From Scaling to Exit: A 4-Phased Approach
Jetstack is a software company that helps customers get value out of Kubernetes—a technology that helps build, deliver and scale containerized apps. Like a lot of startups, Jetstack’s finances began with a single bank account. But in just one year, their customer base grew very quickly, and their internal team went from three people to 20. While this type of rapid growth is exactly what a startup wants, it also leads to many pressing issues. For the Jetstack leadership team, they had no one to rely on but their existing accountants. They were left feeling unsure about which positions to hire and when, and they needed assistance building internal structures. Additionally, as competition within their industry began picking up pace – to the point where they were worried that, if they didn’t think beyond organic growth, they might lose their positioning and end up losing share of the market – they were also on the hunt for potential investors.
For Jetstack, Ralston took a comprehensive, four-phased approach.
Phase 1 – Budgeting to Scale the Business
Right off the bat, Ralston Group assembled a financial model for Jetstack that gave them a wider perspective of their current and future spending decisions. This financial model gave Jetstack the confidence to move forward with hiring, as well as find areas in which they could be saving money.
Phase 2 – Financial Planning & Forecasting
Beyond financial modeling, Ralston offered business and strategic advise and guidance. Jetstack shared their overall business objectives and Ralston showed how internal growth, as well as success in sales, would lead to certain outcomes. With a clear, full picture, Ralston was able to help set end goals and targets that would keep Jetstack on course to meet or exceed their goals.
Phase 3 – Investor Readiness
Ralston built credible financial models that were easy for potential investors to follow and that made Jetstack look organised and professional. Ralston also navigated Jetstack through the entire process, answering all investor inquiries in a timely manner and ensuring a smooth process from start to finish.
Phase 4 – Exiting
While going through the process of looking for investors, Jetstack was approached by an investor looking to acquire the company and provide the backing to take the company to the next level as part of their team. Having already started the process for investment, Ralston was able to continue with the process of due diligence and lead Jetstack through the entire acquisition process.
Today, Ralston continues to offer financial guidance for Jetstack. With investment and funding from their group company, Ralston is now helping Jetstack focus on building the product side of the business rather than just the services and support side.
We're thinking really big about how we take it from where we are now to hundreds of people and tens of millions of dollars in revenue. So it's quite an exciting time at the moment. And Kyle and Ralston are going to play just an important part in this next phase as they did in the beginning.