In the pre-seed investment round, Cello, a Germany-based martech startup has secured €2.3M.
The investment round was led by the VC&Private Equity firm byfounders, along with the participation of Tiny VC, Possible Ventures, Notion Capital, operator angels from Youtube, Personio, McMakler, and other companies.
The money will be utilized to increase the business’s market share in North America and Europe. With a founding team made up of senior employees from Pitch, Twilio, and Typeform as well as serial entrepreneurs, the business claims to be well-positioned for rapid expansion.
Word-of-mouth is crucial in determining traction for startups in the early and growth stages. Despite its significance, founders have little knowledge about the channel. With Cello, SaaS enterprises can turn word-of-mouth marketing into a fruitful channel for customer acquisition.
SaaS businesses, regardless of whether they are product- or sales-driven, can introduce a new scalable, ROI-positive channel in hours as opposed to months, with no operational expense to maintain.
The Cello platform reinvents SaaS referral incentives by paying users a portion of all new customers’ net revenue (MRR). This innovative method of handling recurring commissions prevents fraud, has a zero payback period, and yields a profit.
Cello is a user-led growth platform that helps organizations harness their most ardent customers to promote word-of-mouth growth at scale. It was founded in 2022 by Stefan Bader and Robert Colletti.
Any SaaS product can be shared and found with just a few clicks. SaaS providers including Demodesk, Sastrify, Unlock, Butter, and others are among Cello’s clients.
“Scaling product distribution is on the minds of founders of every new software company as they seek to stand out from the crowd. Top businesses are already using their user bases to draw in and convert new clients, and they see more chances to optimize this phase of the sales process “, says Cello’s co-founder and CEO Stefan Bader.
“This is where Cello comes in. We help SaaS companies turn word-of-mouth into a customer acquisition superpower,” added Stefan.
The self-engineered growth loops that the fastest growing businesses use to increase word-of-mouth. By enabling SaaS companies to tap into the true potential of the channel, Cello’s strategy completely changes the opportunities that are open to them. According to market trends, the product couldn’t have come out at a better moment, according to byfounders Partner Eric Lagier.
“The most sought-after source of growth for early-stage firms is word of mouth. We observe that businesses that are committed to developing a fantastic product frequently lack access to self-engineered tools for increasing word-of-mouth. Cello makes SaaS referral programs easy to set up and track, which enables this, claims Philipp Möhring, Partner at Tiny.vc.
“The success that Cello has made is remarkable, especially as creating a firm in the quickly expanding SaaS sector is hard, especially given the present global market conditions,” says Simon Leicht, Partner at Possible Ventures. The Cello team has a distinct awareness of its market and a well-articulated goal in mind. We are eager to collaborate with the group.
Image Credit: Cello
