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🔌Plug-In Play: Transitioning from B2C and SMB to Enterprise B2B Software
Formstack Integration Playbook
Today’s newsletter is about business strategy—how a seemingly simple form-building tool Formstack transformed from a lightweight product for individuals and small businesses into a robust enterprise-grade workflow suite.
As always, if there’s a sector or company you’d like me to dig into, drop me a note at [email protected].
PE Playbook: Formstack (now Intellistack)
State of Play
In private equity, enterprise B2B businesses tend to get preferential treatment—and for good reason. Compared to B2C and SMB counterparts, enterprise software companies offer:
- Higher revenue per customer
- Lower churn
- Combine the two, greater customer lifetime value
These traits make them durable and scalable. That’s why most PE firms chase vertical-specific enterprise software—the “Salesforce of X” or the “SAP of Y.” You rarely see firms pursue horizontal tools built for smaller users.
But in 2018, PSG made a contrarian bet on Formstack, an online form builder that started at $5 per month pricing. By 2021, Formstack had tripled revenue and raised $425 million from Silversmith. Its customers now include Kaiser Permanente, Shell, Shopify, Netflix, YMCA, and the University of Michigan.
Let’s dive into how PSG transformed a consumer-grade tool into an enterprise tool—by plugging into massive platforms instead of trying to replace them.
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