📶 Deal Flow Report: Documenso Investment Memo

1,700 words on why we're so bullish on the company replacing DocuSign

February 02, 2025 • Estimated Reading Time: 3 minutes

Hello 👋

~Six months ago, I found Documenso, and I have been following the company ever since.

As a Docusign customer at the time, their message resonated with me:

Like Docusign, but better.

(Not their branding, but that’s how I describe it)

Docusign has been the default option for document signing even though it’s generally not loved by customers. That has created a massive opportunity for a company like Documenso to come in, and they have already made a splash.

Here are some other high-level notes on why I like this one:

  1. Solves a pain point for all businesses = massive TAM. If I were investing, I'd want to know the profile of their existing customers so I could better understand their GTM strategy going forward.

  2. Open-source. Without going into a philosophical rant over why open-source > closed-source software, I like the fact that they are publicly open-source.

  3. Free plan = easier entry point for SMBs. Their competition does not offer the same benefit (a sign that they do not service small businesses); this creates land-and-expand opportunities for Documenso as their client base grows.

  4. LEAN. The team is six people which creates a ton of internal speed to ship and deploy new features.

  5. Competition is not lean. The biggest competitor (Docusign) has 7,700 employees according to LinkedIn. That's one of the strangest statistics I've found, and it means that there is a TON of corporate fat. Speed is not an advantage for these types of orgs.

  6. Zero sales people (yet). The team up to this point is all engineers. We would expect this to change as they approach larger revenue targets, but it is a strong product signal that they have been able to scale to this point without anybody focused on marketing / sales.

  7. Tier-one backing. Sequoia led the pre-seed.

Here’s the 1,700-word investment memo on how we’re thinking about this company.

Let us know what you think.

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