Spreadsheet Apps | Turn Spreadsheets into Powerful Apps - spreadsheet.com

The Counterintuitive Startup Strategy of Spreadsheet.com

A common piece of advice for startup founders involves identifying professionals reliant on spreadsheets and subsequently developing an application to supersede their spreadsheet-based workflows. This approach has historically been a pathway to launching a startup, and potentially even defining a new software category.

However, Spreadsheet.com is pursuing a distinctly different strategy. Rather than aiming to replace spreadsheets with applications, the company intends to integrate application functionality directly within spreadsheets.

Recent Funding and Valuation

TechCrunch was contacted by the company regarding a funding announcement from June of last year, revealing a $5.5 million raise. This funding round included investments from Spark Capital, First Round Capital, and Firebolt Ventures.

While this funding event is now somewhat past, data from PitchBook indicates a post-money valuation of approximately $22 million associated with that investment. The core concept driving Spreadsheet.com is innovative and warrants further examination.

Let's delve into the details of their approach.

Expanding Spreadsheet Capabilities

Traditionally, spreadsheets have been limited to data organization and basic calculations. Spreadsheet.com aims to transform this paradigm.

The platform seeks to empower users to build and deploy applications directly within the familiar spreadsheet interface. This allows for a more integrated and streamlined workflow.

Key Features and Potential Benefits

• Enhanced Functionality: Users can add features like task management, CRM, and project tracking directly into their spreadsheets.
• Increased Efficiency: By eliminating the need to switch between multiple applications, productivity can be significantly improved.
• Accessibility: Leveraging the widespread familiarity of spreadsheets lowers the barrier to entry for utilizing more complex application features.

In essence, Spreadsheet.com is attempting to redefine the capabilities of spreadsheets, turning them into versatile platforms for building custom solutions.

The Enduring Appeal of Spreadsheets

Spreadsheets represent a unique combination of functionalities, acting as both a structured data repository akin to a database and a powerful computational tool, offering features like averages and summations. This versatile nature has ensured the continued relevance of established spreadsheet applications, such as Microsoft Excel, despite the proliferation of new software solutions.

The ubiquity of spreadsheets is often the subject of humor, highlighting their central role in many organizations. A particularly memorable example of this can be found here:

https://twitter.com/deepenergyy/status/1417579667297509377

Despite ongoing efforts to replace them, spreadsheets have proven remarkably resilient. This observation is central to the core belief of Spreadsheet.com. According to CEO Matt Robinson, companies often find themselves managing both spreadsheets and specialized applications when they attempt to migrate specific workflows, effectively doubling their software overhead.

The company’s primary goal is to offer a spreadsheet solution that minimizes the need for multiple applications. Robinson posed a question in response to inquiries about the product’s capabilities: What tasks are currently performed using spreadsheets? He cited data management, task assignment, and document linking as common examples, asserting that these functions can all be executed within a single spreadsheet interface.

“Spreadsheet.com is engineered to deliver the advantages of both traditional and modern approaches,” he clarified in a subsequent discussion. “It provides the familiar spreadsheet experience users already understand, enhanced with a significantly expanded feature set.”

The software allows for spreadsheet visualization in diverse formats, including a timeline view, a feature commonly associated with Airtable. Robinson also emphasized compatibility with existing formulas, and the future implementation of if-then logic to automate data transfer to other applications or trigger email notifications. He stressed that the company prioritizes developing native features over relying on third-party plugins.

Currently, Spreadsheet.com is not widely accessible, which explains why it may be unfamiliar to some. The company reports a waiting list of 16,000 users, with plans to open access to the public on October 17th – appropriately, Spreadsheet Day.

Robinson attributed the substantial waitlist, despite operating in a relatively discreet manner, to coverage by Fast Company back in 2019. This early recognition proved to be a significant achievement.

Future Development Plans

Typically, when a startup announces a substantial funding round, the immediate question is whether further fundraising is planned. TechCrunch aims to avoid being used to promote a company’s subsequent funding efforts. In this instance, Robinson indicated that his company has received expressions of interest for a Series A funding round and may pursue it within the next 12 months. This timeline allows for continued operation without immediate fundraising pressure.

Robinson stated that Spreadsheet.com currently possesses approximately 2.5 years of operating capital and is not facing immediate financial constraints. Should they choose to raise additional funds in 2021, they anticipate securing a favorable valuation, aligning with the principle of raising capital when it is not strictly necessary.

The rationale for potentially raising more capital, even without immediate need, lies in the company’s growth ambitions. Robinson explained that expanding non-engineering roles – currently representing only 8% of the workforce – and attracting top talent would require significant investment. He also acknowledged the substantial funding already secured by competitors.

The competitive landscape includes numerous players. Airtable, a well-known unicorn, has raised over $600 million according to Crunchbase data. Layer focuses on enhancing spreadsheet collaboration. Stacker empowers no-code developers to build applications from spreadsheets, representing a contrasting approach to Spreadsheet.com. Rows, formerly known as dashdash, also operates in this space. Flowhaven aims to manage brand-related tasks outside of spreadsheets, addressing a trend that Spreadsheet.com seeks to counter. Finally, Fivetran focuses on modernizing spreadsheet data handling and analysis.

The next step is to observe Spreadsheet.com’s public launch and evaluate its technology. The central question remains: are spreadsheets evolving into applications, or are applications incorporating spreadsheet functionality? The answer will become clear in due course.