Events have become an effective way for businesses to connect with customers (both existing and potential), showcase products and services more intimately to drive brand conversion, and have a two-way dialogue instead of one-sided push marketing. However, event management becomes complex with an increase in events and specific key objectives that may vary from event to event. Blackthorn.io offers versatile Salesforce-native solutions that help event managers, from organizations large and small, seamlessly manage registration, data collection, and payments for any event type. Available on the Salesforce Appexchange, users can enjoy the automation features of Salesforce while tailoring the solution to their specific needs without the need for drawn-out custom development. As the economy shrinks, the return on marketing spend across all departments will be scrutinized, events included. Blackthorn offers a number of preset reports to assess the efficacy of events and all the event data is securely stored in Salesforce without the need to expend effort post-event inputting attendee details. The company serves a wide array of customers and powers events for companies like Ford, The Boys and Girls Club, Audi, Yamaha, and the USA Swimming Foundation.
AlleyWatch caught up with Blackthorn.io CEO Chris Federspiel to learn more about the business, the company’s strategic plans, latest round of funding, which brings the total equity funding raised to $1.15M, and much, much more…
Who were your investors and how much did you raise?
We took an unconventional approach to fundraising, securing a total of $16 million — $15M in debt financing with nearly $1M in primary financing. Instead of a traditional funding round, we worked with Level Equity and RF Partners for our structured debt financing. We were able to raise nearly $1M in primary through private investors who reached out after seeing a LinkedIn post I wrote about raising funds.
Tell us about the product or service that Blackthorn.io offers.
Blackthorn.io builds Salesforce-native apps that make processing payments and managing events efficient for businesses of all shapes and sizes. With Blackthorn.io, customers can use the Salesforce platform to run their businesses their way. Our technology gives users complete control of business processes through automation, configuration, business, and customization. Our unique apps fill crucial gaps in collecting and activating data within the Salesforce ecosystem and let Salesforce users customize their org to their unique needs with simple, code-free, click-based processes.
Blackthorn.io eliminates repetitive tasks, tall app stacks, and complicated data silos and empowers companies to harness the true power of the CRM they already have.
What inspired the start of Blackthorn.io?
Originally, Blackthorn.io started as an unofficial thesis suggesting a solution for allowing the capabilities of Stripe within Salesforce via a payments app built on the Salesforce Appexchange. I thought this service would benefit many companies struggling with connecting their data from outside applications into their CRM. From August 2015 through 2018, Blackthorn.io existed as a services company building IP into products we owned.
Gradually, we saw a need to layer event applications on top of our payments app. By expanding into events, we saw an opportunity to bridge the gap of managing event registrations, payments, data collection, and more while also running funds for ticket or registration purchases, refunds, and other critical components of the event and payment processes.
How is Blackthorn.io different?
Blackthorn.io is native to the Appexchange and provides an efficient and effective solution for those invested in the Salesforce platform — rather than having to sit in different app silos of platform data. Blackthorn.io makes it seamless, quick and safe for organizations to easily leverage their existing data and integrate external data in one location for teams like sales or marketing to use, such as leveraging contact information and preferences to reach out after an event with follow-up materials. Additionally, Blackthorn.io is one of the only solutions for Stripe billing users on Salesforce.
What market does Blackthorn.io target and how big is it?
Blackthorn.io serves the needs of many diverse markets within the Salesforce platform with higher education and nonprofit industries.
What’s your business model?
Blackthorn.io provides subscription-based, Salesforce-native apps for event management, payment processing, and text messaging.
What are your post-COVID office plans?
Blackthorn.io is currently a fully-remote company with 90 full-time employees around the globe and plans to continue growing through the end of the year. This approach has worked for us thus far, and as we continue growing our team, we play to remain a remote-only company.
What was the funding process like?
I started seeking venues for structured debt and was attracted to Level Equity and RF Partners because of its unique deal structures. This deal resulted in minimal dilution versus having to put in a board and losing 15–25% in a traditional raise. Instead, we were able to work with Level Equity and RF Partners landing at $15M in debt financing and the ability to continue to hire to meet our engineering and growth goals.
What are the biggest challenges that you faced while raising capital?
In 2018, I pitched more than 100 investors in person for Blackthorn.io. Every single one declined. At our lowest point, we had a $7K bank balance with an $80K monthly outflow. At this point, my friend, aunt, and the Launch accelerator pitched in $150K to fund the company and keep it functioning.
Fast forward to 2021. I had 52 investors reaching out to write us seven and eight-figure ‘growth’ checks. At the time, I had approximately 70% ownership in Blackthorn.io. I figured I could sell some of my ownership while still maintaining a majority and not diluting the overall ownership pool. Thirteen investors were interested in this approach.
Then I faced a new ask: every investor requested one or two board seats — something I don’t want for my company. This challenge brought other issues: investors dropping their proposals or my losing a majority of ownership of Blackthorn.io. Neither was an acceptable solution.
After much research, I sought avenues for structured debt. I found the solution with Level Equity and RF Partners, and its funding gave us a $15M runway enabling us to grow our team without the stipulation of implementing a board of directors.
I never want to repeat my late 2018 experience of running out of cash. The emotional stress was all-consuming and unhealthy. Finding other means of raising funds — finding a previously-hidden solution — made the most sense for us and supports our future of Blackthorn.io.
What factors about your business led your investors to write the check?
Simply put, investors were attracted to Blackthorn.io’s contributions in the Salesforce ecosystem. Investors saw the demand for our services and supported my vision for the company.
What are the milestones you plan to achieve in the next six months?
Blackthorn.io plans to continue growing our team and hiring more engineers to help enhance our product offerings, support and accelerate our roadmap.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
The emotional stress of running out of cash in late 2018 was too much for me. If I were to start another company, I would aim to fund it with low burn before hiring. I recommend that early-stage founders focus on their bank accounts before expanding their company to avoid the specter of bankruptcy. It’s easier said than done, but I would’ve traded the low-cash stress for anything.
The emotional stress of running out of cash in late 2018 was too much for me. If I were to start another company, I would aim to fund it with low burn before hiring. I recommend that early-stage founders focus on their bank accounts before expanding their company to avoid the specter of bankruptcy. It’s easier said than done, but I would’ve traded the low-cash stress for anything.
If you give up, it’ll fail. If you don’t give up, it won’t mean it will succeed, but you’ll have no regrets, and it’ll be the best you could have done. Not giving up is also your only means of success. It gets hard, cash gets tight, employees and customers get upset at random things, and you’ll make more mistakes than you can fathom. Learn from them and move on.
Where do you see the company going now over the near term?
By the end of the year, we expect to grow our customer base by 40%, keep expanding our team and deliver innovative products and services within the Salesforce ecosystem. Additionally, Stuart Croft is transitioning into the new role of Chief Operating Officer, where he will lead initiatives to position the business for growth to $50M ARR.
What’s your favorite outdoor dining restaurant in NYC?
Taboonette.
