Podcast Summary

Podcast: SaaS Interviews with CEOs, Startups, Founders

Host: Nathan Latka
Episode: While Zapier Gets All the Press, Celigo Just Doubled Revenue to $95m, CEO Jan Arendtsz
Date: January 21, 2025

Episode Overview

In this episode, Nathan Latka sits down with Jan Arendtsz, founder and CEO of Celigo, a leading Integration Platform as a Service (IPaaS) provider. While market competitors like Zapier and Mulesoft often get headlines, Celigo has quietly built an incredibly capital-efficient business, recently doubling its revenue to approximately $95 million ARR. Nathan explores how Jan built Celigo from a consulting pivot, the company’s disciplined approach to fundraising and valuation, focusing on strategic growth, prudent capital management, and long-term sustainability—benefitting both investors and employees.

Key Discussion Points & Insights

1. Celigo’s Origins and Early Days

• Pivot from Consulting to SaaS (02:21 – 03:47)
  • Celigo started as a consulting firm, bootstrapped from 2011 to 2015.
  • In 2015, Jan and his CTO decided their product was outdated and set out to build a new one, “still continuing business to go build a new product.”
  • Arrived at $4M ARR by early 2015, then raised Series A in late 2015, launching the new SaaS product in March 2016.
  • Quote: “We were bootstrapped from 2011 to end of 2015… We got to 2015, early 2015. At that time I think we were about 4 million in ARR… The product that we had was archaic.” — Jan Arendtsz (02:21)

2. Product Positioning and Expansion

• Functionality and Growth of Platform (04:10 – 05:17, 10:24 – 11:11)
  • Celigo initially targeted smaller enterprise integration opportunities and iteratively improved product functionality.
  • By 2021, Celigo transformed into a “true horizontal platform”—connecting any API, database, or flat file, regardless of enterprise vertical.
  • Quote: “It took us a while to be able to build out the product to get there. So that was a big transformation from our Series B round to our Series C round.” — Jan Arendtsz (10:24)

3. Capital Efficiency and Fundraising Philosophy

• Conservative, Disciplined Capital Raises (01:27 – 09:20)
  • Celigo has raised only $72M in primary capital to approach $95M+ ARR—a ~1.6x ratio.
  • Series A at nearly a 5x multiple, compared to market counterparts raising at much higher valuations (e.g., Mulesoft at 21x).
  • Every round was highly disciplined, focusing on strategic board composition and partnership over maximizing valuation.
  • Quote: “We’ve raised a total of 72 million in primary capital to get to roughly about 92 million in IRR right now. So that’s the ratio that I look [at].” — Jan Arendtsz (01:33)
  • Quote: “It really came down to the firm and the person who is going to sit on the board. Board dynamics are super important for me.” — Jan Arendtsz (08:26)
  • Quote: “A good partner and a good board seat is way more valuable.” — Nathan Latka (09:20)

4. Approach to Secondary Liquidity & Employee Value

• Minimal Secondary and Focus on Fairness (11:11 – 12:23; 14:31 – 15:28)
  • Despite opportunities, only limited secondary was made available for key employees and early debt providers.
  • Jan’s intent was to maximize employee option value: “I’m proud to say, right, that if you look at our employee stock options, it’s not underwater, and it means something above water.” (15:19)
  • Preference structures were minimized in funding rounds to treat all shareholders fairly and maintain future flexibility.
  • Quote: “On that Series C round we had the option of raising at a much higher multiple… we decided to take out all preferences and structure… Without being greedy.” — Jan Arendtsz (14:31)
  • Quote: “That was one of the smartest things that we did… We knew things were going to come down.” — Jan Arendtsz (14:50)

5. Competitive Context & Market Comparison

• Stance in the iPaaS and Automation Space (03:47 – 04:31; 05:59 – 06:16)
  • Direct competitors (Workato: high capital raise, Zapier: bootstrapped, Mulesoft: acquired at high multiples).
  • Jan attributes Celigo’s sustainability to a focus on capital efficiency and value generation versus chasing high-prestige valuations.
  • Quote: “You can go raise a billion dollars… fastest way to make 100 million bucks is to raise a billion and then, you know, burn 900 million on fire, right? And you’re left with 100 million.” — Nathan Latka (05:59)

6. 2024 Position and Product Innovation

• Continued Expansion into New Areas (12:41 – 14:11)
  • Celigo is expanding “beyond being a core iPaaS,” moving into:
    • Full API management with security and compliance features.
    • Modernized EDI integrations for supply chain and trading partners.
    • Simplified data warehouse ingestion (soon, e.g., integrations with Snowflake, Redshift).
  • Quote: “Just imagine any of your operational SaaS systems, you want to be able to easily ingest it into your data warehouse of choice… you can do that in a few clicks.” — Jan Arendtsz (13:23)

Notable Quotes and Memorable Moments

• On capital efficiency:
  “Way more capital efficient…We’ve raised a total of 72 million in primary capital to get to roughly about 92 million in IRR right now. So that’s the ratio that I look [at].” — Jan Arendtsz (01:33)
• On fundraising discipline:
  “I think maybe the most capital efficient…in the enterprise, you know, plumbing for the Internet space, and you see the data to back that up here on the screen.” — Nathan Latka (05:59)
• On partnership in funding:
  “Board dynamics are super important for me. And we went with the investor that we thought, you know, looking beyond the multiple, like who’s going to partner with you over the next five, seven, ten years to build a sustainable business?” — Jan Arendtsz (08:26)
• On employee equity and sustainable value:
  “I’m proud to say, right, that if you look at our employees stock options, it’s not underwater and it means something above water.” — Jan Arendtsz (15:19)
• Host Celebration:
  “When I find stories like this… I want to celebrate them. I want to get on stage.” — Nathan Latka (15:28)

Timestamps for Important Segments

• Introduction and context (00:38 – 01:27)
• Origins & pivotal product rebuild (02:21 – 03:47)
• IPaaS positioning and product scope (03:47 – 04:31)
• Capital raise discipline and series breakdowns (04:53 – 09:20)
• Philosophy on partnerships and board seats (08:16 – 09:20)
• Product evolution to horizontal, cross-industry platform (10:24 – 11:11)
• Employee equity and minimal secondary for fairness (11:11 – 12:23; 14:31 – 15:19)
• 2024 growth and product innovations (12:41 – 14:11)
• Host conclusion and celebratory kudos (15:28 – 15:48)

Tone & Takeaways

The conversation is pragmatic, candid, and celebratory. Jan Arendtsz’s style is methodical, prioritizing sustainable growth over flashy headlines—a sharp contrast to common Silicon Valley narratives. Nathan Latka’s tone is enthusiastic, probing, and congratulatory, spotlighting Celigo as a “dark horse” and a beacon of founder discipline.

Summary takeaway:
Celigo’s story is one of strategic pivots, product vision, and remarkable capital discipline—serving as a case study in building a high-growth SaaS business without succumbing to fundraising hype, ensuring both company and employee value are intrinsically aligned.