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Scale-up Simplicate conquers Europe with strategic partnership

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2024

Founded in 2014 by Peter Hager and Gerard Loode, the scale-up is not only celebrating its tenth anniversary this year, but also marks this milestone with an important development: the recent partnership with Blinqx. This strategic move will significantly increase Simplicate's influence and reach within Europe.

Simplicate's creation and vision

Simplicate's roots lie in the shared experience of founders Peter Hager and Gerard Loode, who both worked as consultants and repeatedly encountered the same complex problems at different companies. “In every organization we came into, we encountered complex processes that were remarkably similar to those of other companies,” explains Peter Hager. This led to the realization that there was a need for a standardized solution that not only increased efficiency, but was also based on a strong business management concept designed specifically for service companies.

With a clear and ambitious vision, they decided to develop a “best practice” software product. “We wanted to create a product that fully integrated our own vision, that could be deployed immediately. This would allow us to implement it quickly with customers and then focus on further refining the vision, instead of starting over with each new customer,” says Peter. This approach led to the development of “opinionated” software, which means that Simplicate not only offers functional tools, but also a methodology that contributes significantly to improving their customers' business operations.

Expansion to Amsterdam

Three years after their start, Simplicate opened a new office in Amsterdam in 2017. This move was driven by the desire to be closer to a large number of their customers, who are concentrated in the Randstad, and to have easier access to specialized talent in the Amsterdam region. “The decision to open an office in Amsterdam was a strategic move to be closer to our customers while strengthening our team with talent that was harder to find in the north,” Peter explains. This expansion also strengthened the company culture through regular interaction between the teams in Groningen and Amsterdam.

Growth and challenges

When Simplicate started, the company faced significant financial challenges. Despite its rapid growth, Simplicate needed significant resources to expand the team and fund software development.

“At that time, we had around eight employees, and with only a few thousand euros in income per month, we spent a lot of money. It was quite exciting.”

The search for funding was a crucial moment for Simplicate. They chose the NOM, a party that was a good fit for the phase Simplicate was in. “Choosing NOM was a logical decision for us. They understood where we were and they trusted our plan, which was essential at the time,” Peter explains. The resulting funding helped Simplicate stabilize and grow.

“After the first investment by the NOM, we deliberately chose not to pursue any further external funding rounds. We financed our growth from the proceeds of our own business activities. This has enabled us to remain independent and fully focus on our products and customers. Eventually, we were able to buy back the NOM shares, allowing us to continue to grow on our own,” Peter explains.

Simplicate and Blinqx toast to successful collaboration

Partnership with Blinqx

The recent partnership between Simplicate and Blinqx is more than just a business acquisition; it marks a new phase in Simplicate's development. “We've partnered with Blinqx, which means they've acquired Simplicate, but we've also taken an interest in Blinqx,” Peter explains. “This is not an exit from the company, but an opportunity to grow and improve our products and market reach, while staying true to our core. This step broadens our options considerably. We get access to new knowledge, wider networks and deeper financial resources, which is essential for accelerating our innovation and expanding our market penetration. This partnership also allows us to expand our influence outside the Netherlands, with the aim of becoming a major player in the European technology sector.”

Despite integrating with a larger organization, Simplicate maintains its identity and autonomy.

“It was important to us that Simplicate was still able to determine its own direction within the Blinqx structure. This is crucial to make our partnership successful.”

Does this mean that Simplicate is leaving Groningen? Certainly not. “Simplicate's expansion and growth actually creates more jobs and strengthens our regional economy,” Peter explains. He emphasises that working with Blinqx not only enables Simplicate to grow internationally, but also contributes to local success. “We are proud to continue our growth from Groningen, a city that for us is much more than just a location.”

A business wedding

The corporate culture at Simplicate is strongly shaped by the collaboration between the two founders, Peter Hager and Gerard Loode. Their relationship, marked by deep respect and trust, plays a critical role in how they run the company. “It's a business commitment. So you have highs and lows. In addition, you have different personalities that both have something to contribute. That's something you have to respect and want to respect each other for,” says Peter.

As Simplicate grew, so did the division of roles between Peter and Gerard. Gerard focuses primarily on finance and business processes as CFO, while Peter takes on the role of CEO. “We were co-CEOs or co-founders for a long time, but it wasn't always clear to the outside world who to turn to for what,” Peter explains. “Whatever our title, in the end, we make all decisions together, whatever works best for us.” This collaboration has enabled them to make strategic decisions and continuously redefine Simplicate's direction.

The future

Peter explains that the partnership with Blinqx is the start of an exciting new phase for Simplicate. “Thanks to Blinqx, we can explore new areas and improve our products and services, always respecting our business principles,” says Peter.

The focus is not only on expanding Simplicate's reach, but also on deepening customer relationships and improving the user experience. Peter underlines, “Our goal is to develop cutting-edge technologies that truly meet what our customers need. We strive not only to meet but exceed their expectations, to always be honest and trustworthy.”

Looking back on the impact of this partnership for Groningen, Peter says, “This development not only strengthens our position as a leading technology company, but also improves Groningen's reputation as a center of technological innovation and business success. We are proud to continue our growth from our home base.”

Asked if Peter has advice for other founders, he replies, “Stay true to your own ideas but stay close to your customers and team. They are the backbone of your company. Understanding the real needs of your market and responding smartly to them is crucial.”

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