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 $4.6 million in ARR, 700+ 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.
Selling a bootstrapped SaaS company topics discussed on this podcast:
- Why Esben and his co-founder sold their profitable SaaS company
- What are the general terms of the deal, and how did it happen
- What is likely to happen with the Beamer-Userflow combination
- How they grew to $4.6 million ARR with 3 employees and no meetings
Best quote from Esben Friis-Jensen, co-founder of Userflow
“I definitely recommend to founders today that they should bootstrap their company, even to first-time founders. They can bootstrap completely and focus on revenue. Or, if they are strapped for cash, then raise a very small round.
“Don’t raise a VC round or anything like that. I recommend that to founders today because I’ve been on both VC and bootstrapped journeys. I believe that you build a better, more effective, and more efficient company if you’re bootstrapping because you become more profit-focused. You also become more customer-focused when you get customers to pay.
“If you do it with angel investors, set the right expectations that this will likely not be a VC game. It’s going to be a highly profitable business and maybe an acquisition at some point, but there are no promises on that.”
