The Idea

The seed for Friendly was planted when Vetter realized that most existing marketing and analytics software was far too invasive for businesses concerned with privacy. He wanted to create a platform that would help companies comply with data protection laws like GDPR while providing the same functionality as competitors. Vetter, inspired by his extensive experience in digital marketing (he also founded Wortspiel, a leading Swiss digital agency), set out to build tools that were privacy-first and hosted data exclusively in Switzerland(Stefan Vetter)(FOUNDED).

His core idea was to create an ecosystem that would offer companies the tools to automate marketing and track website performance while ensuring that all data remained secure and private.

Challenges

As with any startup, Friendly faced early challenges. Competing against well-established giants like Google Analytics and HubSpot, Friendly had to prove its value not just in terms of functionality but also in privacy—something many businesses weren’t immediately concerned about before GDPR made data protection a pressing issue.

Another challenge was financial. During the early days of COVID-19, Vetter had to make significant sacrifices, including taking a loan from family and asking his team to accept temporary pay cuts to keep Friendly afloat(Indie Hackers). However, Vetter’s persistence and vision for a privacy-focused product kept the company moving forward.

Stefan also faced difficulty converting early interest into sales. During the launch of their first product, Friendly Analytics, they received 593 visitors on the landing page but secured zero sales. Two reasons contributed to this: pricing was not well-tested, and the landing page had not been optimized based on feedback. It took 21 days to get their first paying customer, a milestone Stefan considered a great success. Bootstrapping the startup also meant limited resources and periods of loss, which had to be filled from personal finances.

Industry Context

The rise of privacy legislation like the GDPR in Europe and CCPA in California has fundamentally changed how businesses view data. With scandals like Cambridge Analytica still fresh in the public’s mind, companies are increasingly concerned about how their customer data is managed and protected. This shift has created space for privacy-focused alternatives to mainstream marketing and analytics tools.

Friendly is positioned as part of a growing movement toward ethical software development, offering businesses a safer, more compliant way to collect and use data. By focusing on Swiss data hosting and full GDPR compliance, Friendly offers peace of mind that other major global platforms often cannot(FOUNDED.).

Friendly operates in the competitive MarTech space, offering tools for marketing automation and web analytics with a privacy-first approach. With increasing privacy concerns and regulations worldwide, the demand for such solutions has been growing, though the market remains challenging due to competition from established giants.

Founders

Stefan Vetter, the founder and CEO, is no stranger to entrepreneurship. Before founding Friendly, he built Wortspiel, one of Switzerland’s leading digital marketing agencies. His journey with Friendly was fueled by a passion for both marketing technology and data privacy. Vetter’s philosophy is simple: offer transparency and trust to both users and customers. Friendly has embraced the “open startup”

model, publicly sharing financial metrics, salaries, and even employee contracts to foster trust within the community(FOUNDED.)(Stefan Vetter).

Product

Friendly’s two core products are:

• Friendly Analytics: A privacy-compliant alternative to Google Analytics. It provides businesses with insights into their website traffic without tracking individual users, offering a streamlined and GDPR-compliant solution.
• Friendly Automate: A marketing automation tool similar to HubSpot, but with a strong emphasis on privacy and user data protection. This tool helps businesses set up automated email campaigns, track leads, and manage customer interactions while staying compliant with Swiss and European data protection laws.

USP

Friendly positions itself as the “friendliest software company in Switzerland,” offering privacy-centric and transparent marketing tools. They stand out as an “open startup,” sharing metrics like revenue, costs, and salaries publicly to foster trust and accountability.

Its primary differentiator is its commitment to data sovereignty and privacy-first solutions. At a time when businesses are increasingly cautious about data storage and compliance, Friendly offers the peace of mind that all data is securely stored in Switzerland, under strict GDPR and Swiss data protection laws. This feature, combined with its open startup transparency, sets it apart from more traditional competitors(FOUNDED.).

Competitors

Friendly competes with established marketing software providers like HubSpot and Google Analytics. However, its privacy-focused approach and open-source philosophy set it apart, appealing to companies seeking transparency and ethical data practices.

Build

Friendly was built quickly, launching its first product, Friendly Analytics, just 26 days after Vetter registered the domain. The team utilized a lean startup approach, launching Product Hunt and using feedback to iterate rapidly. Within just 94 days, Friendly achieved $1,000 in monthly recurring revenue (MRR), marking a quick growth trajectory for a bootstrapped company(Stefan Vetter).

Implementation

Friendly’s early traction came from launching on Product Hunt and leveraging Vetter’s existing networks through Wortspiel. The company also embraced transparency by becoming an open startup, publicly sharing revenues, costs, and key metrics. This openness not only built trust with early adopters but also served as a unique marketing strategy.

Growth

Friendly’s customer base quickly grew to 120 clients, with companies ranging from small businesses to large enterprises in industries like finance. By focusing on data privacy and building products that directly addressed growing regulatory concerns, Friendly was able to tap into a specific niche within the marketing software market(FOUNDED.)(Stefan Vetter).

In 2021, Friendly achieved a 79% growth in Monthly Recurring Revenue (MRR), ending the year with an ARR of CHF 11,553 (~ $12,414). The company acquired 76 new customers in 2021, including notable names like the canton of Zürich and Branchen Versicherung. Despite being profitable since February 2024, Friendly is still covering prior losses due to bootstrapping. Growth has been steady but relatively slow, prioritizing sustainable business figures over rapid expansion.

Pricing

Friendly.ch offers three main pricing tiers, all allowing users to send unlimited emails. The pricing is based on the number of contacts rather than email volume, making it ideal for businesses with high outreach needs. Here’s the detailed breakdown:

• Starter Plan: For up to 1,000 contacts. Includes unlimited emails, access to email marketing tools, and basic automation features.
• Professional Plan: For up to 10,000 contacts. Offers more advanced marketing automation, email marketing, and customer segmentation.
• Enterprise Plan: For over 10,000 contacts. Tailored for larger organizations, providing advanced automation, Customer Relationship Management (CRM) integration, and priority support.

All plans are General Data Protection Regulation (GDPR) compliant, ensuring a secure and privacy-focused platform for marketing automation and CRM needs.

Key Takeaways

• From slow start to profitability: Despite initial challenges, Friendly achieved profitability in 2024 by prioritizing product refinement and customer feedback.
• Open startup model: Stefan’s commitment to transparency helped Friendly build trust and loyalty, positioning them uniquely in the market.
• Focus on privacy: Their privacy-friendly approach differentiates them from competitors, tapping into a growing market of businesses concerned with data security.
• Bootstrapped growth: Friendly’s journey showcases the challenges and benefits of bootstrapping a startup, highlighting a strategic focus on long-term stability over rapid scaling.

In a world increasingly concerned with data privacy and security, Friendly, led by Stefan Vetter, has positioned itself as a trusted alternative to mainstream marketing tools. By focusing on compliance, transparency, and Swiss hosting, Friendly has carved out a niche for businesses that prioritize privacy without sacrificing functionality. With plans to grow its team and expand its product offerings, Friendly is well on its way to becoming a leading name in privacy-focused marketing software(Indie Hackers)(FOUNDED.).

For a quick look-through of other tools that could be helpful, read our guide on “The Must-Have Tools Every Startup Should Be Using”.