01 Aug Landbot raises $2.2M for its on-message ‘anti-AI’ chatbot
It’s has been almost one year since we first launched Landbot on Product Hunt. During that time we have learned so much about our user and how landbot can help businesses to communicate frictionlessly with their customer. We have grown from an MVP version (with lots of problems) to a complete product used by thousands of companies worldwide. Today I am proud to announce that we just raised a seed + funding 2.2M$ 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. ?
At Landbot our core mission is to help business to provide frictionless customer experience. We believe that conversational interface is the ideal way for companies to interact with their customers which will increase the conversion rate and engagement considerably.
With Landbot we are democratizing the power of chatbot, so anyone without technical knowledge could quickly build a complete conversational flow in minutes. With the new funding, we will further improve the UX of landbot for final users, enhance the building process and rebuild our chat dashboard.
Furthermore, we will add additional product lines to cover the complete spectrum of customer journey from lead generation to customer support. We want to become the best conversational experience platform, to do so we need the best talent to build a world-class product. We will relocate our office to the lovely city of Barcelona to get better visibility for international talent.
Finally, we also want to invest more in our Brand. In a world where there are thousands of competing solutions in the market, the only way to win is to differentiate yourself from Product, Service, and Brand. In my limited view, the brand is not about the logo, or a pretty design but the experience you can deliver in every single touchpoint with your customer.
Until now, we haven´t put enough resources into our customer communication strategy. But that will change soon, we will review our entire customer journey and align all of our effort to offer a frictionless experience.
To finish, I ´d like to thank all of the customers that have trusted in us and gave us invaluable feedback. We wouldn´t be here if not because of their support.
And one more thing, we will be launching in the following months a new version of Landbot called Bricks. It will be a game changer that will make the bot building process more flexible plus more fun!
If you have not created your own chatbot, now is the time. Get started by creating your free Landbot account today!