It’s has been almost one year since we first launched Landbot on Product Hunt. During that time we have learned so much about our user and how landbot can help businesses to communicate frictionlessly with their customer. We have grown from an MVP version (with lots of problems) to a complete product used by thousands of companies worldwide. Today I am proud to announce that we just raised a seed + funding 2.2M$ from Nauta Capital, a well known VC firm in the Spanish tech scene. I would like to share a little bit about our journey and how we manage to close the funding.
In October 2017, after launching Landbot for almost six months, we started to get some initial traction around $5K MRR. At that time based on the cash we have in our bank and our monthly revenue we had less than five months of runway. Many of our investors told us to raise new funding before running out of money. But after benchmarked our traction level I realized we were still far to be considered an “attractive” opportunity. On the other hand, I had faith in our team to improve the product and get better traction. So we kept our head low and worked our asses off to build a new version called Landbot v2.
In November 2017, we finally launched Landbot v2 on PH. It was one of our most successful launches in terms of customer conversion. We increased 600% the number of new customer vs. the previous month. People were very excited about our new product and we got loads of positive feedbacks.
In March 2018, since the launch, we have kept growing at 40% MoM our customer base. With the increased revenue we extended our runway to 12 months. At that moment we were only two months to reach break even and become profitable. That´s when I decided to start the fundraising process.
Word of advice: “the best time to raise money is when you don´t need it, and you can show great traction.”
We quickly prepared a pitch deck using some well-known deck templates from successful internet startups. Then we shared the deck with many VCs we have contacted in the past. As our number was quite good, we got many positive responses very quickly. To gain momentum, we tried to force some competition between the VCs that were interested in the deal.
One month later, after some initial meetings and a few email exchanges we already received 2 Term Sheets. We carefully analyzed all options we had on the table and decided finally to go with Nauta Capital. Once we signed the TS, we started a formal Due Diligence process which took more and less three weeks. After that, we just went to the notary to sign the definitive Investment Agreement which finally concluded our fundraising process.
TBH although the process has been quite intense, I expected it would take much longer time. In the Spanish tech ecosystem, the average fundraising time is about six months. Being able to close a deal in 3 months can be considered a luxury.
So now the million (or 2 million) question is:
Well, I guess buying a Tesla should be our top priority. ?