Celonis: 5 Years of Bootstrapping, Executive Hiring & Product Expansion to Multi-Product Organization – Bastian Nominacher, Celonis

About this episode

Bastian Nominacher, Co-Founder and Co-CEO of Celonis, shares valuable insights into building one of Germany's most successful tech companies. From five years without external funding to successful expansion into a multi-product organization – his experiences offer practical lessons for founders at every stage.

Bootstrapping as Foundation for Sustainable Growth

Celonis deliberately started without external capital, self-funding for the first five years. This bootstrapping phase wasn't just a necessity but a strategic decision that helped the company find product-market fit and build a solid foundation. Only when the business model was validated and growth opportunities became clear did the company open up to investors.

Combining different forms of financing throughout a company's development makes sense: while bootstrapping enables flexibility and focus in the early phase, external investments can later provide the necessary capital for scaling and international expansion.

From Niche to Multi-Product Organization

Celonis has evolved over the years from a specialized process mining provider to a comprehensive platform for process optimization. The business model is based on continuous value creation for customers, reflected in strong net revenue retention – existing customers expand their usage and invest more in the platform.

Introducing new product categories in a running company requires thoughtful strategies. Nominacher emphasizes the importance of maintaining focus on customer needs and developing product extensions organically from existing customer relationships.

Executive Hiring: The Right Talent at the Right Time

When expanding the management team, Celonis pays particular attention to cultural fit and the ability to operate in a fast-growing environment. The right time for executive hiring often comes when existing leaders reach their capacity limits and specialized expertise is needed.

Potential candidates should bring not only technical competence but also the willingness to continuously develop and lead in a dynamic environment. The balance between internal promotion and external expertise is crucial.

University Partnerships as Talent Source

Even for B2B companies like Celonis, university partnerships can be valuable. They not only provide access to talented junior staff but also create a pipeline for future leaders who are introduced to the company culture early on.

Personal Development Under Pressure

Keeping a cool head as a founder in pressure situations is a key competency. Nominacher emphasizes the importance of continuous self-development and recognizing when external expertise is necessary. The ability to maintain focus on essentials while remaining open to change distinguishes successful founders.

Guerrilla Marketing and Organic Growth

In the early days, Celonis relied on creative, resource-efficient marketing approaches to win first customers. This phase of guerrilla marketing taught the team to achieve maximum impact with limited resources – a competency that remained valuable in later growth phases.

Outlook and Advice for 2023

Despite challenges in the current market environment, Nominacher remains optimistic. His advice to founders: maintain focus on fundamental business metrics, put customer needs at the center, and stay grounded. The balance between ambition and realism is crucial for sustainable success, especially in uncertain times.

The Celonis story demonstrates that patient capital formation, strategic product expansion, and thoughtful team building can create lasting value. For founders navigating between idea validation and Series B, Nominacher's journey offers a blueprint for building resilient, growth-oriented organizations that can weather market volatility while maintaining their core mission.