders struggle with the challenge of determining which projects to pursue. Julien highlights two paths: either you build something for yourself, or you search for a market problem to solve. For him, the former was the key to success. By focusing on a problem they understood well, they could provide value to potential users.

Challenges of selling to developers

One of the most daunting aspects of building a tech product is selling it to developers. Julien shares his experience of attempting to pitch Mergify to fellow engineers, who often view themselves as capable of building similar tools in a short time. The challenge lies in convincing them of the product’s value and the time and resources required to replicate it.

Julien recalls early interactions where potential users dismissed the complexity of the tool, believing they could develop it themselves. To address this, he learned to showcase not just the features of Mergify but also the edge cases and challenges that would arise during implementation. By illustrating the potential pitfalls and the time saved through using Mergify, he shifted the conversation from “I can build it” to “Is it worth my time to build it?”

Marketing strategies for tech products

Marketing a tech product, especially in the B2B space, requires a different approach than traditional marketing. Julien emphasizes the importance of building a community around the product. He leveraged his existing network from the open-source community, reaching out to fellow developers and seeking feedback on Mergify. This grassroots approach helped him establish credibility and gain early adopters.

Word of mouth became a significant driver of growth for Mergify. Satisfied customers who experienced the value of the product were eager to share their positive experiences with others, creating a snowball effect. Julien also participated in tech conferences and spoke about the challenges Mergify addressed, further increasing visibility and credibility in the developer community.

Falling in love with the problem

Julien’s philosophy revolves around “falling in love with the problem, not the solution.” He believes that successful tech founders must understand the core issues faced by their target audience. This mindset helps to ensure that the product evolves in a way that genuinely addresses user needs.

For example, while developing Mergify, Julien and his team continually engaged with users, gathering feedback to refine their understanding of the challenges faced by developers. This iterative process allowed them to pivot and adapt their product roadmap based on real-world insights, ensuring they remained aligned with user needs.

The importance of problem-solving in tech

In the tech industry, problem-solving is paramount. Julien emphasizes that a successful product is not just about features but about effectively addressing user pain points. He advocates for a mindset that prioritizes understanding the user experience and continuously iterating on solutions.

By focusing on problem-solving, Mergify was able to carve out a niche in the competitive CI/CD market. Julien’s approach involved not only developing robust tools but also educating users on best practices and how to maximize the benefits of the product.

Investing mindset: team vs. product

Julien shares valuable insights into the balance between investing in the product and investing in the team. While building a great product is essential, he believes that a strong, capable team is the backbone of any successful venture. As a founder, he recognized the importance of delegating responsibilities and empowering team members to take ownership of their respective areas.

This investment in team dynamics ultimately led to a more innovative and agile company culture, allowing Mergify to respond quickly to changing market demands and user feedback. Julien’s leadership style fosters collaboration and encourages team members to share their ideas and insights, creating an environment conducive to growth.

Navigating competition in tech

In a fast-paced tech landscape, competition is inevitable. Julien acknowledges that large players like GitHub can pose significant challenges. However, he views competition as an opportunity to differentiate Mergify by emphasizing the unique value provided to users.

Rather than being intimidated by competitors, Julien focused on educating the market about the importance of merge queues and the specific problems they solve. By positioning Mergify as a specialized solution within a niche, he was able to attract users who valued the depth of expertise offered.

Learning from wins and failures

Every entrepreneur experiences wins and failures. Julien reflects on the lessons learned throughout his journey with Mergify. He emphasizes the importance of embracing failure as a part of the learning process, as it often leads to valuable insights and growth opportunities.

By analyzing both successes and setbacks, Julien has been able to refine his approach to product development, marketing, and team management. This continuous learning mindset has been instrumental in Mergify’s evolution and success.

Building a remote team culture

As Mergify operates as a remote-first company, cultivating a strong team culture is crucial. Julien shares his strategies for fostering connection among team members, including regular meetups and team retreats. These gatherings provide opportunities for team bonding, collaboration, and open communication.

Julien believes that meeting in person helps bridge the gap created by remote work, allowing team members to build relationships and better understand each other’s communication styles. This investment in team culture ultimately strengthens the overall company dynamic and enhances productivity.