When Virgil Cioaca launched FirstPromoter in 2017, he set out to solve a problem that many SaaS founders quietly faced: there were no referral and affiliate platforms designed with subscription-based businesses in mind.
It began as a side project and quickly gained traction, growing organically through word of mouth and product-led marketing. Earlier this month, Cioaca sold FirstPromoter to SpringWater Capital, in a deal supported by L40° as the sell-side advisor.
In this conversation, the founder reflects on building a profitable SaaS company, navigating the sale process, and the lessons he hopes other founders take away from his journey.
On building FirstPromoter
Q: Virgil, can you start by giving us a brief overview of FirstPromoter and what led you to start the company?
Back in 2017, I was working in the affiliate space and noticed that while there were already decent solutions for e-commerce, there was nothing built for SaaS or subscription-based businesses. These companies had very specific needs, and none of the tools at the time addressed that.
So I decided to build FirstPromoter. The goal was to make it simple for SaaS companies to launch referral and affiliate programs that worked out of the box. It started as a side project, but soon it took off.
Q: How did growth look in those first years?
It has been very organic up until today. I didn’t spend big budgets on marketing. As a technical founder, I focused on building the best product possible for my customers, listening to their feedback. Word of mouth played a huge role, because founders talk to each other and recommend tools that work.
At the same time, I built the product so that when someone created an affiliate page using FirstPromoter, it had a small “powered by FirstPromoter” line. That created awareness, backlinks, and credibility. In a way, the product marketed itself.
Deciding to sell
Q: What made you start thinking about a sale?
The company was profitable and growing, but I realized that the next stage of growth would require a different set of skills. Hiring and managing larger teams, scaling marketing and sales, and structuring partnerships. Those are areas where I am not the expert.
That’s when I started thinking: maybe it makes sense to bring in a partner who has the resources and experience to take it further.
Q: At that stage, why did you feel you needed an advisor, and why L40° specifically?
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When I started speaking with advisors, many felt generic, like they didn’t go the extra step to understand my specific business. With L40°, it was different. They came prepared; they had studied the product and the industry, and they showed me how they would position the company to potential buyers. That gave me confidence.
During the process, they were also there all the time. From taking calls at odd hours, answering all the questions from buyers, managing tough negotiations. I never felt I was left alone. That level of personal support and involvement mattered a lot.
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Q: What were your main objectives when going into the process?
First, I wanted the right valuation and structure. Then, certainty of closing, because the worst thing is spending months negotiating and ending up with nothing. I also wanted a short transition process, not a deal that tied me for years.
Finally, I cared about finding the right partner. Someone who would not just pay a price, but also take care of the company and the team after I stepped back.
The sale process
Q: How would you summarize the process itself?
Intense. That’s the best word. From the outside, people only see the exit headline. Inside, it was several months of preparing, negotiating, answering lots of questions, and balancing that with running the business.
There were stressful moments, but having L40° manage the process helped me focus on what I still had to do as a founder, keeping the company stable and growing.
Q: What stood out to you the most in the process?
The impact of building competition among buyers. We ended up with four or five offers, and that changed the dynamics completely. You really see how valuable it is to have optionality. Buyers behave differently when they know they’re not the only ones at the table, and it reflects positively in both valuation and deal structure.
Q: And the challenging parts?
Due diligence and Sales Purchase Agreement (SPA) negotiations were very demanding, with each side trying to secure the best terms for themselves. At times, there were issues that could have materially impacted the transaction, but L40° stepped in, managed the discussions, and kept the process on track. That made a big difference in reaching the finish line.
Read: What is Sell-Side M&A Advisory? An Overview for SaaS Founders
The deal
Q: Can you share the key milestones of the deal?
What I can say is that we received multiple offers, within the range that L40° had indicated early on. That already gave me trust in the process, they knew the market.
From there, signing the LOI with SpringWater felt like a big step, but it was only the beginning. The diligence and SPA negotiations were the real test. Reaching the finish line and signing the closing documents was a huge relief.
Q: Why did you decide to go with SpringWater?
It wasn’t just about valuation. Not always the highest offer is the best one. I looked at who I would have to work with during the transition, whether they had a clear vision for the business, and if they would take care of the team.
SpringWater gave me confidence on those points. The fit was right, and I could see myself working with them. That mattered more than squeezing the last percent out of the valuation.
Q: How was due diligence for you personally?
Challenging, but manageable because I had support. If I had tried to do everything myself, it could have been overwhelming. There are so many requests, documents, explanations… you need a team with you that knows what buyers expect, who can anticipate issues, and who can push back when needed.
About L40° and lessons learned
Q: Looking back, what role did L40° play in getting the deal done?
I’d say their team was key in three main moments:
1. Preparation and positioning. They knew how to tell the company’s story and put the metrics in the right context.
2. Running the process. They created competition and kept buyers engaged until the end, improving the offer terms.
3. Negotiation. When tough issues came up, they fought to protect the terms and gave me peace of mind that I wasn’t leaving money on the table.
And on top of that, the personal support. They were available 24/7, which is exactly what you need when you’re going through something this intense.
Read: How M&A Advisors Prepare a Founder's Exit Strategy
Q: What lessons would you share with other founders who might be preparing for an exit?
First, start preparing early. Even if you’re not selling tomorrow, keep your documentation clean, delegate tasks, and run your company in a way that would be ready if you decide to sell tomorrow.
Second, know your priorities. For me, it was valuation, deal structure, certainty of closing, and finding the right partner. For you, it might be something else, but you need to be clear on it.
Third, don’t underestimate the value of creating a competitive process. Having multiple offers gave me confidence that I was not leaving money on the table and shifted the power dynamic.
And finally, don’t do it alone. The process looks simpler from the outside than it is from the inside. Having the right support changes everything.
Looking forward
Q: What does success look like for you now that the transaction is complete?
I’m still working with SpringWater during the transition, so for me, success is making sure the company continues to grow and the team is well taken care of. Personally, it also gives me the space to think about what comes next.
Q: Any final thoughts for other founders reading this?
If you’re even starting to think about an exit, start talking to people early. Learn from others who went through it. And remember: the process is much more than just getting a valuation number.
Beyond the deal
Cioaca’s story underscores the discipline required to grow a SaaS company profitably, the complex process behind an exit, and the value of working with your trusted advisors to secure the right deal.
Looking back, he's clear on what matters for founders: prepare early, know your priorities, and don’t underestimate the leverage that comes from competition and experienced support.
With FirstPromoter now under SpringWater’s ownership, Cioaca is focused on ensuring a smooth transition, while leaving the door open to whatever venture comes next.
If you’re a founder considering strategic options or exploring a potential exit, connect with L40° to discuss how we can position your company for success.
