#81: Bootstrapped Founder Sells His Profitable SaaS Company with $4 Million ARR – Esben Friis-Jensen
Feb 9, 2024
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Esben Friis-Jensen, founder of Userflow, sold his profitable SaaS company with $4 million ARR to Beamer for $60 million. Insights include benefits of a buyout deal, efficient communication, AI assistant integration, and lessons for bootstrapped founders in the SaaS industry.
Bootstrapped User Flow achieved $4 million ARR with 3 employees, emphasizing profitability and efficiency.
Maintaining work-life balance while building a successful company is achievable by optimizing time management and team effectiveness.
Deep dives
User Flow and Beamer merge to create a combined company
User Flow, a bootstrapped software company, has announced its merger with Beamer, an application focused on in-app change logs and product feedback. The two companies found synergies in their target markets and decided to join forces. User Flow had reached a revenue of $4.6 million and continued to grow steadily with only three employees. While the financial details were not disclosed, the founders of User Flow expressed personal and financial benefits from the merger. The combined company aims to build a product growth toolkit, offering a wider range of features and creating more value for their customers.
Benefits of bootstrapping and a focus on profitability
The founders of User Flow emphasize the benefits of bootstrapping and building a highly profitable business. They believe that bootstrapped companies can be more efficient and customer-focused, without the need for excessive overhead or large teams. The founders draw inspiration from successful bootstrapped companies like Basecamp, which have achieved long-term profitability and sustainable growth. By avoiding the pressures of VC funding and focusing on revenue generation, the founders feel that they can make better decisions for the company's future.
Balancing work and life during the entrepreneurial journey
The founders of User Flow emphasize the importance of maintaining a balanced lifestyle while building a company. They highlight the need to enjoy life along the way and not solely focus on sprinting towards success. By reducing meetings, optimizing time management, and building a highly effective team, the founders have been able to create a successful and thriving business without sacrificing their personal lives. They believe that it's possible to have both a great business and a great life as a practical founder, given the right leverage and mindset.
Esben Friis-Jensen and his cofounder, Sebastian Seilund, teamed up in 2021 to create Userflow, a no-code user onboarding product for SaaS companies. This week, it was announced that Userflow has been acquired by Beamer, a maker of product user engagement software that also used product-led growth strategies just like Userflow.
Userflow is profitable and growing, with over $4 million in ARR, 750 customers, and just three employees with no outside funding. Techcrunch reported that Userflow was acquired in a $60 million deal, supported by Beamer investors Camber Partners and other investors.
Esben told the Userflow story on the Practical Founders Podcast in episode 42 last year. This is an update about the recent acquisition and his thinking behind selling the company.