Customers Pay This Founder >€100,000 Per Year: Software Pricing and the Interplay Between Content and Business – Kison Patel, DealRoom

About this episode

Kison Patel exemplifies how to build a successful software company without investors. With DealRoom.net, he developed a solution for corporate transactions that charges customers up to €100,000+ per year. Additionally, he revolutionized the entire Mergers & Acquisitions scene with M&A Science through strategic content.

The Path Into M&A

Patel's entry into Mergers & Acquisitions wasn't coincidental. The complexity of corporate transactions and the outdated processes dominating this industry offered enormous potential for digital solutions. However, instead of focusing solely on large deals, DealRoom deliberately concentrated on smaller transactions—a strategic move that proved to be spot-on.

Why Smaller Deals Are Often the Better Choice

Large M&A deals bring prestige but also enormous challenges. Complexity increases exponentially, decision-making processes become sluggish, and risks multiply. Smaller deals, however, enable faster iteration, more direct customer feedback, and continuous product improvement.

The Dual Strategy: Product and Content

One of Patel's smartest decisions was building M&A Science as an educational brand parallel to DealRoom. This content strategy serves multiple purposes:

• –Thought Leadership: Patel positioned himself as an industry expert
• –Lead Generation: Valuable content attracts potential customers
• –Market Education: By educating the market, demand for solutions is created

The Art of Problem Prioritization

Not every problem is worth solving with a product. Patel developed clear criteria for evaluating problems:

• –How significant is the customer's pain?
• –How frequently does the problem occur?
• –How much is a solution worth to the customer?
• –Can the problem be solved scalably?

The balance between innovation and customer feedback-driven product development is crucial. Too much innovation can miss real needs, while too much customer focus can stifle breakthrough innovations.

Scaling Without Investors: Team Building Challenges

The journey from a one-person company to a 50-person team brought structural challenges. Without external funding, every hire had to be strategically considered. Patel had to learn to delegate responsibility while preserving company culture.

Organizational structures that work with 5 employees often fail at 20 or 50. Continuously adapting internal processes and communication channels became one of the biggest operational challenges.

Personal Development as a Founder

As the company grew, Patel had to evolve as well. The skills needed for startup weren't sufficient for scaling. Project management, delegation, and strategic planning became new core competencies.

A structured approach to new projects proved essential: A project must reach a certain maturity level before resources can be freed up for new initiatives.

Premium Pricing: Justifying €100,000+ Per Year

DealRoom's pricing strategy is remarkably aggressive—and successful. The justification for such prices lies in several factors:

• –Business-Critical Solution: M&A transactions often involve millions or billions
• –Time Savings: The software dramatically reduces time spent on complex processes
• –Risk Reduction: Errors in M&A deals can be extremely costly
• –Specialization: Few providers understand the niche so deeply

The pricing follows value-based pricing principles: The price is based on the value the solution generates for the customer, not on the cost of delivery.

Key Learnings for Founders

Patel's journey reveals several important principles:

1. –Niche Focus Pays Off: Better to be an expert in a small area than a generalist
2. –Content as Business Strategy: Education can be a powerful lever
3. –Value-Based Pricing: The courage to charge high prices when the value is there
4. –Organic Growth: Impressive companies can be built even without investors

The story of DealRoom and M&A Science proves that well-thought-out strategies and consistent execution are often more important than large funding rounds.