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SaaS success without external money men: 28% growth and profit in the bank

Tech Savvy icon SaaS success without external money men: 28% growth and profit in the bank

In an industry where rapid growth often depends on external funding, .legal has taken a different approach. The company has achieved profitability and a 28% increase in MRR by 2024 – all without raising outside capital. The results show that sustainable growth can be achieved through strategic decisions and operational efficiency.

“Despite being bootstrapped, .legal A/S achieved organic MRR growth of 28% and reached profitability in 2024,” says Brian Østberg, CEO of .legal on the company website.

Read also: After major investment: Danish legal tech startup hires experienced entrepreneur – TechSavvy

Since the company was founded in 2019, .legal has aimed to make compliance management easier and more affordable for businesses of all sizes. Although .legal made a modest profit of DKK 69,000 in the financial year, it still marks a very important milestone for the company. In the SaaS industry, development costs are often high, making early profitability rare and prompting many startups to seek external funding.

“We have built a culture of moderation where we earn before we spend, and that mindset is both motivating and empowering,” says Brian Østberg.

Well positioned for sustainable growth

Despite a total revenue of just over 10 million DKK, .legal has chosen to phase out consulting and implementation projects. This decision, which led to a slight decrease in total revenue, is part of a strategy to focus on recurring license revenue that is more scalable and stable.

“Focusing on the right customers streamlines operations and makes our product better. Our financial stability has made it easier to make these choices,” says Brian Østberg.

Read also: Startup with fresh million-dollar investment doesn’t want flashy PowerPoints and reports: “The industry is too reactive – we’re changing that.” – TechSavvy

The company also managed to reduce operating costs by DKK 2 million in 2024 through smaller office facilities, automation and streamlining of processes. These measures enabled .legal to reach break-even while increasing operational efficiency. With 75% of the cost base covered by recurring revenue, the company is well positioned for sustainable growth.

In 2025, .legal plans to strengthen its product offering and expand partnerships, all with a focus on customer needs. As part of its corporate social responsibility, the company will offer its compliance technology to non-profit organizations for just 1 euro per year, making important tools available to those working for positive change.

“Being profitable is a win for us and it’s a win for our customers. It allows us to fully focus on their success and needs,” says CEO Brian Østberg.

 

Indlægget SaaS success without external money men: 28% growth and profit in the bank blev først udgivet på TechSavvy.