Hey, hey - it’s another SaaS Breakdown!

This is Esben Friis-Jensen (on the left) with his 2 co-founders.

With just a team of 3 people.

They managed to scale to:

All bootstrapped from day one.

Let’s break it down! ✏️

Here’s how Esben Friis-Jensen turned customer feedback into SaaS gold:

1. Start with customer problems.

In 2013, Esben co-founded Cobalt, a cybersecurity platform.

Their initial product? Built entirely on early user feedback.

Listening to customers laid the foundation for real market fit.

2. Adapt as the market evolves.

Cobalt didn’t stop iterating after launch.

The team continuously improved the platform based on user needs.

This relentless focus on customer feedback fueled 3-3-2-2-2 ARR growth.

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3. Recognize new opportunities.

After 7 years with Cobalt, Esben saw a new gap: user onboarding.

He co-founded Userflow, a no-code onboarding tool for SaaS companies.

The inspiration? Market feedback and unmet customer pain points.

4. Bootstrap for focus.

Esben and his co-founder chose not to raise VC funding.

With no investor pressure, they focused entirely on product and customers.

The result? $4.6M ARR with a team of just 3 people.

5. Embrace product-led growth.

Userflow didn’t rely on sales teams or big budgets.

The product itself drove acquisition and retention.

Happy users became the engine of growth.

6. Exit with impact!

By 2024, Userflow had over 600 customers and $4.6M ARR.

The company was acquired by Beamer for $60M — a 13x ARR multiple.

Key takeaways.

Userflow's successful scaling strategy involved five key approaches:

Esben’s journey proves that listening, adapting, and focusing on users drives SaaS success.

That’s it for today’s breakdown!

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