Check out the 12-slide pitch deck Y Combinator-backed software pricing startup Wingback used to raise $1.9 million
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- Y Combinator-backed low-code startup Wingback just raised a $1.9 million pre-seed round.
- It hopes to shake up rigid pricing and packaging for SaaS tools while also reducing overheads.
- Check out the pitch deck Wingback used to raise the fresh funds below.
Wingback, a low-code startup backed by Y Combinator, has raised $1.9 million in a pre-seed round.
The company, which was founded earlier this year by German and French entrepreneurs Torben Friehe and Yann Leretaille, aims to make changing pricing and packages much easier for Software-as-a-Service (SaaS) companies.
Its platform can help software companies reduce their overheads by enabling salespeople to make changes to the packages offered to specific clients instead of developers. Wingback’s tech can also use data and analytics to tweak packages in an attempt to increase revenue.
California-based Y Combinator is widely viewed as one of the most prestigious startup accelerators globally, having previously invested in both Stripe and Airbnb at very early stages.
The Wingback founders previously built automated building management startup 1aim, which was acquired by Franz Schneider Brakel GmbH + Co KG last year. They had the idea for Wingback while building 1aim, where they struggled with rigid SaaS subscriptions.
SaaS remains the largest market segment of the predicted $332.3 billion public cloud services market, set to make up $122.6 billion of it in 2021 according to Gartner.
Friehe and Leretaille refer to Wingback as SaaS growth infrastructure – a term coined during a brainstorming session in a Palo Alto cafe – as it sits between a company’s core product and payment provider.
The startup allows salespeople to create, manage, and deploy pricing plans and features, and create targeted campaigns to upsell to customers. Features can also be added to packages, instead of customers having to upgrade to the next tier.
“Usually this requires meetings with engineers and then they have to create the feature, and set and package [them] up together. In the end, this has to be deployed,” CEO Friehe said.
“We take all of this away from the engineers. Non-technical people can control take control over pricing and packaging, and the engineers can focus on what they should really focus on.”
There is also a lack of data in current systems, according to CTO Leretaille.
“Because we are directly tied into the backend, we actually know the usage data,” he said. “So what we’ve seen many times, for example, is that a company has three tiers. Maybe the first includes 1,000 transactions, but 80% of the customers only use 100 a month. So it would make a lot of sense to reduce it to 100 so that the remaining 20% have to upgrade it to a higher tier.”
Leretaille added that in larger companies, it could take six months of interviewing customers and working on their product to figure out how it is actually used.
The pre-seed round was led by venture firm 42cap, which impressed the founders with its pace and angel network, with participation from Y Combinator and accelerator On Deck, as well as angels.
The cash will be used to scale its product, which includes expanding its current team of 10.
Check out the pitch deck it used to raise the cash: