Munich-based startup Cello has raised €2.3 million in pre-seed funding. The company is on a mission to turbocharge software-as-a-service (SaaS) firms with user-led growth strategies.
About Cello
Harnessing the power of word-of-mouth, Cello is the brainchild of an experienced team of serial entrepreneurs from Pitch, Twilio, and Typeform. The platform helps companies add a P2P referral program to their SaaS products, and hence increase user-driven growth.
The company’s approach counters current market challenges, including a tech downturn and skyrocketing advertising costs. With Meta’s cost per thousand impressions (CPM) increasing by 61%, TikTok up by 185%, and Google’s programmatic display by 75%, SaaS companies are compelled to seek fresh growth avenues.
Building a customer acquisition superpower
Cost of customer acquisition has always been a limiting factor for SaaS companies’ top-line growth. However, the Cello platform equips businesses to leverage their existing user base for word-of-mouth growth. This alternative providing an effective, low-cost customer acquisition strategy.
“Cello helps SaaS companies turn word-of-mouth into a customer acquisition superpower,” stated Stefan Bader, co-founder and CEO at Cello. This innovative approach helps businesses optimise the sales journey and outperform competition.
Redefining incentivised referrals
Cello’s platform reimagines how incentivised referrals work, offering users a share of the net revenue they refer. This unique approach, combines fraud prevention, zero payback period, and a positive return on investment. As a result SaaS businesses are empowered to rapidly turn word-of-mouth into a robust acquisition channel.
By simplifying the set-up and tracking of SaaS referral programmes, Cello enables businesses to launch a scalable, ROI-positive channel in mere hours rather than months.
“Cello’s approach revolutionises the opportunities available to SaaS companies, by enabling them to unleash the real potential of the channel.”
Eric Lagier, Partner at byFounders.
Cello’s journey forward
The funding round, spearheaded by byFounders, saw contributions from Tiny VC, Possible Ventures, Notion Capital and angel investors from YouTube, Personio, McMakler, among others. The newly acquired funds will be employed to boost Cello’s market presence in Europe and North America.
With high-growth SaaS companies like Demodesk, Sastrify, Unlock, and Butter already in its clientele, Cello is poised for rapid growth.
“The progress that Cello has made is terrific, especially as building a business in the rapidly growing SaaS market is hard, especially given the current global market conditions,”
Simon Leicht, Partner at Possible Ventures
Reflecting on Cello’s growth strategy, Philipp Möhring, Partner at Tiny.vc, said, “Word of mouth is the most coveted source of growth for early-stage startups… Cello enables this by making SaaS referral programs simple to set up and track.”
Despite external market conditions, Cello continues to make strides, demonstrating the efficacy of its user-led growth model and setting the stage for a transformative impact on the SaaS industry.
28.07.23 Update: The company successfully raises further $3.5 Million closing a seed round.
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