FastSpring is a privately owned ecommerce firm targeting software and SaaS companies, and will use the SalesRight software to provide its clients’ sales teams with interactive quoting and digital signature tools.
SalesRight began only two years ago when SaaS industry veterans Bill Wilson and Taylor Bond moved on from their previous company MindSea to begin a startup that could help SaaS companies generate more sales.
"Bringing SalesRight and FastSpring together is a game-changer for SaaS companies," Wilson, the SalesRight CEO, said in a statement. "Not only does SalesRight's powerful quoting and digital signature solution perfectly complement the FastSpring offering, but we're completely aligned in building the most complete ecommerce platform for software companies."
SalesRight has developed an interactive quote delivery software that streamlines sales processes for Software-as-a-Service teams. It helps IT companies with a range of product simplify their pricing so they can close deals more quickly.
The software’s Interactive Live Quotes support the development and delivery of multiple SaaS pricing models, while providing real-time analytics on deal status. Users report increased conversion rates and reduced time spent per opportunity when using SalesRight.
The addition of SalesRight enables FastSpring to expand its capabilities with a unified ecommerce solution for B2C and B2B software businesses.
“As we welcome SalesRight to FastSpring, we believe this acquisition supports our vision and strategy to broaden our solution and be the leading ecommerce solution for software companies selling to both businesses and consumers,” said David Nachman, CEO of FastSpring.
In spite of COVID-19, SalesRight has had a year marked by a series of major events. As the pandemic broke out in March, the company closed an equity funding round of $600,000, building on the momentum of the $325,000 it raised last year. The latest round was co-led by returning investor Concrete Ventures of Halifax and first-time backer Island Capital Partners of Charlottetown.
"It was unexpected to have an exit this early in our fund, but it drives home our underlying investment thesis that Atlantic Canadian entrepreneurs can build truly world-class startups that can attract the attention of global companies," said Concrete CEO Patrick Hankinson in an email.
Added Stefanie Corbett, Director of Operations at Island Capital: “FastSpring hit a home run not only with the acquisition of the SalesRight technology but also with the fantastic team that will be merging under one umbrella. This is also a major milestone for Island Capital as it marks our fund’s first exit. It's a great outcome for the companies, investors, and the region as a whole."
SalesRight sells its products through cold calls and cold contacts, and in April it reached out cold via LinkedIn to the head of sales at FastSpring, said Wilson in an interview. The engagement with the head of sales led to talks with the head of product, and soon the companies were discussing M&A. In early September, they had an agreement for FastSpring to buy the Halifax company.
Meanwhile, SalesRight kept growing. The company had six employees when it raised its round in March, and now there are 11 staff working at its office in Volta. Wilson said the plan is to continue growing, but added it’s too early to give details. He added that sales continued to increase and that the company has closed some of its biggest deals recently.
On Thursday morning, he learned that Verafin had announced a $2.75 billion exit, which would steal some of SalesRight’s thunder. But he said both deals are great for the startup community.
“I’m excited for what this means for the region,” said Wilson. “Bringing a company like FastSpring to Halifax and the region and having them continue to invest here is just fantastic.”