Last week I had a meeting with the SaaS Company SPAYT from Germany. They are on a mission to become the number 1 mobile sales platform for payments worldwide.
SPAYT was founded two years ago out of a consultancy firm and is bootstrapped till this day. They have launched the MVP, got traction and constantly developed the product they offer. At this point they have a team of around 12 people all over Europe and work remotely. Impressive story and great team. I met with the CEO and CMO to talk about their business, challenges and future plans of this SaaS company . When I asked the CEO Matthias why he started the business he told me:
I wanted to rent a jetski on the beach but forgot my wallet. I did have my smartphone and could not pay digitally. I talked to the owner of the renting service and he explained that digital payment systems are a pain in the …. So I decided it was time to build something that would solve this problem. SPAYT was born.
SPAYT is helping merchants with digital payment solutions. This can be via print media, QR codes, e-mail and social media. They are now also talking to Google Maps to integrate the SPAYT payment solution. Google Maps users can directly order or purchase online from the store they are looking for. Because they are bootstrapped, have great plans for the future and an amazing team of talented people they are this months ‘’SaaS startup of the month’’.
For the ‘’SaaS startup of the month’’ series I ask SaaS companies the following four questions challenging them on their business:
1- Bootstrapped or funded?
2- Tips for starting SaaS entrepreneurs?
3- Main growth channels?
4- Biggest mistake
We hope this inspires starting SaaS entrepreneurs to learn. The following questions are answered by Ruxandra, CMO of SPAYT:
#1 Bootstrapped or funded?
We’ve been bootstrapping for two years now but in order to scale up the business, investment is needed. And not just one round, probably for the first 4-5 years or longer in a softwarebusiness. At this point we are talking to SaaS investors to find out the possibilities to get seed funding. Exciting times ahead!
#2 Tips for starting SaaS entrepreneurs?
How is a SaaS entrepreneur actually defined? Well, I wouldn’t limit it to any specific background. Anybody can be a SaaS entrepreneur. Here are my six tips:
1- Don’t try to do everything by yourself. Get help where you’re not a specialist. You don’t have to and cannot know everything.
2- Validate your idea and make sure there is a product market fit for it.
3- Find other entrepreneurs in similar industries and exchange insights with them at different events, formus, Facebook groups or communities. You’re not the only one in this position.
4- Seek for people who would be interested in your project. Your team is essential to be succesfull, just as proper communication between teammembers.
5- Don’t aim for perfection, but for its alternatives. Don’t hesitate to talk about your business idea – if you don’t believe in it, nobody else is going to.
6- The most important: test your product constantly and try to get feed-back from users/businesses on every development step you take.
#3 Main growth channels?
All marketing related growth we have at this point is organic. To validate the MVP we did not want to spend to much on CAC.
The other main growth channel we focus on is for fundraising. Therefore we are active on: Crunchbase, AngelList, F6S, LinkedIn and ofcourse Saascommunity.com
#4 Biggest mistake
Biggest mistake software entrepreneurs make is to invest too much time in development without proper testing from relevant target group. Market feed-back is key to design the right product/market fit. Make sure there’s a need for your product.