How Esben Friis-Jensen Turned Customer Feedback Into SaaS Gold
In this story, we’re covering Userflow, the SaaS startup that makes onboarding better. They scaled with just a team of 3 from 0 to $4,600,000 in ARR and exited for a fat 13x multiple! Let’s break it down!
So, this is Esben Friis-Jensen (on the left) with his 2 co-founders.
And, as they know by now, building a successful SaaS company is no small feat. For Esben Friis-Jensen, co-founder of Userflow, the journey was a masterclass in turning customer feedback into a goldmine. His story highlights how focusing on user needs, embracing product-led growth, and remaining laser-focused on the product can create extraordinary outcomes. Here's how Esben and his small team of three bootstrapped Userflow to $4.6 million in ARR, amassed over 600 customers, and achieved a 13x revenue exit — all without a sales team or external funding.
1. Starting With Customer Problems
The foundation of any great product is solving a real problem. Esben’s SaaS journey began in 2013 when he co-founded Cobalt, a cybersecurity platform designed to address the challenges faced by tech companies in managing security.
From the very beginning, the team at Cobalt adopted a user-first mindset. They built their initial product entirely on early customer feedback. By actively listening to users, they identified genuine pain points and tailored their product to solve them. This approach laid the foundation for a product with real market fit, setting the stage for growth.
The key lesson here? Understanding customer needs isn’t a one-time activity. It’s an ongoing process that ensures your product stays relevant and valuable to its users.
2. Adapting as the Market Evolves
Cobalt’s initial success wasn’t the result of a one-off product launch. Esben and his team continuously iterated on the platform to meet evolving customer needs.
This relentless focus on adapting based on user feedback drove impressive growth for Cobalt. The company achieved consistent 3-3-2-2-2 ARR growth — a rare feat for SaaS businesses. It’s a testament to the power of staying connected to your users and proactively addressing their challenges.
Companies often fall into the trap of stagnation after launch. Esben’s story underscores the importance of iteration. The market doesn’t stand still, and neither should your product.
3. Recognizing New Opportunities
After seven successful years with Cobalt, Esben identified a new gap in the SaaS market: user onboarding. Many SaaS companies struggled to guide new customers effectively through their products, leading to frustration and churn.
Esben co-founded Userflow to address this pain point. Userflow was a no-code onboarding tool designed to help SaaS companies create seamless user experiences. Once again, the inspiration for the product came directly from unmet customer needs.
Identifying this opportunity required Esben to step back, analyze market feedback, and trust his instincts. By staying close to the problems faced by customers, he was able to build a solution that resonated deeply with the market.
4. Bootstrapping for Focus
Esben and his co-founder made a bold decision when building Userflow: they chose to bootstrap the company instead of seeking venture capital funding.
This approach gave them the freedom to prioritize their product and customers without external pressure. With no investors to answer to, they could focus on what mattered most — delivering value to users.
The results were extraordinary. Userflow grew to $4.6 million ARR with a team of just three people. This lean approach demonstrated that you don’t need a large team or hefty budgets to build a successful SaaS company. Instead, staying small and focused can lead to exceptional outcomes.
5. Embracing Product-Led Growth
A core element of Userflow’s success was its reliance on product-led growth (PLG). Instead of relying on traditional sales teams or costly marketing campaigns, the product itself became the engine of growth.
Userflow made it easy for potential customers to sign up, experience value quickly, and scale their usage without needing sales calls or lengthy onboarding processes. Happy users turned into advocates, driving organic growth through word-of-mouth referrals.
This approach not only kept acquisition costs low but also created a customer base that was deeply engaged and satisfied with the product. In a world where SaaS companies often overcomplicate growth strategies, Userflow’s success proves that simplicity can be powerful.
6. Exiting With Impact
By 2024, Userflow had achieved impressive milestones: over 600 customers, $4.6 million ARR, and a lean, highly efficient team. These achievements caught the attention of Beamer, another bootstrapped SaaS company.
The two companies joined forces in a $60 million acquisition deal, representing a 13x ARR multiple. The acquisition wasn’t just a financial win — it was a testament to the power of customer-focused growth. Together, Userflow and Beamer aimed to redefine product engagement and customer success in the SaaS world.
Key Takeaways: Building SaaS Success
Esben Friis-Jensen’s journey offers invaluable lessons for SaaS founders and entrepreneurs. Here are the key strategies that fueled his success:
Solve Real Pain Points: Whether with Cobalt or Userflow, Esben always started with customer problems. A clear understanding of user needs is the foundation of every great product.
Iterate Continuously: The market evolves, and so should your product. Stay connected to your users and refine your offering to meet their changing demands.
Bootstrap for Focus: By avoiding external funding, Userflow maintained its focus on delivering value to customers without distractions.
Leverage Product-Led Growth: Esben’s reliance on PLG kept costs low while driving organic growth. A great product speaks for itself.
Listen to Feedback: Every step of Esben’s journey was rooted in listening to users. Customer feedback isn’t just helpful — it’s a growth strategy (start collecting user feedback yourself!)
Start collecting user feedback with a feedback board from Upvoty.
Final Thoughts
Esben Friis-Jensen’s story is proof that SaaS success isn’t about flashy tactics or massive budgets. Instead, it’s about staying close to your users (something you can do with Upvoty), focusing on what truly matters, and building products that solve real problems.
By turning customer feedback into action, Esben transformed both Cobalt and Userflow into thriving businesses. His journey is a powerful reminder that listening, adapting, and delivering value are the ultimate keys to growth.
Whether you’re launching your first SaaS product or scaling an established platform, Esben’s principles provide a roadmap for success.
Bootstrap, listen, and grow — the rest will follow.