Table of Contents
Introduction: Why Cloud-Based ERP is Crucial for Startups and SMEs
Understanding the Core Benefits of Cloud-Based ERP Solutions
Challenges in Implementing ERP Systems for Small Businesses
Weclapp: A Success Story in Cloud-Based ERP
Key Features to Look for in a Cloud-Based ERP System
Future Trends in Cloud-Based ERP for Startups
Conclusion: Leveraging Cloud-Based ERP for Growth and Success
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Introduction: Why Cloud-Based ERP is Crucial for Startups and SMEs
In the fast-paced world of startups, having the right tools can make all the difference. Cloud-based ERP systems provide the flexibility and scalability startups and small businesses need to streamline operations, optimize resources, and achieve sustainable growth.
Understanding the Core Benefits of Cloud-Based ERP Solutions
Streamlined Operations with Cloud-Based ERP
Cloud-based ERP solutions integrate core business processes into a single, efficient system, helping startups manage inventory, finances, and customer relationships seamlessly.
Cost-Effective Technology for Startups
Eliminate the need for costly hardware and maintenance.
Pay-as-you-go subscription models that align with cash flow.
Reduced IT overhead for leaner operations.
Enhanced Collaboration Through Real-Time Data
Access data anytime, anywhere.
Enable remote teams to collaborate effectively.
Improve decision-making with real-time insights.
Challenges in Implementing ERP Systems for Small Businesses
Overcoming Initial Cost Barriers
While cloud-based ERP systems are cost-effective in the long term, the initial implementation can be challenging for startups with limited budgets.
Training and Adoption
Ensuring team members are well-trained.
Overcoming resistance to new technology.
Data Security Concerns
Selecting a trusted provider with robust security protocols.
Ensuring compliance with data protection regulations.
Weclapp: A Success Story in Cloud-Based ERP
Weclapp has emerged as a game-changer in the ERP landscape, offering intuitive and scalable solutions for SMEs. With its user-friendly interface and robust functionality, Weclapp simplifies business operations and empowers startups to focus on growth.
Subscribe and Listen to the Podcast
Discover more insights and success stories on Apple Podcasts, Spotify, and on other apps. Don’t forget to check out the full video interview on YouTube.
Key Features to Look for in a Cloud-Based ERP System
Scalability and Flexibility
Ensure the system grows with your business and adapts to changing needs.
Integration with Existing Tools
Seamlessly connect with CRM, accounting, and e-commerce platforms.
User-Friendly Interface
Simplified workflows to ensure quick adoption.
Robust Analytics
Real-time reporting to support data-driven decisions.
Future Trends in Cloud-Based ERP for Startups
AI and Machine Learning Integration
Predictive analytics for better forecasting.
Automated workflows to reduce manual tasks.
Enhanced Mobile Accessibility
Managing operations on-the-go through mobile apps.
Industry-Specific Solutions
Customizable ERP modules tailored to niche industries.
Conclusion: Leveraging Cloud-Based ERP for Growth and Success
Cloud-based ERP systems like Weclapp are not just tools but enablers of innovation and efficiency. For startups and SMEs, adopting these systems early can set the foundation for long-term success.
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Automated Transcript
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:00:00]:
Good. Okay. Hello, and welcome, everybody. This is Joe from start up rate dot IPO, your start up podcast and YouTube blog from Germany today. No surprise, working in another interesting entrepreneur. Hey, Ertug. How are you doing?
Ertan Özdil | CEO and Founder weclapp [00:00:23]:
I'm alright. Thank you. Thanks for the invite.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:00:26]:
Otley, my pleasure. You have a very long and interesting story to tell, including but not limited to, growing in company, staying with a company for quite some time, calling off an IPO and then selling the company. So we get through all of that, and I do have a lot of questions for you. But first, again, welcome very much to my show. Could you share a little bit of your journey from your early career to founding your company Weclap? What did you do? Because I was actually looking at your LinkedIn profile, and, actually, it looks like your whole life started with Weclap.
Ertan Özdil | CEO and Founder weclapp [00:01:10]:
Yeah. That's good. Yeah. Of course. Let me maybe, start in the beginning when everything started for me. It was basically when I was a little child and then started to really have high interest in software development and work with computers. So typical nerd, I would say, and I loved always to, develop software. Later on, of course, you had a lot of milestones in in your life.
Ertan Özdil | CEO and Founder weclapp [00:01:39]:
For me, there were a couple of special projects that we can maybe call talk about a little bit later. But, generally, I, start started studying, but stopped. And after some while, I found it already my own software company and was, in the in the middle of, founding my own company and pushing things forward. So I'm I'm a typical guy who, for their whole life, did nothing else than software development and technologies. That's basically what what Aetna is doing.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:02:16]:
I'm taking notes here because I do have questions. And when you sent you, you always love to develop software. Were you one of those guys with, 15, 16 that sold websites, in the then pretty new Internet to companies?
Ertan Özdil | CEO and Founder weclapp [00:02:32]:
No. Not, web pages or something, but software was always my, my passion. And I started with 9 years to have the first testings. Let's call it like doing some tests, but I started quite early, and I always just focused on software. And it's it's really a passion for me, and I love to solve problems with software solutions. That's what I'm doing.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:02:59]:
Mhmm. Mhmm. And out of curiosity, what did you start to study? Was it philosophy?
Ertan Özdil | CEO and Founder weclapp [00:03:06]:
No. No. No. That that would be interesting. No. I mean, software is my my my passion, so that's that's why also, software and technology was what I started studying.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:03:22]:
Mhmm. And how did you get onto the idea of Weglub? I mean, it it's an cloud ERP platform. That means it's, basically a software with which you can manage a whole company or parts of a dependent depending on how you deploy it. It it I do believe it's not on top of might of 20 year olds when they when they're saying, oh, I want to do something with software. Can can you take us along the journey? How did you end up with the idea of We Clap?
Ertan Özdil | CEO and Founder weclapp [00:03:59]:
Oh, yeah. That was a long story, in in a long way. But everything started with a couple of milestone projects. One of the milestone project was that I have, I work for a company in Frankfurt in Germany, and they have started to introduce a CRM system and the whole project did fail. And I was so shocked about this project that I decided to develop my own CRM system, and I started to develop it as a open source solution. That was one of the key projects, and I could really feel how successful a, open source oriented project can be and, learned a lot in that, phase. That was one of the key projects I would say leading me finally to Weclap. And then the other one was that I developed a, merchandise, management system for one of a wholesale company here in Germany, and I could see how important these kind of systems, what we typically call an an ERP systems or what these ERP systems really can do for these companies.
Ertan Özdil | CEO and Founder weclapp [00:05:12]:
And the third, what I would mention is that when the new browser technologies, came up and we have these new possibilities, I saw a demo running in the browser where somebody developed a complete operating system within the browser. That was a moment where I, saw the potential for this future and all that together then came to the fact that I I you also also have to find, of course, someone who can finance those kind of projects. And I luckily had a financial investor next to me who also loved the idea to build a completely new cloud ERP platform from scratch. And so, that was the starting point in 2,008 when we decided to found WeChat and start building a cloud ERP platform.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:06:07]:
Would you say the point where somebody showed a software that was running on servers that you could access from a browser, that was the onset of of SaaS software service?
Ertan Özdil | CEO and Founder weclapp [00:06:20]:
Yes. That was definitely a changing moment that things can be consumed in the browser instead of install install a native software somewhere. That was definitely a very important point in time for the whole industry to re sync how software is being developed and how software is being deployed and and provided to end customers.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:06:48]:
So I see basically your software, you could use it as a CRM, customer relationship management. You put all the data, all the interactions in there. You have, your p or teams consulting agencies, IT consulting, and so on and so forth for services, and you have an ERP that actually tracks physical goods, for example, ecommerce and so on and so forth. Can you tell take us a little bit through you you you said you first had a CRM, then you you were tracking goods for ERP. How did it all together, and when did it form, Weclap?
Ertan Özdil | CEO and Founder weclapp [00:07:32]:
Basically, the founding idea was that we deliver or provide software what helps you to run your business as a smaller company. And we don't want you to focus on a specific sector. That's why we have made the whole platform, quite standardized and allow to, support your core business processes. And, the the in the beginning, the the idea was that we, do all what typical small and medium sized companies do have, and their challenge and softest challenges and help them to support their, processes with a good software. And during the, further years and the then later, we started to also, add more functionality. Finally, the or the idea was when you have when you look to my logo in my background, that is the new logo prepared for the IPO, what we have, planned for 2 years ago. Before that logo, we had another logo with a white hand on a red background and giving everything out of one hand. That was my, initial idea and statement, and we have focused to develop all kind of functions for typical small and medium customers do need.
Ertan Özdil | CEO and Founder weclapp [00:08:57]:
And CRM is part of it, but, the whole, merchandise management is also, very important, what customers typically use these days.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:09:08]:
We we we have to put it a little bit into perspective because 2008 is, is not that far away in the past, but it it it's more than a decade, and SaaS has been developing quite a lot. Could you could you, tell us a little bit why your idea there was different? Because what I had in mind back then was, the companies who had an ERP system, it was usually pretty big companies. It was usually SAP, and they had their own in house servers, and everything was running there. And, usually, it was running not that smooth because you had, like, a gazillion programs tucked onto it or people do exports and stuff like that to get all the data out of there.
Ertan Özdil | CEO and Founder weclapp [00:09:54]:
Yeah. All the complexity what you're mentioning, Joe, that was, also one of the reasons why we founded Weclip. We wanted to democratize, the, ERP systems for especially start up and young companies. It was, back these days, very hard to have an ERP system. If the costs were quite high. Everything was very complicated. You get typically 10, people coming in your company with ties, and they are telling you about processes and and what you should do and what you should not do. It was very hard to really have good software solutions easily, usable, and that's exactly what we have changed.
Ertan Özdil | CEO and Founder weclapp [00:10:39]:
We you can now register on our web web page for our product, and within a few seconds, you have your own ERP system up and running, you need to then easily you can, import your data and start using it. And that has changed a lot over the last decade. And prior to cloud based ERP platforms, we have the old generation of ERP systems, what we call ERP 2.0 generation. These kind of systems, exactly have to the requirement that you need to install software on your own hardware, that you really need people helping you to customize things, to set up things. All of that is passed now, and it's much more easy than ever before to, set up and run your own ERP system, which is, by the way, very important for for start up companies, for young companies. Without a good software solution, you will end up in in a high inefficiency in the future if you don't look at this point. And that's why we definitely suggest to start with a good solution that helps you to grow with the solution together and make sure that you're, from the beginning, highly efficient company and and, efficiency in that case, of course, also means profitable.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:12:04]:
Mhmm. You have some experience and a lot of people listening here. It now moved a little bit, but on average, they are 30 5 to 44. So they're not necessary in the very young stage there, but I do believe they still would like to hear about a few of the challenges you faced when you had 2 different programs and wanted to make them together. I'm sure some of the gray hairs I can see on your head is from this time. Can you take us through a few initial challenges you faced when you develop what we know today, as Weclap out of different tools?
Ertan Özdil | CEO and Founder weclapp [00:12:45]:
Yeah. You mean so the development side itself and the challenges coming from that area?
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:12:51]:
Plus setting up a company. I I I if you believe a few people looked at you like you were crazy, when you said, oh, you you, all your competitors have, like, big server forms, and they run everything on premise, but you can access my 2 phone browser. And I go, what?
Ertan Özdil | CEO and Founder weclapp [00:13:11]:
Yeah. That was in indeed an interesting, step and decision. And by the way, in the first 5 years, we have developed the whole platform, and, we we only burnt money in that time, and we have no income. So, it was, from from from 2, perspectives very critical and not that easy that you have to invest a lot of money into such a solution. And as you're saying on the other side, you have a completely new idea, and nobody can tell you whether this will be accepted later by customers when couple of years later, you start to sell your product. We had 5 years of development, cycle. We have developed for 5 years the whole platform and started in 20 end, 2012 and 2013 was the beginning of our sales activities. And until that point, it was really hard for me to sleep because it was really hard to see whether all that will work.
Ertan Özdil | CEO and Founder weclapp [00:14:10]:
And then you invest a 2 digit million in a such development of a product, the financial investor was nervous. I was nervous. But luckily, at the first thing when we started to sell our product, we could see, wow, that is something what is definitely being accepted. But the the decisions we made were quite, quite, critical and and, it it was completely different than what was already there. So there was no experience you could rely on. But as I mentioned, all went went went went good, and everything is good so far. And we're a fast growing company now in Germany.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:14:55]:
I would definitely remember the days you were talking about when you had, like, years of burning money developing, and then then, figuring out, oh, and how does my project now, fit in the market? How is it accepted? How do I create clients? I assume if you would start a company today, you would use a rather different approach. I do believe all the tools you have out there, all the libraries you can get, like, all the the the the building blocks for final software that would now shorten quite a lot this development, process. Would you still start with developing first software, or would you rather go out as early as possible putting something together and then try if there's a market fit?
Ertan Özdil | CEO and Founder weclapp [00:15:46]:
Yeah. It it depends on what kind of software solution you're you're talking about, and ERP systems are systems where customers do expect, a kind of functionality. You cannot start too early. If if the project is too small and you have only an MVP running that is not good enough that people will say, well, great. I want to pay money for this. So you definitely and that that was why we from the why I have chosen from the beginning a strong financial investor who was able to go into the risk and really pay the money. As I mentioned, it was a a bigger 2 digit million invest we did in the first 5 years, and but this is also for ERP systems necessary. If you don't if you're not feature complete, people will not pay money for your solution.
Ertan Özdil | CEO and Founder weclapp [00:16:43]:
And so for ERP, it's a bit different. Then I would start something smaller, a something what is like a CRM system or project management system or any other, smaller tool. I I would say there you have some of whom to start with less functionality, win some customers, earn some money, and then continue to develop. But that was also one of the big advantages what we have, that we really could focus on this great product, develop it, finalize it, and then start selling it.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:17:16]:
It sounds like, let let me take a few steps back. I I was starting interviewing entrepreneurs back in 2012, and that was when really the start up scene here in and around Frankfurt really took off. So we just started back in 2008. How were you able to find investor there? Because I do believe a real CVs who would accept a very long development or cash burning, phase until you can really rip the, fruits of that, they they have not been around at this time or at least not as big as you would need them.
Ertan Özdil | CEO and Founder weclapp [00:17:57]:
Yeah. It is very important to have, good context and a good good relationships to potential investors, and that was the case, in in for me. I had a good relationship to a public listed company, and that public listed company at that time, which came from a telecommunication background. They earned a lot of money over the decades before, and they're they are they were searching for a new idea, new is investment potentials. And so the idea my idea to have a cloud based ERP platform came together with the money these guys have, And we had a relationship before, and that's why they they, exactly knew what what kind of person I am or who, if if how how big the risk for them would be. Otherwise, that would be indeed very difficult. Having this experience now as as I, could create over the last 16 years of after founding the company, now it's much easier. Now I can go out and say, hey.
Ertan Özdil | CEO and Founder weclapp [00:19:05]:
I did it already successful once in the past, and, I'm here to to maybe restart this again. But these days that were indeed not easy, it was a lot of discussions, a lot of details what we have talked about before finally both sides both sides did, have an had an agreement and started doing things.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:19:30]:
Mhmm. I'll be interested. You you said, like, 16 years you're running this company now. Are you mentoring or, as in business angel, investing into young start ups?
Ertan Özdil | CEO and Founder weclapp [00:19:47]:
Well, that's that's a good question. Of course, the advantage of having such a successful company is that you you have access to some money, what you can invest, into other companies. My focus is weekly. I'm here to bring this company to the next level. I have, also, after the year, the IPO, what we have started back 2020 and 2021, we have then postponed in 2022 our IPO plan after the Ukraine crisis started. Unfortunately, we were one of the companies affected in that year. Otherwise, we would be a public listed company now. But, because of the old contacts and investors I I, had contact to, we I had then in, 2022 and 2022, sold some shares to a company in the Netherlands.
Ertan Özdil | CEO and Founder weclapp [00:20:49]:
And from from that money, of course, I could do my investments. I'm planning to do something in the future, but not now. I'm focusing on, the business here at WeClip. But what I'm quite frequently doing is to help others to have the right decisions to make sure that they cover everything what is important, and, I'm here to help. That's what I'm saying, and I really love to share my my knowledge, and help others to to have a great running business, especially that we here in Europe have really good software companies is quite important for me.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:21:25]:
Yeah. Because, a little bit my background to why I'm asking this here is, I'm sure you learned a lot in those 16 years.
Ertan Özdil | CEO and Founder weclapp [00:21:35]:
Oh, yes.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:21:36]:
I I'm most curious because a lot of the people out there are around that stage, where they make, like, 1,000,000 to 10,000,000 annual recurring revenue. Taking Weclap from burning money to something like a 2 digit revenues, I've found some numbers where you were 10 around 10, 15, a 1000000 euros annual avenue. What did you learn? What are, like, the key points we could we could tell somebody, do that in order to get, like, a really scalable company? What are, like, the the the a few important highlights you would, you would tell somebody, like, in a in a mentoring session? What did you learn how to scale up a tech company?
Ertan Özdil | CEO and Founder weclapp [00:22:29]:
Well, focusing on your product and your customer, that's the most important message, I would say. What I see quite often with other entrepreneurs is that they, after some time lose their focus on their business. Your product is is key. If if you have a great product, you you only need little marketing and and sales activities. But if you don't focus on your product, then you have always a lot of challenges in these areas, and then you have to put a lot of money. And what we, have successfully, have done in the past is that we focused on, parallel to the software development, for instance, to being visible with Google. As we have additional product, we need to be to position ourselves when you search at Google for for, such solutions and, make sure that you have your lead pipeline, your funnel under control. Make sure that you, have a good plan how you want to introduce you, to generate leads and how you can really have a strong funnel to to win a lot of paying customers.
Ertan Özdil | CEO and Founder weclapp [00:23:46]:
And all of that is much easier when you have a great focus on on, your product. So product customers, I would say, is very important. You should not have any fear about that something goes wrong. That's also often something what is, for, young entrepreneurs not easy as they, have a lot of fear and they step back and slow down and don't push really their product forward. If you start, make sure that you finish the job. And that was my that's that would be one of the key messages I would give to young entrepreneurs.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:24:23]:
Really know what you mean. For example, I meet entrepreneurs who are successful early on, and then they say, we need need to take a step back and do this or do that. We had a successful sales push, and your main recommendation was would be just keep pushing?
Ertan Özdil | CEO and Founder weclapp [00:24:42]:
Yeah. Definitely. Keep pushing, belief to to to what you had initial ideas when you started doing it. On the other side, if you see that something major is changing from from, what you have planned initially, also don't have any fear to change things. That's what I love with the US guys, by the way. The if they see that they're they they can do it better by changing, something, they stop doing it. And if they fail, they stand up and try it another time. And that's something, especially in Germany, we can, give to the young entrepreneurs to, not have too much fear about that something could go wrong.
Ertan Özdil | CEO and Founder weclapp [00:25:26]:
There's always something going wrong, and in the last 16 years of WeClip history, there was a lot what was not perfect. It was there were a lot of mistakes what we did, but, this that was no reason for me to stop believing to my initial idea and, believing to in my vision. And that's why we are still here and we are very successful, and it shows that it it can work
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:25:53]:
quite well. Look where you said don't stop believing. Journey started in my head. It's on from Journey. No. Not not gonna sing, otherwise, I'll scare away all the people here. Going a little bit back into, like, the early stages, I find, I find for my audience, from every piece of my experience, that early on, a company grows with good employees from your network. But there is a very big break when you start hiring people who are not in your network anymore, when you need to go out and need to search for people.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:26:35]:
How did you handle the phase? And is there, like, some advice you can give to people who are at this stage or approaching that stage?
Ertan Özdil | CEO and Founder weclapp [00:26:43]:
Company culture. That's my answer. You need a very healthy company culture. If you have a, a healthy company culture, then, people, coming to you to joining your company will be part of a culture, and having a culture is the important key, saying what you need to focus on. Most companies, when there are when when they have to have a successful idea will go quite fast, and you will quite early have the situation that people are coming in what what who who are not in your were not in your network, and your culture is is what will help to make sure that even when they're not from out of your network, that these people believe to your vision, believe to what you're doing, and that they have fun pushing things forward. And that was one of the, great things we did here at at to make sure that from the beginning, we have a very healthy culture.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:27:48]:
We'll have a very short break for our ad clients, and be back with you pretty soon. Thank you for staying with us. I'm here with Eitan, the founder of WeClap, and we keep pushing our interview. Before that break, you were talking about, keep it maintaining company culture. In the start, I assume you were there sitting around with a handful of people. How did you decide what is a company culture, and how did you keep it alive to scale to to to, several million, annual recurring revenue? How can you achieve that? Because that is something I do believe that's a make or break decision in the long term for a company.
Ertan Özdil | CEO and Founder weclapp [00:28:44]:
Yeah. Having it, written down somewhere is very helpful. It doesn't help if somebody comes in and you, tell the new joiner something about the culture. It must be written down somewhere, and it must be something what you, have to also support by your own when you join a such company. And what I told, everyone, every new join us is that you're part of the of this culture, the positive culture what we have and make sure that you positively contribute to it. And sometimes, Joe, also, of course, you have this situation that somebody don't understands what it means and, is is completely doing something diff difficult or or different, and you you need to maybe stop working with people also. But, most of the people joined with VCLAP did understand how important such a cult culture is and, contributed also to make it to bring it to the next level, and that's that's the way I would say how it works. So write it down, make it transparent to everyone, and just live it day by day.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:30:05]:
I was once in a larger company part of a workshop where core values have been decided. So, basically, people sat together and were discussing around a few abstract ideas. How would you say you could really develop this culture? How can you figure out what is your culture, except being awesome? How did you have external help there, or was it something that grew organically?
Ertan Özdil | CEO and Founder weclapp [00:30:44]:
No. It grew organically. We were all young people. Right? And young people together, they love to work hard and party hard. And, out of that, base I, based on understanding for all of us, we started to grow it from there and, add a little bit more here and a little bit more there. So there were not there were no no one external who helped us to, define a good culture. I I would say this is not natural enough. That's that's something what I would, definitely try to avoid.
Ertan Özdil | CEO and Founder weclapp [00:31:21]:
I don't think that in in such a stage that, you know, as a young company someone ex external can help you to define your own culture. You must live what you, what you want to see in your company. And that was maybe something what, was my advantage that I am a very positive guy. I'm I love to to work really hard, but also love to have have parties and nice moments together. And, all that is is natural, I would say, instead of something that comes from, outside and tries to help you as I don't think that this will work. Mhmm. Mhmm.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:32:05]:
Mhmm. And for everybody, company culture is not having a few beanbags in the office and a few nerve guns. That's not company culture. That that that that may be tools for company culture. Let us go a little bit onto the last part of the interview or the the the the the the the part I'm mostly interested because you guys were preparing an IPO, and you called it off. You for example, one of the reasons was the crying crisis. But first, let us go a little bit through this process. How did you because a lot of people, here in the audience is somebody who may be thinking of taking their company public.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:32:56]:
So, what would be of interest to us? How did you approach this? How did you set up the tours and so on and so forth? And how did you make the gut churning decision not to go through with the IPO? Yeah.
Ertan Özdil | CEO and Founder weclapp [00:33:13]:
So, generally, the Ukraine crisis, there was the only reason why we are not a publicly listed company. Otherwise, we would do it. By the way, you can do it at any time, but it it's, it's, the, value, what you get for your company, what, yeah, gives you some ideas whether you should do it or should do it later or or even stop doing it. The everything started with the fact that we have a very special situation in the ERP market. We have a lot of, by the way, in Germany, at that time, around 500 old ERP vendors. And these old systems, they have no future. People want to have ERP systems in the cloud. And, when you have a lot of, older companies there, inorganic growth is one of your strategy what what you will look at.
Ertan Özdil | CEO and Founder weclapp [00:34:09]:
And, when you want to acquire other companies, you need a lot of money. These companies are highly profitable companies. That's why, by the way, we don't see too many ERP companies, on this planet being public. They are highly profitable. They typically don't need that, money. But the when for our strategy to inorgan inorganically grow, next to our organic goals, we have decided to go the IPO rate. IPO itself is a lot of work. It's, you need a strong team supporting that process, but it's all possible and it's not that critical.
Ertan Özdil | CEO and Founder weclapp [00:34:52]:
And the what was quite, good for us is that our, investor or previous parent company was a public listed company. So we we were already we we had all this knowledge about what you need to follow with and, you you what you need to look at, and it was a bit easier for us. But in the end, it's a lot of documentation work, a lot of presentations, of course, and all that needs to be prepared. I would always look at this option to go the IPO way as it's really a good way to get fresh money into your company when you have such challenge like acquisitions with with other companies. But in in, after the preparation, we were, I had a 183, discussions with, a lot of investors around the globe. And, the and when we started to be being a public company, it was 2 weeks before all the party in Frankfurt was already booked. The the guest list was already there, really. Everything was prepared.
Ertan Özdil | CEO and Founder weclapp [00:36:04]:
And then the, we're trying Ukraine crisis started, and we unfortunately needed stop the whole process. But, otherwise, I would say from all what I have learned in that phase of preparation and all the discussions I had, it's definitely worth looking at this option, and it's not that off big, work, I would say. It's all possible to to get managed and handled. So, would be a good advice to if if there is someone out there listening, saying, hey. That could be an option for me. I would say, yes. Just do it.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:36:46]:
Usually, what you have is, like, an investment back that helps you with all the preparation consultants, and they basically also booked this, you told me you had a 3 week invest Investiture. Was it that you've been flying, around the world within 3 weeks and talked to a lot of different investors at different places there?
Ertan Özdil | CEO and Founder weclapp [00:37:08]:
Yeah. It was during corona. That's why it was, mostly online. But, yeah, that was this 5 minutes of break, my day was full with investor discussions the whole day and over a couple of weeks. But, we had Corona. That's why, it was online.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:37:29]:
I see. The the the last question would be for me. When you got up on the day you would call off the IPO when you get out of bed. How do you feel that day? You know you have to make a very, very tough decision. How how did you make sure it's the right decision, and how did you power through?
Ertan Özdil | CEO and Founder weclapp [00:37:53]:
That was the, that was really a negative moment in the 16 years of WeChat for me personally. I mean, you have focused for a very long time to, successfully finish that step, and you're so good prepared and everything was already there. And only 2 weeks before you're a public assistance company, you have to stop everything. That was really hard for me. But on the other side, it was a lot of things I I learned in that phase, and I could use the the experience I I have collected there. And if a door closes, a new door opens, and exactly that happened after we stopped the IPO plans and we, publicly announced that also to everyone that we that we will not be able to finalize it in that year. A lot of those investors I talked to came back to me saying, hey. We find you great.
Ertan Özdil | CEO and Founder weclapp [00:38:53]:
We find your product great. The market is great. We're here to help you. And so let's let's do it together. So one door was closed, another a lot of more doors have been opened after. So I 2 days, it was really hard, but after and at the 3rd day, I would say it became a bit okay for me again. Mhmm.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:39:15]:
I see. There would be quite a lot of more questions I would have for you here, but, I would like to close with, like, a handful, like the future outlook. What, the let me take one step back. You said you called off the IPO window closed a few different open. So, basically, the whole company, your whole structure, including the parent company at this point was sold or a little bit later?
Ertan Özdil | CEO and Founder weclapp [00:39:52]:
Their parent company stepped out, and a new strategic investor stepped in.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:39:58]:
Okay. Mhmm. And, you now do have a strategic investor. What are your goals for Weclap, and how do you plan to achieve them?
Ertan Özdil | CEO and Founder weclapp [00:40:10]:
Yeah. Luckily, we have a huge market, and we have the perfect product for this market. And that's why doesn't matter what way Weclap chooses for us next. It will be a very successful story over the next decades. And, we're the the positive thing that I have now is that there's a strategic investor who also comes from the software industry. We we have much more support than we ever had in the past. With the financial investor, these guys give you money, but nothing else. And now with with a parent company coming from the same industry, it's much more easy to have the best decisions and, go really the next step.
Ertan Özdil | CEO and Founder weclapp [00:40:57]:
And this is exactly what happens now, and the the potential work we have here in Germany as a as a huge market, and the old ERP systems on the market, which will be replaced over the next, years, gives us a lot of opportunity, and we all focus on making sure that we are the best option people have on the market, and that has highest priority for me at the moment.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:41:28]:
Sorry. Usually, we have 2 questions when we close those interviews. One of them, are you open to talking new investors? I think that question is moot for you guys. But, usually, we ask the people, are you still open to talk to, new talent, new employees?
Ertan Özdil | CEO and Founder weclapp [00:41:49]:
Yeah. We are open for any kind of ideas and and, entrepreneurs who say, hey. Who who would really need help for, pushing things forward, who need, people sharing their experience, with them. Definitely that one. And for talents, we're always open. We're a fast growing company. We always need great people in this organization. And if there is someone out there saying, hey.
Ertan Özdil | CEO and Founder weclapp [00:42:17]:
I have great ideas for the next kind of ERP level, we're here to listen, and we're here to, push things together with with new talents on board. Definitely.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:42:31]:
That have been actually pretty good closing words. Afterwards, you provide me with the career website, and we'll link it down here in the show notes as well as you link the profile so everybody who would like to talk to you can reach out there. Atan, thank you very much. It was a pleasure talking to you and a very different, kind of interview because we never had a company who really called off their IPO.
Ertan Özdil | CEO and Founder weclapp [00:42:57]:
It was a pleasure also for me. Thank you very much, Joe.
Jörn "Joe" Menninger | CEO and Founder Startuprad.io [00:43:00]:
Good day. Bye bye.
Ertan Özdil | CEO and Founder weclapp [00:43:01]:
Thanks. Bye bye.
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