Tacto's Journey from Cold Outreach to Million-Dollar Revenue: Go-To-Market Strategy from 0 to 100+ Mid-Market Customers

About this episode

André Petry is building Tacto, the procurement operating system for the German mid-market – and doing so with impressive success. With over 100 customers, more than 70 employees, and a spectacular 50 million euro funding round in 2023, the startup has become one of Germany's most hyped tech companies.

The 50 Million Euro Funding Round with Sequoia and Index

Tacto's funding round stands out not just for the amount, but also for the investors involved. Sequoia Capital and Index Ventures, two of the most renowned US venture capital firms, led the round. In a challenging market environment in 2023, Tacto probably achieved one of the most successful funding rounds of any German startup.

André provides insights into the dynamics of this funding round and explains how crucial it was to bring the right strategic partners on board who understand the growth potential in the mid-market segment.

Go-To-Market Strategy: From Cold Outreach to 100+ Customers

Tacto's path to product-market fit was characterized by close customer contact and iterative product development. Instead of relying on their own network – which André explicitly advises against – the team pursued a structured go-to-market strategy.

The development progressed through several phases:

• –Early phase: Cold outreach and direct customer contact
• –Scaling phase: Building a structured sales motion
• –Growth phase: Webinars with over 700 participants as a scaling lever

Particularly successful were co-development partnerships with mid-market companies. André explains in detail how to properly manage these partnerships and why they were crucial for Tacto's rapid growth.

Hiring Strategy: Young Generalists vs. Senior Experts

A key success factor was Tacto's hiring strategy. Initially, the company deliberately focused on young generalists rather than expensive senior experts. André explains what he looks for when hiring young talent and how the strategy has adapted as the company has grown.

Particularly interesting: Tacto achieves an offer conversion rate of nearly 100 percent. The secret lies in the thoughtful design of job offers and a clear understanding of what top talent really seeks.

Company Culture Despite Rapid Growth

A common problem for fast-growing startups: company culture suffers under rapid growth. André shares his experiences on how Tacto managed to preserve its culture while simultaneously evolving from a "tinkering shop" to a solid company.

He speaks openly about the challenges of organizational development and provides practical tips for other founders facing similar challenges.

Product Development and Pricing in the B2B Segment

Tacto's approach to product development was characterized by founder-led sales and close customer feedback. André explains how important it was to remain personally involved in the sales process to continuously improve the product.

For pricing, Tacto follows a thoughtful strategy oriented toward customer value. André provides concrete insights into the pricing strategy and explains how they mastered the path to their first million euros in ARR.

Employee Equity and Must-Haves

Another important aspect: André's philosophy on employee equity. He explains how Tacto uses equity as a motivational tool and what must-haves he sees in new employees.

It becomes clear that it's not just about technical qualifications, but also about cultural fit and the willingness to work in a fast-growing environment.

Lessons Learned for Other Founders

André's story impressively demonstrates how a focused B2B startup can create disruptive innovation in a traditional segment like procurement. Particularly valuable are his practical insights into co-development partnerships and the structured approach to growth in the mid-market segment.

For founders looking to follow similar paths, Tacto's success story offers a blueprint – from the first cold outreach to a successful funding round with top-tier investors.