In this article, we'll explore how Esben Friis-Jensen and Sebastian Seilund transformed their small team and innovative ideas into a $4.6 million ARR SaaS success, ultimately culminating in a $60 million acquisition by Beamer.
The Userflow team: Esben Friis-Jensen (co-founder), Sebastian Seilund (co-founder), and Jonas Kelstrup (designer)
Here’s their story:
Esben Friis-Jensen and Sebastian Seilund, the founders of Userflow, a no-code customer onboarding platform, managed to grow their business to $4.6 million in annual recurring revenue (ARR) with just a tiny team. By January 2024, they sold Userflow for a whopping $60 million, despite having only themselves and one product designer on staff.
Friis-Jensen shared on the Grow Your B2B SaaS podcast, “There’s a common belief that adding more people means less work, but in my experience, the opposite is often true. The more people you hire, the more you end up working.”
Their secret? They focused on boosting revenue rather than raising capital and automated as many processes as they could instead of hiring more staff. Working from different time zones — Friis-Jensen in San Francisco and Seilund in Denmark — they kept meetings to a minimum.
Friis-Jensen, who had previously been part of the founding team at the cybersecurity firm Cobalt, wanted a different approach with Userflow. He aimed to let the product do the talking and streamline operations as much as possible.
The early days of Userflow
Before launching Userflow in 2019, Seilund had developed Studio1, a tool for creating click-through video demos and in-app guides. When it became clear that users were more interested in the guide than the actual software, Seilund pivoted and brought Friis-Jensen on board to transform Studio1 into Userflow.
The founders made a deliberate choice to keep their team small and self-sufficient, choosing to bootstrap their way to success rather than chasing external funding. They were committed to focusing on generating revenue through their own efforts instead of seeking outside investment.
Esben Friis-Jensen took full advantage of his Silicon Valley network to help spread the word about Userflow. He actively engaged in public speaking opportunities and appeared on various industry podcasts, using these platforms to showcase the value of their no-code onboarding platform. By sharing their story and insights, Friis-Jensen was able to build buzz and attract attention, all while maintaining a lean operation and focusing on driving growth through their own resources.
“You can hustle to gain customers, but real growth comes from being a thought leader and getting the word out,” he noted on Grow Your B2B SaaS.
Userflow’s free-trial model allowed potential customers to experience the platform firsthand, showcasing how effectively it could onboard users. The founders used Userflow’s own software to onboard their customers, ensuring they had an intimate understanding of how to optimize the user experience and maintain automation.
The team automated key business processes like billing and data tracking, reducing the need for extra hires. They also minimized the need for high-touch customer support by providing extensive online resources and deploying a well-trained AI assistant after the launch of ChatGPT.
To foster a culture of self-service, the team encouraged customers to describe their issues in writing or through Loom videos before offering direct support.
“If you empower customers to handle things themselves, you have a solid reason to ask them to do so,” Friis-Jensen explained.
By avoiding extra hires and frequent meetings, Friis-Jensen and Seilund enjoyed a balanced lifestyle while growing Userflow to $4.6 million in ARR and over 600 customers. They made nimble decisions without needing to consider input from venture capitalists.
The acquisition
The founders weren’t actively seeking to sell Userflow but received interest from various companies. An email from Beamer initially went unnoticed, but Camber Partners, an investment firm working with Beamer, persistently pursued them. In fall 2023, they managed to connect with Friis-Jensen at an industry conference and arranged a meeting with Beamer’s CEO.
“For us, it was crucial to find a deal that made sense and aligned with our vision for the future,” Friis-Jensen said. The January 2024 deal with Beamer, which valued Userflow at 13 times its revenue, was appealing due to the shared vision for future growth.
Friis-Jensen attributed the high valuation to their lean team and high revenue per employee.
“Our revenue per employee was a key factor in demonstrating the scalability of our software,” Friis-Jensen said.
The platform’s self-serve nature also made the due diligence process smooth, as most relevant data was readily available through their tracked apps. Even though letting go of control was challenging, Friis-Jensen found the transition to Beamer went smoothly and suggested that future founders consider the efficient approach Userflow used.
“Instead of chasing venture capital, focus on acquiring and retaining paying customers. That’s where you get real feedback. And in later stages, prioritize revenue growth without hiring people just for the sake of it,” he advised.
Conclusion
The journey of Esben Friis-Jensen and Sebastian Seilund with Userflow offers valuable lessons for entrepreneurs. Their success story — growing Userflow to $4.6 million ARR with a minimal team and achieving a $60 million acquisition — highlights the effectiveness of focusing on revenue growth, automation, and maintaining a lean operation.
By choosing to let their product lead the way and optimizing their processes, they proved that it’s possible to scale significantly without the need for extensive hiring or venture capital. For future founders, their approach serves as a powerful example of how strategic simplicity and customer-centric strategies can drive remarkable results.
