Dalelorenzo's GDI Blog
10Jun/210

Startup studio eFounders reaches portfolio valuation of $2 billion

European startup studio eFounders have already had been around for 10 years. And because a birthday sounds like a good opportunity to share some metrics, the portfolio business have reached a valuation of$ 2 billion together -- merely 18 months after reaching$ 1 billion.

eFounders says it is focused on building the future of work. In practical terms, it intends the company is building B2B SaaS startups with a focus on productivity and workflows. For instance, Front, Aircall and Spendesk all started with eFounders.

There have been a few exits, such as TextMaster, Mention, Mailjet, Hivy and Briq. Those exits are included in the total valuation of eFounders firms -- depart prices are freezed as of year of depart. But Front, Aircall and Spendesk could represent even more massive successes down the road.

“When we started in 2011, there was an existing model that was Rocket Internet. We liked the entrepreneurship feel but we didn’t like the relevant principles, ” co-founder and CEO Thibaud Elziere told me.

Instead of reproducing Rocket Internet absolutely, they altered the business model fairly drastically on three different aspects 😛 TAGEND

They try to come up with original startup projects , not copycats; They want to work with inventors , not consultants-turned-entrepreneurs; Their portfolio companies should be able to operate on their own after 12 to 18 months.

When eFounders come up with a brand-new job, they act as a sort of third co-founder. The startup studio tries to find a CEO and a CTO. In exchange for a third of equity, the eFounders core team helps take the project off the grind. When the startup fosters a seed round, eFounders moves on from day-to-day activities and focuses on new projects.

And it’s been working well. With 30 portfolio business, currently there are 1,500 parties working for an eFounders-backed company. Combined, they make $131 million in annual recur revenue.

As for the next 10 years, Elziere doesn’t make eFounders can simply increase the rhythm and propel more and more projects. “It’s a pattern that isn’t scalable -- it’s hand crafted, ” he said.

There are two ways to expand. First, eFounders is going to focus on more verticals. That’s why the startup studio partnered with Camille Tyan so that he would be in charge of fintech jobs. You can imagine another studio for blockchain startups, another one for AI startups, etc.

“We want to remain focused on software with a B2B angle -- not enterprise but long-tail B2B. We don’t pretend to be a general-purpose studio, but we can acquire specific skills and knowledge on given topic, ” Elziere said.

SaaS startup studio eFounders propels a fintech startup studio

If there are some liquidity contests with some of the most successful eFounders business, the startup studio is also going to use part of its cash to invest in other fellowships. This eFounders fund would focus on seed investments in SaaS companies with a hands-on approach.

But having more fund isn’t undoubtedly a bad thing as SaaS concoctions today don’t look like SaaS produces from ten years ago.

“Creating a SaaS company today is a lot more complicated and more expensive, ” Elziere said. “People who exploit Notion tell you that Notion is slow because it makes more than 100 milliseconds to load a page. People expect the same thing in shopper apps and in SaaS when it comes to performance, blueprint and experience.”

“Companies promote more and more money because there’s a lot of money available, but too because it makes more and more time and abilities in order to build a product, ” he added.

Read more: feedproxy.google.com

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