ACQ2 by Acquired Dissecting ProfitWell's Acquisition (with Patrick Campbell)
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Jul 27, 2022 
In this discussion, Patrick Campbell, Founder and CEO of ProfitWell, shares the inside scoop on his company's $200 million acquisition by Paddle. He offers insights into the intricate negotiation process, emphasizing the crucial roles of communication and trust. Patrick discusses the challenges faced by bootstrapped companies and the strategic decisions that led to his successful exit. He also dives into SaaS pricing dynamics and the importance of customer retention, especially in a fluctuating market. Tune in for valuable lessons on growth and acquisition!
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ProfitWell's Bootstrapped Acquisition
- ProfitWell, a bootstrapped SaaS company, was acquired for over $200 million.
- The company initially struggled to raise funds due to its perceived low-margin services business model.
Bridging the Trust Gap
- Offering services alongside a software product can help bridge the trust gap with customers.
- This approach can generate revenue for customer development and inform product evolution.
Stair-Stepping vs. Scaling
- ProfitWell stair-stepped growth, taking small steps instead of raising capital and scaling faster.
- They realized their multi-faceted sales motion required external funding to reach a larger scale.