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Jan 13, 2022 · 18m · top-founders

Sastrify Raises $7m at $34m Valuation, $1.6m Revenue in 10 Months

Sven Lackinger · 9m spoken Nathan Latka · 6m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

In this interview with Nathan Latka, Sastrify co-founder Sven Lackinger explains how the SaaS procurement startup scaled to $140,000 in monthly recurring revenue across 70 enterprise customers within ten months. He details the company's unique founding cap table, institutional fundraising journey, pricing mechanics, and outbound sales organization.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 37.6% of the talking time here. How this is scored →

Nathan as informed peer 4.8 Guest teaching 2.5 Guest disagreement 1.2 Nathan pushing back 2.3
05100:0010:002:51–5:14 · Nathan as informed peer 4/10 Sastrify Founding Equity and Cap Table Distribution Nathan probes into the founding team dynamics and cross-equity cap table arrangement from their previous startup exit. Sven explains their 45/45/5/5 ownership split and target customer profile in a straightforward, cooperative manner.5:15–7:29 · Nathan as informed peer 5/10 First Customer Case Study and Revenue Run-Rate Nathan digs into pricing mechanics, asking whether pricing is tied to seat counts or total software spend. He quickly calculates Sven's run-rate metrics based on customer count and average contract value.7:30–9:32 · Nathan as informed peer 4/10 Fundraising History: Pre-Seed and Seed Valuations Nathan inquires about round structures and pre-seed valuations, questioning why Sven opted for a priced round early. Sven clarifies the German subsidy context and previous investor relationships that motivated the round terms.9:35–12:06 · Nathan as informed peer 5/10 Sponsor Segment: Founderpath Valuation Tool After an ad break, Nathan asks about ESOP allocations and secondary sales. Sven details the 15% ESOP pool and notes German market practices around founder dilution.12:07–15:49 · Nathan as informed peer 6/10 Team Composition, Platform Automation, and Market Multiples Nathan brings up competitor Vendr's valuation multiple and challenges Sastrify's procurement model, asking why clients wouldn't negotiate directly. Sven clarifies that value comes from process streamlining rather than bulk negotiation pooling.15:49–18:23 · Nathan as informed peer 5/10 Sales Team Structure, Quotas, and ARR Targets Nathan drills into sales rep headcounts, SDR demo goals, and AE quota targets. Sven provides their current operational metrics before concluding with the standard Famous Five questions.2:51–5:14 · Guest teaching 2/10 Sastrify Founding Equity and Cap Table Distribution Nathan probes into the founding team dynamics and cross-equity cap table arrangement from their previous startup exit. Sven explains their 45/45/5/5 ownership split and target customer profile in a straightforward, cooperative manner.5:15–7:29 · Guest teaching 2/10 First Customer Case Study and Revenue Run-Rate Nathan digs into pricing mechanics, asking whether pricing is tied to seat counts or total software spend. He quickly calculates Sven's run-rate metrics based on customer count and average contract value.7:30–9:32 · Guest teaching 2/10 Fundraising History: Pre-Seed and Seed Valuations Nathan inquires about round structures and pre-seed valuations, questioning why Sven opted for a priced round early. Sven clarifies the German subsidy context and previous investor relationships that motivated the round terms.9:35–12:06 · Guest teaching 3/10 Sponsor Segment: Founderpath Valuation Tool After an ad break, Nathan asks about ESOP allocations and secondary sales. Sven details the 15% ESOP pool and notes German market practices around founder dilution.12:07–15:49 · Guest teaching 4/10 Team Composition, Platform Automation, and Market Multiples Nathan brings up competitor Vendr's valuation multiple and challenges Sastrify's procurement model, asking why clients wouldn't negotiate directly. Sven clarifies that value comes from process streamlining rather than bulk negotiation pooling.15:49–18:23 · Guest teaching 2/10 Sales Team Structure, Quotas, and ARR Targets Nathan drills into sales rep headcounts, SDR demo goals, and AE quota targets. Sven provides their current operational metrics before concluding with the standard Famous Five questions.2:51–5:14 · Guest disagreement 1/10 Sastrify Founding Equity and Cap Table Distribution Nathan probes into the founding team dynamics and cross-equity cap table arrangement from their previous startup exit. Sven explains their 45/45/5/5 ownership split and target customer profile in a straightforward, cooperative manner.5:15–7:29 · Guest disagreement 1/10 First Customer Case Study and Revenue Run-Rate Nathan digs into pricing mechanics, asking whether pricing is tied to seat counts or total software spend. He quickly calculates Sven's run-rate metrics based on customer count and average contract value.7:30–9:32 · Guest disagreement 1/10 Fundraising History: Pre-Seed and Seed Valuations Nathan inquires about round structures and pre-seed valuations, questioning why Sven opted for a priced round early. Sven clarifies the German subsidy context and previous investor relationships that motivated the round terms.9:35–12:06 · Guest disagreement 1/10 Sponsor Segment: Founderpath Valuation Tool After an ad break, Nathan asks about ESOP allocations and secondary sales. Sven details the 15% ESOP pool and notes German market practices around founder dilution.12:07–15:49 · Guest disagreement 2/10 Team Composition, Platform Automation, and Market Multiples Nathan brings up competitor Vendr's valuation multiple and challenges Sastrify's procurement model, asking why clients wouldn't negotiate directly. Sven clarifies that value comes from process streamlining rather than bulk negotiation pooling.15:49–18:23 · Guest disagreement 1/10 Sales Team Structure, Quotas, and ARR Targets Nathan drills into sales rep headcounts, SDR demo goals, and AE quota targets. Sven provides their current operational metrics before concluding with the standard Famous Five questions.2:51–5:14 · Nathan pushing back 2/10 Sastrify Founding Equity and Cap Table Distribution Nathan probes into the founding team dynamics and cross-equity cap table arrangement from their previous startup exit. Sven explains their 45/45/5/5 ownership split and target customer profile in a straightforward, cooperative manner.5:15–7:29 · Nathan pushing back 2/10 First Customer Case Study and Revenue Run-Rate Nathan digs into pricing mechanics, asking whether pricing is tied to seat counts or total software spend. He quickly calculates Sven's run-rate metrics based on customer count and average contract value.7:30–9:32 · Nathan pushing back 2/10 Fundraising History: Pre-Seed and Seed Valuations Nathan inquires about round structures and pre-seed valuations, questioning why Sven opted for a priced round early. Sven clarifies the German subsidy context and previous investor relationships that motivated the round terms.9:35–12:06 · Nathan pushing back 2/10 Sponsor Segment: Founderpath Valuation Tool After an ad break, Nathan asks about ESOP allocations and secondary sales. Sven details the 15% ESOP pool and notes German market practices around founder dilution.12:07–15:49 · Nathan pushing back 4/10 Team Composition, Platform Automation, and Market Multiples Nathan brings up competitor Vendr's valuation multiple and challenges Sastrify's procurement model, asking why clients wouldn't negotiate directly. Sven clarifies that value comes from process streamlining rather than bulk negotiation pooling.15:49–18:23 · Nathan pushing back 2/10 Sales Team Structure, Quotas, and ARR Targets Nathan drills into sales rep headcounts, SDR demo goals, and AE quota targets. Sven provides their current operational metrics before concluding with the standard Famous Five questions.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 55.8% · guest 44.2%0:00 · Nathan 55.8% · guest 44.2%3:00 · Nathan 18.9% · guest 81.1%3:00 · Nathan 18.9% · guest 81.1%6:00 · Nathan 33.1% · guest 66.9%6:00 · Nathan 33.1% · guest 66.9%9:00 · Nathan 49.4% · guest 50.6%9:00 · Nathan 49.4% · guest 50.6%12:00 · Nathan 31.8% · guest 68.2%12:00 · Nathan 31.8% · guest 68.2%15:00 · Nathan 27.7% · guest 72.3%15:00 · Nathan 27.7% · guest 72.3%18:00 · Nathan 69.9% · guest 30.1%18:00 · Nathan 69.9% · guest 30.1%
Sharpest disagreement ▶ 14:46 Rejecting bulk buying leverage assumptions

Sven pushes back against Nathan's assumption that Sastrify relies on pooling leverage to force software discounts, clarifying that their efficiency comes from repetitive process familiarity.

 Hardest push from Nathan ▶ 15:17 Nathan challenges customer direct buying alternatives

Nathan questions why an established company like Blacklane would pay Sastrify instead of simply calling software vendors directly for discounts.

 Biggest teaching moment ▶ 10:59 Explaining German ESOP founder dilution dynamics

Sven educates Nathan on German venture conventions where initial ESOP option pools are disproportionately carved out of founder equity rather than shared across the cap table.

 Nathan holds their own ▶ 13:15 Nathan references Vendr valuation and ARR multiples

Nathan demonstrates SaaS market knowledge by introducing competitor Vendr's $600M valuation and calculating their estimated 100x revenue multiple.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Sastrify Founding Equity and Cap Table Distribution 4212 Nathan probes into the founding team dynamics and cross-equity cap table arrangement from their previous startup exit. Sven explains their 45/45/5/5 ownership split and target customer profile in a straightforward, cooperative manner.
First Customer Case Study and Revenue Run-Rate 5212 Nathan digs into pricing mechanics, asking whether pricing is tied to seat counts or total software spend. He quickly calculates Sven's run-rate metrics based on customer count and average contract value.
Fundraising History: Pre-Seed and Seed Valuations 4212 Nathan inquires about round structures and pre-seed valuations, questioning why Sven opted for a priced round early. Sven clarifies the German subsidy context and previous investor relationships that motivated the round terms.
Sponsor Segment: Founderpath Valuation Tool 5312 After an ad break, Nathan asks about ESOP allocations and secondary sales. Sven details the 15% ESOP pool and notes German market practices around founder dilution.
Team Composition, Platform Automation, and Market Multiples 6424 Nathan brings up competitor Vendr's valuation multiple and challenges Sastrify's procurement model, asking why clients wouldn't negotiate directly. Sven clarifies that value comes from process streamlining rather than bulk negotiation pooling.
Sales Team Structure, Quotas, and ARR Targets 5212 Nathan drills into sales rep headcounts, SDR demo goals, and AE quota targets. Sven provides their current operational metrics before concluding with the standard Famous Five questions.

Statements from this episode (14)

Assertion Supported
Evopark was automaker Porsche's first-ever startup investment
“No, no, we actually raised, we were the first ever startup that Porsche, the car manufacturer invested in.”
Sven Lackinger Jan 13, 2022 ▶ 1:29
Assertion Supported
Evopark raised just $2M to $3M before its acquisition
“We raised like single digit million back in the day. So it's like different, like smaller agents rounds and just like, yeah, no more than like two or three million in total.”
Sven Lackinger Jan 13, 2022 ▶ 1:57
Disclosure
Sastrify's founding cap table included 5% cross-investments with former co-founders
“So all of the other two got five percent each on Sastrify. And we did the same thing with their new business. So we kind of like cross-invested each five percent at the beginning. So the original cap table was basically 45, 45, and then five twice for the othe…”
Sven Lackinger Jan 13, 2022 ▶ 3:07
Assertion Not checkable as stated
Sastrify's average contract value is approximately $25,000
“Our ACV is around like 25, 25 K more or less.”
Sven Lackinger Jan 13, 2022 ▶ 4:02
Assertion Not checkable as stated
Sastrify saves enterprise clients 3x to 4x ACV within weeks
“Typically like within like the first couple of couple of weeks, actually we saved them like three, four times of that.”
Sven Lackinger Jan 13, 2022 ▶ 6:39
Disclosure
Sastrify reached over 70 customers in its first year of operations
“Around 70. A bit more than that.”
Sven Lackinger Jan 13, 2022 ▶ 7:04
Insight
Founders should avoid launching fundraising rounds in July
“And one thing that we also did, which was not smart was we raced in July which I cannot recommend to every anyone because apparently people love to do holidays in August.”
Sven Lackinger Jan 13, 2022 ▶ 9:07
Assertion Supported
German ESOP norms typically force founders to absorb all initial dilution
“So we made one with 15% of the original cap table at the beginning, which is again, which we also found and which we're changing now is that for some reason, it's very typical in Germany that you set it up that the original visa goes only towards the founder p…”
Sven Lackinger Jan 13, 2022 ▶ 10:59
Disclosure
Sastrify's $7M seed round included no secondary share sales
“No, that was all going on the balance sheet.”
Sven Lackinger Jan 13, 2022 ▶ 11:43
Disclosure
Sastrify scaled to approximately 53 employees by January 2022
“I think in total, we're about 53 right now.”
Sven Lackinger Jan 13, 2022 ▶ 12:10
Assertion Not checkable as stated
Competitor Vendr raised its early 2021 round at a 100x ARR multiple
“Well, it's from what I know, it's about a hundred X on the AR. So I guess that's quite the, quite what we see everywhere at the moment. So I'm not that surprised. And frankly, they're doing a really great job there.”
Sven Lackinger Jan 13, 2022 ▶ 13:23
Disclosure
Sastrify relies on process efficiency over bulk purchasing leverage
“Yeah, we actually don't do that on a bulk level because we see that there's actually more in the, more of what we do comes from the efficiency of just doing it more often than once.”
Sven Lackinger Jan 13, 2022 ▶ 14:46
Disclosure
Sastrify expanded its sales team from three to 11 in eight weeks
“We just did a split of SDRs and AEs and in total we have about 10 now, 11 up from three, eight weeks ago.”
Sven Lackinger Jan 13, 2022 ▶ 15:54
Disclosure
Fully ramped Sastrify Account Executives target $500,000 in annual recurring revenue
“So once they're fully ramped it's also something like one to two customers a month which gives you like a total of about 500 K AR.”
Sven Lackinger Jan 13, 2022 ▶ 16:51
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