Camunda on Track to €100M Revenue: Jakob Freund on Exit Thoughts, Bootstrapping vs. VC, Open Source & Partner Management

About this episode

Jakob Freund has achieved impressive growth with Camunda: The Berlin startup has evolved into one of the leading providers of process automation and is on the verge of hitting the €100 million revenue mark. The journey there was anything but conventional – and offers important lessons for other founders.

From Bootstrap to VC: A Strategic Turning Point

Camunda started as a classic bootstrap company with an open-source focus. But at €10 million in revenue, Jakob Freund made a strategic pivot: Highland Europe joined as a venture capital partner. Since then, revenue has nearly increased tenfold.

This decision was far from obvious. Jakob openly explains why his team ultimately took venture capital after the long bootstrap phase. The reasons were pragmatic: to scale internationally and conquer the US market, Camunda needed additional resources and expertise.

When to Bootstrap, When to Take VC?

Jakob's experience shows there's no single right path. The decision between bootstrapping and venture capital depends on various factors – the market, growth speed, and strategic goals. The key is recognizing the right timing and not acting too early or too late.

Niche Strategy with Global Impact

Remarkable is how Camunda managed to become a recognized name in a specialized niche. Process automation isn't exactly a mainstream topic, yet the company successfully conquered the US market. This focus on a clearly defined niche proved to be a strength, not a weakness.

A key factor was smart positioning: Instead of trying to be everything to everyone, Camunda concentrated on what they did best. This clarity helped not only with product development but also with market penetration.

Open Source: Launchpad with Limits

Open source played a crucial role in Camunda's early success. It enabled the company to quickly build a community and establish trust. But Jakob also speaks openly about the limits of open source and why Camunda changed focus.

The challenge with open source often lies in monetization. While it works excellently for gaining market traction and building a user base, it hits limits when scaling. The transition to a hybrid model was an important strategic step for Camunda.

Partner Management as Success Factor

An often underestimated aspect of Camunda's success is partner management. Jakob explains what makes successful partner management and how important the right strategy is. Partners can significantly accelerate growth – if you manage them correctly.

This isn't just about acquiring partners, but about long-term, strategic relationships. The right partners can open doors that would otherwise remain closed.

Sales Organization and Team Building

In sales structure, Camunda relies on clear processes and proper personnel selection. Jakob shares his experiences on what he would focus on if he had to make the first sales hire again today. The lessons: Experience matters, but cultural fit and the ability to work in a fast-growing environment are crucial.

Exit Thoughts? Not in Sight

Despite enormous success, selling Camunda is currently not on the table. Jakob explains his view on the company's future and why he's far from reaching the end of the journey. The potential for further growth exists – both organically and through strategic expansion.

Conflict Management and Difficult Decisions

Jakob also discusses the difficult sides of being a founder: How do you learn to handle conflicts better as a founder? When do you make the decision to let someone go? These topics are often taboo but essential for success.

His answers are pragmatic: Conflicts are part of the game, and the ability to resolve them constructively can be learned. For personnel decisions: If cultural fit isn't right or performance consistently doesn't match expectations, it's better for everyone involved to part ways.

Cloud vs. On-Premise: Strategic Considerations

An important strategic question Jakob addresses is whether to offer software on-premise or in the cloud. This decision significantly impacts go-to-market strategy, customer acquisition, and long-term business development. Camunda's experience shows that the right choice depends on customer needs and market maturity.

Camunda's story demonstrates that success doesn't come overnight, but with the right strategy, proper timing, and willingness to adapt, impressive results can be achieved even in specialized markets. The key lies in finding the balance between staying true to your core strengths while remaining flexible enough to evolve with market demands.