From University Idea to Billion-Dollar Exit: SIGNAVIO – Together As One

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About this episode

On March 5th, 2021, SAP made an announcement that sent shockwaves through the German tech scene: the acquisition of Signavio for over one billion dollars – one of the largest tech exits in German market history. But how does a university side project become a billion-dollar deal?

Gero Decker, co-founder and CEO of Signavio, tells the remarkable story of his company: from its beginnings as an open-source project through years of bootstrapping to the spectacular acquisition by SAP.

Coincidence as a Catalyst

The Signavio story begins with a series of coincidences at university. What started as an academic project developed through fortunate circumstances and perfect timing into one of Germany's most successful software companies. Decker emphasizes how crucial these early coincidences were for the eventual founding – without them, Signavio might never have existed.

From Open Source to Profitable Company

The path from an open-source project to a profitable company was anything but straightforward. In the early years, the team consistently relied on bootstrapping and customer feedback as central elements of product development. This phase was characterized by:

• –Direct customer contact and continuous feedback
• –Focus on sustainable profitability rather than rapid growth
• –Willingness to experiment with lead generation

The team was particularly creative when it came to customer acquisition. The so-called "Hare Krishna Method" – an unconventional approach to lead generation – shows how important it was to find new ways when traditional methods didn't work.

Team Culture as a Success Factor

A central building block of Signavio's success was company culture. In a small team, everyone had to be able to prioritize and collaborate effectively. Team spirit wasn't just preached but lived – a factor that proved crucial for long-term growth.

The equity distribution and composition of the founding team laid the groundwork early on for a fair and motivating work atmosphere. This culture also helped the company maintain focus when it later began growing rapidly.

The Difficult Path to Product-Market-Fit

The first years were marked by challenges in customer acquisition and support. The initial go-to-market strategy didn't work as hoped, and the team had to learn how to handle their first customers and build customer success.

Conversion rates were particularly problematic initially. The team experimented with various approaches and learned through trial and error what worked and what didn't. This phase of experimentation was crucial for later understanding the market.

From Bootstrap to VC Case

After years of bootstrapping, Signavio finally decided to bring in external investors. Decker explains why this timing was right and what changed as a result. The transition from a self-funded to a VC-funded company brought new opportunities, but also new challenges.

COVID-19 as a Turning Point

The pandemic had a significant impact on Signavio. While many companies suffered from the effects, Signavio was able to benefit from increased digitalization. Companies suddenly recognized the value of process management software, which further fueled Signavio's growth.

The Path to the SAP Deal

Negotiations with SAP were a complex process that encompassed strategic fit, cultural alignment, and naturally, price. Decker provides insights into the dynamics of these negotiations and explains how the deal ultimately came together.

Integration into SAP opens new opportunities for the product and team, but also brings the challenge of preserving Signavio's DNA within a large corporation.

The Most Important Lesson: Together As One

The central message of Decker's story is the principle of "Together As One" – the importance of teamwork and mutual support. Success doesn't come from individual geniuses, but from teams that strengthen each other and achieve more together than the sum of their parts would suggest.

The Signavio story shows: with the right combination of product, team, timing, and a bit of luck, a university idea can indeed become a billion-dollar company.