Pitch, the Collaborative Presentation Software Startup, Undergoes Significant Changes
Pitch, the Berlin-based startup behind collaborative presentation software, is undergoing significant changes, including the departure of CEO and co-founder Christian Reber and a reduction of two-thirds of its workforce
Leadership Change:
- Christian Reber announced his decision to step down as CEO, with co-founder and CTO Adam Renklint taking over the role immediately. Reber will retain a seat on the company’s board.
Background and Funding:
- Founded in 2018, Pitch entered private beta in 2019 with $30 million in funding. The startup had raised over $130 million from investors, including Lakestar, Index Ventures, and Tiger Global Management, along with notable angel investors.
Challenges and New Direction:
- Pitch acknowledged the challenges of being a venture-backed company in 2023, facing high expectations and pressures for hyper-growth. The company is shifting its strategy from building a hyper-growth company based on venture funding to pursuing profitability and organic growth.
Financial Reset:
- The company worked with investors to “reset” its company and cap table. As part of this reset, Pitch essentially returned unspent cash to investors pro rata, resulting in a reduction of investors’ ownership stakes. Current and past employees, including founders, now own 80% of Pitch.
New Focus on Sustainability:
- Pitch aims to be a smaller, more focused team, prioritizing sustainability and a path to profitability. The company emphasizes creating maximum value for customers and driving sustainable growth.
Industry Context:
- The move by Pitch reflects a broader trend where startups reassess their strategies, prioritizing sustainability and profitability over hyper-growth, especially amid challenges in the venture-backed landscape.
Conclusion:
- Pitch’s decision to undergo leadership changes, reduce its workforce, and pivot towards sustainability and profitability indicates a strategic shift in response to the dynamics of the venture-backed startup ecosystem. The company is opting for a more measured approach focused on long-term success and value creation.