Chen Amit: The GTM Story of Tipalti ($8.3 Billion Valuation)

Tipalti is a pioneer in finance automation, transforming how businesses manage their global payables. With over $955 million in funding and a valuation of more than $8 billion, Tipalti has expanded its services to process $65 billion annually for 4,500 customers worldwide.

In a recent episode of Unicorn Builders, I sat down with Chen Amit, CEO and co-founder of Tipalti, to learn about the company's journey from a simple payment solution for ad networks to becoming a leading provider of comprehensive finance automation for mid-market companies.

Topics Discussed:

• Tipalti's origin as a solution for ad networks' payment challenges
• The company's evolution from a niche product to a comprehensive finance automation platform
• Tipalti's strategy of focusing on the mid-market segment
• The impact of customer feedback on product development and market expansion
• Tipalti's approach to hiring and evolving sales leadership as the company grew
• The challenge of creating a new category in finance automation and educating the market

GTM Lessons For B2B Founders:

1. Leverage "venture customers": Chen emphasized the importance of early customers who are willing to work closely with startups who he called "venture customers". These customers provide invaluable feedback and help refine the product. B2B founders should actively seek out and nurture relationships with early adopters who are enthusiastic about engaging with and leveraging new technologies.
2. Focus on solving the buyer's pain: Tipalti succeeded by focusing on the finance team's overall needs rather than just payment mechanics. Chen explained, "The difference was that I wasn't focusing on the payments. I was focusing on the CFO, on the finance team, on their pains, on what they care about, on how I relieved them from their pains and their challenges and built it with them in mind." B2B founders should aim to understand and address the full scope of their target buyers' responsibilities and pain points, not just the immediate technical problem their product solves.
3. Identify your ideal market segment: Tipalti found success by focusing on the mid-market, where companies have complex needs but lack the resources of large enterprises. Chen explained, "Mid-market is hard because you have a buyer with problems that are not basic anymore... but they lack the ability to execute." B2B founders should carefully analyze where their solution provides the most value and focus their efforts there.
4. Category creation begins with problem understanding: Chen admitted it took time to understand where Tipalti fit, saying, "It took me a while until I understood where I play, to be honest." The category of "mid-market finance automation" emerged organically as they solved customer problems. Only after years of operation and with input from experienced hires did they clearly define their category. B2B founders should prioritize solving real customer problems and let their category definition evolve naturally based on market feedback and operational insights.
5. Capitalize on regulatory and compliance shifts: Tipalti found success by addressing complex issues like tax forms and anti-money laundering regulations. These requirements often serve as trigger events for companies to seek new solutions. B2B founders should identify similar regulatory or compliance-driven triggers in their markets and align their value proposition accordingly.

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